Aminex Plc: Kirtayel Oil Field Development (jv w/Tunisia 7610)

completed

Summary Of Project Information (SPI)Project NameRussia/Tunisia-Aminex     RegionEurope/North AfricaSectorProject No007624Projected Board DateSeptember 26, 1996Company NameAminex plcTechnical Partner and/or Major Shareholders Aminex is a public traded company on the London Stock Exchange with over 7,000 shareholders. Its largest shareholder, currently with 22%, is Zarubezhneft, an arm of the Russian Ministry of Fuel and Energy.Project Cost Including proposed IFC investment Project cost: US$95 million. IFC equity: up to US$6.1 million for 15% of the Company; IFC loan: up to US$17 million.Location of project and Description of site The Kirtayel project is located about 1,300 kms northeast of Moscow in the Komi republic of Russia. The El Biban field is located about 18 kms offshore the port of Zarzis in the Gulf of Gabes, Tunisia.Description of Company and Purpose of Project The Russian project involves the recovery of crude oil from the Kirtayel oil field in the Komi Republic for export to Western Europe. The El Biban project offshore Tunisia involves the export of crude oil to Mediterranean refineries and the sale of natural gas domestically. IFC’s main role is to assist a small, publicly traded, widely held company, to complete the financing plan for its investment program in a sector which has a significant development impact by earning foreign exchange, providing employment, and by transferring technology and management skills to local partners.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. The Tunisia project involves the re-entry of an existing offshore well. Processing and storage will take place at an existing oil terminal near Zarzis. A new 18 km pipeline will be constructed and it has been aligned so as to avoid sensitive marine habitats. The Russia project involves the recovery of oil in the existing onshore Kirtayel field. The oil evacuation pipeline is already in place. Both projects will result in significant reductions in the volumes of produced gas currently being flared; non-toxic water-based drill muds will be used; produced waters will be treated in accordance with accepted international standards; and state-of-the art oil spill contingency plans have been developed for both projects. Details of these and other environmental mitigation measures are described in the Environmental Review Summary (ERS) which was prepared for this project and placed in the World Bank’s Public Information Center (PIC) on August 9, 1996. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Aminex’s proposed projects will meet World Bank environmental and occupational health and safety policies and guidelines and host country requirementsThe is from the Public Information Center. Date SPI sent to PIC      August 16, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).