Environmental Monitoring of Petroleum Activitieswith reference to the NCS

Roundtable Discussion

Gulbrand Wangen, Regional Director for Brazil

| Rio de Janeiro 9 November

Norwegian Energy Partners

Norwegian Energy Partners is an independent non-profit foundation established to strengthen the long-term basis for value creation and employment in the Norwegian energy industry through expanding the industry’s international business activities.

Norwegian Energy Partners has 250 independent, operating companies

Founders:

Professional Organisations• Energy Norway• Federation of Norwegian Industries• Norwegian Oil and Gas Association• Norwegian Shipowners’ Association• The Norwegian Confederation of

Trade Unions

www.norwep.com

Industry• Statoil• Statkraft Industries

Norwegian Government• Ministry of Petroleum and Energy• Ministry of Trade and Industry• Ministry of Foreign Affairs

Oil & gas upstreamSolar energy

Energy system

Wind energy

HydropowerOil & gas midstream

We work with the energy industry

Offshore O&G expenditure 2018-21 per market

Source: Rystad Energy 2017 Annual Offshore Oil & Gas Market Report for NORWEP

The Top Five Operators in Offshore Oil & Gas Brazil

Source: Rystad Energy 2017 Annual Offshore Oil & Gas Market Report for NORWEP

o Petrobras moves from the sole operator and mandatory stakeholder in all pre-salt oil fields soldunder the Production Sharing Agreement. Petrobras remains as the dominant player

o Statoil, Shell, Total and Chevron are currently the only international companies with largeBrazilian operations

• Statoil is estimated to be the second largest operator dueto its development of the second phase of the Peregrinofield and the new development of the Carcará field alsoexpanded after the Licensing Round in 2017

• Shell is expected to further invest in its existing fields inaddition to exploration in the company’s blocks in theBarreirinhas basin and new fields after the LicensingRound

• Total will spend most money on its Lapa field

• Queiroz Galvão Exploração e Produção (QGEP) will focuson the Atlanta discovery in the Santos Basin.

Environmental monitoring of on the NCS – The EM Guidelines

• Detailed requirements for environmental monitoring on the Norwegian continental shelf (NCS) were previously included in the Regulations

• The detailed descriptions of monitoring procedures have been transferred from the regulations to the present guidelines M-408, 2015

• The regulations now contain general requirements, while the guidelines provide more detailed instructions on how the requirements can best be met.

http://www.miljodirektoratet.no/Documents/publikasjoner/M408/M408.pdf

The EM Guidelines - Monitoring programs and cooperation

• Operators in a defined region are responsible for preparing draft programmes for monitoring of the water

column (either field surveys or method development) and of the benthic habitats)

• The Norwegian Oil and Gas Association (NOROG) (IBP) has its own environmental monitoring expert

group which coordinates the planning, implementation and reporting of environmental surveys on behalf of

the operators.

• Operators are required to build their environmental monitoring programmes on the requirements of the

regulations and on the instructions given in the guidelines.

• An advisory group appointed by the Agency(IBAMA), NOROG and relevant operators present, discuss and

assess the draft programmes at annual planning meetings. Consultants may be invited to attend

• Scope of the final programme is decided upon based on discussions at these meetings.

• Operators make the necessary corrections to the draft and send the final programme to the Agency.

• This cooperation between stakeholders makes it possible to review both positive and negative experiences gained from earlier surveys.

The EM Guidelines – Monitoring of the water column

Monitoring of the water column

➢Survey should include hydrographical measurements, chemical analyses and

investigations on field transplanted organisms held in cages and wild caught

organism

➢Passive samplers and organisms held in cages are placed on instrument rigs in the

surveyed area

➢As part of the environmental monitoring regime, operators are required to contribute

to method development with the purpose to improve monitoring of the water column

➢Field surveys to be carried out every third year instead of annually

The EM Guidelines – Monitoring of the benthic habitats

Benthic habitats (sediments and soft- and hard bottom fauna)

➢ Baseline surveys, are required before exploration drilling in new

areas and in areas where vulnerable benthic species and habitats

occur

➢ Requirement for regular field-specific and regional monitoring

surveys, which normally begin after production drilling has started.

➢ Field-specific monitoring surveys are part of the regional program,

and are carried out at the same time

➢ The Norwegian continental shelf is divided into eleven geographical

regions for monitoring of benthic habitats. As a general rule, each

region should be surveyed every third year, and the surveys should

alternate between regions

The EM Guidelines – Quality Assurance System

• Quality assurance should be anchored with both consultants and Oil Company

• All suppliers of services for monitoring programs (analyses, fieldwork) must have

ISO/IEC 17025:2005 accreditation or an equivalent for the methods they use

• The certification is to be awarded by Norwegian Accreditation or an equivalent

foreign accreditation body

• The Agency (IBAMA) may give exemptions for example to new methodology for

water column monitoring.

Environmental Monitoring: Companies in or interested in Brazil

norwep.com

Gulbrand Wangen, Regional Director Africa, Brazil, India and Midstreamgulbrand.wangen@norwep.comOslo| 25 October 2017