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TOTAL II



dawn star wrote:
> 
> second part
> 
> $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
> 
> the following is from the TOTAL web site www.total.com
> 
> [The World of TOTAL]
> 
> [Yadana project]
> 
>        A historic opportunity for development and new openings ||
>        Consequences of the project for local population and economy ||
>        Socio-economic actions
> 
>        DISCUSSION OF MAIN CRITICISMS
> 
>        1. Allegations of forced Labor
> 
>        Concerns have been expressed that forced labor is being used to
>        lay the section of the pipeline that crosses Myanmar.
> 
> This  allegation voiced even before any work had been started and is
>        completely unfounded. Firstly, the operator would never permit
>        work to be carried out in such a manner.
> 
> Secondly the operator contracts only competent specialized companies
> with
>        international reputations. In order to provide jobs in the
>        regions concerned, the selected sub-contractors maximize the
>        use of local workers who are all naturally volunteer adults and
>        well paid. These sub-contractors operate in a professional
>        manner that meets exactly the same expected standards of human
>        rights and working conditions applied worldwide. These
>        standards are in strict compliance with the Group's Health,
>        Safety and Environment Charter and TOTAL Myanmar's Code of
>        Conduct.
> 
>        2. Allegations of forced relocation
> 
>        Since the signature of the PSC (1992), no population has been
>        moved to Total's best knowledge which is corroborated by
>        frequent visits to the villages. Furthermore, the operator has
>        no plans to move anyone in connection with this project; in
>        fact there is absolutely no reason to do so as the route of the
>        pipeline has been carefully traced to ensure that it does not
>        pass through any villages.
> 
>        The pipeline has to cross some cultivated land which often
>        happens in large building projects around the world. As is
>        normal and expected, Total and its partners naturally provide
>        fair and documented compensation to the concerned individuals.
> 
>        3. Confusion between the pipeline and the Ye-Tavoy railway
> 
>        There has been some criticism regarding the working methods
>        used to build this railroad (use of forced labor). The reality
>        is that the railway project has nothing to do with the Yadana
>        project :
> 
>        - the planning of this railway dates back to colonial times. It
>        is designed to extend an existing line towards the south in
>        order to open up the isolated southern region. It runs
>        North-South, whereas the pipeline goes West to East.
> 
>        - The railway is technically incapable of transporting the very
>        large equipment required for a pipeline project. This equipment
>        is shipped by barge and unloaded at a logistical base built
>        especially for the project. It is then trucked overland to the
>        construction site.
> 
>        - in May 1996, Myanmar authorities have announced that from now
>        on "people's labour" will no longer be used for the
>        construction of railway lines and that soldiers would be used
>        instead.
> 
>        4. Denial of a report by "People's Defence Force" on BurnaNet
>        news (september 2,1997)
> 
>        TOTAL-Myanmar categorically denies the report, dispatched by a
>        group called "People's Defense Force" on BurmaNet news,
>        concerning the rape of a young Mon girl by "three foreign TOTAL
>        employees" on June 23.
> 
>        As soon as this allegation have been diffused by on the web, on
>        August 25, we have immediately ordered an inquiry in the area
>        on this report. This inquiry concluded that this report is
>        completely unfounded.
> 
>        It appears that there is no inhabitant named Mi Tin San in
>        Mygyaunglaung (or Mi Chaung Hlaung) village . The population of
>        Mygyaunglaung has obviously no information about an accident of
>        this kind. Contrarily to the allegation, nobody has been
>        hospitalized after a rape in June 97, neither in Kaunbauk
>        Hospital nor in one of the Total health centers in the vicinity
>        of the pipeline. We have even checked at Dawei (Tavoy)
>        hospital, where no such record has been found.
> 
> [The World of TOTAL]
> <toal.com>
> Yadana project
> YADANA GAS PROJECT IN MYANMAR (BURMA)
> 
>        Humanitarian Report : Yadana project
> 
>        Reverend Richard W. TIMM, head of the Commission for Justice
>        and Peace and founder of the South Asian Forum for Human
>        Rights, and Justice K.M. Subhan, former consultant at the
>        United Nations Center for Human Rights, spent five days touring
>        and inspecting the Yadana project area in Myanmar, from January
>        4 to 8, 1998.
> 
>        The report they have published refutes allegations of abusive
>        working conditions, describes the different dimensions of the
>        socio-economic program, and makes instructive recommendations
>        for the future.
> 
> -------------
> 
>  COMMISSION FOR JUSTICE AND PEACE
> 
>          GPO Box-5, Dhaka-1000, Bangladesh, Tel: (880-2) 417936
>            Fax: (880-2) 834993
> 
> E-mail: hlbtimm@xxxxxxxxxxxx
> 
>       BACKGROUND:
> 
>       We, Fr. R.W. Timm, CSC and Justice K.M.Subhan, have been
>       working on human rights, and legal and humanitarian issues
>       for over four decades each, in Bangladesh, Southeast Asia
>       and elsewhere. During 1997, we were invited by UNOCAL to
>       visit and review labor conditions and socio-economic
>       programs at the Yadana gas pipeline project in Myanmar.
>       We spent five days in Myanmar (January 4-8, 1998) looking
>       into various humanitarian aspects of the project, in
>       particular investigating allegations of slave tribal labour
>       and labour abuses (mentioned, for example, in the May-June,
>       1997, issue of the journal of the International Work Group
>       for Indigenous Affairs). Naw Vashti Pan Poe (of MOGE, and
>       seconded to TOTAL to work as village coordinator for the
>       socio-economic programs) accompanied us and acted as
>       interpreter.
> 
>       We did all our interviews within the pipeline area. The
>       questions of how and whether foreign investment affects the
>       viability of the current regime in power in Myanmar were
>       beyond the purview of our undertaking.
> 
>       In the villages along the pipeline, we took interviews of
>       workers to learn what wages they received, how they compare
>       with daily wages in the area and in the country in general.
>       We also took interviews of people who received compensation
>       for their land which was taken for the pipeline right of
>       way (41' wide). The team also examined "Heads of
>       Agreements" with the local communities and met with Village
>       Communications Committee members to learn their
>       composition, mode of selection and their understanding of
>       their role. We visited clinics and schools, and took
>       interviews with the health and education staffs and those
>       under their care.
> 
>       At no point was there any army presence during our
>       interviews.
> 
>       OBSERVATIONS:
> 
>       1. TOTAL and its allies are doing something far above their
>       legal obligations for the development and improvement of
>       the village and community life. Not only are they paying
>       fair wages, well above the market price, but they are
>       keeping their employees happy and the inhabitants of the 13
>       villages near the pipeline have experienced great
>       improvement in their lives.
> 
>       2. We carefully looked into hours and conditions of work.
>       In general, the working hours were 12 hours per day, seven
>       days a week. Six weeks of work are followed by two weeks of
>       fully paid holidays. Wages for unskilled labour are twice
>       that of unskilled workers in the area and in the country in
>       general. Specialised or skilled workers get much higher
>       wages. Workers universally expressed satisfaction with
>       their jobs and no one made any complaints about any abuse.
>       Some were specifically asked about forced labour and they
>       knew nothing about it.
> 
>       3. Children are being universally educated, health problems
>       are cared for, government clinics have been improved, and
>       income generating projects of various kinds are being
>       carried on by the Village Communications Committees with
>       great success. Schools were new or renovated and had big
>       playgrounds. Students looked healthy, were dressed neatly
>       dressed in clean uniforms, smiling and physically active,
>       outgoing, unafraid, alert to our questions and disciplined.
> 
>       4. The social structure of these villages is completely
>       different from in Bangladesh, where a relatively few elite
>       dominate over the many and siphon off for themselves the
>       choicest of government or other benefits coming to the
>       villages. We found that there is a relatively small gap
>       between the highest and the lowest, economically and
>       socially.
> 
>       5. There is marked religious and ethnic harmony which makes
>       it possible for all religious and ethnic groups to live and
>       work freely together. Another factor promoting harmony may
>       be that most Burmese and tribals are of a similar religion
>       (Buddhism).
> 
>       6. The vegetation of the pipeline area was scrub growth or
>       secondary growth trees. None of the trees along the
>       pipeline appeared to be imposing at all, compared with
>       virginal tropical rain forests as in Irian Jaya. There
>       could have been little loss of biodiversity due to the
>       project.
> 
>       7. We stopped near the place where a railroad under
>       construction will eventually cross the pipeline. There was
>       no one about to interview but it is said that the army used
>       forced labour on the railroad. The chief TOTAL official
>       said that there was no involvement of TOTAL with the
>       railroad in any way, shape or form. The rail bridge near
>       Eidayza has not yet been built, so it is clear that the
>       railroad has nothing to do with the pipeline construction.
>       It is possible, however, that outsiders confused forced
>       labour on the railroad with forced labour on the pipeline.
> 
>   ----
> 
> YADANA GAS PROJECT IN MYANMAR (BURMA)
> 
>                                   Status report, Summer 1998
> 
>                    From the very outset, the development of the Yadana
> gas
>                    field in Burma (Myanmar) has attracted much
> controversy
>                    in the international press and on Internet, and much
>                    attention for TOTAL as operator of this project.
> While
>                    we fully respect all sincere opinions given in good
>                    faith, we consider it essential to establish the
> facts
>                    concerning our presence and working conditions in
> Burma.
> 
>                    The information on the following pages is taken from
>                    documents published by TOTAL and by its partners in
>                    Myanmar UNOCAL and PTT E&P.
> 
>                    (Photos by D. Klein, A. Mahuzier, Bervialle - TOTAL
>                    Project Team)
> 
>                       *
> 
>                       * General facts, timetable and status report
>                       * Consequences of the project for the local
>                         population and economy
>                       * Discussion of main criticisms
>                       * Environmental aspects
>                       * Humanitarian aspects :report on the Yadana
> project
> 
> History and localization || Project description || Timetable ||
>        Status report
> 
>        In July 1992, Total signed a Production Sharing Contract with
>        Myanmar's national oil company, Myanma Oil and Gas Enterprise
>        (MOGE). The contract involved the appraisal, development and
>        production of gas on the Yadana offshore field, located in the
>        Gulf of Martaban, approximately 70 kilometers from the Myanmar
>        coast (refer to map). A delineation drilling survey was
>        conducted in 1993. This yielded very positive results and
>        indicated natural gas reserves of over 5 Tcf (140 billion cubic
>        meters). This ranks Yadana as a giant field.
> 
>        In February 1993, Total began negotiations with the Petroleum
>        Authority of Thailand (PTT), the latter wanting to import
>        natural gas in order to fire Thai power stations. These
>        negotiations led to the signing of a Gas Sales Agreement on
>        February 2, 1995
> 
>                                     [map]
> 
>             [red line]            The Yadana Project gas pipeline
>             [blue and white line] The future domestic gas pipeline
> 
> History and localization || Project description || Timetable ||
>        Status report
> 
>        Starting in 1998, Yadana gas production will supply
>        neighbouring Thailand and Myanmar.
> 
>        Most of the gas will be sold to Thailand to fire a 2,800
>        megawatt power station located in the Ratchaburi region,
>        northwest of Bangkok. One-fifth of the gas will be sold in the
>        Myanmar domestic market, which is chronically short of energy.
>        In all, the Yadana field id expected to produce 650 MMcf/day,
>        of which 525 MMcf will go to Thailand and 125 Mmcf to Myanmar.
> 
>        The estimated capital expenditure is $ one billion (Myanmar
>        portion only without operating expenses).
> 
>        Total (31,24%) is the operator with responsability for carrying
>        out preliminary surveys, building the various production
>        facilities and operating them during the production phase.
>        Otherinvestors are Unocal (28,28%), PTTEP (25,5%), MOGE
>        (15,0%).
> 
>        The development project is divided into three principal phases.
>        The first phase involves the installation of the offshore
>        platform, and of the export pipeline enabling production to
>        start up in july 1998. The second and third phases will begin 7
>        and 12 years later, respectively, when gas compression
>        platforms are added to the production complex in order to keep
>        through-flow at the agreed level.
> 
>        Offshore installations
> 
>        The offshore production complex consists of two wellhead
>        platforms, a production platform and an accomodation platform.
>        The two wellhead platforms are located about 3.5 km apart. Gas
>        will be transported from these platforms through 20 inch
>        flowlines to the production platform. Providing living quarters
>        for workers on a separate accomodation platform will enhance
>        the level of offshore personnel safety.
> 
>        Gas transportation
> 
>        The 36-inch export pipeline completes the first 346 km of the
>        offshore route at a maximum depth of 148 metres. Once reaching
>        the myanmar coast close to Daminseik-a small fishing village in
>        the Tenasserim region-it continues on for 63 km to the Thai
>        border. The pipeline is buried for the entirety of its onshore
>        route through Myanmar, as well as for the shore approach. The
>        onshore facilities consist of a metering station, block valve
>        stations, a wharf and air landing strip.
> 
>                                  KEY FIGURES
> 
>         INITIAL GAS IN PLACE
5 TCF
> (140Gm3)    650 mmscfd
>         AVERAGE PRODUCTION AT PLATEAU                           (18M m3/day)
>         TOTAL DURATION:
30 years
>         PLATEAU:
      16 years
>         PROJECT COST (in Myanmar only, excluding operating costs)    US
> $1 BILLION
> 
>  CONCERNS:
> 
>  1. That the projects may not be self-sustaining unless there is a
>  continuing helpful, though not dominating, presence in the area,
>  e.g., some NGO. It is said that TOTAL will look after projects for
>  three years beyond completion of the Yadana Project; their current
>  three year plan includes a lower level of funding to continue the
>  socio-economic projects. There are rubber and cashew plantations
>  supported by TOTAL, but one grower said that he did not know where to
>  market the rubber.
> 
>  2. That regular savings should be encouraged to be sure that enough
>  profit is accumulated to perpetuate or even increase the level of
>  investment in successive phases. If half-grant, half-loan was given
>  for projects, the returned amount could go into a Village Development
>  Fund, which would see to it that all families get a chance to have
>  some improvement project.
> 
>  RECOMMENDATIONS:
> 
>  1. It is very encouraging to see that people have not become
>  dependent on TOTAL for marketing their produce under income
>  generating projects. However, the concerned growers have to be
>  provided with know-how to process cashew nuts and to carry out
>  tapping and marketing of rubber.
> 
>  2. There is one primary school in every village the team visited.
>  There should be more middle schools and a few high schools in these
>  villages to facilitate the local students living at home while
>  prosecuting their studies. The team found at Kanbauk a large number
>  of students who were living at a hostel provided by the local Baptist
>  pastor. This is expensive for the parents and discouraging for those
>  who want to send their children to high school. Since all schools are
>  under government, planning for more higher level schools will have to
>  be done in cooperation with the government.
> 
>  3. The clinics could be upgraded to treat a greater number of
>  diseases and be given more opportunity for surgery. Because of close
>  proximity to Thailand, there is great danger of an influx of HIV/AIDS
>  into Burma. The project, to the limits of its ability, should help
>  create awareness in the Ministry of Health, among doctors and the
>  people about the use of family planning and HIV preventive devices.
>  The team found only in one clinic an educative poster about HIV/AIDS.
> 
>  Areas visited: First day, January 6
> 
>   Eindayaza: This is a Baptist Christian village of 581 Karens, and
>  TOTAL contributed to the reconstruction of the village church. There
>  are 10 persons on the Village Communications Committee and they meet
>  twice a month, while all the villagers meet once a week. Males and
>  females work together on all projects and are equal in all ways. We
>  found that their religion seems to make a great difference in their
>  harmonious and peaceful way of life. There is no drinking and no
>  abuse of women in their society. The children looked normal, with no
>  evident signs of malnutrition. There is no longer any communal
>  ownership of land but all families hold individual title deeds, which
>  they take good care of and realise their importance. They can rent
>  land at a rate of only 1.5 kyat per acre.
> 
>   The workers said that they had received 400 k. per day, while the
>  rate for day labour of unskilled workers was 200 k. per day in the
>  area. From their village 37 men worked on the pipeline. We also
>  interviewed one of the nine in the village who had received
>  compensation for his land. He got 280,000 k. for his betel nut
>  orchard, and got the trees after cutting. With his money he bought a
>  1/3 share in a work elephant for 250,000 k. and it is used for 10
>  months in the year, earning 300,000 k. profit annually. He has a
>  receipt for the money received. He considers the payment he got was
>  more than fair.
> 
>   We were highly impressed with the development projects for the
>  people, which are carried out with the Village Communications
>  Committee. They raise chickens for eggs, which they sell at 12 k.
>  apiece and each one can make 50-70 k. per day. The chickens have not
>  suffered from any diseases. They were all vaccinated at the time of
>  purchase. TOTAL built a new school building at the old site, where
>  two matriculated girls are teaching. In all there are five
>  matriculates in the village. Now all the children go to school.
>  Teachers are paid by government and TOTAL does not try to enhance
>  their salaries so as not to disrupt the local system.
> 
>        A historic opportunity for development and new openings ||
>        Consequences of the project for local population and economy ||
>        Socio-economic actions
> 
>        A historic opportunity for development and new openings
> 
>        Gas production, which in the future will represent a very large
>        part of Myanmar exports, is a historic opportunity for economic
>        and social development for the people of what is one of the
>        world's poorest nations. Start-up of production in 1998 will
>        bring in revenues to the country for a period of thirty years.
>        The national taxes will be partly paid in kind, in the form of
>        natural gas for local use.
> 
> A historic opportunity for development and new openings ||
>        Consequences of the project for local population and economy ||
>        Socio-economic actions
> 
>        . Gas will be supplied to the Domestic Market
> 
>        The level of national demand for gas was not sufficient to
>        justify the development of an offshore gas field. To allow for
>        such an investment, the level of production i.e. the amount of
>        yearly proceeds has to ensure a reasonable pay out of the
>        investment. Exporting quantities to Thailand is not only a
>        means of earning export revenues, but also allows a level of
>        cashflow that makes the development economically feasible.
> 
>        The 125 MMscf/d reserved for domestic demand will be used in
>        the area of Yangon and in the Tenasserim region, mostly for
>        power generation which is a must for economic development.
> 
>        . Government take
> 
>        No tax will be paid before the start-up of production i.e.
>        1998, and as MOGE has elected to take 15% interest in the
>        project, it is bearing its share of the invesment
>        (approximately US $ 150 million). Little tax will be paid
>        during the first 3 years of production.
> 
>        For the country, the cumulated revenue will become positive in
>        1999. As part of this revenue is in kind (domestic gas), the
>        cash flow will become positive in 2002.
> 
>        . Employment and Training
> 
>        When the onshore pipeline was laid, the number of men on the
>        site reached a peak of 2,500 of which 2,000 Myanmar nationals.
> 
>        According to the level of their qualifications, workers on the
>        site receive 400 to 600 kyat/day, well above local wages.
>        Finally, since the beginning of 1996, 74 Myanmar nationals
>        (recruited in 1995 and selected from more than 3,500
>        applicants) have undergone indepth specialised training in
>        Yangon, and then at other petroleum production sites operated
>        by Total throughout the world. As a result, they will be able
>        to take over most of the technical operationnal jobs as soon as
>        production starts on July 1, 1998.
> 
>  A historic opportunity for development and new openings ||
>        Consequences of the project for local population and economy ||
>        Socio-economic actions
> 
>        Socio-economic status report at spring 1998
> 
>        Seven key objectives were set in early 1995, following
>        socio-economic studies of the 13 villages near the pipeline
>        route. These objectives served as the basis for the programs
>        undertaken in the past year. All projects are designed to be
>        managed autonomously by local communities. Training and
>        logistic support are provided as required to ensure optimum
>        conditions for self-management.
> 
>        These civil works have been completed according to schedule.
>        The socio-economic actions that have been implemented are
>        proving to be very promising.
> 
>   Ohnbinkwin: In this village all are Bamar (Burmese, who form 68% of
>  the population of the 13 villages helped by the project), except 2%
>  Mon. There is a free clinic, pig and poultry projects and a primary
>  school, renovated by TOTAL. One worker who received 1,400 k. per day
>  on the project as a mason was home resting from an attack of malaria,
>  for which he had been treated at the clinic.
> 
>   One man got 800,000 k. compensation for his mango, betel nut and
>  cashew orchards but when the pipe was laid under a culvert some mud
>  flowed out over his land which he says made it unsuitable for
>  agriculture. He has applied for more compensation and the case is
>  pending.
> 
>   Thechaung: We visited this village at the request of a Harvard
>  Business School Professor who was touring the Yadana Pipeline at the
>  time we were. It was not on the schedule, but she asked TOTAL to let
>  her pick an additional village so she could compare it with those
>  that were scheduled. They did so willingly, although it made the
>  schedule tight at the Pipeline Center (and the end of the day). We
>  made the extra stop and thus had the opportunity for additional
>  interviews.
> 
>   The Village Communications Committee were happy with their projects
>  and said that 36 persons had received training for chicken raising,
>  10 for pig rearing, 14 for rubber cultivation and 10 for cassava
>  cultivation. One man was interviewed who worked one month and 11 days
>  and was taking two days off; he got 400 k. per day.
> 
>   Kanbauk: This is the largest village, with a population of 10,000,
>  and is the administrative center for the region. We saw a good
>  example of communal harmony in that a Hindu temple, Buddhist pagoda,
>  Muslim mosque and Baptist church were on the same road, one after
>  another. The Muslims we talked to said that they number about 100
>  families and they live in harmony with all without discrimination.
>  They are constructing a new mosque on the old site.
> 
>   TOTAL has built a large new brick-built covered market. Most of the
>  places have already been taken. There was a wide variety of products
>  and produce available in the market and other stalls were springing
>  up outside the market.
> 
>   TOTAL also built a new isolation ward for communicable diseases for
>  the government health clinic, which has a number of beds for indoor
>  patients, and procured much new equipment for it. The
>  doctor-in-charge, paid by TOTAL, performs minor surgery. TOTAL
>  sponsors a malaria research project, since this is the worst disease
>  in the area.
> 
>   We met a man who was building a large new carpentry shop for making
>  furniture. He was a pipe welder and tester on the project and was
>  getting 60,000 per month. From his own and his wife's savings (she
>  worked in a shoe shop) they were spending 700,000 to construct the
>  new building. He employed 11 men, including a mason and master
>  carpenter who got 1,000 per day in wages.