May 2011

Greetings:

We're pleased to bring to you the second edition of our Investor's Eye on the Amazon  quarterly newsletter, providing institutional investors, industry analysts and researchers with key insight into some of the most pressing issues facing the Amazon and companies operating there.  

Featured here is a new report authored by corporate governance experts Simon Billenness and Sanford Lewis entitled "An Analysis of the Operational Risks to Chevron Corporation from Aguinda v. ChevronTexaco." This report provides cogent and fresh analysis of the long-running environmental trial in Ecuador, where Chevron was recently found liable by an Ecuadorian court for upwards of $18 billion in compensatory and punitive damages.  

Also you will find an analysis of Talisman Energy's controversial oil operations in Peru; insightful commentary on Ivanhoe Energy's operations in Ecuador's Block 20; a breaking news advisory about ConocoPhillips' withdrawal from the territory of an uncontacted tribe in Block 39 of Peru; and a briefer on Vale's role in the Belo Monte dam in Brazil.  

We hope that the Investor's Eye on the Amazon newsletter continues to serve as a valuable tool for your important work.  

Best,

Mitch Anderson
Corporate Campaigns Director

An Analysis of the Financial and Operational Risks to Chevron Corporation From Aguinda V. ChevronTexaco

A recent report based on upon review of Chevron's public filings with the Securities and Exchange Comission, public domain legal filings in the United States and Ecuador, and interviews with legal experts examines the potential damage and disruption to Chevron's operations from enforcement of the $18 billion Ecuador court judgment that was delivered on February 14, 2011. This report also assesses the risk that Chevron's aggressive counter-litigation and public relations campaign against the Ecuadorian plaintiffs' will backfire and prove to be a long-term barrier to the company's obtaining the legal right and social license to explore and operate in new regions.

DOWNLOAD THE REPORT »

Talisman Energy at a Crossroads:
Policy vs. Practice in the Amazon

Although Canada's Talisman Energy has been applauded for the recent release of its Global Community Relations Policy – in which it purports to respect indigenous rights and the principles of Free, Prior, and Informed Consent – there has been a gap between policy and the reality of what is happening on the ground in the Peruvian Amazon. While Talisman claims it has the consent of the 8 communities directly affected by its operations, the majority of Achuar community leadership remain in steadfast opposition to Talisman's planned expansion of its operations and demand the company leave their territory.

LEARN MORE »

A Lose-Lose Proposition:
Ivanhoe Energy in Ecuador's Block 20

Canada's Ivanhoe Energy is in the exploration phase of a new heavy oil-drilling project in the Ecuadorian Amazon. The project in the Pungarayacu oil field in Block 20 threatens to to cause environmental damage to a sensitive and highly biodiverse region and is a reputational, political, and financial risk to the company, as the project proposes utilizing new drilling technology untested in an environment like the Amazon, is being challenged in an American court, and is firmly opposed by the Kichwa communities that inhabit block 20.

READ THE REPORT »

ConocoPhillips Withdraws from
Oil Block 39

ConocoPhillips CEO James Mulva announced today at its Annual General Meeting of shareholders that the company has withdrawn from its controversial co-venture with Repsol-YPF in Oil Block 39 of the remote northern Peruvian Amazon. Oil drilling in Block 39 and neighboring Block 67 has come under fire from human rights groups due to the presence of indigenous peoples living in voluntary isolation in this region, and the risk of forced displacement and deadly epidemics.

LEARN MORE »

Belo Monte: Mining Giant Vale Backs Disastrous Dam in the Amazon

Last week, the world's second largest mining corporation Vale agreed to purchase a 9% stake in the hydroelectric mega-project Belo Monte. With its new share in the dam, Vale – and its Brazilian government backers – are banking on the hope that the electricity from mega-dams in the Amazon can power Brazil's continued export of cheap commodities to China. In bringing critical liquidity to the dam-building consortium, Vale expects Belo Monte to power a record expansion of mining in the Amazon, which threatens indigenous communities and the rainforest environment.

LEARN MORE »

New York State Pension Fund & Trillium Asset Management: Investor Sign-On Letter To Chevron Corporation

An investor sign-on letter being circulated by New York State Pension Fund and Trillium Asset Management to Chevron Corporation, urging the company to use the occasion of the Aguinda v. Texaco verdict earlier this year to take a fresh look at its options to address Texaco's legacy in the Ecuadorian rainforest. The deadline for signing is Friday, May 20th. For more information, contact Shelley Alpern with Trillium Asset Management.

DOWNLOAD THE LETTER »

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