Singapore-listed junior explorer, Interra Resources, is seeking professional legal counsel to determine whether its oil operations in Myanmar could breach foreign laws—and whether such a violation might impact its business.
Allegations of Supplying Oil to Myanmar Junta
The move follows a damning report by Finance Uncovered (FU) and activist group Justice for Myanmar, which alleges that Interra has been supplying millions of barrels of oil to Myanmar’s military government.
According to the investigation, Interra’s joint venture, Goldpetrol Joint Operating Company (GJOC), has supplied over 2.3 million barrels of oil—valued at $150 million—to the junta since its 2021 coup. The crude was refined into diesel and aviation fuel, allegedly used for military operations and war crimes.
Interra Pushes Back, Denies Favoring the Junta
Interra has strongly refuted the allegations, claiming the report sensationalized the situation. The company insists:
- It operates on normal commercial terms under longstanding contracts originally signed in 1996 and extended in 2017, before the coup.
- It has no control over how Myanmar’s state-owned Myanma Oil and Gas Enterprise (MOGE) distributes the oil.
- MOGE is sanctioned by the EU and US, but as a Singapore-based company, Interra is not legally bound by these restrictions.
However, Singapore’s stock exchange (SGX) has rules that allow it to suspend companies violating international sanctions—a potential risk for Interra.
Legal & Financial Implications
- Production Impact: GJOC’s output dropped from 970,513 barrels in 2020 (pre-coup) to 587,060 barrels in 2021, due to restricted field access.
- Banking Risks: Payments from MOGE are currently routed through a Myanmar-based bank, which is not under sanctions, according to Interra.
- Ownership Structure: Interra holds 60% equity in GJOC, while the remaining 40% belongs to North Petrol Operating, a subsidiary of China Zhenhua Oil Company, ultimately owned by the Chinese government.
What’s Next?
Interra has called for a trading suspension but stresses this should not be seen as an admission of wrongdoing. The company will issue further updates as legal assessments unfold.
