Chevron Lobbies Against Expanded Sanctions in Myanmar

The last few chaotic months in the Southeast Asian nation have impacted notable corporate interests in the United States (Wikimedia)

Since the military seized control of Myanmar on February 1 and detained its democratically elected politicians, the Junta leadership has struggled to find allies among Western countries. Nevertheless, Chevron, one of the largest oil companies in the United States, has mobilized its lobbying operations in efforts to prevent further sanctions on state-owned oil and gas despite its role in funding the military regime. 

Following an election in which Aung San Suu Kyi and her party, the National League for Democracy, won in a landslide, armed forces backing the opposition overthrew the government and took control. Alleging widespread fraud (which the election commission has denied), the military declared a year-long state of emergency. Military commander-in-chief Min Aung Hlaing, who now holds power, has stated that he will hold a “free and fair” election once the state of emergency ends.

The takeover has spurred thousands of protesters from every profession, leading the military to impose heavy restrictions on demonstrations and employing violent means to enforce the policy. Security forces have killed more than 700 in the crackdown and detained thousands more. 

The Myanmar Oil and Gas Enterprise (MOGE), a state-owned company with firm connections to the military, has a close relationship with Chevron. As influential figures push for the Biden administration to impose sanctions on MOGE—with a human rights investigator telling the Senate last month that it “is now effectively controlled by a murderous criminal enterprise”—Chevron instead claims that sanctions could cause those civilians who rely on MOGE to lose power, worsening the crisis.

According to Reuters, “Chevron’s holdings in Myanmar include a 28.3 percent stake in the Yadana natural gas field and a 28.3 percent stake in a pipeline that carries Burmese gas to Thailand.” In an interview with the news agency, a Chevron spokesman said that “[The Yadana field] is a mature field that requires ongoing maintenance to maintain safety and future production” and that shutting it down “could adversely affect its future production potential.” Lobbying disclosures reveal that Chevron has spent over $2 million on lobbying efforts between January and March of this year.

The Biden administration first imposed sanctions on Myanmar in early February targeting military leaders, their business interests, and their family members. These sanctions expanded to include the Myanmar Pearl Enterprise and Myanmar Timber Enterprise in April, citing the timber and pearl industries’ roles in funding the Junta. As of April 28, however, President Biden has not taken an explicit stance on sanctioning MOGE.