Wordsworth Energy Thibaw regrets to inform that were unable to agree on the terms of the license to operate in Block 45. We regret that the government was unable to see the advantages of cooperating with us, as proved by the following contract:
ENERGY INVESTMENT AGREEMENT
THIS ENGERGY INVESTMENT AGREEMENT (this “Agreement”), entered into on this 1st day of November, 2010, is between THIBAW GOVERNMENT (“Thibaw”) and WORDSWORTH ENGERGY THIBAW CO. (“WET”).
WHEREAS, WET is a corporation incorporated in United Kingdom and desires to invest in Block 45 pursuant to a license issued by Thibaw, upon the terms and subject to the conditions hereinafter set forth;
NOW, THEREFORE, the parties hereto agree as follows
Article 1 Health, Safety, Environment (HSE)
1. Wordsworth’s business operations shall be bound by the highest industry HSE standard.
2. Wordsworth shall not be responsible for any damage caused to environment unless it is due to our negligence, but under no circumstances shall we be responsible for compensating any environmental damage arising after 10 years since the date of this agreement.
3. Wordsworth will provide our employees with mandatory occupational safety and health training.
Article 2 Co-Financing for Infrastructure Projects
1. Provide and maintain infrastructure for the community, including through co-financing the following infrastructure facilities:
1) Robust roads and bridges
2) Pipeline
3) New Healthcare facility (1 hospital)
4) New wells/ upgraded water purification system for safe drinking water access
5) Ensured access to electricity throughout and surrounding the extraction area (generators)
2. Build educational facilities such as 2 schools (1 primary and 1 secondary) and 1 kindergarten
3. WET will be entitled to 49 percent of the total rights of the investment and THIBAW will be entitled to the remaining 51percent. WET shall be responsible for the entire financing of the investment project.
Article 3 Security
1. Wordsworth shall accept no spying from government in any form.
2. Wordsworth will employ private security force to protect the safety and well being of its employees.
Article 4 Labor
1. Wordsworth shall have zero tolerance for all forms of forced and compulsory labor:
1) it shall offer fair wages for our employees (benefits package) , at least the industry minimum
2) it shall engage with the government on eliminating the culture of “free labor”
3) Wordsworth and its affiliates throughout the supply chain will not engage in forced labor under any circumstances (necessary trainings will be provided)
2. None of Wordsworth’s employees or employees of its supply chain will be subject to the government’s reeducation by labor program
Article 5 The CSR Program
1. Wordsworth’s CSR Program is a part of this agreement (Appendix I).
Article 6 Arbitration/ Governing Law/ Jurisdiction Clause
1. Any disputes arising out of the matters relating to this agreement will be resolved by arbitration in the ICSID and the applicable law shall be UK law.
2. The governing law of this agreement shall be UK Law.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.
THIBAW GOVERNMETNT WORDSWORTH ENERGY THIBAW CO.
Saturday, March 26, 2011
WORDSWORTH ENERGY THIBAW CSR PROGRAM
Wordsworth Proposal to the THIBAW Government
The Thibaw government remains to stall on the following proposal for a CSR program funded by Wordsworth Energy International:
Wordsworth Energy Thibaw is a branch of the Wordsworth Energy Group operating in Thibaw in strict compliance with the clearly stated and publically available Ethical Principles.
Our “Daffodil” logo stands for our identity and values of an ethical and socially responsible corporation. Our history of operations and oil developments worldwide proved that our CSR program is a source of significant competitive advantage for our business. We engage with all interested stakeholders in shaping and strengthening our CSR program and tailoring it to the specifics of the country we operate in, i.e. Thibaw. We are driven by innovative management that consists of both interactive and inclusive approaches to finding solutions to the issues that might occur in partnership with the shareholders, government bodies, NGOs, media, investors and other stakeholder groups, because we understand that the most successful initiatives result from cross-sectoral collaboration.
Wordsworth Energy Thibaw has been endorsed by such renowned NGOs as Open Books International, Shared Heritage, Nurture and Humanity First as a model to follow by other international companies operating in Thibaw. Wordsworth Energy Thibaw will continue to deliver on transparency and reporting, and our annual CSR report is one of our essential communication channels. Wordsworth Energy Thibaw has signed and adheres to Open Books International’s “Code of Ethics for Energy Investment Thebaw” and will continue to deliver on transparency and reporting. Wordsworth Energy shall also support Shared Heritage activities. Shared Heritage will conduct regular environmental audits.
With regards to Human Rights:
Wordsworth Energy Thibaw supports and respects the protection of internationally proclaimed human rights
In our negotiations with government representatives we call for attention to the cases of human rights abuses .
We cooperate with grassroots organizations (through donations) that support democracy and transparency (they in turn can urge the Government to sign international human rights treaties (ICCPR & UDRIP in particular and hold fair elections).
We produce and publish annual human rights assessment reports (Partnership with Open Book Int.)
a. Special focus on Udip minority rights (strive to regain lost heritage, preserve their cultural identities and protect)
We are not complicit in any human rights abuses.
We cooperate with the government of Thibaw to ensure that neither one of our affiliates (supply chain) is engaged in any human rights abuses under any circumstances.
Labor:
We provide jobs for local/marginalized community members
a. We actively recruit local population for all levels of employment (including at decision-making positions)
b. We provide the community with skills-based and HSE trainings
We have zero tolerance for all forms of forced and compulsory labor
a. offer fair wages for our employees (benefits package) , at least the industry minimum
b. engage with the government on eliminating the culture of “free labor”
c. we and our affiliates throughout the supply chain will not engage in forced labor under any circumstances (necessary trainings will be provided)
We strive to provide effective support to eliminating worst forms of child labor
a. we do not employ minors under the age of 18
b. youth is provided with on-site vocational skills-based training
c. we may co-sponsor few youth-friendly community centers (YMCA type) with education/information on HIV and drug use
We do not discriminate in respect of employment and occupation, i.e. we provide equal employment opportunities
a. Wordsworth Energy Thibaw will not discriminate based on race, ethnicity, religious affiliation, gender, sexual orientation etc.
Social Development:
We consult with local communities and all stakeholders when any major developments are being planned:
a. A community representative will be invited to appropriate corporate meetings/ round tables when decisions and issues concerning the community are discussed.
b. Provide our stakeholders with regular updates in the form of newsletters, press releases, town halls, website, pamphlets etc.
c. Conduct needs assessment, obtain feedback through surveys and incorporate feedback into tangible results as much as possible
We engage experts in the field to provide us with regular Social Impact Assessments (e.g. Partnership with Nurture)
a. We will implement the Tanyan Community Health/Agricultural/Sanitation Projects as per Nurture’s Assessment Report on an annual basis (https://docs.google.com/document/d/1-L3HPMlPdzAzJ6wutbIquPZxG0GmXD5bQKPKdxn8afI/edit?hl=en&authkey=CMiLyM0L&pli=1#)
b. Launch awareness programs about health care (especially for mothers of newborns), consider establishment of the rehabilitation center for victims of violence and human-trafficking (women and children affected) programs – Partnership with Humanity First
Together with stakeholders we will try to prevent “boom town” effects (spread of HIV, local inflation, drug use)
a. Launch awareness programs on HIV/AIDS for youth and general public
b. Launch diverse trainings for employees and locals
c. A special drug rehabilitation unit will be set up in a new clinic that we are to build in the Tanyan community
Provide and maintain infrastructure for the community, including through co-financing the following infrastructure facilities:
a. Robust roads and bridges
b. New Healthcare facility (1 hospital)
c. New wells/ upgraded water purification system for safe drinking water access
d. Ensured access to electricity throughout and surrounding the extraction area (generators, plant?)
e. Build educational facilities such as 2 schools (1 primary and 1 secondary) and 1 kindergarten
Environment:
Wordsworth will establish a response system in consultation with the local community and other stakeholders to address any cases of damages incurred during our operations or developments.
a. Emergency Preparedness and Response Plan, especially in case of spills or other events posing immediate concerns
We undertake precautionary approach to environmental challenges (e.g. Pipeline Construction, Special Preservation Zone for Endangered Species of Dwarf Tapir and Teak Forest)
We engage in initiatives to promote greater environmental responsibility (water, air pollution with gas flares etc.)
We encourage the development and use of only environmentally friendly technologies (Partnership with Shailoh on the pipeline, Partnership with environmental NGOs on preservation of Tapir and other environmental issues).
The Thibaw government remains to stall on the following proposal for a CSR program funded by Wordsworth Energy International:
Wordsworth Energy Thibaw is a branch of the Wordsworth Energy Group operating in Thibaw in strict compliance with the clearly stated and publically available Ethical Principles.
Our “Daffodil” logo stands for our identity and values of an ethical and socially responsible corporation. Our history of operations and oil developments worldwide proved that our CSR program is a source of significant competitive advantage for our business. We engage with all interested stakeholders in shaping and strengthening our CSR program and tailoring it to the specifics of the country we operate in, i.e. Thibaw. We are driven by innovative management that consists of both interactive and inclusive approaches to finding solutions to the issues that might occur in partnership with the shareholders, government bodies, NGOs, media, investors and other stakeholder groups, because we understand that the most successful initiatives result from cross-sectoral collaboration.
Wordsworth Energy Thibaw has been endorsed by such renowned NGOs as Open Books International, Shared Heritage, Nurture and Humanity First as a model to follow by other international companies operating in Thibaw. Wordsworth Energy Thibaw will continue to deliver on transparency and reporting, and our annual CSR report is one of our essential communication channels. Wordsworth Energy Thibaw has signed and adheres to Open Books International’s “Code of Ethics for Energy Investment Thebaw” and will continue to deliver on transparency and reporting. Wordsworth Energy shall also support Shared Heritage activities. Shared Heritage will conduct regular environmental audits.
With regards to Human Rights:
Wordsworth Energy Thibaw supports and respects the protection of internationally proclaimed human rights
In our negotiations with government representatives we call for attention to the cases of human rights abuses .
We cooperate with grassroots organizations (through donations) that support democracy and transparency (they in turn can urge the Government to sign international human rights treaties (ICCPR & UDRIP in particular and hold fair elections).
We produce and publish annual human rights assessment reports (Partnership with Open Book Int.)
a. Special focus on Udip minority rights (strive to regain lost heritage, preserve their cultural identities and protect)
We are not complicit in any human rights abuses.
We cooperate with the government of Thibaw to ensure that neither one of our affiliates (supply chain) is engaged in any human rights abuses under any circumstances.
Labor:
We provide jobs for local/marginalized community members
a. We actively recruit local population for all levels of employment (including at decision-making positions)
b. We provide the community with skills-based and HSE trainings
We have zero tolerance for all forms of forced and compulsory labor
a. offer fair wages for our employees (benefits package) , at least the industry minimum
b. engage with the government on eliminating the culture of “free labor”
c. we and our affiliates throughout the supply chain will not engage in forced labor under any circumstances (necessary trainings will be provided)
We strive to provide effective support to eliminating worst forms of child labor
a. we do not employ minors under the age of 18
b. youth is provided with on-site vocational skills-based training
c. we may co-sponsor few youth-friendly community centers (YMCA type) with education/information on HIV and drug use
We do not discriminate in respect of employment and occupation, i.e. we provide equal employment opportunities
a. Wordsworth Energy Thibaw will not discriminate based on race, ethnicity, religious affiliation, gender, sexual orientation etc.
Social Development:
We consult with local communities and all stakeholders when any major developments are being planned:
a. A community representative will be invited to appropriate corporate meetings/ round tables when decisions and issues concerning the community are discussed.
b. Provide our stakeholders with regular updates in the form of newsletters, press releases, town halls, website, pamphlets etc.
c. Conduct needs assessment, obtain feedback through surveys and incorporate feedback into tangible results as much as possible
We engage experts in the field to provide us with regular Social Impact Assessments (e.g. Partnership with Nurture)
a. We will implement the Tanyan Community Health/Agricultural/Sanitation Projects as per Nurture’s Assessment Report on an annual basis (https://docs.google.com/document/d/1-L3HPMlPdzAzJ6wutbIquPZxG0GmXD5bQKPKdxn8afI/edit?hl=en&authkey=CMiLyM0L&pli=1#)
b. Launch awareness programs about health care (especially for mothers of newborns), consider establishment of the rehabilitation center for victims of violence and human-trafficking (women and children affected) programs – Partnership with Humanity First
Together with stakeholders we will try to prevent “boom town” effects (spread of HIV, local inflation, drug use)
a. Launch awareness programs on HIV/AIDS for youth and general public
b. Launch diverse trainings for employees and locals
c. A special drug rehabilitation unit will be set up in a new clinic that we are to build in the Tanyan community
Provide and maintain infrastructure for the community, including through co-financing the following infrastructure facilities:
a. Robust roads and bridges
b. New Healthcare facility (1 hospital)
c. New wells/ upgraded water purification system for safe drinking water access
d. Ensured access to electricity throughout and surrounding the extraction area (generators, plant?)
e. Build educational facilities such as 2 schools (1 primary and 1 secondary) and 1 kindergarten
Environment:
Wordsworth will establish a response system in consultation with the local community and other stakeholders to address any cases of damages incurred during our operations or developments.
a. Emergency Preparedness and Response Plan, especially in case of spills or other events posing immediate concerns
We undertake precautionary approach to environmental challenges (e.g. Pipeline Construction, Special Preservation Zone for Endangered Species of Dwarf Tapir and Teak Forest)
We engage in initiatives to promote greater environmental responsibility (water, air pollution with gas flares etc.)
We encourage the development and use of only environmentally friendly technologies (Partnership with Shailoh on the pipeline, Partnership with environmental NGOs on preservation of Tapir and other environmental issues).
Wordsworth Announces Excellent CSR Budget
Worsdworth is pleased to announce based on conservative reports that the budget for CSR projects is over $150 million for the upcoming year. Reports from financial analysts have determined that this number is 6% of all revenues.
"We hope that these numbers re-instill a sense of confidence in our investors" said senior strategy executive Swati C.
"We hope that these numbers re-instill a sense of confidence in our investors" said senior strategy executive Swati C.
Market Responds Positively to Wordsworth-Nurture Cooperation
London: Investors Journal 2 August
Wordsworth stock saw a welcome rise in recent days in response to announcements of cooperation between Wordsworth and the respected NGO Nurture on development initiatives in Thibaw.
“This is an indication of Wordsworth taking seriously the challenges of operation in a deprived community,” says analyst Matthew Shaw. “It shows that Wordsworth probably has reasonable expectations of establishing itself successfully in Thibaw.”
Wordsworth closed at 285, up 10 from recent levels and reversing a previous downward trend.
Wordsworth has NOT signed any agreements with The Thibaw Government
In response to recent reports that Wordsworth Energy has signed an agreement with the Thibaw Government, our CEO has issued the following statement.
"Wordsworth Energy International has not signed any agreement with the Thibaw Government. In light of new efforts to increase the transparency and accountability of our firm, all agreements will be made public on this website"
All media inquiries should follow up with Vanessa Singh vas2119@columbia.edu to receive timely and accurate information.
"Wordsworth Energy International has not signed any agreement with the Thibaw Government. In light of new efforts to increase the transparency and accountability of our firm, all agreements will be made public on this website"
All media inquiries should follow up with Vanessa Singh vas2119@columbia.edu to receive timely and accurate information.
Nurture Tanyan Community Agricultural Initiative Report
Wordsworth is pleased to release and support the following report by Nurture:
After assessing the needs of the community, we identified a series of needs--specifically health, sanitation, and education--that our organization has the expertise to meet. Nurture promotes the health and well-being of local communities and the introduction of agricultural improvements in impoverished areas in order to secure environmentally and economically sustainable futures for the communities in which we work.
The Tanyan Village community expressed their primary concerns to be regarding their access to healthcare and preventative measures such as potable water. They were also concerned about the lack of local infrastructure systems and the potential for environmental degradation within their community.
We, Nurture, propose the following initiatives that would fulfill the needs identified by the community.
Immediate goals (to be introduced within the first year of organization involvement) -> Boost agricultural production through the introduction of high yield crops, organic fertilizers/crop rotation, and irrigation within the Tanyan community and implementation of the appropriate infrastructure. Immediate benefits to the community (projects to be started within the first year): clean, accessible water, water purification technology and water distribution infrastructure are essential to the well-being of the community and the success of our projects, thus will be immediately constructed upon the start of the Implementation Phase; sanitation infrastructure, essential to the health of the community by both preventing the spread of disease AND ensuring access to potable water, building enough composting latrines to satisfy the needs of the population (30 ppl/latrine) will solve this issue; and health clinics, the health of the community is of the utmost importance to our organization and we will set up at least two clinic--staffed by trained, local healthcare workers--within the first year and continue the expansion of these services throughout our involvement within the community.
Mid-range Goals (to be introduced within the first 4 years of organization involvement) -> Continued development of agricultural sector, introduction of the agricultural and trade training programs (to be implemented within the first 2 years), and begin building social infrastructure (village marketing cooperative, women’s centre, etc.).
Long-term Goals (to be introduced within the first 8 years of organization involvement) -> Creation of an agricultural institute in the region to develop crop varieties that are designed specifically to thrive within the local environment (specifically soil type and composition and climate).
This report was made possible by funds donated by Wordsworth Energy.
After assessing the needs of the community, we identified a series of needs--specifically health, sanitation, and education--that our organization has the expertise to meet. Nurture promotes the health and well-being of local communities and the introduction of agricultural improvements in impoverished areas in order to secure environmentally and economically sustainable futures for the communities in which we work.
The Tanyan Village community expressed their primary concerns to be regarding their access to healthcare and preventative measures such as potable water. They were also concerned about the lack of local infrastructure systems and the potential for environmental degradation within their community.
We, Nurture, propose the following initiatives that would fulfill the needs identified by the community.
Immediate goals (to be introduced within the first year of organization involvement) -> Boost agricultural production through the introduction of high yield crops, organic fertilizers/crop rotation, and irrigation within the Tanyan community and implementation of the appropriate infrastructure. Immediate benefits to the community (projects to be started within the first year): clean, accessible water, water purification technology and water distribution infrastructure are essential to the well-being of the community and the success of our projects, thus will be immediately constructed upon the start of the Implementation Phase; sanitation infrastructure, essential to the health of the community by both preventing the spread of disease AND ensuring access to potable water, building enough composting latrines to satisfy the needs of the population (30 ppl/latrine) will solve this issue; and health clinics, the health of the community is of the utmost importance to our organization and we will set up at least two clinic--staffed by trained, local healthcare workers--within the first year and continue the expansion of these services throughout our involvement within the community.
Mid-range Goals (to be introduced within the first 4 years of organization involvement) -> Continued development of agricultural sector, introduction of the agricultural and trade training programs (to be implemented within the first 2 years), and begin building social infrastructure (village marketing cooperative, women’s centre, etc.).
Long-term Goals (to be introduced within the first 8 years of organization involvement) -> Creation of an agricultural institute in the region to develop crop varieties that are designed specifically to thrive within the local environment (specifically soil type and composition and climate).
This report was made possible by funds donated by Wordsworth Energy.
Wordsworth-Shared Heritage Partnership on Thibaw Oil and Gas Initiative
Wordsworth is happy to announce a new partnership with Shared Heritage on The Thibaw Oil and Gas Initiative. The company signed a contract committing itself to a series of environmental goals.
Wordsworth Energy promises to engage in a process of consultation with all relevant stakeholders to promote responsible business practices and conduct Risk Assessment related to the planned activities. Wordsworth Energy shall pursue open, transparent and inclusive process ofconsultations with the Government and all legitimate stakeholders, concerning all decisions related to the development and operation of the extractive industry. Wordsworth Energy shall support environmental protection, in particular nature conservation through reforestation and protection of endangered species and providefunding to the Shared Heritage activities.
Wordsworth Energy would give Shared Heritage annual "rights of audit" throughout the life of the oil field and pipeline operation to ensure that agreed standards are being met.
The company is also pleased to announce that our CEO Sir Conway Dalrymple will sit on the Board of Directors for Shared Heritage.
Wordsworth Energy promises to engage in a process of consultation with all relevant stakeholders to promote responsible business practices and conduct Risk Assessment related to the planned activities. Wordsworth Energy shall pursue open, transparent and inclusive process ofconsultations with the Government and all legitimate stakeholders, concerning all decisions related to the development and operation of the extractive industry. Wordsworth Energy shall support environmental protection, in particular nature conservation through reforestation and protection of endangered species and providefunding to the Shared Heritage activities.
Wordsworth Energy would give Shared Heritage annual "rights of audit" throughout the life of the oil field and pipeline operation to ensure that agreed standards are being met.
The company is also pleased to announce that our CEO Sir Conway Dalrymple will sit on the Board of Directors for Shared Heritage.
Production Resumes in Dorothy Plant
Production resumed at 1030 hrs on April 7th on the Dorothy platform. Negotiations are currently in progress and every effort is being made to expedite delivery and installation.
The immediate cause of the accident appears to have been failure of a gas seal on the second-stage of the compressor. This item had been installed as new at the time of the last scheduled shutdown in early May of this year, and according to the manufacturer was rated for one year’s continuous service. Similar seals have given excellent service since commissioning of the platform in 1997 and have been changed out on an annual basis during scheduled shutdowns. On examination of the failed seal however it was found that it was not a genuine spare-part, but a counterfeit produced in the Far East. Assurances had been obtained from Acme Spares Ltd. that the parts were genuine and not counterfeit, but our Maintenance Department was not kept informed of the change in sourcing and was not therefore in a position to query whether the items met specification.
Advice is now being obtained from our Legal Department as to whether a civil case can be made against Acme Spares Ltd. The seals in question have now been replaced on all compressors on Dorothy with genuine items sourced from the manufacturer and steps are in hand to ascertain if counterfeit items have found their way on to other production facilities. If so then further shut-downs and production losses cannot be ruled out. The advisability of making personal changes in the Logistics Department is also under review as a management failure in this department was almost certainly the root cause of the Dorothy explosion.
The immediate cause of the accident appears to have been failure of a gas seal on the second-stage of the compressor. This item had been installed as new at the time of the last scheduled shutdown in early May of this year, and according to the manufacturer was rated for one year’s continuous service. Similar seals have given excellent service since commissioning of the platform in 1997 and have been changed out on an annual basis during scheduled shutdowns. On examination of the failed seal however it was found that it was not a genuine spare-part, but a counterfeit produced in the Far East. Assurances had been obtained from Acme Spares Ltd. that the parts were genuine and not counterfeit, but our Maintenance Department was not kept informed of the change in sourcing and was not therefore in a position to query whether the items met specification.
Advice is now being obtained from our Legal Department as to whether a civil case can be made against Acme Spares Ltd. The seals in question have now been replaced on all compressors on Dorothy with genuine items sourced from the manufacturer and steps are in hand to ascertain if counterfeit items have found their way on to other production facilities. If so then further shut-downs and production losses cannot be ruled out. The advisability of making personal changes in the Logistics Department is also under review as a management failure in this department was almost certainly the root cause of the Dorothy explosion.
Wordsworth Releases Social Impact Report
In response to the recently leaked Impact Assessment report, Wordsworth would like to issue a statement that the company was working with the government to publicly release this information but was prohibited from doing so. The company has decided to publish these findings in an effort to promote transparency and we welcome any inquiries from the public.
Odiham Associates Ltd.
Dedicated to excellence in Environmental and Social Impact Assessment since 1993
Preliminary Environmental and Social Impact AssessmentBlock 45 Development, Central Thibaw
Executive Summary
• The very significant revenues the project will generate could be a source of internalconflict and dissension in Thibaw if not well employed. Used well however, theycould stimulate trade and commerce in the non-oil sector and could allow majorupgrades of education, health-care and infrastructure. The main features of anyresponsible scheme for revenue utilization should be:
(a) Transparent and externally auditable public reporting of all revenues;(b) Agreement at Government level of the division of revenues betweenNational, State and Local Governments, including special provision forthe oil producing areas;(c) Clear commitments as to what percentages of the revenues would bespent on education, health and stimulation of industry and agriculture.;(d) The “Oil Fund” set up in Norway is a good example of how a countrycould manage its revenues for long term good.
• Wordsworth Oil obviously cannot dictate to the Thibawan Government how to useits revenues, but some independent third-party, typically governmental or super-governmental, might usefully be involved by Wordsworth in dialogue with theThibawan Government on this topic.
• Many of the skills needed for development of an oil industry are already presentin Thibaw, though not in the remote Block 45 area. Early action is needed to firmup requirements and to develop a plan for recruitment and training to maximizeopportunities in this sector. There are also significant numbers of Thibawans livingoverseas who have relevant skills – every effort should be made by Wordsworth todevise packages which would entice them to return.
• Subject to further detailed assessment (see below) there are unlikely to besignificant resettlement concerns associated with the development. Block 45 is ina sparsely populated area and deviated drilling from well clusters can minimizethe ground-usage required and ensure that villagers are not disturbed. (Notehowever that the issue of encroachment post-construction does however have to beanticipated). The pipeline route envisaged does however come close to settlementsand care must be taken in detailed planning to avoid them.
• It should be noted that the Block 45 area is commercially and industriallyundeveloped. There is only a very limited cash-economy and people are not usedto dealing with ready money. Cash compensation for any reason, though wellmeant, may have unintended consequences in terms of social destabilization(including local inflation, boom-town effects etc.) and may indeed trigger inter-communal tensions. The protests of villagers of Sudat, who were not affected in therecent waste-pit spill incident, but who demanded to be compensated anyway, isan example of the type of concerns that will need very careful management in thecoming period. Where possible compensation and community involvement shouldbe in-kind, or via community-development projects which genuinely reflect localneeds, identified in close consultation with the local people themselves. Wordsworthis strongly recommended to investigate how third-party experts in this field (e.g.development agencies or NGOs) can assist them to do this.
Note that though HIV/AIDS is a major concern in other parts of Thibaw the incidencein the Block 45 area is still very low. Wordsworth needs to identify a strategy assoon as possible to ensure that its operations are planned and executed to ensurethis persists.
• There are significant but not necessarily insuperable ecological and bio-diversityconcerns associated with the Lai-Ha Valley pipeline route. The rare Dwarf Tapir hasits last habitat here and is possibly being kept from total extinction by the fact that,other than the road from Sagu to Viet Nam, the roads in the area are in a very poorstate of repair, thus limiting access for poachers. There are indications that the armyis actively engaged in hunting of these animals for their hooves, which command ahigh price in certain overseas markets as aphrodisiacs, as well as in illegal loggingin the southern parts of the valley, on the northern foothills of the Pauk Mountains.(These facts have led “The Global Nature Institute” in the USA designating the Lai-Ha Valley to the one of its “200 Most Endangered Eco-Regions”). Were Wordsworthto pursue this route for the pipeline it would need to agree enforceable protectionmeasures for the Dwarf Tapirs with the Government. One solution could be to agreethat all road upgrades and access created for pipeline construction purposes wouldbe temporary and demolished after the pipeline is commissioned, so that the arearemains inaccessible.
• Agitation is currently developing internationally to declare large areas of the PaukMountains as protected areas in view of the presence of endangered species. Thisdemand has many eminent supporters and is likely to grow in the future but it isunlikely that the Thibawan Government will take any notice,
• Should the development of Block 45 proceed on the basis of flaring of all excessassociated-gas, then it will detract significantly from the overall environmentalfriendliness of the project. Though the contribution to Global Carbon Dioxide (CO2)
levels would be small in absolute terms, it would be very considerable in relativeterms for Thibaw, which, not being industrialized, has low emissions at present.Given that Wordsworth elsewhere has made strenuous efforts to reduce CO2emissions in its operations, implementation of flaring in Thibaw would be a highlyretrograde step. It therefore essential to continue evaluating schemes for managingexcess gas.
• Odiham Associates recommend that Wordsworth Oil establish an early relationshipwith some independent third-party entity with expertise in tropical ecology andbiodiversity which can act as a sounding board and critic for Wordsworth thinkingon this topic. A similar alliance with an entity with expertise in social and economicdevelopment would be appropriate.
• Execution of this Impact Assessment was an obligation for Wordsworth under theThibawan Hydrocarbon Law and as such it must be shared with the Government.In addition however thought should also be given as to with what other entities thisImpact Assessment should be shared, and how much there is to be gained fromtransparency as to its findings.
Odiham Associates Ltd.
Dedicated to excellence in Environmental and Social Impact Assessment since 1993
Preliminary Environmental and Social Impact AssessmentBlock 45 Development, Central Thibaw
Executive Summary
• The very significant revenues the project will generate could be a source of internalconflict and dissension in Thibaw if not well employed. Used well however, theycould stimulate trade and commerce in the non-oil sector and could allow majorupgrades of education, health-care and infrastructure. The main features of anyresponsible scheme for revenue utilization should be:
(a) Transparent and externally auditable public reporting of all revenues;(b) Agreement at Government level of the division of revenues betweenNational, State and Local Governments, including special provision forthe oil producing areas;(c) Clear commitments as to what percentages of the revenues would bespent on education, health and stimulation of industry and agriculture.;(d) The “Oil Fund” set up in Norway is a good example of how a countrycould manage its revenues for long term good.
• Wordsworth Oil obviously cannot dictate to the Thibawan Government how to useits revenues, but some independent third-party, typically governmental or super-governmental, might usefully be involved by Wordsworth in dialogue with theThibawan Government on this topic.
• Many of the skills needed for development of an oil industry are already presentin Thibaw, though not in the remote Block 45 area. Early action is needed to firmup requirements and to develop a plan for recruitment and training to maximizeopportunities in this sector. There are also significant numbers of Thibawans livingoverseas who have relevant skills – every effort should be made by Wordsworth todevise packages which would entice them to return.
• Subject to further detailed assessment (see below) there are unlikely to besignificant resettlement concerns associated with the development. Block 45 is ina sparsely populated area and deviated drilling from well clusters can minimizethe ground-usage required and ensure that villagers are not disturbed. (Notehowever that the issue of encroachment post-construction does however have to beanticipated). The pipeline route envisaged does however come close to settlementsand care must be taken in detailed planning to avoid them.
• It should be noted that the Block 45 area is commercially and industriallyundeveloped. There is only a very limited cash-economy and people are not usedto dealing with ready money. Cash compensation for any reason, though wellmeant, may have unintended consequences in terms of social destabilization(including local inflation, boom-town effects etc.) and may indeed trigger inter-communal tensions. The protests of villagers of Sudat, who were not affected in therecent waste-pit spill incident, but who demanded to be compensated anyway, isan example of the type of concerns that will need very careful management in thecoming period. Where possible compensation and community involvement shouldbe in-kind, or via community-development projects which genuinely reflect localneeds, identified in close consultation with the local people themselves. Wordsworthis strongly recommended to investigate how third-party experts in this field (e.g.development agencies or NGOs) can assist them to do this.
Note that though HIV/AIDS is a major concern in other parts of Thibaw the incidencein the Block 45 area is still very low. Wordsworth needs to identify a strategy assoon as possible to ensure that its operations are planned and executed to ensurethis persists.
• There are significant but not necessarily insuperable ecological and bio-diversityconcerns associated with the Lai-Ha Valley pipeline route. The rare Dwarf Tapir hasits last habitat here and is possibly being kept from total extinction by the fact that,other than the road from Sagu to Viet Nam, the roads in the area are in a very poorstate of repair, thus limiting access for poachers. There are indications that the armyis actively engaged in hunting of these animals for their hooves, which command ahigh price in certain overseas markets as aphrodisiacs, as well as in illegal loggingin the southern parts of the valley, on the northern foothills of the Pauk Mountains.(These facts have led “The Global Nature Institute” in the USA designating the Lai-Ha Valley to the one of its “200 Most Endangered Eco-Regions”). Were Wordsworthto pursue this route for the pipeline it would need to agree enforceable protectionmeasures for the Dwarf Tapirs with the Government. One solution could be to agreethat all road upgrades and access created for pipeline construction purposes wouldbe temporary and demolished after the pipeline is commissioned, so that the arearemains inaccessible.
• Agitation is currently developing internationally to declare large areas of the PaukMountains as protected areas in view of the presence of endangered species. Thisdemand has many eminent supporters and is likely to grow in the future but it isunlikely that the Thibawan Government will take any notice,
• Should the development of Block 45 proceed on the basis of flaring of all excessassociated-gas, then it will detract significantly from the overall environmentalfriendliness of the project. Though the contribution to Global Carbon Dioxide (CO2)
levels would be small in absolute terms, it would be very considerable in relativeterms for Thibaw, which, not being industrialized, has low emissions at present.Given that Wordsworth elsewhere has made strenuous efforts to reduce CO2emissions in its operations, implementation of flaring in Thibaw would be a highlyretrograde step. It therefore essential to continue evaluating schemes for managingexcess gas.
• Odiham Associates recommend that Wordsworth Oil establish an early relationshipwith some independent third-party entity with expertise in tropical ecology andbiodiversity which can act as a sounding board and critic for Wordsworth thinkingon this topic. A similar alliance with an entity with expertise in social and economicdevelopment would be appropriate.
• Execution of this Impact Assessment was an obligation for Wordsworth under theThibawan Hydrocarbon Law and as such it must be shared with the Government.In addition however thought should also be given as to with what other entities thisImpact Assessment should be shared, and how much there is to be gained fromtransparency as to its findings.
Shiloh and Wordsworth Woes
New York: Investors’ Chronicle July 10
"The recent unrest in Thibaw, following power shifts in the military government there, looks bad for US Independent Shiloh,” says respected analyst Chester Culbertson. “It’s widely rumored in the oil and gas industry that Shiloh was close to a deal with the Thibaw Government and the Chinese State company EnCathay, for development of gas reserves there. Until things calm down with teh prospect of longer term resolution, it’s hard to imagine Shiloh committing to a major investment there.”
Shiloh’s misfortunes are not confined to Thibaw. In a separate development it appears to be suffering a significant cut in production from the Dorothy field, in the UK’s North Sea, which is operated on behalf of a Shiloh/Wordsworth joint venture by Britain’s Wordsworth Energy.
Shiloh’s shares closed at 6.78
“Shiloh may well be regretting ever cooperating with Wordsworth,” said noted commentator Stephen Botts yesterday. “Production losses resulting from the recent accident on Dorothy are hitting both companies. At this rate it’s hard to imagine them getting into further joint ventures elsewhere. And Wordsworth’s profits will be down badly for the year unless they can get Dorothy fully back on line soon. So far we’ve no idea when that can be expected.”
Friday, March 25, 2011
Wordsworth Denies Partnership with EnCathay
Despite current rumors Wordsworth is not in any discussion of partnership agreements with EnCathay.
Wordsworth CEO Responds to Crisis in Thibaw
"Our company stands by the family of the employees who were lost in the fatal accident due to local conflicts. We will investigate to make sure that our enterprise is free of narcotic and other drug issues. In response to the explosions in the North Sea, the situation under control and production has been resumed. The situation is being assessed by the headquarters of Wordsworth and Shiloh Oil. The investigation will also be supported by the Health and Safety program in the UK." Carlos M.
IS THERE ANY UPSIDE FOR WORDSWORTH?
London: Investor’s Journal May 5th
“Wordsworth’s been taking a battering recently from all sorts of investors who want to shed their stock,” says renowned analyst Joe Grundy. “The ethical investors don’t like the stories they’re hearing about how security is being managed in Wordsworth’s operational area in Thibaw and the more hard headed institutional investors aren’t happy about reports of a falling out between Shiloh and Wordsworth over alleged poor cost management in the Dorothy Field in Britain’s North Sea which Wordsworth operates on behalf of a Wordsworth/Shiloh joint venture.”
“Investors are hoping to hear something positive from Wordsworth soon,” Grundy added. "But so far there has only been a crushing silence.”
Wordsworth stock closed at 282 its lowest for well over a year.
Hard-headed Investors lose confidence in Wordsworth!
London: Investors Journal 30 April
First it was the Ethical Investment Community, now it is the hard headed, and profit oriented institutional investors who have an eye on the bottom line who are beginning to get concerned about Wordsworth.
The trigger for these concerns has been a release by Wikidrain of a letter from Shiloh’s most senior management to that of Wordsworth, complaining about ineffective and over-costly management by Shiloh of the North Sea’s Dorothy Field, which is a joint venture between these companies. The letter was conciliatory in tone but appears to refer to some very acrimonious exchanges between the companies.
Wordsworth stock closed at 287, reflecting unloading of stock by several institutional investors.
Shiloh Price on the Rise
New York: Investors Chronicle 30 April
Respected U.S. independent Shiloh Oil saw its share price soar to 6.93, its highest for some time, in the aftermath of an authoritative article in Britain’s “The Mentor” news magazine which revealed that Shiloh was in negotiations with other companies to take a share in development of what look like a significant oil and gas reserves in Thibaw.
“Shiloh, with its strategically important LNG import terminal on the west coast of the U.S., is very well placed to exploit its position,” says a market insider.
Ethical Investors losing confidence in Wordsworth?
London: Investors Journal 15 April
In active trading in recent days a large block of Wordsworth stock came on the market, depressing share price to 292, its lowest in well over a year.
“This may represent a disposal by Emerald Responsible Growth Mutual Fund,” says Charles Winter, a respected market insider. “It’s no secret that its management was deeply disturbed by Wordsworth’s reluctance to release its impact assessment for its proposed Thibaw development. The fact that it was subsequently leaked by the mysterious Wikidrain organization is a major embarrassment for Wordsworth. One wonders if they were hoping to ignore the recommendations of this assessment. Otherwise there was no reason to withhold it.”
It is believed that Emerald Responsible Growth may have held as much as 1.5% of total Wordsworth stock and the depression of share price has reawakened speculation that Wordsworth may be a takeover target .
Ethical Investors losing confidence in Wordsworth?
London: Investors Journal 15 April
In active trading in recent days a large block of Wordsworth stock came on the market, depressing share price to 292, its lowest in well over a year.
“This may represent a disposal by Emerald Responsible Growth Mutual Fund,” says Charles Winter, a respected market insider. “It’s no secret that its management was deeply disturbed by Wordsworth’s reluctance to release its impact assessment for its proposed Thibaw development. The fact that it was subsequently leaked by the mysterious Wikidrain organization is a major embarrassment for Wordsworth. One wonders if they were hoping to ignore the recommendations of this assessment. Otherwise there was no reason to withhold it.”
It is believed that Emerald Responsible Growth may have held as much as 1.5% of total Wordsworth stock and the depression of share price has reawakened speculation that Wordsworth may be a takeover target .
Wordsworth Energy International Provides Food Aid
Wordsworth Energy has provided $1 Million in supplies of food aid to Tanyan community.
Shiloh Stock Rises
New York: Investor’s Chronicle March 25
A bizarre recent claim that the US’s Shiloh oil was involved in negotiations with the Thibaw Government that included use of slave labor as well as transfer of technology has had the effect of boosting Shiloh’s share price.
“Nobody believes that a company like Shiloh would use slave labor - and not just for ethical reasons but for pragmatic ones also,” says respected market analyst Kenton Archer, “but there is widespread relief that Shiloh is maintaining a position in Thibaw. it sunk a lot of money there in its unsuccessful exploration campaign and it obviously hasn’t given up on the country. That it’s negotiating with the government is a positive sign.”
Shiloh closed at 6.86, its highest for some months.
Shiloh Stock Rises
New York: Investor’s Chronicle March 25
A bizarre recent claim that the US’s Shiloh oil was involved in negotiations with the Thibaw Government that included use of slave labor as well as transfer of technology has had the effect of boosting Shiloh’s share price.
“Nobody believes that a company like Shiloh would use slave labor - and not just for ethical reasons but for pragmatic ones also,” says respected market analyst Kenton Archer, “but there is widespread relief that Shiloh is maintaining a position in Thibaw. it sunk a lot of money there in its unsuccessful exploration campaign and it obviously hasn’t given up on the country. That it’s negotiating with the government is a positive sign."
Ethical Investors losing confidence in Wordsworth?
London: Investor’s Journal March 19
A recent article in the US’s respected Washington Patriot has highlighted rising concerns in the Ethical INvestment community about possible slippage of ecological management standards in Thibaw. The main concern is that a prospective development may threaten teh survival of the few remaining breeding pairs of the endangered Dwarf Tapir.
“We’ve seen some stock been dumped,” says respected analyst Rebecca Gride, and the suspicion is that as-yet unidentified Ethical Investment Mutual Fund that’s responsible.”
Wordsworth Stock closed at 301, its lowest for several months.
Wordsworth Energy International Committed to Community Involvement and Transparency
Wordsworth has committed $100,000 to survey social and economic needs of the local community in Thibaw. An additional $250,000 to $500,000 is promised at a later time for market based agricultural initiatives. Our company is excited to work with Nurture to enter into a Partnership for the Development of Thibaw. We remain committed to the local community and regard the protection of environment, specifically endangered species, one of our highest priority.
Wordsworth moving away from its roots?
London: Investor Journal 15 March
“Wordsworth was always know in the past for its openness, “ says respected analyst Giles Winterborne, “but that seems to be changing. A number of NGOs and others have been complaining recently that Wordsworth is hard to reach and seems to be less transparent than in the past. There is a lot of concern in the Ethical Investment Community about this and a fear that it may reflect compromises to its usual high standards when operating in Thibaw.”
Wordsworth stock closed at 312, perhaps reflecting these concerns.
Shiloh faces dismal start to year!
New York: Investors' Chronicle, Jan 15th
Investors have been reacting negatively to continued silence on whether Shiloh Oil will leave the SE Asian country of Thibaw following disappointing exploration results - and major expenditure there.
"Investors may be a little shortsighted," says veteran analyst Jesse Smith. "Shiloh's fundamentals are excellent - and they control teh only LNG import terminal on the US West Coast. Even without Thibaw it looks like a good bet. My recommendation is to buy."
Shiloh Stock is trading at 6.79, down .08 since the start of the year.
High Expectations of Wordsworth says Ethical Investment Guru
London: Investment Journal 10 Jan
"Wordsworth continues to hold its place as a favorite of Ethical Investors," respected analyst Silas Grimshawe told our reporter yesterday. "As much as 15% of its stock may be held by Ethical Investment Mutual Funds and by institutional investors who place a high premium on high ethical business standards. Several charitable foundations - which are rumored to include the US's prestigious Bruce Wayne Foundation, also appear to have substantial holdings."
Commenting on Wordsworth's controversial decision to operate in the "Hermit Republic" of Thibaw, which is notorious for its Human Rights abuses, Grimshawe commented: "Yes - it'll be a challenge and Wordsworth is going to have to play a very careful game. But they're an experienced operator - I suspect they'll manage."
Wordsworth stock closed at 325, up 5 since the start of the year, reflecting investor confidence that success in Thibaw could boost Wordsworth revenues in the coming years.
Wordsworth Energy International
Wordsworth companies insist on honesty, integrity and fairness in all aspects of their business and expect the same in their relationships with all those with whom they do business.
Carlos Barriento, Chief Executive Officer
Swati Chaudary, Executive Director of Strategy
Ben Schwartz, Executive Director of Strategy
Ayalet Haran, Government Relations
Gaukhar Abdygaliveva, Community Relations
Scott Macmurdo, NGO Relations
All media inquiries should be directed to Vanessa Singh, Media Relations 631 687 9513
Our international headquarters is located at SIPA IAB Floor 12 Room 1219
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