|
|
 |
 |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
| |
| Project number | 10408 |
| Project name | Lasmo Oil Pakistan Limited |
| Country | Pakistan |
| Sector | Oil, Gas And Mining |
| Department | Oil, Gas, Mining And Chemicals |
| Company name | Eni Pakistan Limited |
| Environmental category | B |
| Date SPI disclosed | May 11, 2001 |
| Projected board date | June 14, 2001 |
| Status | Completed |
| Previous Events | Invested: December 18, 2002
Signed: April 11, 2002
Approved: June 14, 2001 |
|
| Project sponsor and major shareholders of project company |
| The project sponsor is LASMO Oil Pakistan Limited (LOPL) which holds 40% share of the Bhit gas development project (the project). IFC has been requested by LOPL to finance its share of the project. LOPL, the project operator, is a subsidiary of LASMO Plc, which has recently been wholly acquired by Eni SpA, an Italian integrated petroleum company. The remaining working interest of the project is held by Kirthar Pakistan BV, a joint venture between Shell and Premier Oil plc and Oil & Gas Development Company with respectively 40% and 20%. |
|
| Total project cost and proposed IFC investment |
| Total project cost is estimated at US$280 million, of which LOPL’s share is approximately US$120 million. IFC’s proposed investment is for an A Loan of up to US$40 million. |
|
| Location of project and description of site |
| The Bhit field, which covers an area of about 248 sq km, is located in the foothills of the Bhit Mountain about 40 km west of Sehwan, the closest town, and 150 km north of Karachi in the Sindh province. The area, which is one of the poorest regions in Pakistan, is typically hot, arid and classified as a desert. Only small amounts of the project area are cultivatable outside of monsoon conditions and there is very little vegetation and it has been used as grazing land for hundreds of years. |
|
| Description of company and purpose of project |
The project involves the drilling of up to an additional eight producing wells (four current exploration/appraisal wells will be converted to producers) and the construction of a 24 km gathering pipeline system and a gas processing plant. All of the produced Bhit gas from the project will be sold at the plant boundary to Sui Southern Gas Company (SSGC), a government-owned gas transmission and distribution company. A 42 km spur pipeline to be constructed by SSGC will transport the Bhit gas from the processing plant to SSGC’s main trunk line. SSGC will sell the gas to end-users in the Karachi region.
IFC has several major roles to play in this project: (i) IFC would provide long-term financing, which is not readily available in the country for a domestic gas project; (ii) By supporting this anchor project, IFC would provide assistance to the further development of Pakistan’s gas infrastructure, supporting a form of energy that is more environmentally friendly, more efficient and cost-effective than the alternatives; (iii) IFC’s financing would enable LOPL to leverage its investment in the project thus facilitating the company’s efforts to pursue other opportunities in the country; and (iv) IFC’s financing would support the Government’s initiative to maximise gas use in order to meet increasing demand and generate savings in foreign exchange.
The project has a number of important development impacts: (i) It will assist with the optimisation of Pakistan’s energy potential because it will develop Pakistan's gas reserves in order to help satisfy the country’s net demand for energy; (ii) The project will help reduce the country’s dependency on imported fuel oil; (iii) The government will benefit from about US$394 million in royalties, taxes and other revenues which represent about 23% of the total project revenues; and (iv) The implementation of the project will provide employment of about 1,500 people during construction and about 200 people during operation. |
|
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
|
|
| Location of environmental documents in locally affected community |
| The local people will be notified through local newspapers in local languages that the Environment Documents are available at the offices of Sub Divisional Magistrate (SDM) Sehwan and Johi, and Deputy Commissioner (DC) Dadu. |
|
| To contact the project company, please write to: |
Dr. Robert Kenison
5th Floor, The Forum
G-20, Block-9, Khayaban-e-Jami,
Clifton, Karachi-75600, Pakistan
Tel: 92-21-583-8253
Fax: 92-21-583-8394 |
|
|
|