Central Europe Oil Company



Project number:


Business sector:

Natural resources

Notice type:


Environmental category:


Approval date:

12 Oct 2010



PSD disclosed:

11 Aug 2010

Project Description

The EBRD is considering an equity stake in CEOC to provide co-financing of planned expenditures in mature oil and gas fields in Central Europe (CE). The Company will employ advanced recovery methods as well as infield drilling of new wells and re-completion of existing wells to increase oil and gas production and reserves in these fields, through mutually beneficial collaboration with national oil and gas companies in the region.

Transition Impact

By investing in the Company, the Bank will achieve transition impact in three main areas: (i) stimulation of the private sector in the CE upstream sector; (ii) transfer and dispersion of skills including the implementation of advanced induced/enhanced recovery technologies; and (iii) setting standards for corporate governance and business conduct by setting a high benchmark of environmental and social responsibility for E&P operation in CE.

The Client

CEOC Limited (“CEOC”) is an early stage independent private company specialising in increasing production from mature and underdeveloped hydrocarbon reservoirs in Central Europe.

EBRD Finance

Equity investment of up to USD 30 million.

Project Cost

USD 30 million

Environmental Impact

Environmental classification and rationale
The project is Categorised B. The work-over of existing producing wells and the use of advanced recovery methods is associated with a number of site specific issues, which can be readily identified, assessed and mitigated through measures as defined in the Environmental and Social Action Plan.

Due diligence completed
The Bank reviewed available details on the location of proposed Project works in Croatia and Hungary and carried a visit to each of the locations where the Company currently plans to operate. The environmental conditions at each location were observed and the planned works discussed and assessed for environmental, health and safety and social impacts. The Company’s internal risk management resources were assessed against their capabilities to operate to the standards required by the Bank’s Performance Requirements (PRs).

Key environmental issues and mitigation
Environmental issues associated with the planned operations are well understood by the Company who have significant experience of such operations. The main works will involve the use of work-over rigs and the installation and operation of equipment required to undertake advanced recovery techniques. The construction of infrastructure will be required at certain locations, including short (< 10 km) export pipelines to link with existing networks and replace current road transportation system; installation of short (1 – 2 km typically) overhead power line supply to certain locations; and permanent and temporary access roads to certain operating locations.

The main EHSS risk posed by the operations is the uncontrolled release of hydrocarbons to the environment via leaks or failure of pressure containment. The associated risks in this case can be managed via the use of safe working practices; effective monitoring of operational performance; and the implementation of Emergency and Spill Response Plans. Small volumes of hazardous materials are involved in the Company’s operations and effective containment can minimise the risks of impacts from their use.

The Company is aware of the permitting requirements in both territories of operation and is working to maintain full compliance with these requirements. It is noted that a small number of operating wells are located within a National Park area in Hungary. The operations at these locations, which are all existing well sites, will require an Environmental Impact Assessment to be competed to Hungarian (and therefore EU) standards. The Company understands this process and the likely timescales required.

Summary of Environmental Action Plan
The Company will be required to adhere to the relevant host country and EU environmental, health and safety regulations and standards; and to operate to the standard required by the Bank’s PRs. To ensure this occurs, the Company is required to develop a capability around EHS management and implement an EHS Management System. All relevant permits will need to be obtained prior to commissioning the works at the individual locations. The Company will be required to draft and maintain an effective Emergency Response Plan to address hydrocarbon leaks and spills, should they occur.

Disclosure of information and consultation
In the context of the EBRD’s participation in the project, the Company will release locally a summary of relevant environmental issues associated with the project and summarise mitigation measures, action plans and other initiatives agreed.

Monitoring and reporting
The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports prepared for the project covering:

(i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, and

(ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

Technical Cooperation


Company Contact

Daniel Stewart-Roberts
Compliance and Finance Officer
CEOC (UK) Limited
33 St James’s Square
London SW1Y 4JS
Tel: : +44 20 3178 2810
Fax: +44 20 3178 2811
Mobile: +44 7966 338429
Web: www.ceoc.co.uk


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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