Summary of Proposed Investment
Project Number
10056
Company Name
Sazankurak Joint Stock Company
Date SPI Disclosed
Apr 14, 2000
Country
Kazakhstan
Industry
Metals and Mining
Status
Completed
Sector
Oil and Gas Production (Includes Development)
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Jun 7, 2000
Signed : Sep 25, 2000
Invested : Jun 22, 2001
Project Description
Summary Of Project Information (SPI)
RegionCentral Asia, Middle East and North Africa
Sector
Project No010056
Projected Board DateMay 29, 2000
Company NameFirst Internaitonal Oil Corporation
Technical Partner and/or Major Shareholders
The project will be implemented by the Sazankurak Joint Venture Joint Stock Company (SJV), a locally incorporated Kazakh company. SJV is owned (97.5%) by First International Oil Corporation (FIOC), of the United States and (2.5%) by Atryraumunaigasgeologia (AMG) of Kazakhstan. FIOC is an independent exploration and development company organized in 1996 for the purpose of exploring and developing hydrocarbon deposits in the Caspian region of Central Asia. AMG is a previously state-owned drilling company that was privatized in 1996.
Project Cost Including proposed IFC investment
Project cost is estimated at US$40 million. The proposed IFC investment consists of an up to $US12 million loan to SJV and a US$8 million equity investment in FIOC.
Location of project and Description of site
The project involves the expansion of the Sazankurak oilfield in western Kazakhstan. The Sazankurak field is located 154 kilometers west of the city of Atyrau on the northern edge of the Caspian Sea within the Pre-Caspian Basin. The field encompasses 500 hectares and is located in a very isolated area with no surrounding industry. The nearest population center is approximately 20 kilometers to the west.
Description of Company and Purpose of Project
The project involves the expansion of the Sazankurak oilfield in western Kazakhstan. Existing facilities for the field include a base camp, 2 collecting stations, 2 storage tanks and a rail-loading terminal.
IFC financing would play an important role in providing a needed source of long-term finance for projects in Kazakhstan. Due to concerns about the country''s political risks, and access to export markets, the international financial institutions have been reluctant to meet this need. IFC financing of this project would represent a needed alternative that would not otherwise be available. In addition, IFC’s participation in this first project would support the country’s effort to develop its oil sector and would signal that there is opportunity for smaller, independent companies to participate in its growth. The project would generate foreign currency and taxes for Kazakhstan, create local employment in a remote area of Kazakhstan, and provide funding for training and social programs.
Environmental Category and Issues
This is a category B project according to IFC’s environmental and social review procedure. Key issues reviewed included: 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. The company has plans, including an Environmental Management Plan, to address these issues and has demonstrated that the proposed project will comply with applicable Kazakhstan and World Bank Group requirements.
The is from the InfoShop.
Host country location of environmental documentsCommunity of Akkystau:
Office of the Deputy Akim,
Isatai District
JV Sazankurak JSC:
3 Saptaev Street
Atyrau City
Tel: (31222) 33035
Environmental Protection
Administration of Atyrau Oblast:
137 Chapayev Street
Atyrau City
Tel: (31222) 33035
Date SPI sent to InfoShop April 14, 2000
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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