Unocal Case Simac
1. The United Oil Company of California (Unocal) made the decision in the 1990’s to invest in energy projects outside of the United States and chose to invest in the “Yadana field” pipeline. There are many stakeholders involved in the international “Yadana Field” natural gas project. Unocal, Thailand’s PTT Exploration and Production Public Co., Total S.A., and the Burmese government (Myanmar Oil and Gas Enterprise) along with the employees of these companies are all major stakeholders in the project. These were the main participants that would directly benefit as a result of the project. The people who were living in the area that the pipeline was to be…show more content…
Also, Burma served as a strategic location to other markets in Southeast Asia and more potential profits in the future for the company. A benefit for the country of Burma is that there would be money available every year to the government that it could use to improve the economy, infrastructure, or other aspects of the country. The lives of the native people in southern Burma close to the pipeline area who are employed to work on sustaining the pipeline after construction would improve because of the jobs that would be created. People would have better access to healthcare, food, better education, and other lifestyle improvements. The project also provided jobs for the workers of Unocal who would be working on construction and other parts of the project. People from other countries would also benefit from the use of the natural gas that would be made available. Unocal was possibly saving money through the use of the Burmese military that provided security during construction of the pipeline instead of spending more to keep their workers and the pipeline safe.
Along with the benefits of the project, there are also numerous costs with Unocal moving forward with the natural gas project. Unocal knew that it was dealing with a corrupt government, so there was no guarantee that the money the government received from the project would be used in a way that would benefit the people in the country. The government officials may use the money for