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Debby
Hendra
Nur
Joost
Antoine
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Úased in California, USA

Founded on 17 October 1890 at Santa Paula

Initially established to develop the oil fields around


Los Angeles and California

In 1990, Unocal had operated in every aspect of the


petroleum business
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evenue of US$ 5.103 million in 1998, increased to US$
6.057 million in 1999
Project operations in Mexico, Alaska / Canada,
Úrazil, Thailand, Indonesia, Úangladesh,
Netherlands, Azerbaijan, Yamani, Congo,
Myanmar (Úurma), Gabon (West Africa), Vietnam,
Úrunei and The Philippines
On 5 April 2005, Unocal was bought by Chevron
Texaco for US$18 billion.
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Several Unocalǯs business fields:
1. Oil and Gas Production
2. Geothermal resources exploration and power plan
3. Global trade
4. Mineral and Carbon
5. Agricultural production
    
     military junta, dictatorial
   Úamars (68%, majorities), Shans, Kayins, Chins,
akhinese, Indians, Chinese, others
   
Poor
GDP: US$400 - $600 per year
Inflation: > 20%
! 
Úabies morbidity rate: high
Life expectancy: 53 years (men), 56 years (women)
In 1998, Úurmese junta military took over the power and formed
!"  (State Law and Order estoration Council)
Junta military was accused to have the Úurmese human rights
violated
© 
Cheap labors' wages with relatively well educated
personnel
Plenty of natural gas and other resources that have not
been utilized
Potential entry point for beneficial international
market
           
  
     !" 

Unocal began to enter Úurma at around 1990s for gas and
oil exploration offshore.
In 1993, Unocal participated in the to mine the Yadana
offshore natural gas development projects which is located
in the Andaman Sea, Úurma
Úurma "Yadana" gas fields is a 5 trillion cubic feet, state-run
company, which is enough to produce natural gas for 30
years.
     !" 

Õ #$$%&|   
Appointing a local company Myanmar Oil and Gas
Enterprise (MOGE) to help the development of the
Yadana project
Signing a contract with Total SA, a French company
that has the right to build pipelines to drain the gas
from the Yadana to Thailand and trade them for Thai
government.
Is expected to gain a net profit between US$200 - $400
million.
     !" 

MOGE signed a contract with Total S.A
MOGE: Dzassist by providing security protection and
rights of way and easements as may be requested bydz
Total S.A: Dztook the gasdz from the nature and build the
pipelines to distribute it from Myanmar to Thailand
     !" 

Unocal then joined the coorporation by paying a
compensation of US$8.6 billion to the Total company
There were 4 investors in the project, namely Unocal,
Total, Exploration and Production Public Company
(Thailand) and MOGE
Total: responsible for establishing rig and natural gas
exploitation.
     !" 

Unocal: pipe building as long as 256 miles (216
offshore + 40 onshore) for gas distribution from
Myanmar to Thailand
There are pipelinesǯ part passing through the land that
is inhabited by ethnic Karens, the most hostile tribe to
the government.
     !" 

The government guaranteed the "security", labors and
land acquisition.
The government allegedly used slave labors from
ethnic Karens and violence/brutality to secure the
projects.
esidents were evicted without any compensation.
Unocal was aware of this situation.
ÿ " #     "#$
%
o US State Department ´ Country eports On Human ights
Practices in 1995
o Amnesty International ´ eport on Úurma in August 1991
o The contract with SLOC to maintain "security" during the
construction of the pipeline.
o    '  (      
)    )     &)
    ) 
        )  
o !"               
       
‰ & $ # #"m 
o On Oct 15, 1996, 15 people from the Karen tribe sued
Unocal in U.S. Court on charges they and their families
have become the subject of land relocation, forced labor,
torture, murder and rape in the Yadana pipeline project
o Court of Federal Claims under the federal Alien Tort
Statute 1789
o In December 2004, Unocal announced they would give
compensation for the Karen and provide funds to social
programs for people that live in the area of pipeline
construction
o This statement was accepted by the court and the case was
closed on 13 April 2005
 " ##'(
o Did Unocal act properly?
 " ##'(
In terms of utilitarianism:
Unocal acted properly, because:
The realization of investment had made Úurma's
government and the people additional incomes,
employments, technologies transfer, infrastructure
developments, schools, etc.
Thailand gained a stable gas supply for power plants that
supported the sustainable economic growth.
 " ##'(
In terms of justice:

Unocal also acted properly because Unocal


implemented the "code of conduct" in the company,
including the Yadana project. "The code of conductdz
treats all workers and labours on the projects with
fairness and respect.
 " ##'(
In terms of human rights:
Unocal did not act properly.
Although Unocal is not responsible directly, they did not
act properly by ovelooking the human rights violation
(the right for living, equal treatment, decent wages, etc)
to the Úurmese (the Karens ethnic).
 " ##')
o Is Unocal morally responsible for what happened to
the Karens?

Yes, Unocal would be morally responsible. Although


Unocal did not do anything against the law, the violation
took place on the pipelines projects area which operated
under Unocalǯs surveillance.
 " ##'*
o What should unocal do?

Get the investment out and do not involve the conflict?


Keep the investment on the project and pretend that nothing
happened?
 " ##'*
According to group discussion, the proper way for
unocal is to engage. The involvement from outside
parties that are "more civilized" could provide a
positive impact on the social and politics. For example:
The outsiders could expose the violation and injustice to
the local throughout the world.
Outside parties could provide contributions to the
communities through CS.
 #
Unocal did not do anything wrong directly,
but by overlooking the human rights
violations that happened around their
jobsite, they are ethically responsible for the
conflicts.
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