IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project, according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. There are no impacts associated with this phase of the project, as it only involves setting up a company (Afren). It is anticipated that in the future Afren will acquire shares in oil and gas properties which may have impacts that are typically associated with these types of projects such as: - Air emissions, including green house gases. - Waste disposal, including cuttings and mud. - Noise. - Soil and water contamination from preexisting conditions and future operations. - Biophysical. - Water supply and disposal. - Cultural properties. - Occupational health and safety issues. - Emergency response plans. - Social impacts, including land acquisition and resettlement.

Afren will take the following steps to address future potential impacts associated with acquiring oil and gas properties and, upon implementation such steps, will comply with applicable host country laws and regulations and World Bank/IFC requirements. - Afren will develop an Environmental and Social Management System (ESMS) which will detail the process for making decisions on environmental, health, safety and social issues prior to entering in to any investments. The ESMS process will include the following tools: a corporate Environmental, Health, Safety and Social (EHSS) Policy; a set of environmental and social screening criteria for project evaluation; conditions that Afren may wish/need to include when negotiating contracts/ownership of projects, etc. The screening tool will be developed by Afren with assistance from IFC and will be used by Afren to examine of future projects, in order to determine if these projects would comply with IFC's safeguard policies. IFC will provide environmental and social support, if needed, for the examination of first few projects, to ensure that Afren can successfully utilize the screening tool. - Institutional EHSS capacity will be raised, if needed, by requiring one or more key Afren personnel to attend IFC's Competitive Environmental Advantage Workshop or other appropriate training. - Afren will submit annually to IFC an environmental and social monitoring report (“AMR”) which will detail EHSS progress on all ongoing projects.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environmental and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

IFC will evaluate the Afren's compliance with the applicable environmental and social requirements during the lifetime of the investment by reviewing the annual ESMRs covering the following: - the status of implementation of the above measures, and - ongoing performance of project-specific environmental, health and safety and social activities. Periodic site supervision visits will also be conducted, as appropriate.