IPR Development Facility

Location:

Egypt

Project number:

45184

Business sector:

Natural resources

Notice type:

Private

Environmental category:

B

Target board date:

17 Dec 2013

Status:

Signed

PSD disclosed:

15 Nov 2013

Translated version of this PSD: Arabic

Project Description

The EBRD is providing a USD50 million commitment to finance the client's operations in Egypt, including capital expenditures for field development and facilities upgrades intended to yield greater efficiencies with a low environmental impact. These upgrades include programs designed to maintain the client's already very low incident of associated petroleum gas (APG) flaring and for environmental improvements.

Transition Impact

The key sources of transition impact for the Project are as follows:

(i) Support of private sector development and increased competition in the project sector in Egypt;
(ii) Demonstration of new replicable activities through (1) investment in technologies to capture APG, where present, for in situ and clean power generation in its Egyptian operations and (2) environmental improvements;
(iii) Setting Standards for Business through the disclosure of payments to Egyptian authorities in line with the principles of the Extractive Industry Transparency Initiative;
(iv) Policy dialogue effort with the Egyptian authorities to discuss comprehensive measures to reduce gas flaring in Egypt.

The Client

IPR Transoil Corporation, IPR Energy Red Sea, Inc. and IPR Energy Suez, Inc. independent upstream oil & gas companies operating in Egypt.

EBRD Finance

USD50 million commitment, part of a USD 100 million debt facility.

Project Cost

USD100 million.

Environmental Impact

Categorised B in line with the EBRD Environmental and Social Policy (2008). The environmental and social due diligence conducted by independent environmental consultants, consisted of the environmental and social analysis of the proposed Project and an environmental, health and safety audit of existing operations in Egypt as well as a review of corporate HSE procedures by IPR’s JV companies. The ESDD also included a site visit to selected operational areas in Egypt.

The ESDD identified that IPR has a robust Human Resources Policy and procedures in place and offers a comprehensive benefits package to its employees and their families. Occupational health and safety performance on IPR operations in Egypt is generally satisfactory and only requires moderate improvements, especially with regard to housekeeping at the fields. IPR has a corporate HSE policy and relies on its JV companies’ policies and procedures for environmental, health and safety performance of its operations in Egypt.

IPR is committed to further improving its HSE performance and will invest in upgrading field facilities to ensure

(i) adequate collection, treatment and disposal of produced water;

ii) improved secondary containment of oil storage tanks to further mitigate risks of contamination;

iii) safe disposal of waste; and enhanced fire-safety.

IPR and the Bank are currently developing an investment programme for environmental improvements that will include purchase of equipment and services to address the efficiency of the oil/water separation and treatment of produced water. Required mitigation measures for identified impacts have also been included in the draft ESAP. Some of the actions include a development of the corporate environmental and social management system, operating procedures for minimisation, treatment and disposal or use of associated gas, produced water and drilling cuttings; developing waste management procedures, etc. The ESAP will have an implementation schedule and success criteria for each action and the Company’s performance will be regularly assessed against agreed benchmarks by the Bank. IPR will also be required to submit annual environmental and social reports on compliance with the Performance Requirements and implementation of the ESAP to the Bank. The Bank will conduct regular monitoring visits to the Company’s operations in Egypt.

Technical Cooperation

EUR 56,000 Technical Cooperation funding for Energy Efficiency to assess the potential for reduction in APG flaring on IPR’s producing assets in Egypt and prepare an investment plan for APG utilization and energy efficiency improvements.

Company Contact

Sam Dabbous
Chief Operating Officer
IPR Group of Companies
600 E. Las Colinas Blvd., Suite 800
Irving, TX 75039
United States

Tel: +1 (972) 257-1900
Fax: +1 (972) 910-9259
Web: www.iprgoc.com

 

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

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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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.