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Environmental summary
Project summary
CJSC Stimul, which operates East Orenburg oil field, is located near Orenburg
in Russia, south of the Ural River and is the easternmost extension of the
Orenburg gas and condensate field. The main Orenburg gas and condensate field
was discovered in 1966 and has been developed extensively by enterprises of
the former Soviet Union. By 1992, a total of 64 exploration wells had been
drilled in the East Field, 38 of which were tested. The first development well
was drilled in 1994. Currently, there are 45 producing wells (42 oil wells and
3 gas wells) within the project license area with a cumulative production
(October 2001) of about 6.46 million barrels of oil. The sulphur content of
the gas is medium-high. Oil and gas are exported from the field via pipeline,
around 28 km, to the regional processing facility. During 2001 2003, Stimul
plans to drill additional wells and upgrade the processing facilities.
Environmental studies
The project has been screened ‘A/1’, requiring an environmental assessment of
impacts associated with the company’s operations and an audit of the existing
facilities. Independent environmental consultants carried out an environmental
impact assessment (EIA) and baseline audit during February 1999. The Bank
required the company to provide an updated version of the EIA in 2001 covering
any changes in the project. The revised EIA was completed and released to the
public on 19 October 2001. The project will include an Environmental Action
Plan (EAP) which will be agreed with the Bank. Representatives of the Bank’s
Environmental Appraisal Unit visited the site during due diligence and the
Company was seen to have implemented HSE standards to a level of
internationally accepted industry practice.
The overall conclusions of the EIA are that there will be no significant or
long-term impacts associated with this operation. Some less significant
short-term impacts are anticipated although these will be mitigated during
operations and not anticipated to persist after project completion. The
following information outlines the main issues and mitigation measures:
Surface disturbance: Surface disturbance will occur during drilling
operations, for example, through the excavation of mud pits, construction of
access roads, drilling pad construction and construction of related
facilities. Good engineering practice will be used in the construction of
roads and other construction facilities. Roads, for example, will include
drainage channels, sediment traps, silt fencing, settling ponds and berms. The
siting of roads will avoid disturbance to the flow of surface waters and,
where necessary, bridges or culverts will be constructed. All proposals for
roads and new facilities will be submitted to local authorities for approval
in accordance with Russian regulations.
Air emissions: Air emissions from operations will include emissions
from combustion sources such as generators, heaters and compressors. Produced
gas will only be flared during the limited drilling phase after which it will
be processed and exported by pipeline. A comprehensive monitoring system has
been installed throughout the East Orenburg Field to ensure that air emissions
continue to meet Russian and World Bank standards. This system includes both
stationary and mobile monitoring equipment and covers 8 villages, the sanitary
zone and the oil and gas processing areas.
Liquid effluents: Liquid effluents from these operations will include
produced water, sewerage and drilling muds. Liquid effluents (e.g. produced
water) will be either re-injected or disposed at an approved disposal. As with
air emissions, all discharges must meet Russian and appropriate World Bank
standards.
Solid wastes: The main wastes will be drilling cuttings, construction
wastes (e.g. wood scrap, packaging), domestic wastes (food, plastic, glass)
and miscellaneous production wastes. Solid wastes will be divided into
combustible and non-combustible wastes. Combustible wastes will be incinerated
in an approved installation. Non-combustible wastes will be disposed via a
number of routes – tank bottoms, for example, will be processed to remove as
many hydrocarbons as possible before being either sold to off-site reclaimers,
disposed via re-injection or landfarming.
Environmental Management and Monitoring Plan
The company has developed an Environmental Management and Monitoring Plan for
the East Orenburg field. This plan includes measures to mitigate the impacts
of oil operations and sets out programmes for monitoring the impact of the
company’s operations across all phases of the development. Environmental
mitigation measures will focus on maintaining the surrounding environmental
quality to levels that will permit the continuation of former land-use after
operations have ceased. Environmental monitoring will aim firstly, to
characterise the baseline environment, secondly, to monitor production
impacts, and thirdly, to assess that reinstatement efforts have been
successful.
Health & safety
The company is operating to national and international standards of workplace
health and safety. There is a thorough training programme for employees and
contractors including the preventative measures and emergency response in the
event of a sour gas incident.
An Accident Prevention and Emergency Response Programme has been developed,
detailing the procedures and guidelines to follow in the event of a chemical
or oil spill, equipment failure or other emergencies. This programme includes
emergency identification, response and notification procedures as well as
emergency preparedness plan covering drilling, well control, materials
handling and flood evacuation.
Public Consultation
The development of the East Orenburg field is part of plans that have been
on-going for over 30 years. OrenburgGazProm has published quarterly updates on
development plans in the local newspaper "GAZ" since 1976 and has held
briefings for local journalists several times a year. Public meeting with
local agricultural enterprises were also held to discuss project plans,
determine access points and negotiate land leasing rates. The first EIA
("OVOS") was completed in 1993 with the latest versions, with revisions,
released in July 1998. The Expertiza Committee, reviewing the OVOS, conducted
public meetings with local landowners and leaders in local villages to discuss
their views on the project. Those views were taken into account during the
finalisation of the OVOS. JSC Stimul continues to have a dialogue with local
communities and will continue to publish information on operations and hold
briefings with local journalists. A comprehensive consultation programme was
carried out for the 21 inch gas pipeline laid during 2000.
Environmental Action Plan
The project will include an EAP which will outline specific commitments, for
example, on protection and mitigation measures, emissions & waste management,
monitoring programmes and pipeline management. In addition, the Bank will
receive routing reports on the project’s performance, will undertake
monitoring site visits and require routine independent audits of the EAP.
There is an Environmental Impact Assesment available for this project.
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