PROJECT

Projects

Environmental & Social Review Summary

Project Number

27318

Company Name

OPHIR THAILAND (E&P) LIMITED

Date ESRS Disclosed

Nov 25, 2008

Country

East Asia and Pacific Region

Region

East Asia and the Pacific

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jan 7, 2009
Signed : Jan 14, 2009
Invested : Jan 20, 2009

Sector

Oil and Gas Exploration

Industry

Metals and Mining

Department

Gbl Infrastructure & Natural Resources

Project Description

Salamander Energy plc (Salamander or the company), an existing IFC client, is a young rapidly-growing independent oil and gas company exclusively focused on Southeast Asia. The company’s strategy is to build a sustainable upstream business through leveraging its regional knowledge and relationships; maintaining a balanced portfolio of production, development, appraisal and exploration assets; enforcing strict capital allocation discipline; and pursuing targeted acquisitions in addition to organic-led growth. Since its inception, Salamander has developed a broad set of assets, including producing and near-production interests in Indonesia and Thailand as well as exploration and appraisal properties in Indonesia, Thailand, Vietnam, Laos and the Philippines. Salamander is largely owned by institutional investors and is listed on the London Stock Exchange.

Salamander has invited IFC to acquire an equity interest (as an unincorporated joint venture partner) in certain of its operations in Laos and Thailand, by participating in a farm-in and development of Salamander’s interest in:
- the Savannakhet production sharing contract (“Savannakhet PSC”) in Laos and the adjacent onshore concession L26/50 in Thailand, as well as
- L15/50, another onshore concession in Northeast Thailand (together known as the “Project”).

Currently, the company holds a 70% share in the Savannakhet PSC and 100% interest in the Thai concessions, and is the operator for all three blocks.

The company is currently undertaking oil and gas seismic exploration in Laos and has a commitment to drill one test well. The company is also committed to seismic exploration in the Thai concessions and drilling of test wells in L15/50.

Overview of IFC's Scope of Review

The review of this project consisted of an appraisal mission in May 2008 to Salamander’s assets in Laos and review of the rapid environmental and social impact assessment for seismic exploration. The project sponsor is an existing IFC client. During April 2008, IFC undertook an appraisal visit to Salamander’s key assets in Thailand and Indonesia in respect of an earlier investment. IFC also held meetings with management and key staff from Salamander in Singapore and reviewed related technical, environmental and social reports. Please refer to the Environmental and Social Review Summary (Salamander: #26478) available on IFC’s website (www.ifc.org/disclosure) for a detailed description of the earlier investment.

Activities undertaken during the appraisal in Lao included:

- Discussions with Salamander on key environmental and social aspects of their assets in Lao;
- An overview assessment of environmental and social issues, community engagement and development activities to date;
- Field visits to the exploration assets in Laos and accommodation camps;
- Meetings with the department of mines, Provincial Governors (in Thaphangthong, Saravane and Savannakhet Provinces) and District heads; and
- Meetings with village head, Ban Nasano village.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Client Documentation

File Name Actions
Action Plan .pdf