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Reuters: Taxaco Bemoans U.S. Sancti

Subject: Reuters: Taxaco Bemoans U.S. Sanctions on Burma

Texaco bemoans U.S. sanctions on Burma

                  Reuters, Tuesday, April 22, 1997 at 12:22

          NEW YORK, April 22 (Reuter) - Texaco Inc on Tuesday bemoaned 
the Clinton Administration's decision to impose unilateral sanctions 
against the Burmese military government, a move that may affect a major 
natural gas project in the country.
          "We will abide by all U.S. laws, including those that may 
affect trade and investment in Myanmar (Burma). Texaco believes, however, 
that unilaterally imposed sanctions on any country are ineffective and 
should be implemented only through international organisations," said 
Yorick Fonseca, a Texaco spokesman.
          The U.S. Secretary of State is due to outline the sanctions 
shortly. Though they are not expected to affect existing investment, it 
is not clear whether projects companies whose projects haven't reached 
the development phase will be affected.
          Texaco is the largest shareholder and operator for the Yetagun 
gas field, which is estimated to have recoverable reserves of about one 
trillion cubic feet of gas.
          The field, discovered in 1992, is in 337 feet of water about 
125 miles off Burma's western coast in the Indian Ocean.
      It is currently being commercially evaluated and may involve major 
investment in a pipeline to carry gas to Thailand.
          Under unilateral sanctions "U.S. firms are penalised by an 
unproductive embargo and placed at a completitive disadvantage to 
foreign-based companies," Fonseca said.
          Texaco holds a 42.9 percent interest in the field with the 
following partners: Premier Oil of the U.K. (25.8%), Nippon Oil (17.2%) 
and PTTEP (Petroleum Authority of Thailand) (14.2%).  The Burmese 
government through the state oil company has a right to take an interest 
up to 15 percent if the field is developed.

       Copyright 1997, Reuters News Service