Korea Gas Corporation (“KOGAS”) has invested in the ...



Korean Gas Corporation Response to Earth Rights International report alleging company involvement in abuses related to the Shwe gas pipeline project in Burma

On 29 March 2011 EarthRights International released a report, entitled "The Burma-China Pipelines: Human Rights Violations, Applicable Law, and Revenue Secrecy"[PDF], which "link[ed] major Chinese and Korean companies to widespread land confiscation, and cases of forced labor, arbitrary arrest, detention and torture, and violations of indigenous rights connected to the Shwe natural gas project and oil transport projects in Burma."  The companies named in the report are:  China National Petroleum Corporation (CNPC), Daewoo International, GAIL (India), Korean Gas Corporation (KOGAS), ONGC Videsh, and Myanmar Oil and Gas Enterprise (MOGE)

In May, Business & Human Rights Resource Centre invited KOGAS and the other companies to respond to the EarthRights International report, as well as these related items:

-  "The Burma-China Pipelines: Human Rights Violations, Applicable Law, Revenue Secrecy", EarthRights International (Situation Briefer, No 1), March 2011     

-  "Oil Companies Complicit in Burma Right Abuses: ERI", Htet Aung, The Irrawaddy, 29 March 2011

-  "Daewoo Int’l denies rights abuse allegation in Myanmar", Kang Hyun-kyung, Korea Times, 29 March 2011

-  "Bad Business for Burma", Matthew F. Smith, EarthRights International in The New York Times, 3 April 2011  

The response KOGAS sent to Business & Human Rights Resource Centre appears below. Other company responses and non-responses can be found here.

27 May 2011

Korea Gas Corporation (“KOGAS”) has invested in the development of the Myanmar-China gas pipeline Project. A CNPC subsidiary (“SEAP”) takes a role in development of the Project as an operator while KOGAS is one of the minority shareholders (KOGAS: 4.2%).

SEAP has been making the best efforts to keep international guideline and to establish relevant internal procedure regarding the protection of human rights.

Myanmar government officer has also been working for this issue as the special advisor and Myanmar National Oil and Gas Company (“MOGE”) is also one of the shareholders (MOGE: 7.37%). They are always keeping an eye on the possibility of human rights violation in its country.

KOGAS with other shareholders are trying to implement the better Socio-Economic program through the related meetings (such as BOD meeting and shareholders meeting, etc.) as well and will make efforts to prevent human right violation continuously until the end of this project.

Furthermore, KOGAS joined the consortiums of Block A-1 and A-3 with Daewoo -International in Myanmar. KOGAS hold 8.5% interest in each of the projects.

Daewoo international has been carrying on upstream and offshore pipeline project as an operator and KOGAS already had advised to the operator on the project development in line with industry practice and international standard regarding human rights.

Daewoo International as an operator has a Socio-Economic Program and has been carrying out to improve Myanmar welfare and human rights with KOGAS’ advice.

No human rights violation by operators (Daewoo international and SEAP) has been reported until now.

KOGAS also witnessed that Myanmar government showed serious concern to prevent potential risk of forced labor or relocation. Political environment has changed in Myanmar as we have seen the recent election and restructuring the country’s governing system. Above all, however, KOGAS is well aware that its commitment to the long-term sustainability of the communities where projects operate is a key to the human right protection

Undoubtedly, KOGAS will put its every effort to prevent the human right issue in light of sprits reflected in our Code of Corporate Conduct and Ethics and those international norms reflected there.

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