The World Bank (WB) has launched the development of a feasibility study of a project on reducing volumes of associated gas emission from time-worn oil platforms, Trend reports.
Cristian Petersen, WB Leading Economist for South Caucasus, said that the feasibility study of the project would be completed within 6-8 months. The Bank is cooperating with the State Oil Company of Azerbaijan (SOCAR) in this issue.
Reducing volumes of the emission is envisaged piping gas to the onshore through installation of new compressors and laying new pipelines in the platforms. It will also enable to improve the environment and have a positive influence on the Green House effect.
According to him, within the project, WB is about to directly grant a credit. Azerbaijan may attract a significant financing volume within the Kyoto Protocol on Selling Quotas on the carbon Market
That will depend on volumes of present and future gas emission, as well as on oil sale from oil contaminated lands. The international carbon market will fix the volume and the price on utilized gas, said Mr. Petersen.
The above-mentioned project is expected to be approved during the sitting of the Board of WB to be held in the first half of 2006.
According to Mr. Petersen, WB is also implementing the analogous project in Georgia where it is sponsoring the reconstruction of the gas main which allows Georgia to receive gas from Russia. Within the project, the income gaining from the carbon financing is estimated at $80-100 mln.