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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


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


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


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


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.


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)


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


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


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


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


E IA K ey C onsiderations: Project C oncept

O nshore O ffshore

Rig Type

Tender Assisted

Semisubmersible


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


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



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



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)


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)


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.


T hank you


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.


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