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Summary of Project Information (SPI) |
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| Project number | 7429 |
| Project name | Patos Marinza |
| Country | Albania |
| Sector | Oil, Gas and Mining |
| Department | Oil, Gas, Mining And Chemicals |
| Company name | Anglo Albania Petroleum Limited |
| Environmental category | A |
| Date disclosed | February 25, 1998 |
| Status | Completed |
| Previous Events | Invested: August 13, 1998
Signed: March 26, 1998
Approved: March 26, 1998 |
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Summary Of Project Information (SPI)
| Project Name | Albania-Patos Marinza |
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| Region | Europe |
| Sector | |
Project No007429
Projected Board DateMarch 31, 1998
Company NameAnglo Albanian Petroleum Limited
Technical Partner and/or Major Shareholders
The Project will be carried out through an Unincorporated Joint Venture (UJV), among Albpetrol - 42.5%, Premier Consolidated Oilfields Finance B.V. (Premier), a subsidiary of Premier Oil Plc - 25%, Preussag Energie GmbH (Preussag) - 17.5% and IFC - 15% (collectively, the Joint Venture Partners). Albpetrol is the state oil company of Albania. Premier Oil Plc, of the United Kingdom, is an independent, publicly traded company involved in the exploration and production of oil and natural gas internationally. Preussag, of Germany, is involved in the exploration, production and distribution of oil and natural gas internationally.
Project Cost Including Proposed IFC Investment
The Project will be implemented by Anglo Albanian Petroleum Limited (AAP), a company owned by the Joint Venture Partners, at an estimated cost of US$257 million over six years. IFC is to provide loans of approximately US$80 million to AAP, of which approximately US$50 million will be for the account of participants, and will invest approximately US$24 million in equity to acquire a 15% participating interest in the Project and to fund its share of Project cost.
Location of Project and Description of Site
The Patos Marinza oil field is located 10 km east of the city of Fier in South Central Albania.
Description of Company and Purpose of Project
The Project involves the implementation of an enhanced oil recovery (EOR) scheme for the rehabilitation of part of the Patos Marinza oil field (Patos) including: the rehabilitation/stimulation of existing wells, drilling new wells, and construction of processing facilities and an approximately 22.5 km onshore export pipeline (the Export Pipeline) together with an offshore marine loading facility. It is expected to result in an incremental peak production of about 19,000 barrels per day and the recovery up to 66 million barrels of crude oil.
This would represent IFC’s first investment in Albania’s oil and gas sector. IFC’s participation in the Project would, inter alia, allow it to (i) provide political comfort to Premier and Preussag, (ii) play a catalytic role in mobilizing commercial bank loans for the Project, and (iii) introduce western standards of environmental performance in Albania’s oil and gas sector. It would also signal IFC’s support for the development of one of the country’s most important industrial sectors.
The Project would be the largest foreign investment in Albania to date. Its successful implementation would (i) increase the country's oil production thus helping Albania meet its energy needs; (ii) generate foreign exchange earnings through the renewal of crude oil exports thus helping alleviate the current financial crisis in Albania, and (iii) introduce modern technology suitable for the development/rehabilitation of the country's oil fields. The Project will also generate significant environmental benefits for the country, especially the communities surrounding Patos, by eliminating past practices and introducing western standards of environmental performance.
Environmental Category and Issues
This is a category A project according to IFC's environmental review procedure. Environmental issues of potential concern are contamination of soil, surface water and groundwater as a result of prior oil production activities carried out by Albanian government oil agencies and companies, the remediation of existing contamination, the management of produced water and gas, routing of the Export Pipeline, increasing the environmental management capacity of the host country partner, community relations, worker health and safety, and site restoration. The Project includes a comprehensive environmental baseline study of Patos, an environmental impact assessment (the first in Albania as required by the January 1993 Law on Environmental Protection) of the Export Pipeline to the Adriatic Sea and a comprehensive public consultation program for all components of the Project. The Project will set the basis for a phased remediation of contaminated soil, surface water and groundwater conditions in Patos while simultaneously increasing the production of oil in an environmentally appropriate manner. The Project will significantly strengthen the environmental management capacity of Albpetrol.
The are from the Public Information Center.
| Host country location of environmental documents | Sektori I Urbanistikes Bashkise, Fier (Town Hall);
Biblioteka e Qytetit, Fier (Library) |
Date SPI sent to InfoShop February 25,1998
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-3800
Fax: (202) 974-4384 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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