1. Has your company completed its withdrawal from Myanmar? Can you briefly describe the nature, sector, scale, and geographic area of any of your remaining business operations or investments in Myanmar? 

On 29 April 2022, PETRONAS’ subsidiaries, PETRONAS Carigali Myanmar Inc (PCMI) and PC Myanmar (Hong Kong) Limited (PCML) announced our withdrawal from Blocks M12, M13 and M14 located in the Yetagun field, offshore Myanmar. PCML had operated the Yetagun Gas Project since 2003, where it held 40.9 per cent participating interest. We do not have remaining Upstream business operations in Myanmar. The branch office of PCMI and PCML in Myanmar is maintained on an interim basis until completion of all obligations of withdrawing parties under the Production Sharing Contract. For Downstream business, our subsidiary, PETRONAS Lubricants International (PLI) through an appointed local distributor, distributes lubricant products in the country. PLI does not have any office in Myanmar.

2. In the process of your company’s withdrawal:

a. What have been the key considerations informing this decision and did you consult with your workers and/or other affected stakeholders as part of your decision-making process?

b. What are the immediate and longer-term steps that your company has taken or is prepared to take to mitigate any negative impacts of your exit on affected communities and your workers, including addressing any loss of income? 

As a business entity, PETRONAS adheres to prudent corporate governance and strict business practices in accordance with all applicable laws, rules, and regulations wherever it operates. The decision was made following a thorough techno-commercial review in alignment with sound corporate decision-making. Communication with the affected stakeholders were made as part of our exit due diligence process.

3. If your company, subsidiary, or affiliate chooses to continue operating in Myanmar, what human rights due diligence has been undertaken and how are you planning to mitigate harm in Myanmar in your operations?

PETRONAS is committed to respecting internationally-recognised human rights in line with the United Nations Guiding Principles on Business and Human Rights (UNGP), in compliance with PETRONAS Code of Conduct and Business Ethics (CoBE) and all other applicable laws where we operate.

4. What kind of due diligence measures does your company use to ensure that it does not have any business relationships with the Myanmar junta?

PETRONAS implements Third Party Risk Management (TPRM) controls in our business operations. TPRM aims to enable business to detect possible red-flags of our potential third parties and provide subsequent mitigation measures or contractual safeguard after the entry of a relationship with those third parties against any risks of legal, financial or reputational damage that may be caused by them to PETRONAS. As part of this process, we confirm that we do not have any relationship with companies linked with the Myanmar junta.