Published: April 5, 2025
Chevron Corporation has officially ended its decades-long involvement in Myanmar, completing its withdrawal from the Yadana natural gas project as of April 5, 2024. The exit, which comes in response to mounting human rights concerns following the country’s 2021 military coup, highlights a growing trend among major corporations to prioritize ethical and social responsibility in foreign operations.
The California-based energy giant had operated in Myanmar since the 1990s, holding a significant 41.1% stake in the offshore Yadana field. This gas field, located roughly 60 kilometers from the Myanmar coast in the Andaman Sea, has been a vital energy source for both Myanmar and neighboring Thailand. With production levels reaching approximately 6 billion cubic meters of gas annually, Yadana played a pivotal role in regional energy security, supplying nearly 70% of its output to Thailand.
Chevron’s departure follows years of escalating international condemnation of Myanmar’s military junta, which seized power in a violent coup in February 2021. Since the takeover, widespread protests have been met with brutal crackdowns, mass arrests, and allegations of systemic human rights abuses.
Ethical Grounds for Exit
In announcing the decision, Chevron cited its commitment to “respecting human rights” and operating in line with international standards. The company emphasized that it had conducted its disengagement responsibly, transferring its shares to the remaining project partners without financial compensation to expedite the process.
Chevron’s stake was redistributed to the other Yadana stakeholders, with Thailand’s PTT Exploration and Production (PTTEP) increasing its share to approximately 63%. Myanmar’s state-owned Myanma Oil and Gas Enterprise (MOGE) also received a larger stake. PTTEP has now assumed full operatorship of the project.
Despite Chevron’s public emphasis on ethical responsibility, the decision has drawn criticism from advocacy groups. They argue that simply reallocating shares to MOGE, a company under the control of the military regime, risks perpetuating the very abuses Chevron sought to distance itself from. Critics contend that such actions, while legally sound, may enable continued revenue flow to the junta.
A Broader Corporate Retreat
Chevron’s exit comes amid a broader retreat by Western companies from Myanmar. In 2022, French energy giant TotalEnergies similarly withdrew from the Yadana project, also citing concerns over human rights and the junta’s consolidation of power. With these high-profile departures, no major Western oil companies remain actively invested in Myanmar’s gas sector.
These developments underscore the increasing sensitivity of global investors to political and ethical risks. In recent years, corporate social responsibility has become a key consideration in international operations, driven by shareholder activism, media scrutiny, and evolving regulatory expectations. The case of Myanmar represents a critical intersection between business interests and moral imperatives.
Continued Risks and Global Reactions
Myanmar’s military government continues to face international sanctions and diplomatic pressure. The United States has imposed partial sanctions on MOGE, which generates a substantial portion of the regime’s foreign revenue. However, critics argue that these sanctions remain insufficient and have yet to sever the junta’s access to critical international funding channels.
By withdrawing without a plan to block these financial flows, companies like Chevron risk appearing complicit, say human rights advocates. Calls have grown for governments and corporations alike to do more to prevent resource wealth from bolstering authoritarian regimes.
The complexity of Chevron’s exit is reflective of the broader challenge companies face in navigating international crises. When political conditions deteriorate, decisions about disengagement must weigh legal, financial, ethical, and operational considerations. For Chevron, the priority was a swift and orderly exit that complied with U.S. law and international sanctions.
Myanmar’s Future in Energy
The departure of Chevron and other international firms may reshape the energy landscape in Southeast Asia. With PTTEP now holding a dominant stake in Yadana, regional dynamics are likely to shift toward more localized control. Thailand, which has a vested interest in uninterrupted gas supplies from Myanmar, is poised to play a more central role.
Yet this shift also raises questions about accountability and transparency. With fewer external stakeholders, the influence of international norms may wane. The ongoing political crisis in Myanmar casts a long shadow over the future of its natural resource management and foreign investment climate.
A Precedent for Corporate Ethics
Chevron’s exit serves as a potent example for other multinationals facing similar dilemmas. It demonstrates that corporate actors are increasingly expected to uphold human rights and ethical standards, even when doing so involves financial or operational losses.
While Chevron sought to balance these considerations by executing a non-compensated share transfer and maintaining a commitment to community development programs during its tenure, the long-term impact remains debated. The company’s actions may be viewed as a turning point in how global businesses approach operations in regions beset by conflict and repression.
Ultimately, the move reflects a heightened awareness of corporate responsibility in an interconnected world. As international pressure continues to mount on Myanmar’s junta, the spotlight remains on those with the power to influence change—including the private sector.
Chevron’s exit is both a conclusion and a signal. It concludes a major chapter of Western involvement in Myanmar’s energy sector and signals that the global business community cannot ignore the ethical dimensions of where and how it operates.
