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Kandym Gas Field Development DRAFT Environmental Impact Assessment

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Kandym Gas Field Development DRAFT Environmental Impact Assessment Kandym Gas Field Development DRAFT Environmental Impact Assessment June 6, 2010 Prepared by: LUKOIL 11, Sretensky Blvd. Moscow, 101000, Russia Contents 1. Executive Summary ............................................................................................ 1 2. Legal framework.................................................................................................. 4 2.1 Legislation ....................................................................................................... 4 2.2 Institutional framework .................................................................................. 11 2.3 PSA Environment Protection Requirements.................................................. 12 3. Project Description ............................................................................................ 16 4. Description of environmental conditions............................................................ 34 4.1 Topography and Geology.............................................................................. 35 4.2 Desertification................................................................................................ 36 4.3 Climate .......................................................................................................... 37 4.4 Air Quality...................................................................................................... 38 4.5 Surface and Ground waters .......................................................................... 39 4.6 Soil and Subsoil............................................................................................. 40 4.7 Radiation ....................................................................................................... 41 4.8 Flora and Fauna ............................................................................................ 41 4.9 Social situation analysis ................................................................................ 44 4.10 Information accuracy and availability............................................................. 48 5. Expected environmental impacts and mitigation measures .............................. 49 5.1 Wells construction ......................................................................................... 49 5.2 Development of gas-condensate fields ......................................................... 54 5.3 Construction-period infrastructure ................................................................. 61 5.4 Impact on Desertification............................................................................... 63 5.5 Social Impacts and Mitigation Measures....................................................... 64 5.6 Impact Significance ....................................................................................... 65 5.7 Impact Summary ........................................................................................... 65 6. Analysis of alternatives...................................................................................... 72 6.1 Selection of preferred alternative................................................................... 72 6.2 No action alternative...................................................................................... 73 6.3 Alternative to Kandym GPP........................................................................... 74 6.4 Selection of Final Alternatives ....................................................................... 74 7. Disclosure, consultations and participation ....................................................... 75 7.1 Project design and Preparation ..................................................................... 75 7.2 Operation....................................................................................................... 76 8. Procedure for addressing grievances................................................................ 77 9. Environmental Management Plan (EMP) .......................................................... 79 9.1 Mitigation measures ...................................................................................... 79 9.2 Monitoring...................................................................................................... 80 9.3 Implementation methods and efficiency indicators........................................ 82 9.4 EMP budget................................................................................................... 82 10. Conclusions and recommendations .................................................................. 84 10.1 EIA Process................................................................................................... 84 10.2 Results .......................................................................................................... 84 Kandym Gas Field Development Draft EIA – June 6, 2010 List of attachments Attachment No.1. Conclusion of the State Environmental Expertise Committee for EIA of the GPP complex construction and Kandym group of fields development. Attachment No.2. Detailed maps of KGF. Attachment No.3. Observation network layout within the framework of Environmental Audit. Attachment No.4. Handbook of the existing rare and endemic species of plants and animals in Khauzak-Shady and Kandym Group of Fields (Bukhara region). Attachment No.5. Conclusion of the State Environmental Expertise Committee for “Report on Environmental Audit of the Contract Area consisting of: the Kandym Group of Fields, Khauzak-Shady Site and Kungrad Site”. Attachment No.6. Plan of organizational and engineering actions in Health, Safety and Environment of “LUKOIL Uzbekistan Operating Company” LLC for 2010. Attachment No.7. Action plan of Environmental Protection and Rational Exploitation of Natural Resources of “LUKOIL Uzbekistan Operating Company” LLC for 2010. Attachment No.8. Health, Safety and Environment Program in respect jf Oil and Gas Operations within the Contract Area for projects of Kandym-Khauzak-Shady-Kungrad and Gissar-Ustyurt for 2010-2012. Attachment No.9. Report on Implementation of Action Plan of Environment Protection and Rational Exploitation of Natural Resources for 12 months of 2009. Kandym Gas Field Development Draft EIA – June 6, 2010 Abbreviations and Acronyms ADB Asian Development Bank AP Affected Persons APP Atmospheric Pollution Potential BCS Booster Compressor Station CAC Central Asia Center gas pipeline CBD Convention on Biological Diversity CCD Convention to Combat Desertification CM Cabinet of Ministers COS Carbon Oxysulfide CP Collection Point DWW Drilling Wastewater DS Drilling Sludge EIA Environmental Impact Assessment EIS Environmental Impact Statement EMP Environmental Management Plan EP Environmental Protection FCCC Framework Convention on Climate Change GPP Gas Processing Plant HSE Health, Safety and Environment KGF Kandym Gas Fields KGPP Kandym Gas Processing Plant MC Managing Committee MMU Mud Mixing Units MPC Maximum Permissible Concentration MH RU Ministry of Health of RUz NE Nature Environment NHC National Holding Company OE Objects of Environment OM Oliy Majlis (Parliament) PEM Production and Ecological Monitoring POL Petroleum, Oil and Lubricants PSA Production Sharing Agreement PTL Power Transmission Line RUz Republic of Uzbekistan SCNP State Committee for Nature Protection SDW Solid Domestic Wastes SEM State Environmental Monitoring SSIAC State Specialized Inspection of Analytical Control SPZ Sanitary Protection Zone SRLI Safe Reference Levels of Impact UZS Uzbek Soum WDM Waste Drilling Mud Kandym Gas Field Development Draft EIA – June 6, 2010 1. Executive Summary 1. The Republic of Uzbekistan assigns high priority to development of industrial potential, primarily the fuel and energy sector, as the basis for economic growth of the country and strengthening of its energy independence. In this connection, the oil and gas industry plays the priority role as one of the major sectors of industry of the country. 2. Significant reserves of hydrocarbons have been found in the RUz, and their development is concerned with certain difficulties (remoteness, lack of capital, increased content of hydrogen sulfide) that necessitate a closer cooperation with foreign investors for bringing in advanced technologies and additional funds. 3. In the recent years the country has accumulated the experience in construction of environmentally sound facilities of oil and gas industry with participation of foreign capital and technology. Friendlier investment climate has been created for attraction of foreign investments. 4. The purpose of this Project is the development of the KGF and the associated gas processing plant.. The capacity of the field and the gas processing plant is estimated up to 8 billion m3/year of natural gas, more than 200 thousand tonne/year of gas condensate and about 190 thousand tonne/year of sulfur. 5. The aim and necessity for development of the KGF are governed by the need for general economic development of the RUz’s economy in which the development of natural resources play a key role. The development of KGF will also provide socio-economic benefits and raise the living standards of the complex’s personnel, many of whom will be residents from the nearby communities. 6. The target activity will maximize the use of natural resources by increasing the recovery of hydrocarbons and associated products by attracting critical technical knowledge and foreign capital. The target activity separates methane from valuable components found in the natural gas: propane-butane
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