Environmental & Social Review Summary
Project Number
10056
Company Name
Sazankurak Joint Stock Company
Date ESRS Disclosed
Feb 5, 2010
Country
Kazakhstan
Region
Central Asia and Turkiye
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 7, 2000
Signed : Sep 25, 2000
Invested : Jun 22, 2001
Sector
Oil and Gas Production (Includes Development)
Industry
Metals and Mining
Department
Gbl Infrastructure & Natural Resources
Project Description
Environmental Review Summary (ERS)
Project Name: Kazakhstan - First International Oil Company (FIOC)
Region: Central Asia, Middle East and North Africa
Sector: Mining and Extraction of Fuel Minerals
Project No.: 10056
1. The Project involves the expansion of the Sazankurak Oil Field in western Kazakhstan by First International Oil Corporation (FIOC), a privately held US company with assets exclusively in Kazakhstan. The Sazankurak Oil Field is located 154 kilometers west of the city of Atyrau and 25 kms from the Caspian Sea. FIOC acquired the license for the Sazankurak Oil Field in 1997 through the Sazankurak Joint Stock Company (JSC), a joint venture owned by FIOC (the Project Sponsor) and "Atyraumunaigasgeologiya" JSC. Gravity of the oil is approximately 24 degrees. The Company began development drilling in January 1998 and has drilled sixteen wells. An on-site rail terminal, completed in March 1999 provides JV Sazankurak with reliable access to export rail transportation. The Company began export sales in April 1999, shipping its crude by rail to the Black Sea port of Novorossyisk. The expansion consists of drilling 18 additional development wells, 25 water injection wells and the installation of additional gathering lines, storage tanks, processing units and hydrocarbon heating systems. FIOC recently (1 December 1999) installed a central processing facility, which will increase average daily production from 3,900 barrels per day to 5,000 barrels per day when commissioning is complete. With the additional wells, FIOC hopes to increase daily production to 6,000 bbl/d by 2001.
2. This is a Category B project according to IFC’s environmental and social review procedure, because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, and design criteria. IFC'' s review of this project consisted of appraising technical, environmental, and social information submitted by FIOC as well as an oil field site review completed by IFC’s technical staff. The following potential environmental, health and safety impacts of the project were identified:
· air emissions;
· noise from drilling and operations;
· water supply and disposal;
· contamination of the proposed site from current or past operations, on or offsite;
· occupational health and safety issues including fire protection, emergency response, and control of employee exposure to noise and dust;
· liquid and solid waste disposal; and
· resettlement of people or economic dislocation caused by land acquisition for the project.
3. FIOC has prepared plans, including an Environmental Management Plan, to address these issues and has demonstrated to IFC that the proposed project will comply with applicable Government of Kazakhstan and World Bank Group requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.
4. The oil field covers an area of approximately 500 hectares. The location is remote and typified by desert, wind erosion, and low biological diversity. In accordance with Kazakhstan regulations, FIOC completed numerous studies that were reviewed and approved by the Oblast Environmental Protection Administration and other authorities including a 1999 Environmental Impact Assessment. The project is not located in or near any National Parks, protected or sensitive areas. There are no known historical or cultural landmarks (such as monuments, archaeological sites, cemeteries, etc.) in or near the field. FIOC is taking measures to minimize impacts during construction and operation. A base camp will house about 120 workers during construction and approximately 80 during extended production operations.
5. The oil field produces a small amount of associated gas, which is all currently flared. In the future, the boilers will be converted from oil-fired to gas-fired to minimize the amount of flared gas. The oil field is located in a very isolated area with no industries nearby. Air emission sources in the immediate vicinity of the oil field include heaters and boilers, flares, diesel generators, railcar loading terminal, oil production well servicing and maintenance, sludge pond, railroad transport, and vehicles. In addition, air quality is impacted by community boilers used in Isatai and Akkystau settlements.
6. The project does not generate excessive noise. Noise is generated by rail and vehicle transport, boilers and diesel generators, drilling rigs, flares, and oil processing facilities. There are no noise impacts to the nearest community given the remoteness of the oil field.
7. Drilling water is pumped from shallow wells in the oil field. Industrial water is taken from the Astrakhan - Aktau water pipeline, the source of which is the Volga River. Potable water is currently trucked in from a nearby village, and a water treatment plant will be constructed this year, which will eliminate trucking water. Produced water is treated and reinjected into disposal well G-3, while surface run off water is treated in a sump and transported to the evaporation pond.
8. There is no known contamination from previous or current activities. The Government of Kazakhstan owns the land and has leased it to FIOC for 25 years. The project was a greenfield site when FIOC began operations in 1997. A baseline study was conducted at that time, and no contamination was identified.
9. FIOC has prepared a Health, Safety and Environment Drilling and Oilfield Safety Manual, which requires annual worker training. FIOC'' s Medical Emergency-Well Control-Spill Response Plan outlines actions to be taken in the event of a medical emergency, loss of well control, spills, fires or explosions. The oil storage tank farm has a firewater ring main, four hydrants, and four foam fire hydrants. The oil loading terminal has firewater monitors (spray dispensers), hydrants and foam nozzle fire suppressors. A medic is available at the base camp, and a medical services company is contracted to provide treatment and/or transport injured workers to the regional hospital.
10. Paper and burnable waste is burned in the oil field. Food material is disposed of at a pig farm. Sanitary sewage flows to a septic tank and then to an evaporation pit. Drilling mud and cuttings are disposed of in two pits that have concrete bottoms and plastic liners. The capacity of the pits will accommodate future planned drilling.
11. There are no non-project-associated people living in the oil field. There are two families (11 people) that live about 1 km from the closest facilities and two more families within 5 kms. The nearest town is approximately 20 kms to the west. Originally there were two families living within the oil field. The families were voluntarily relocated in 1998 to a village about 20 kms away. JV Sazankurak provided apartments and employed the two male heads of household. According to FIOC, the families are content as they now have homes, the fathers have jobs, and the children can attend school.
12. FIOC has provided funds for environmental and social infrastructure improvements in the Atyrau Oblast such as revegetation, sand movement control, tree planting, and water and gas distribution systems within local communities. FIOC also contributes funds to the District budget to support local community social projects.
13. FIOC'' s Environmental Management Plan outlines monitoring, responsibilities, costs and schedule. Monitoring has been on going since 1997 per Kazakhstan requirements.
14. IFC will monitor ongoing compliance of the Project with World Bank environmental, health and safety policies and guidelines during the lifetime of the Project by evaluating reports submitted annually to IFC by FIOC and by conducting periodic assessments.
15. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that FIOC’s proposed project would meet World Bank Group environmental, health and safety policies and guidelines and the Republic of Kazakhstan'' s requirements.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
