Unocal to Consider Dropping Project in Myanmar

Unocal Corp. executives said Tuesday that they would take under advisement a request from California and New York that the oil company drop its Myanmar pipeline project or prove to shareholders that its value offsets the risks.

Citing the potential risks of doing business in the Southeast Asian nation, California Treasurer Phil Angelides and New York comptroller Alan G. Hevesi had hoped to persuade the company to leave Myanmar during a 90-minute meeting Tuesday with Unocal Chief Financial Officer Terry Dallas and Chief Legal Officer Charles O. Strathman.

Myanmar’s ruling military junta has been widely criticized for alleged human rights abuses, and Unocal faces lawsuits in U.S. courts brought by Myanmar refugees.

If the El Segundo-based company chooses to stay in Myanmar, formerly known as Burma, Angelides and Hevesi want Unocal to outline its rationale for doing business there.

The two states hold more than 3.3 million shares of Unocal stock through their public pension funds, the California Public Employees’ Retirement System, the California State Teachers’ Retirement System and the New York State Common Retirement Fund.

Unocal spokesman Barry Lane said, “We listened, and we outlined our position, and we will respond sometime soon.”

After the meeting Tuesday, Angelides said, “Clearly, we have a ways to go before they understand the depth of our concerns ... but we intend to continue to pursue the case” for Unocal to divest.