Environment and Security: Transforming risks into cooperation

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Environment and Security

The Uzen oilfield was discovered in 1959 and development began in 1964. The oilfield is 35 km long from east to west and 8 km wide from north to south. It is the largest in size in the eastern Caspian region. In 1975 produc- tion culminated at 330 000 barrels of oil a day. Since 1990 there has been a sharp decline in overall output (down to 50–60 000 barrels a day in the mid-1990s) mostly due to obsolete technology and the degraded state of pro- duction facilities. In 2005, after the introduc- tion of improved technology and increased water-pumping to maintain pressure, produc- tion rose to 132 000 barrels a day. In all 4 500 wells are now operating on the field. By 2006 about 300 million tonnes of oil had been ex- tracted at Uzen since the start of operations. Increasing oil production gave rise to severe environmental problems. An aerial survey conducted in 1989 showed that an estimated 10 000 ha of land in Uzen were polluted by oil spills; of these 3 600 ha were considered se- verely polluted. Spillage around the wellheads or pipeline failures had contaminated about 3 million tonnes of soil. Two large oil-waste pits with fears the local air quality may deterio- rate, which in turn would have a negative effect on public health 51 . An additional source of concern is the dis- mantling and disposal of shipwrecks in Bau- tino Bay, where the remains of more than 50 sunken and stranded vessels are located. Though many of the ships have already been brokenupand removed, the remainingwrecks not only pose a danger to passing boats but may also contribute to sea pollution. Realizing the necessity to protect the eco- system of the Caspian Sea and its biodi- versity while developing the oilfields in the region, the governments and local authori- ties of both Kazakhstan and Turkmenistan have prioritized issues related to ecology

originated as emergency oil retention ponds in the early 1970s. Overall almost no attention has been paid to protecting the environment from oil exploitation over the last 30 years. As a result nearly 30 000 ha of land have been damaged by mechanical compaction, spills and erosion. According to the local authorities and EBRD, the cost of improving environmental protec- tion, mitigating damage and rehabilitating land at Uzen is estimated at US$100 million. The town of Jana Uzen (70 000 people) and the oil-extracting enterprise Uzen use a lot of water. The bulk of water is supplied by a water pipeline from the Volga river and from the Caspian Sea. However a smaller part of the water is pumped from nearby natural groundwater reserves. Since 1971 intense exploitation of the Tyu Suu fresh groundwa- ter lenses has lowered the water table, af- fecting vegetation and creating large sand dunes. These moved towards the village of Senek, Mangystau Province’s largest farm, partly burying the north-western edge of the village. Scientists have warned that similar expansion of deserts near the Ushtagan and safety. In particular Kazakhstan has banned gas flaring (natural gas combustion) and dumping of waste into the sea. In both countries environmental standards and ac- cident-prevention rules have been brought in line with international standards. Addi- tionally several measures designed to im- prove the response in the event of oil spills have been adopted, including the creation of a maritime emergency unit. National Ac- tion Plans for Oil Spillage Prevention and Response have been developed for the sea and inland waters. Finally, within the Framework Convention on the Protection of the Marine Environment of the Caspian Sea (the Tehran Convention) several proto- cols in priority areas have been drafted and submitted to the littoral states for review and ratification 52 .

Oil extraction and water use in Uzen, Kazakhstan