IPR Development Facility

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Translated version of this PSD: Arabic 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. 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. IPR Transoil Corporation, IPR Energy Red Sea, Inc. and IPR Energy Suez, Inc. independent upstream oil & gas companies operating in Egypt. USD50 million commitment, part of a USD 100 million debt facility. USD100 million. 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. 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. 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