Chevron Committed to Myanmar Project, O'Reilly Says

Chevron Corp., the second-largest U.S. energy company, will keep its stake in a natural gas project in Myanmar, defying calls to leave following a crackdown on protesters by the country's ruling junta.

The people around the Yadana gas project and pipeline have benefited from jobs and investments in health care and education, Chief Executive David O'Reilly said today in an interview in Bangkok. The company may lose any tax benefits from the project under a bill approved by a U.S. congressional committee Oct. 23.

``Our commitment is to try to stay to be a positive influence,'' O'Reilly said in an interview in Bangkok today. ``It isn't going to change anything if we leave. We are a minority investor in this project.''

Chevron faces renewed calls to divest its 28.3 percent stake in the Total SA-operated Yadana project after Myanmar's government last month crushed the biggest anti-government protests in almost 20 years. The company may be forced out of the country formerly known as Burma under legislation from Sen. John McCain introduced on Oct. 17 that prohibits investments by U.S. companies after sanctions passed in 1997.

The House Foreign Affairs Committee unanimously accepted legislation introduced by Rep. Tom Lantos, a Democrat from California. The bill to pressure Myanmar's military rulers states that no tax deductions will be allowed for the ``joint production agreement'' for Yadana and prohibits payments or property transfers to the government.

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