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Kazakhstan- Karachaganak/02 (LUKoil Overseas)

Complaint

The CAO received a complaint on 12 April 2007 relating to the Karachaganak Petroleum Operating Company (KPO).  The complaint was filed by the civil society organization Green Salvation Ecological Society (Green Salvation) on behalf of villagers in Berezovka, Kazakhstan. The complaint raises concerns about:

  • Resizing of the sanitary protection zone
  • Emissions to air
  • Violations of IFC policies and operating standards
  • Relocation of villagers
   
Background

The Lukoil Overseas Project is an IFC-financed investment in the Karachaganak Oil and Gas Condensate Field in the Western Kazakhstan Oblast. The Field was purchased by the consortium Karachaganak Petroleum Operating (KPO), BV (then “Karachaganak Integrated Operating”) in 1998, and IFC provided US$150 million in loans to consortium member Lukoil.

   
IFC Interest

The Lukoil Overseas Project is an IFC-financed investment in the Karachaganak Oil and Gas Condensate Field in the Western Kazakhstan Oblast. The Field was purchased by the consortium Karachaganak Petroleum Operating (KPO), BV (then “Karachaganak Integrated Operating”) in 1998, and IFC provided US$150 million in loans to consortium member Lukoil.

CAO Findings

The issues raised in this complaint were broadly similar to those raised by community groups in a complaint to the CAO in September 2004.  Extensive efforts were made by the CAO in 2005 and 2006 to encourage dialogue and facilitate settlements of community concerns.  On receipt of this new complaint, CAO returned to the parties to find out whether there might be a new opportunity for dispute resolution.  After discussion with all principal stakeholders, the CAO Ombudsman concluded that the parties were not in a position to engage in a facilitated solution.

Current Status

An assessment report was completed in November 2007 and the case was transferred to the CAO Compliance for appraisal. 

 

 

Documents

Assessment Report, Case regarding the Green Salvation Ecological Society and Karachaganak Petroleum Operation, Burlinsky District, Western Kazakhstan Oblast, Kazakhstan

English/pdf; Russian/pdf

 

Last updated: 03/11/2008