Mawlamyine, December (28)
The Thailand-owned energy company PTT Company’s decision to leave Myanmar may lead to lower revenue for the military council and have an impact on the foreign exchange market, the economists said.
According to Thai media, the Petroleum Authority of Thailand (PTT) will suspend oil transport and storage operations under their investment in Myanmar.
The move comes after the Norway’s Government Pension Fund Global, one of the world’s largest sovereign wealth funds, announced on December 15 that it would suspend its investment in Thailand’s PTT Company, which is cooperating with the Military Council.
According to the Norway Fund, the PTT group is closely linked to Myanmar’s military, which contributes to human rights violations.
Although the PTT company has decided to leave Myanmar, the gas is still needed in Thailand, so it is necessary to gradually reduce the investment, and if PTT leaves Myanmar completely, the military council’s income will decrease, the foreign exchange market will be affected, and imported goods will become more expensive, the economic expert said.
Furthermore, if PTT Company leaves Myanmar, the Military Council’s Myanmar Oil and Natural Gas Enterprise (MOGE) can export gas from another side or sell it at a lower price, and other companies may step in.
According to a businessman, if the PTT company leaves, the local fuel and natural gas industries won’t be impacted, but foreign income will drop and the cost of imports from abroad could go up due to a shortage of dollars.
Thai news reported that the PTT company announced that it would not make further investments due to the unrest in Myanmar and international sanctions.
The PTT is also the second-largest offshore oil and gas company after the French oil giant Total, which left Myanmar due to the coup d’état.
According to Human Rights Watch (HRW), Myanmar’s oil and gas industries generate $1 billion in annual revenue, which goes to the Military Council through its Myanmar Oil and Natural Gas Industry (MOGE).
News-Than Lwin Times
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