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Screened B/1. Environmental due diligence comprised (i) environmental audit of the Sibirskoye oil field and environmental analysis of its further development, and (ii) environmental analysis of the proposed associated gas utilisation program. Lukoil-Perm is largely in compliance with the applicable Russian environmental, health and safety requirements. It is governed by Lukoil’s environmental policy, and in line with this policy, plans to certify environmental, health and safety (“EHS”) management systems to standards of ISO 14000 and OHSAS 18000 series by the end of 2005. Permtex complies with the Bank’s environmental requirements, which have been confirmed by 2002 environmental audit commissioned by the Bank for the existing operation.
The proposed project will be carried out in line with applicable international standards such as the EU Directive 96/61/EC on IPPC and the World Bank Group guidelines. The associated gas utilisation component will result in strong environmental benefits through reduction of greenhouse gases (“GHG”) emissions in line with the UN Framework Convention on Climate Change. On the regional level it will also contribute to the improvement of the overall environmental situation in the Perm oblast of the Urals region. Lukoil-Perm plans to bring its associated gas utilisation rate up to 80% by the year 2005, which compares well with the Russian average of 45%. Lukoil-Perm developed its GHG emissions reduction program for 1999-2008 and is in the process of its implementation. Lukoil-Perm has won several environmental performance awards in competition with Russian oil companies.
The environmental audit of the Sibirskoye oil field did not identify any significant environmental issues. Other issues will be addressed through the EAP. The EAP will include the following actions: (i) strengthening supervision of drilling operations to avoid localised soil and groundwater contamination; (ii) clean-up and reclamation of the contaminated soil; (iii) containment and clean-up of polluted ground water within the field, if appropriate; (iv) recultivation of temporary sites for waste disposal. Environmental impacts of further development of the field will be dealt with through: (i) minimising the footprint of the new infrastructure; (ii) recultivating fertile soil layers and preventing erosion; (iii) undertaking pipeline integrity measures, etc. Environmental impacts associated with the gas utilisation program will be related to construction of the new infrastructure and assessed in detail within the corresponding environmental impact assessment studies, which will be carried out by the client in 2003 to the satisfaction of the Bank.
There have been no complaints from the public or NGOs in regard to the proposed project components. There are no residential settlements located on the territory of Sibirskoye field. Public consultation requirements within the final EIA for the gas utilisation program will be fulfilled in accordance with the Russian legislation and the Bank’s Environmental Procedures.
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