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Important Total, Premier Report (r)



W. Kesavatana-Dohrs is well informed but the Belgian website WILL publish 
soon the accounts of TOTAL in Burma.

Please, wait for a few days and THEN, you will be able to read these 
accounts with a longer comment in French.


The adress of this website is

http://users.skynet.be/vero.michel/birma.html


Michel

>From: "W. Kesavatana-Dohrs" <dohrs@xxxxxxxxxxxxxxxx>
>To: burmanet-l@xxxxxxxxxxx
>CC: MAYKHA-L@xxxxxxxxxxxxxxxxxxxx
>Subject: Important Total, Premier Report
>Date: Wed, 13 Oct 1999 07:03:10 -0700 (PDT)
>
>This carefully researched material clarifies some of the allegations of
>direct financial support for the Burmese junta by oil companies, and also
>illustrates the fuzzy accounting methods that have obscured the facts.  It
>should be read in connection with the reports of direct payments to
>military overseers of forced labor, that were detailed in the US Dept. of
>Labor report on labor practices in Burma, which can be found at:
>http://www.dol.gov/dol/ilab/public/media/reports/ofr/burma/main.htm
>
>
>
>From: Michel Diricq <michel3392@xxxxxxxxxxx>
>********************************************************************
>
>GAS MONEY
>
>The Belgian web site supporting Burmese democrats is presently publishing
>the accounts of the sub-companies of TOTALFINA in Burma. The source is a
>French legal paper, "Les Petites Affiches", as these sub-companies
>are registered in France and consequently are obliged to publish their
>accountings. A couple of scoops are included in these publications.
>
>Here is the translation of part of the analysis of the accounts.
>
>
>**********************************************************************
>http://users.skynet.be/vero.michel/birma.html
>
>Notes on the accounts of TOTAL in Burma
>
>Source: "Les Petites affiches", dated 30/06/1993, 29/06/1994, 12/07/1995,
>08/07/1996, 09/07/1997, 20/07/98  and 09/08/1999.
>
>A French legal paper, "Les Petites Affiches", has just published
>on August 9 , the accounts of three sub-companies of TOTALFINA in Burma :
>Total Myanmar Exploration and Production (TMEP), Total Profils Petroliers
>(TPP) and Total Myanmar Power and Fertilizers (TMPF) . The object of TMEP 
>is
>the exploration and production of the Yadana gas, and the construction of
>the pipeline to Thailand. TPP is managing the pipeline built by TMEP ; for
>example, this sub-company has paid the assurance premiums (FFr10m, $US1.7m,
>in 98). TMPF shares the responsibility of another officially stopped
>project,, the "3 in 1 Project",  whose planned object is the construction
>(and may be the management),of another pipeline to Rangoon, of a fertilizer
>plant and a power plant for the fertilizer production unit.
>
>TOTAL MONEY
>
>The most interesting point is that the accounting of TMEP is including an
>account whose title is "Advances to MOGE " (in French, "Avances a MOGE ").
>In 1992, 1993 and 1994, "Avances to MOGE"  was another denomination of the
>"Works paid for other partners" account ("Travaux financés pour le compte 
>de
>tiers" in French), TOTAL may usually advance money to its partners but, in
>the Yadana project, the problem is that TOTAL has advanced money to 
>partners
>guilty of forced labor, drug production and traffic.
>-----------------------------------------------------------------
>"Avances to MOGE" (in French Francs, 6 FFr = 1US$) : Year 1992 : 34 696
>693,44 // Year 1993 : 112 287 943,14 // Year 1994 : 143 480979,12
>-----------------------------------------------------------------
>The words "Advances to MOGE" disappeared still 1995, but the account "Works
>paid for other partners" was still mentioned.
>
>-----------------------------------------------------------------
>"Works paid for other partners" (in French Francs) : Year 1992 : 34 696
>693,44 // Year 1993 : 112 287 943,14 // Year 1994 : 143 480979,12 // Year
>1995 : 199 308 293 // Year 1996 : 365 512 648 Year 1996 :  365 512 648  //
>Year 1997 : 744 992 362 // Year 1998 : 916 375 948
>-----------------------------------------------------------------
>
>A BIG DEBT
>
>Today, the Yadana project is accounted as a debt which will be paid by the
>sale of gas : FFr1 067 million comparing to FFr 114 m of global assets.
>According to the annex of the accounts, the financing of this debt has been
>realized by the parent company, TOTAL S.A. and by another sub-company, 
>TOTAL
>FINANCE.
>
>The three sub-companies are indebted, including TOTAL MYANMAR POWER &
>FERTILERS, though the "3 in 1" project has been officially stopped for a
>couple of years. The present debt of the "3 in 1" project could amount FFr
>75m ($US15m) mainly because of the payment of participation titles whose
>destination is not mentioned.
>
>Concerning Premier Oil and the Yetagun gas project, we know that this
>British company has advanced money to the MOGE but the publication of 1998
>accounting has just revealed that the MOGE paid back part of its debt 
>before
>the beginning of the gas sale to Thailand.
>
>Source : "Premier Oil report & accountings 1998 "
>"Notes to the accounts for the year to 31 December 1998, p. 54
>
>"25 Post balance sheet events
>
>a) Arrangements for the funding of the Company's development commitments
>in
>Myanmar were concluded in March 1999. This financing will provide all of
>Premier's share of the estimated costs of the development which is
>expected
>to be finished in early 2000. Completion results in Premier receiving £77
>million, of which £56 million relates to expenditure incurred prior to 31
>December 1998. This expenditure was classified as fixed assets at 31
>December 1998. The remaining estimated development expenditure will be
>financed by additional drawings under the facility. The financing is 
>secured
>on the assets of Premier Petroleum Myanmar Limited (PPML) the Company's
>subsidiary in Myanmar, and on a parent company guarantee of $10 million
>covering cost overruns prior to the completion of the development stage. 
>The
>funding is by way of discounted zero coupon bonds with an interest accrual
>rate equivalent to LIBOR plus 550 basis points and has been raised by a
>joint venture company. In addition, the Company has agreed changes to the
>convenants and to the terms of the Senior Notes and the Corporate Credit
>Facility which are likely to increase net interest cost by around £1.2
>million in a full year.
>
>b) On 31 January 1999 the Myanmar Oil and Gas Enterprise exercised its 
>right
>to acquire a 15 % share to the Yetagun development. This resulted in a cash
>receipt by Premier of £17.3 million, being a reimbursement of costs already
>incurred since the beginning of the development phase. "
>
>Premier Oil is presently financing its debts by selling part of its shares
>to other oil corps : PETRONAS of Malaysia and  AMERADA HESS of US ; these
>two corps will invest money in the Asian projects of PREMIER OIL.
>
>NO RESERVE FOR RISKS
>
>Shortly speaking, another "surprise"  included in the accounts of TOTAL
>sub-companies is that these three firms did not retain reserve for risks. 
>In
>fact reserves for risks would have increased the debts of the 3
>sub-companies, and would have decreased the global result of TOTAL S.A.
>During the very last take over of TOTALFINA targeting ELF AQUITAINE, the
>chairman of ELF told in the press that the accountings of TOTAL was not
>rendering a rigorous analysis of the real situation of TOTAL.
>*****************************
>
>
>

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