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Kazakhstan- Karachaganak/01 (LUKoil Overseas)
Complaint |
Residents of Berezovka, Kazakhstan filed a complaint in September 2004 via the Washington-based NGO "Crude Accountability." Their principal claim is that their community and others surrounding the Karachaganak Oil and Gas Condensate Field are experiencing adverse health affects due to pollutants from the sponsor's operations, and deteriorating economic circumstances for village residents.
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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.
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CAO Action |
In its assessment of the complaint, CAO met with the IFC project team, conducted a desk review of project documents, and visited the area in December 2004. Draft copies of the CAO assessment report, without recommendations, were distributed to all stakeholders, who provided input for the first assessment report that was released in April 2005.
CAO found that health and air quality data collected by the government, the sponsor, and the complainants that have not been made public should be released and publicly examined in order to better characterize local environmental and health conditions. CAO also found that without baseline data, it is difficult to separate health and environmental effects of the current project from problems caused by the deteriorated physical and social infrastructure in Kazakhstan, and from past environmental practices during the Soviet era. |
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Current Status |
In February 2006, CAO made a follow-up visit to the region to assess parties’ willingness to negotiate a resolution. Based on information from that visit, CAO released a progress report which included a recommended process for establishing a multi-party monitoring initiative – an idea first proposed by KPO. The parties were asked to confirm to CAO whether they were willing to pursue the multiparty monitoring program or attempt some other type of mediated solution.
Both parties have responded that they wish to resolve the conflict through Kazakhstan’s legal and regulatory authorities, rather than attempt a mediated or collaborative process. The Ombudsman closed the complaint in August 2006. In order to assure itself that there are no outstanding concerns regarding compliance with applicable requirements, CAO has transferred the case to the CAO Compliance officer for appraisal for audit. |
Received |
Appraisal |
Assessment |
Conciliation, Mediation, Settlement, Monitoring & Follow Up |
5 days |
15 days |
30-90 days |
Ongoing Monitoring |
Acknowledged
10-4-04
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Accepted
10-6-04 |
Assessed and Report Completed 6-8-05
Follow-up Assessment Completed
Feb. 20 – 24, 2006
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Follow-up mission planned Spring 2006
Parties not willing to negotiate (July 31, 2006); Transferred to Compliance
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Last updated: 11/12/2008
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