Managing and Mitigating Environmental Impact in Malaysian Drilling Activities: PETRONAS Approach IADC Drilling HSE&T Asia Pacific 2015 Conference & Exhibition Kuala Lumpur : 12 th March 2015 En. Nor Hashim Yusoff, General Manager HSE En. Rosnan Hamzah, Senior Manager HSE Governance Pn. Rozita Musib, Staff Environment, MPM HSE PETRONAS 2014 PETROLIAM NASIONAL BERHAD (PETRONAS) All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner. Petroliam Nasional Berhad (PETRO NAS) 2014 1
Presentation Content MPM HSE Governance & Coverage EIA Definition EIA O bjectives Malaysia EIA Requirements PETRONAS Environmental Requirements EIA Process Review EIA Key C onsiderations & C oncepts Drilling Phases & Activities Key Environmental Issues & Impacts: Drilling Mitigation Measures Conclusion Petroliam Nasional Berhad (PETRO NAS) 2014 2
MPM HSE Governance in Malaysia: Environment Benchmarking & environmental best practices Governing PETRONAS environmental requirements to PACs Developing environmental requirements Governance Liaison between PACs and authorities on environment regulations Custodian (Vol3: HSE Requirements) PPGUA Shaping regulations and monitor environmental compliance Petroliam Nasional Berhad (PETRO NAS) 2014 3
PETRONAS MPM HSE: Coverage Labuan Kertih Kuala Lumpur Bintulu *NOT TO SCALE *NOT TO SCALE DOMESTIC OPERATIONS IN MALAYSIA ONLY OFFSHORE & ONSHORE PRODUCING PSC & RSC Petroliam Nasional Berhad (PETRO NAS) 2014 4
Objectives of EIA Regulatory approvals & aids environmental planning of new or expansion of projects Identify, assess and document environmental impacts proposed EIA Identify & document environmental risk associated Document technical surveys (baseline) or studies Identify appropriate mitigation measures to minimize & eliminate impact to an ALARP level. Petroliam Nasional Berhad (PETRO NAS) 2014 5
Definition of Environment and EIA Environment means the physical factors of the surroundings of the human beings including land, water, atmosphere, climate, sound, odour, taste, the biological factors of animals and plants and the social factor of aesthetics Source: Environmental Quality Act 1974 (ACT127) EIA is a study to identify, predict, evaluate and communicate information about the impacts on the environment of a proposed project and to detail out the mitigating measures prior to project approval and implementation Source: EIA Procedure and Requirements in Malaysia (DOE) Petroliam Nasional Berhad (PETRO NAS) 2014 6
Malaysia EIA Requirements (EQA, 1974 amendment 1985, 1996) Petroliam Nasional Berhad (PETRO NAS) 2014 7
PETRONAS Environmental Requirements (PTS, PPGUA, MES) PTS PTS 18.71.01 : Environmental Aspects & Impacts Assessment PTS 18.71.02 : Environmental, Social and Health Impact Assessment 1.2.4 : Evaluation of Risk Management 1.10 : Environmental Protection PPGUA Vol.3 MES 2.2 Environmental Impact Assessment (prescribed activities) 2.3 Environmental Risk Assessment (non- prescribed activities) 2.9 Produce Water Discharges 2.13 Drilling Fluids/Muds and Cuttings 2.15 Prevention of Pollution from Oil Petroliam Nasional Berhad (PETRO NAS) 2014 8
EIA Process Review: PSC- PETRONAS- Govt. 1 PSC/RSC EIA Document Preparation 2 EIA Report 3 Review & Sitting & Presentation Approval Engagement of EIA C onsultants (DO E Approved) Preparation of EIA Baseline Survey EIA Report Review by MPM Presentation of EIA on Impact & Mitigation measures Submission to Authorities (MDTC C ) Presentation to EIA O SA meeting Petroliam Nasional Berhad (PETRO NAS) 2014 9
EIA Key Considerations EIA Project Concept Onshore/ Offshore Rig Type Well Type PETRONAS Requirements Exploration Appraisal Development MCF & PTS PPGUA & MES Legal & Other Requirements OPERATION EQA 1974 EEZ 1984 Others Petroliam Nasional Berhad (PETRO NAS) 2014 10
EIA Key Considerations: Project Concept Tender Assisted O ffshore Onshore Semisubmersible Rig Type Petroliam Nasional Berhad (PETRO NAS) 2014 11
Drilling Phases & Activities Phase 1 Phase 2 Pre Drilling : Planning & Rig Mobilization - Work scope & objectives, work schedule, notification to authorities (NO O P: Notice of O perations) & drilling program approvals (cost, est. rig time, location) - Site survey (coral reefs/pockmarks) and site preparation (rig matt) - Mobilization/towing of drilling rig to drilling site, include placement/positioning and anchoring. Drilling : Project Execution - heavy lifting, drilling, running casing, cementing, perforation, well logging, well completion, well testing, surface plug and abandonment. Phase 3 Post Drilling : Rig Demobilization - recover of anchors, rig tow Petroliam Nasional Berhad (PETRO NAS) 2014 12
Key Environmental Issues & Impacts: Drilling Drilling Wastes & Disposal C hanges to Seawater @ Water Q uality Changes to Seabed/ Sediments Q uality Disturbance to Marine Fauna Reduction in seabed sediments quality from deposition of drilling wastes Changes in seabed sediments composition and morphology (drill cutting piles) Effects of seawater @water quality from drilling wastes disposal into the sea or marine environment. Smothering effect of benthic organisms from disposal of drilling wastes & cuttings MES 2.13 Drilling Fluids/Muds and Cuttings = 6.9% OOC Petroliam Nasional Berhad (PETRO NAS) 2014 13
Key Environmental Issues & Impacts: Drilling Drilling Wastewater Discharges Changes to Seawater @ Water Quality Reduction in seawater/water quality from discharges of wastewater Seawater @water pollution from discharges of untreated wastewater. MES 2.9 Produced Water Discharges = 40 ppm Petroliam Nasional Berhad (PETRO NAS) 2014 14
Key Environmental Issues & Impacts: Drilling Oil Spills Changes to Seawater @ Water Quality Changes to Seabed/ Sediments Quality Disturbance to Marine Fauna Pollution of seawater column @water pollution Reduction in seabed sediments quality from deposition of oil/hydrocarbon. Mortality, physiological changes to marine mammals, birds, reptiles etc. Reduction in population of species level. Loss of fishing area MES 2.13 Spill Response Equipment (Dispersants) & Secondary Containment (Drip pans, curbs) Petroliam Nasional Berhad (PETRO NAS) 2014 15
Mitigation Measures Drilling Wastes & Disposal of Fluids-Cuttings OBM are not allowed. SBM contaminated cuttings cleaned & dried to 6.9%OOC limits using Solids Control Equipment System (Shale Shakers, Cutting drier).. Mud Management Plans (DDR & EOWR) to monitor OOC Chemical Management Procedure to control utilization & minimize cement returns to seabed. Slim-hole drilling to minimize cuttings/waste Wastewater Discharge Not exceeding 40 ppm Installation & maintenance of OIW Separators Wastewater Management Procedure to monitor OIW level Oil Spill Management Oil Spill Contingency & Response Plan (Dispersant Guidelines) Notification & Response (PIMMAG) Petroliam Nasional Berhad (PETRO NAS) 2014 16
Conclusion EIA is an important tool involving formal process used to predict environmental consequences (positive of negative) of a project prior to decision. PACs, PETRONAS and Government as decision makers are made aware of the mitigation measure proposed and able to add further control prior to project implementation Each EIA is unique specific to its own project concept thus each aspect impact evaluation may have different outcome Most important is to value findings and address each impact with specific measures to eliminate or mitigate impact to an ALARP level. Petroliam Nasional Berhad (PETRO NAS) 2014 17
Thank you Petroliam Nasional Berhad (PETRO NAS) 2014 18
Environmental Risk Assessment HEMP is used with following steps: (1) Environmental aspects and impact identification (2) Assess the risk of environmental aspects (3) Identify control barriers/mitigating measures to eliminate and/or reduced the risk; and (4) Identify recovery barriers/measures to mitigate and/or reduce the impact to (people), environment, (asset) and reputation. Petroliam Nasional Berhad (PETRO NAS) 2014 19
Existing Environment : Nearest receptors Geographical setting: Lat./Long. Offshore/Onshore Near shore/c oastal Forest/C ity River/Swamp Biological Environment Benthic communities Mammals Petroliam Nasional Berhad (PETRO NAS) 2014 20