Project description
and objectives:
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The proposed project consists of a strategic environmental programme aiming at
rehabilitating or enhancing the environmental, health and safety performance
of various upstream, midstream or downstream facilities operated by oil
company Lukoil in the Bank’s countries of operation. The scope includes inter
alia pollution clean-up, pipeline replacement, gas flaring reduction, health
and safety measures, social infrastructure, energy efficiency and other
environmental remediation investments and specifically excludes production
related investments that do not have an over-riding environmental benefit.
Lukoil’s strategic environmental programme will be implemented over the
disbursement period of the loan upon the communication by Lukoil to the Bank
of call-off notices for each individual environmental investment providing
detailed information on use of proceeds, anticipated results, schedule for
major activities, required permitting process, public consultation
requirements, reporting and monitoring by EBRD.
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Transition impact:
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The Project is an environmental project designed to remedy past liabilities
and enhance the environmental performance of Lukoil’s operations. The
transition impact objectives are:
(i) the demonstration of a replicable large scale environmental clean-up
programme creating a benchmark for other Russian corporates in the natural
resource sector and
(ii) the implementation of high environmental standards guaranteeing the long
term sustainability of oil operations. The objective of this programme is to
achieve compliance with national as well as international and relevant EU
environmental standards. Such compliance will be assessed on a project by
project basis as the detailed designs are available. It should be noted that
the pilot project reviewed as part of the Bank’s environmental due diligence
complied with all relevant EU environmental standards.
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The client:
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Lukoil is the 2nd largest oil company worldwide by proven reserves and the 6th
largest by oil production. The Company is no.1 in Russia for oil, accounting
for 18% of Russian production. Lukoil is traded on the Russian Trading System
and the London Stock Exchange.
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EBRD finance:
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The investment is a USD300 million corporate senior unsecured loan to Lukoil
to fund the project, of which an up to USD150 million A loan and an up to
USD150 million B loan to be syndicated to commercial banks.
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Total project cost:
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USD 300 million.
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Environmental impact:
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All projects under this loan facility are of an environmental nature and the
implementation of such will result in environmental benefits. For example, a
pilot project reviewed for this loan will result in development of an
industrial wastewater treatment plant for a facility that currently relies
upon treatment in the local municipal treatment plant. The new treatment plant
will be designed specifically for the waste stream generated and will satisfy
all national and relevant EU environmental standards. Further, by constructing
this plant, the existing municipal system will now be able to treat
wastewaters generated at other local industries that currently are discharged
with little or no treatment. Future projects to be included in this loan will
satisfy pertinent national environmental standards, and the intent is to
satisfy relevant EU environmental standards. Such compliance will be assessed
by the Environment Department on a project by project basis.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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OAO Lukoil
11, Sretensky Boulevard, Moscow 101000, Russia
Website: www.lukoil.com
Enquiries: http://www.lukoil.com/back/query_6_.html
Tel/Fax: +7 (495) 627 4444
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EBRD contact:
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Michael Green, Operation Leader: greenm@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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