Alleged impacts on local populations of an oil and gas facility in Kazakhstan
Lead NCPUnited Kingdom
Supporting NCP(s)Italy, United States
DescriptionSpecific instance notified by the NGO Crude Accountability and others regarding the activities of the KPO Consortium in Kazakhstan.
Theme(s)General policies, Human rights
Date17 Jun 2013
Host country(ies)Kazakhstan
SourceNGO
Industry sectorMining and quarrying
StatusConcluded
Summary

Read the initial assessment issued by the UK NCP - November 2013

Read the final statement issued by the UK NCP- November 2017


In July 2013, the UK, US and Italian NCPs received a request for review from the NGO Crude Accountability and others alleging that KPO Consortium had breached the general policies, and human rights provisions of the Guidelines in Kazakhstan. The request covered a period from the early 2000s to the present, and the allegations made relate to obligations to resettle villagers in view of emissions levels and other environmental impacts of the facility.

Taking into account the facts of the request, the situation of the parties and the capacity of NCPs to provide good offices should the issues merit this, the NCPs decided that the UK NCP should act as lead NCP while the US and Italian NCPs would provide support. 

The NCP conducted an initial assessment and concluded that the specific instance merits further examination with respect to the limited issue of individual households legally entitled to resettlement.

Mediation between the parties failed to produce an agreement, and so the UK NCP made a further examination of the issues and made findings as follows:

  • KPO has not taken adequate steps to promote the households’ prompt resettlement and proper compensation in line with applicable international standards. This means that KPO has not met its obligations under the OECD Guidelines Chapter II Paragraph 12 to address impacts it is linked to by a business relationship.
  • There is no clear and authoritative guidance to establish that the situation as examined affects the households’ human rights to an adequate standard of living. This means that the UK NCP does not accept the claim that KPO has not met human rights obligations under the OECD Guidelines.

To meet KPO’s Chapter II obligations, the UK NCP recommends:

  •  That KPO regards both households as entitled to resettlement arrangements consistent with the current IFC standard for Involuntary Resettlement, and follows the steps identified in the standard to remedy any deficiencies in the arrangements actually offered to them, completing any action required by May 2018.

A final statement was issued for the specific instance in November 2017.

A review of the final statement by the UK NCP Steering Board Review Committee has also been published. The NCP will issue a follow-up report in May 2019.