Caspian Sea Early Oil Development Project: Amoco Summary Of Project Information (SPI)       Project Name    Azerbaijan-Early Oil        Development of part of the Chirag oil field located offshore Azerbaijan and completion of export pipelines and facilities in Azerbaijan and Georgia.        Region    Central Asia, Middle East and North Africa      Sector   Project No007271   Projected Board DateApril 30, 1998   Company NameAmoco Caspian Sea Petroleum Limited, Exxon Azerbaijan Limited, Lukoil Overseas BVI Limited, Turkiye Petrolerri A.O., Unocal Khazar Ltd.   Technical Partner and/or Major Shareholders    	The Project is carried out through an unincorporated joint venture with the following working interests:  Amoco Caspian Sea Petroleum Limited - 17.0%, Exxon Azerbaijan Limited - 8.0%, Lukoil Overseas BVI Limited - 10%, Turkiye Petrolleri A.O. (TPAO) - 6.8%, Unocal Khazar Ltd. - 10.0%, BP Exploration (Caspian Sea) Limited - 17.0%, Den Norske Statsoljeskap a.s. (Statoil) - 8.6%, State Oil Company of Azerbaijan Republic (SOCAR) - 10.0%, Itochu Corporation - 3.9%, Pennzoil Caspian Corporation - 4.8%, Ramco Hazar Energy Limited - 2.1%, and Delta Nimir Khazar Limited - 1.7%.  Azerbaijan International Operating Company (AIOC), a company acting on behalf of the foreign investors, will be the Project Operator, on a cost pass-through basis.    Project Cost Including Proposed IFC Investment    	The sponsors share of Project Costs is estimated at $800 million.  The proposed IFC investment consists of five separate A Loans (one to each of the five borrowers) of up to $100 million in total and five B Loans of up to $100 million in total.    Location of Project and Description of Site    	The Project involves the:    - refurbishment of an existing oil platform (Chirag-1), located about 75 kilometers off the coast of Azerbaijan in the Caspian Sea, construction of new subsea pipelines, and drilling of development/water injection wells,    - construction of an oil receiving terminal at Sangachal on the Caspian Sea coast of Azerbaijan,    - construction of an oil export terminal at Supsa on the Black Sea coast of Georgia, and    - completion of two oil export pipelines (through rehabilitation of existing pipelines and new construction): one North from Sangachal to the Russia/Azerbaijan border, and one West, from Sangachal across Azerbaijan and Georgia, terminating at Supsa.    Description of Company and Purpose of Project   (include IFCs Role and Development Impact)    	The companies seeking financing are affiliates of Amoco Corporation, Exxon Corporation, Lukoil Joint Stock Company, Turkiye Petrolleri A.O. (Turkish Petroleum Company), and Unocal Corporation.  The Early Oil Project involves the development of part of the Chirag field, and is the first step in the full development of the group of three fields known as Azeri, Chirag and deep-water Gunashli.  Production from the Early Oil Project is expected to reach 105,000 barrels per day(bpd) by the year 2000.  Azerbaijan will also receive significant quantities of associated natural gas from the Project, which will reduce the gas deficit in the country.  The Project will have a positive impact on local industry and employment and will provide essential support for Azerbaijans economic recovery program.  Georgia will receive the benefits of substantial investment in export pipeline and terminal infrastructure, and will also obtain transit fee income from oil transported across its territory.  Russia has signed a contract to export oil from Azerbaijan and will also receive tariff income from transport of oil from the Project.  IFCs role in this Project is to: (i) provide long term financing, which is not currently available in Azerbaijan or Georgia, (ii) mobilize financing from international commercial banks, and (iii) mitigate cross-border and other perceived political risks.    Environmental Category and Issues    	This is a category A project according to IFCs environmental review procedure.  Environmental areas of concern with respect to the project include: existing hydrocarbon contamination to soil, surface water and ground water along existing pipelines and at sites for new facilities; knowledge of terrestrial resources as well as cultural properties and significant natural habitats; oil spills; the management of produced water and gas and worker health and safety.  Environmental audits of existing contamination have been completed and appropriate remediation programs are in place.  Several environmental baseline and sensitivity studies have been completed and several more are ongoing so as to characterize and understand existing environmental conditions. Six separate EIAs have been completed for the various components of the Project.  The information on potential impacts and suggested mitigation in these EIAs have been used by AIOC to prepare the Projects operating procedures for both routine and non-routine activities.  The EIAs have also provided key data for the Projects environmental plan.  A three tiered oil spill response plan is in place for the Caspian Sea. Therefore, the Project will bring to the Caspian Sea an international standard response plan.  Specifications on the quality of produced water allowed to be discharged to the Caspian Sea are included in the Projects Production Sharing Agreement.  Produced gas will be collected by AIOC and delivered to SOCAR, which will facilitate the commercial use of this gas.  AIOC has health, safety and environmental management systems that have been developed in accordance with the guidelines of the E&P Forum for the oil exploration and production industry.  The EIA process has included extensive consultation with a variety of stakeholders.  The EIAs were released to the Infoshop on February 18, 1998.  IFCs Environment and Social Review Unit has concluded that the Project complies fully with the applicable World Bank environmental and social policies and guidelines.     The  is  from the Public Information Center.        Host country location of environmental documents     Azerbaijan   :      (a) Republican Library after M. F. Akhoundov, Baku; (b)Library of Melli Meglis, Baku; (c) Azerbaijan Agricultural Academy, Ganja; (d) Library of Kazakh Inter-regional Ecology Committee, Kazakh; (e)Library of Ganja Inter-regional Ecology Committee, Ganja; and (f) Library of Khachmas Inter-regional Ecology Committee, Khachmas.     Georgia   :      (a) National Public Library of Georgia, Tbilisi; and (b) Batumi Republican Library, Batumi.      Date SPI sent to InfoShop March 25, 1998   This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs 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  Environmental 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).