Norwegian firm Seadrill heads back to Burma

Wednesday, 05 January 2011 22:39 Thomas Maung Shwe

Chiang Mai (Mizzima) - The Norwegian firm Seadrill will set up its ‘West Juno’ gas drilling rig in Burmese waters to undertake contract work for the Thai oil firm PTT Exploration & Production Company Ltd (PTTEP).

The rig will be in Burmese waters for four months.

Construction of the Seadrill’s newest rig was completed in Singapore in December 2010.

Seadrill came under fire last year from Burma activists for drilling work in Burma conducted for Twinza Oil, an Australian company.

Activists raised concerns over human rights violations linked to oil and gas developments in the country and pressed its withdrawal.

Companies working in Burma have come under fire for financing military rule.

In 2010, the Norweigan News Agency, quoted Seadrill spokesperson Hilde Waaler as saying the company had “no plans of signing any new contracts for work in the country”

However, Seadrill’s return to Burma was disclosed in late December by Braemar Falconer, a Singapore based offshore engineering consultancy firm that will be assisting Seadrill with the PTTEP contract.

Seadrill had performed drilling work for PTTEP in Burmese waters before on its ‘West Ariel’ rig.

The Norwegian Ministry of Foreign Affairs told independent news service Norwatch it encourages companies to “refrain from trading with or investing in Burma”.

The spokesperson said they didn’t want Seadrill or other Norwegian companies to “contribute to financing a military dictatorship”.

“Norway endorses the European Union’s measures against Burma, which, among other things, include a ban on investments in certain types of enterprises”.

However, Norwegian firms are not legally prevented from doing business in Burma, nor are they subject to the EU sanctions.

Norway is one of the few European nations not a member of the union.

Seadrill’s shares are traded on the both the Oslo and New York stock exchanges and while the firm is subject to United States sanctions, their activities in Burma are not affected.

Washington prohibits firms from making new investments in Burma, but there is a loophole for ‘technical services’. However, technical services must be provided to companies not blacklisted by the Office of Foreign Assets Control (OFAC).

Transocean, a Swiss-American drilling firm, is under investigation by OFAC because the company conducted offshore drilling work for a consortium that included a blacklisted firm owned by junta crony and alleged drug lord Stephen Law, and his father Lo Sit Han.

Seadrill and its partner Braemar Falconer could not be reached today for comment.

Japanese rig to drill off of Arakan coast

Another offshore drilling rig owned by the Japan Drilling Company (JDC), will head to Burma’s Arakan coast later this month as part of a job for Daewoo International, lead consortium partners in the Shwe gas project.

JDC- Japan’s only oil drilling firm signed a $41.34 million drilling contract that runs from January 15 to March 1 of this year.

The company’s semi-submersible rig will drill four deep sea wells in Burmese waters near Sittwe. The contract also contains an option to drill a possible fifth well.

JDC has previously drilled offshore in Burma for Malaysia’s state owned firm Petronas.