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1. Unocal
in
Burma

2. Situation in Burma
• Military dictatorship
• Human Rights Violation
• High infant mortality rate - Low life expectancy – Inflation
• Majority - 69% Burmese
• Minority - Karens, Rakhines, Indians, Chinese, etc.,
• Karens - Southern Burma – Rebels against Govt.
• No free speech, No association and No assembly.

3. Union Oil Company of California
• Founded – 1890 – California, U.S
• Oil Depletion in US
• Yadana Field (MOGE) (Burma)
• 1992 – MOGE signed with TOTAL S.A
4 Investors
Unocal - 28.26 % Total S.A - 31.24%
Thailand’s Co. - 25.5% MOGE - 15%

4. What is the case is all about ?
It was agreed that
• Total S.A responsible for overall coordination
• Burmese Govt. provided security
• Unocal would construct the pipeline(250 miles)
• 40 miles inhabited by Karens
During Installation, Burmese army…
– Human Rights were violated
– Forced relocated
– Forced Labor
– Tortured

5. continuation
Human rights groups reported that
Burmese army brutally forced labor &
UNOCAL is aware of these activities.
Unocal hired consultant to investigate
• Report Concluded
• HR Violation
• Forced relocation w/o compensation
• Execution for opposing

6. continuation
Production began in 2000
• UNOCAL claimed that
• 7,551 paid jobs were provided
• Improved in education
• New transportation infrastructure
• Infant mortality dropped to 13 from 78
15 members of the Karen minority group stated that
Unocal should be held responsible
Unocal announced it would settle a federal lawsuit,
provided compensation and funding for social
programs for people.

7. Utilitarian perspective
• Greater number of people got benefits from the
projects
• Right for UNOCAL to invest in Yadana pipelines.
• UNOCAL and other companies built schools and
along the pipelines, small business were also
growing
• Thailand was able to enjoy cleaner natural gas
• Project provided Burma citizens with employments

8. Rights perspective
• The human rights groups issued the report claiming
that the Burmese army was using forced labor.
• Brutalizing the Karen population to provide
security for the UNOCAL Workers and equipment.
• A report of 1995 by UNOCAL also stated the human
rights violation.
• Karen people has right to claim on UNOCAL
• UNOCAL has right to do business in Burma

9. Justice perspective
Punishment is morally accepted for breaking a law or
rule. Govt forced UNOCAL out of business; merged
with Chevron
Punishing Karen people who are against to project.
From UNOCAL’s view it was correct by compensating
the suffered

10. SUMMARY
Utilitarian: Right to an extent that it diminishes
social costs and increases social benefits.
Rights: Even though UNOCAL has right. It was
not correct to invest in the Yadana project.
Justice: Violation of justice; UNOCAL is
punishable. Burma should also compensate

11. D E C I S I O N
1. UNOCAL should not invest in Burma. But
UNOCAL had chosen “engagement” rather
“isolation”.
2. But based on the Utilitarian principle it
was justifiable to continue.
3. UNOCAL must compensate suffered.