April 10: ChevronTexaco plans to hang on to the $700m (£371m, ¤546m) gas field in Myanmar acquired as part of last week’s $18.4bn Unocal deal, despite protests by human rights groups opposed to Western companies propping up the country’s repressive military regime.

A source close to the company told The Business that analysts were wrong to predict that Chevron would sell out as part of the $2bn worth of divestments planned from Unocal’s portfolio. The source said: “The plan as I understand it is to keep Myanmar. All the problems Unocal had with Myanmar have been solved.”

Deutsche Bank said in a research note last week: “Our expectations would be a swift sale of this $700m asset, perhaps to the Chinese.”

Unocal last month settled law suits launched against it in 1996 on behalf of 15 Myanmar villagers who claim the company turned a blind eye to abuses ranging from murder to torture as it constructed the Yadana gas pipeline.

Unocal said it would provide funding for health care, education and human rights projects in the pipeline region.

But John Jackson, director of Burma Campaign UK, said on Wednesday that the settlement would not exonerate the company: “ChevronTexaco have bought themselves a major headache. Unless they state that they will sell off the Burma operations as soon as possible, they will come under pressure from investors and human rights groups.”