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© 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. 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

Managing and Mitigating Environmental Impact in Malaysian ... · • PACs, PETRONAS and Government as decision makers are made aware of the mitigation measure proposed and able to

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Page 1: Managing and Mitigating Environmental Impact in Malaysian ... · • PACs, PETRONAS and Government as decision makers are made aware of the mitigation measure proposed and able to

©Petroliam Nasional Berhad (PETRO NAS) 20 14 1

© 20 14 PET R O LIAM N ASIO NAL B ER H AD (PET R O N AS) 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.

Managing and Mitigating Environmental Impact in Malaysian Dr il l ing Activit ies: PET R O N AS Approach IADC Drilling H SE&T Asia Pacific 20 15 C onference & Exhibition Kuala Lumpur : 12th March 20 15 En. Nor H ashim Yusoff, G eneral Manager H SE En. R osnan H amzah, Senior Manager H SE G overnance Pn. R ozita Musib, Staff Environment, MPM H SE PETR O NAS

Page 2: Managing and Mitigating Environmental Impact in Malaysian ... · • PACs, PETRONAS and Government as decision makers are made aware of the mitigation measure proposed and able to

©Petroliam Nasional Berhad (PETRO NAS) 20 14 2

P resentation C ontent

• MPM HSE G overnance & C overage • EIA Definition • EIA O bjectives • Malaysia EIA Requirements • PETRO NAS Environmental Requirements • EIA Process Review • EIA Key C onsiderations & C oncepts • Drilling Phases & Activities • Key Environmental Issues & Impacts: Drilling • Mitigation Measures • C onclusion

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MPM H SE G overnance in Malaysia: Environment

Governance

Governing PETRONAS environmental

requirements to PACs

Liaison between PACs and authorities on

environment regulations

Shaping regulations and monitor environmental

compliance

Benchmarking & environmental best

practices

Developing environmental requirements

Custodian (Vol3: HSE Requirements)

PPGUA

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Kertih

Kuala Lumpur Bintulu

Labuan

*NOT TO SCALE *NOT TO SCALE

PET R O N AS MPM H SE: C overage

•DOMESTIC OPERATIONS IN MALAYSIA ONLY •OFFSHORE & ONSHORE •PRODUCING PSC & RSC

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Identify, assess and document environmental impacts proposed

Identify & document environmental risk associated

Document technical surveys (baseline) or studies

Regulatory approvals & aids “environmental planning” of new or expansion of projects

O bjectives of E IA

EIA

Identify appropriate mitigation measures to minimize & eliminate impact to an ALARP level.

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Def init ion of Environment and EIA

“Environment means the physical factors of the surroundings of the human beings including land, water, atmosphere, c limate, 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)

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Malaysia E IA R equirements (EQ A, 1974 amendment 198 5, 1996)

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PTS 18.71.01 : Environmental Aspects & Impacts Assessment PTS 18.71.02 : Environmental, Social and Health Impact Assessment

PET R O N AS Environmental R equirements (PT S, PPG UA, MES)

PTS

1.2.4 : Evaluat ion of Risk Management 1.10 : Environmental Protect ion

2.2 Environmental Impact Assessment (prescribed act ivit ies) 2.3 Environmental Risk Assessment (non- prescribed act ivit ies) 2.9 Produce Water Discharges 2.13 Drilling Fluids/Muds and Cutt ings 2.15 Prevent ion of Pollut ion from Oil

PPGUA Vol.3

MES

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PSC/RSC EIA

Document Preparation

1 EIA Report Review &

Presentation 2 Sitting & Approval 3

EIA Process R eview: PSC - PET R O N AS- G ovt.

• 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

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E IA K ey C onsiderations

EIA Project Concept

Rig Type

Well Type

Legal & Other Requirements

EQA 1974

PETRONAS Requirements

MCF & PTS PPGUA & MES

OPERATION

Onshore/Offshore

Others

Exploration Appraisal

Development

EEZ 1984

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E IA K ey C onsiderations: Project C oncept

O nshore O ffshore

Rig Type

Tender Assisted

Semisubmersible

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Dr il l ing Phases & Activit ies

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, inc lude placement/positioning and anchoring. Drilling : Project Execution - heavy lifting, drilling, running casing, cementing, perforation, well logging, well completion, well testing, surface plug and abandonment. Post Drilling : Rig Demobilization - recover of anchors, rig tow

Phase 1

Phase 2

Phase 3

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K ey Environmental I ssues & Impacts: Dr il l ing

Drilling Wastes

& Disposal

C hanges to Seawater @ Water Q uality

C hanges to Seabed/ Sediments Q uality

Disturbance to Marine Fauna

• Reduction in seabed sediments quality from deposition of drilling wastes

• C hanges 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 Cutt ings = 6.9% OOC

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K ey Environmental I ssues & Impacts: Dr il l ing

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

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K ey Environmental I ssues & Impacts: Dr il l ing

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)

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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)

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C onclusion • 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.

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T hank you

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Environmental R isk 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.

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Ex isting Environment : N earest receptors

Near shore/C oastal

O ffshore/O nshore

Biological Environment

Forest/C ity

River/Swamp

G eographical setting:

Lat./Long.

Benthic communities

Mammals