National petroluem company Petronas has inked a new deal with the Burmese military junta to conduct a feasibility study on refining and transporting natural gas.

Both parties will conduct a joint feasibility survey on commercial and technological matters in exporting Burmese gas to neighbouring countries through pipelines and manufacturing liquefied natural gas.

According to the Xinhua news agency, the deal was sealed between the Energy Planning Department of the Burmese Energy Ministry and Petronas at the new administrative capital of Naypyidaw on Aug 9.

The last known major deal between Malaysia and the Junta was in 2002 under former prime minister Dr Mahathir Mohamad, where Petronas was awarded four production sharing contracts to explore four blocks in the Tanintharyi area offshore southern Burma.

The new deal was struck despite Malaysia's strong position against the Burmese military regime's appalling human rights track record and resistance towards adopting democracy.

Stay consistent

Kuala Lumpur-based Labour Resource Centre secretariat member K Shan denounced the deal as previous pipelines construction projects in Burma resulted in numerous incidents of human rights and environmental abuses.

Citing an example, he said in the early 1990s, the junta partnered US company Unocal and France's Total to construct the Yadana and Yetegun pipelines through southern Burma.

"What followed was increased militarisation and systematic human rights abuses by the Burmeses military such as forced labour to build access roads, helipads and military barracks; land confiscated from farmers; and the Burmese soldiers committing rape, torture and extrajudicial killings in the pipeline areas," he added.

Eventually, both companies paid hefty compensations to the affected groups who fled Burma and filed suits against them in France and the US. The companies however denied they had perpetuated human rights abuses.

In view of this, Shan warned that the Malaysian government would be seen as compromising its aspirations and position on human rights and democracy in Burma with this deal.

It also posed a question on Petronas' commitment towards corporate social responsibility (CSR), he added.

"Human rights compliance is of strategic importance in benchmarking CSR, which is now increasingly being expected from businesses by the market, governments and the courts," he said.