On October 5 2022, Puma Energy signed an agreement to sell its stake in Puma Energy Asia Sun (PEAS) and its minority share in National Energy Puma Aviation Services (NEPAS) to a locally owned private company.

Since February 2021, amidst a challenging and constantly evolving situation, our actions have been guided by the need to protect the safety and security of PEAS and NEPAS employees, while seeking to mitigate any potential involvement in human rights risks in Myanmar.

Throughout this period, we have taken a series of measures including the following:

• We have not supplied, sold or distributed any fuel or products to the Myanmar Air Force (MAF) since January 2021.
• Following the coup, at Puma Energy’s insistence, the NEPAS joint venture limited its supply to civilian aviation customers only.
• In light of the deteriorating human rights situation in Myanmar, Puma Energy reviewed its ongoing presence in Myanmar and commissioned an independent Human Rights Impact Assessment.
• The independent Human Rights Impact Assessment concluded that, to the extent possible, Puma Energy had taken positive steps to: i) protect the safety and wellbeing of PEAS and NEPAS employees; and ii) seek to exert its influence to limit the supply of aviation fuel to civilian airlines only.
• The assessment also concluded that, in light of the worsening situation in Myanmar, the ability of Puma Energy to continue to exert its influence and maintain controls to limit NEPAS’s supply to civilian only airlines in future was at risk.

The decision by Puma Energy’s board to exit its investment in Myanmar earlier this year was guided by a thorough review of the business and the recommendations of the Human Rights Impact Assessment.

Over the last few months, we have sought to effect a responsible exit. After considering the available options and consulting with relevant stakeholders, the sale of the businesses was identified as the safest route to effect a responsible exit. This decision was also supported by the findings of the Human Rights Impact Assessment.

As part of our efforts to effect a responsible exit, and in line with Puma Energy’s policy, we secured undertakings from the locally owned private company that it would comply with Human Rights laws, implement relevant policies and procedures, as well as not use the assets or services to commit human rights violations.