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The project has been classified as A/1, requiring an Environmental Impact Assessment (EIA) and an environmental audit. These were carried out by Raytheon Environmental Services consultancy of the United States.
In accordance with the Bank’s policy on Disclosure of Information, the EIA was released for public comments on 11 May 1998 in the offices of Permtex and the EBRD in Perm, Moscow and London. No concerns were received from any interested parties or regulatory authorities.
The main environmental objectives of the project are: reduction of gas flaring and air emissions; compliance with the national and World Bank environmental standards and good industry practice; improved environmental, health and safety management; and efficient utilisation of gas and water resources.
Permtex is generally in compliance with regional and local environmental regulations. It has obtained most of the environmental approvals for the development of the oil fields. The remaining permits will be obtained in due course as the project proceeds. The company will also comply with relevant World Bank standards and good international industry practices. Introduction by the Western sponsor of modern and environmentally sound oil industry technology, know-how and practices will improve the company’s environmental performance and reduce environmental damage.
An Environmental Action Plan (EAP) was developed to address any environmental issues that might be associated with the operations of the company. Most of the actions will be completed by the year 2000. The EAP includes measures to improve environmental, health and safety management and to reduce gas flaring and air emissions. This is to ensure minimum-impact development in a sensitive area and adequate mitigation of existing contamination and prevention of future contamination.
Mitigation measures in the project include the following:
Gas flaring: The EAP requires Permtex to propose and implement measures for minimising gas flaring. Permtex has installed "blue candle" smokeless flares on Logovskoye field, which significantly reduce emissions of soot, CO2 and hydrocarbons. Similar flares will be installed on the other fields. The current amounts of associated gas are small but will increase with further development of the fields. Permtex is continuously looking into various options for utilising associated gas. The investment plan includes installation of a 6MW gas turbine unit in Ozernoye oil field, which will utilise about 67 per cent of the produced gas for energy generation. In the future more capacity might be required and additional turbines might be installed on other oil fields.
Drilling practices and mud composition: Low-toxicity drilling muds will be used for all drilling activities. In Ozernoye field, which is located in a sensitive area, US directional or horizontal drilling technology will be used with mud recycling to further reduce any negative impact.
Pipelines: Cathodic protection has been installed on all pipelines of Permtex. No corrosion inhibitors are currently used but an assessment will be carried out for the future use when the water cut in oil increases. A pipeline monitoring and replacement programme will be developed and implemented by the sponsor as part of the EAP.
There is an Environmental Impact Assesment available for this project.
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