CAO Cases

Arne Hoel, The World Bank

Europe & Central Asia

Kazakhstan / Lukoil Overseas-02/Berezovka

Complainant
Green Salvation Ecological Society
Date Filed
April 01, 2007
Case Status
Closed
 

Synopsis

Complaint

The Lukoil Overseas Project is an IFC-financed investment to develop the fields and increase crude oil and condensate production in the Karachaganak Oil and Gas Condensate Field in the Western Kazakstan Oblast. CAO has received three complaints in relation to this project. In April 2007, Green Salvation Ecological Society, a civil society organization based in Kazakhstan, lodged a complaint with CAO on behalf of villagers in Berezovka. This second complaint raised the following concerns:

 

1. Resizing of the sanitary protection zone and relocation of villagers;

 

2. Violations of both IFC policies/operating standards and national and environmental protection laws and national covenants;

 

3. Emissions to air.

 

CAO Action

The issues raised in this second complaint were broadly similar to those raised by community groups in the first complaint lodged in September 2004. It raised concerns about the same impact of the project on villagers’ health and on their quality of life as the first complaint, but in the context of the legality of the national permissions and licenses under which the project operates. CAO Ombudsman determined that the parties were unwilling to seek resolution through a collaborative process. In November 2007, an Assessment Report was released and the case was transferred to CAO Compliance for appraisal.

 

Status

The Compliance Appraisal, completed in January 2008, concluded that issues related to the resizing of the sanitary protection zone and the relocation of villagers did not fulfill CAO’s criteria to conduct an audit. In contrast, the issues related to air emissions and violations of IFC policies did in fact satisfy CAO criteria. Given the similarities exhibited by this complaint, CAO Compliance referred the matter to its ongoing audit of IFC in relation to the first complaint concerning this project. Accordingly, the complaint was closed in January 2008.

Project information

Institution
IFC
Project Name & Number
Lukoil Overseas 9953
Department
Oil, Gas, Mining, & Chemicals
Company
Lukoil Overseas Karachaganak B.V.
Sector
Oil, Gas and Mining
Region
Europe & Central Asia
Country
Kazakhstan
Environmental Category
A
Commitment
$50 mill (A), $75 mill (B) & $25 mill (C) loans

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: Transferred

Compliance

  • Under Appraisal: Closed