Interra claims that oil contract was signed with Myanmar before the junta took power
Interra Resources, a Singapore-listed oil explorer, said Thursday that a production sharing contract between its subsidiary in Myanmar and a government-controlled entity was extended several years before 2021.
The statement was made in response to an inquiry by the Singapore Exchange, a week after Justice for Myanmar claimed in a report Interra "helped provide the junta with over 2 million barrels" of oil and had "fueled its ongoing war crime".
Interra stated that the current IPRCs, or improved petroleum recovery contracts (IPRCs), were obtained and extended prior to the 2021 military coup and under the civil government.
Interra has requested that its shares be suspended from trading before the opening of the market on Thursday. It is also seeking legal advice about whether it is in compliance with foreign law. It said that it would ask for the suspension to be lifted as soon as it had clarity about its compliance.
Justice for Myanmar responded on Sunday that its report did not allege that Interra's subsidiary entered the contract following the coup of 2021.
Yadanar Maung is a spokesperson of the activist group. She said that "Interra Resources appears not to be using its contractual rights to prevent their oil from being used to commit war crimes."
Since the military overthrew Aung San Suu Kyi's civilian government, which was elected by the Nobel laureate in February 2021. This triggered pro-democracy demonstrations that turned into an armed revolt that has spread across the country.
According to its website, Interra has a 60% participating interest in Goldpetrol Joint Operating Company. GJOC is responsible for two onshore oil fields located in central Myanmar, Chauk and Yenangyaung.
GJOC signed a production-sharing agreement for oil exploration and oil production with Myanmar's state oil and Gas Enterprise, MOGE, at the end of 1996. In April 2017, the contract was extended by 11 years.
Interra reported that GJOC is continuing to operate under the IPRCs in the Southeast Asian country, which remain unchanged since the 2021 coup.
"The company has no control over or power to dictate how the MOGE distributes or uses the oil that is produced by GJOC," the company said, calling the activist group's claims "sensationalisation".
The report contains false allegations that GJOC 'favours the junta.' It also claims that GJOC has a long-standing relationship with the Myanmar Military.' Or that GJOC had signed contracts with a 'previous military regime.'
After the coup, the United States and European Union sanctioned Myanma Oil and Gas Enterprise. Reporting by Shivangi lahiri in Bengaluru and Sameer manekar; editing by Philippa Fletcher and Matthew Lewis.
(source: Reuters)
