Kazakhstan: Lukoil Overseas-02/Berezovka

Date Filed
01 Apr 2007
Status
Closed
Phase
Compliance
Country
Kazakhstan

Case Tracker

Eligibility
Eligibility
Assessment
Transferred
Assessment
Dispute Resolution
Compliance
Appraisal
Closed
CURRENT Status
Appraisal (COMPLIANCE)
Closed

Complaint Overview

Complainant

Green Salvation Ecological Society

Cross-Cutting Issues
Risk Management Community Health and Safety Land Resettlement Air Land

Project Information

Region
Europe & Central Asia
Institution
IFC
Name & Number
Lukoil Overseas 9953
Company
Lukoil Overseas Karachaganak B.V.
Sector
Mining, Oil, Gas and Chemicals
Department
Other
Category
A
Commitment

$50 mill (A), $75 mill (B) & $25 mill (C) loans

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.

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    Assessment Report
    Nov 01, 2007
    English
    Assessment Report
    Assessment Report
    Nov 01, 2007
    Russian
    Assessment Report
  • Appraisal Report(s)
    Appraisal Report for Audit of IFC's
    Jan 15, 2008
    English
    Appraisal Report for Audit of IFC's
    Appraisal Report for Audit of IFC's
    Jan 15, 2008
    Russian
    Appraisal Report for Audit of IFC's