EIA - Executive Summary - Talisman

8/12/2019 EIA - Executive Summary - Talisman

http://slidepdf.com/reader/full/eia-executive-summary-talisman 1/36

ENVIRONMENTAL RESOURCES MANAGEMENT TALISMAN MALAYSIA LIMITED 0031828 NORTHERN FIELDS EIA REV 1 MAY 2007

MS-1

MANAGEMENT SUMMARY

1 INTRODUCTION

This report presents the findings of an Environmental Impact Assessment(EIA) study conducted for the Northern Fields Development, Block PM-3Commercial Arrangement Area (CAA), Offshore Peninsular Malaysia . TheEIA study has been commissioned by Talisman Malaysia Limited (TML) and ithas been prepared by Environmental Resources Management (ERM).

TML is the Production Sharing Contract (PSC) operator of Block PM-3Commercial Arrangement Area (CAA), offshore Peninsular Malaysia in theSouth China Sea. TML is currently producing both oil and gas from thereservoirs located in the southern part of the PM-3 CAA. It is now seeking todevelop the potential in the northern part of the Commercial ArrangementArea; the ‘Northern Fields’.

1.1 P ROJECT LOCATION AND S ETTING

Block PM-3 CAA covers an area of approximately 4,000 km 2 within the oil andgas province of the Malay Basin. The block lies approximately 200 km off theeast coast of Peninsular Malaysia and about 170 km south of Ca Mau, Vietnam;the concession is bordered by the Vietnam offshore license area and theMalaysia-Thailand Joint Development Area (MTJDA). The south-western

boundary of PM-3 CAA generally lies parallel to the coastline between KualaTerengganu and Kota Bahru (at a distance of 200 km). The location of the PM-3CAA together with an indication of other offshore facilities in this area isshown in Figure 1.1a.

A total of nine fields comprise the PM-3 CAA, namely: West Bunga Kekwa,East Bunga Kekwa-Cai Nuoc, Bunga Raya, Bunga Orkid, Bunga Pakma, NorthBunga Pakma, Bunga Seroja, Northwest Bunga Raya and Bunga Tulip. Theirdevelopment has been undertaken in phases; the development of the BungaOrkid field (the subject of this EIA) represents Phase 5. The field is located in

the northern part of PM-3 CAA.




MS-2

1.2 P ROJECT P ROPONENT

The proponent of this project is Talisman Malaysia Limited who is also theoperator of the PM-3 CAA. Current working interests for PM-3 CAA are26.44% TML, 15% Talisman Malaysia (PM3) Limited, 46.06% Petronas CarigaliSdn Bhd and 12.5% PETROVIETNAM Investment & Development Company.

1.3 EIA R EQUIREMENT

Malaysian legislation requires the submission of Environmental ImpactAssessments (EIAs) for specific developments. However, offshore oil and gasdevelopment activities in the Exclusive Economic Zone fall outside the jurisdiction of the EIA legislation ( Environmental Quality (Prescribed Activities)(Environmental Impact Assessment) Order, 1987 ). The submission of EIAs forsuch activities is, however, encouraged through administrative means under

the permitting requirements of the Exclusive Economic Zone Act, 1984(1)

. ThisEIA has therefore been prepared in support of these permitting requirementsand with reference to:

• A Handbook of Environmental Impact Assessment Guidelines, MalaysianDepartment of Environment, 2000 ; and

• Environmental Impact Assessment Guidelines for Petroleum Industries, Malaysian Department of Environment, 1997 .

2 PROJECT DESCRIPTION

2.1 N ORTHERN F IELDS D EVELOPMENT CONCEPT

The Northern Fields will focus on the development of the Bunga Orkid oil andgas field. Additional fixed production platforms will be installed to operatethroughout the expected 20-year commercial life of the PM-3 CAA to recover,process and export oil and gas from these fields.

The Northern Fields Development will initially consist of three normallyunmanned Wellhead Riser Platforms (BO-B, BO-C and BO-D) and a mannedCentral Processing Platform (BO-A CPP), with future provision for anadditional Wellhead Riser Platform (WHRP) at the Bunga Pakma field (BP-A).The WHRPs will be tied into the BO-A CPP where the reservoir fluids will beprocessed. BO-C and BO-B will be connected via subsea pipelines, whilst BO-

1 Under Part VI Section 21(1) of the Exclusive Economic Zone Act, 1984, Governmentauthorisation is required to construct, operate or use any artificial island, installation orstructure in the EEZ; the authorisation is also subject to such conditions as theGovernment may impose.




MS-3

D will be bridge-linked. A Remote Flare Tower will also be bridge-linked toBO-A CPP.

On the BO-A CPP, free liquids will be removed from non-associated gas, whichwill be dehydrated to avoid corrosion in the export gas pipeline. Thedehydrated gas will then be compressed by the booster compressors and

exported to the existing BR-E gas processing platform via a 51 km subseapipeline. At BR-E, the gas will be routed through the CO 2 removal facilities tomeet the gas sales specification of 8 mol% CO 2. Removed CO 2 will be ventedto the atmosphere at BR-E.

The hydrocarbon liquids separated from the gas on BO-A CPP will be routedto and mixed with the crude feed. Associated gas in the crude feed will beremoved and stabilised through three stages of oil separators; the associatedgas will be compressed and tied into the gas facilities for dehydration. Thecrude oil will then be transported to a Floating, Storage and Offloading (FSO)

vessel via a 2.4 km subsea pipeline.

A schematic layout of the Northern Field facilities is presented in Figure 2.1a.

2.2 P ROJECT ACTIVITIES

2.2.1 Onshore Fabrication & Tow Out

The Northern Fields facilities will be prefabricated onshore; they will then betransported offshore and installed. Pipeline fabrication (individual sections of

line pipe) will also be conducted at an onshore site.

2.2.2 Construction, Installation and Commissioning

The platform jackets will be launched from the transport barges and will bepositioned on the seabed at predetermined locations. The jackets will then beanchored to the seabed by driving piles through the jacket legs into the seabed.

Topsides for the wellhead platforms will be lifted into place using a cranebarge. The BO-A CPP topsides will be installed onto the jacket using a float

over method.

2.2.3 Development Drilling

Northern Fields wells will be drilled using a mobile offshore drilling unit(MODU) of jack-up type. A summary of the drilling programme is presentedin Table 2.2a.




MS-4

Table 2.2a Drilling Programme

Location No. Wells Potential SpareWells

Drilling Duration(days)*

BO-B 11 7 166

BO-C 21 8 434

BO-D 20 7 401

Total 52 22 1001* Drilling durations include drilling, evaluation and completion activities

Both water based muds (WBMs) and synthetic based muds (SBMs) will beused for the Bunga Orkid drilling campaign. The Top Hole section will bedrilled using WBMs (seawater as a circulating medium and high viscositysweeps) to lift cuttings, while the Production Holes will be drilled with thehigh performance SBMs (SARAPAR 147) for maximum inhibition, lubricityand minimum formation damage.

2.3 BUNGA O RKID C ENTRAL P ROCESSING P LATFORM (BO-A CPP)

BO-A CPP will comprise all hydrocarbons processing equipment, supportutilities and essential accommodation. The platform will consist of a 4-decktopsides on an 8-legged jacket. The design capacity of BO-A CPP is presentedin Table 2.3a.

Table 2.3a BO-A CPP Design Basis

Parameter Design Capacity

Gas processing 500 MMscfdCrude oil processing 30,000 bbls/dCondensate processing 10,000 bbls/dGas lift 70 MMscfdWater injection 40,000 bbls/day

BO-A CPP will house the main hydrocarbon processing systems which willcomprise a high pressure (HP) gas treatment and booster gas compressionsystem and low pressure (LP) liquids treatment system. Associated gas fromthe oil system will be recompressed and routed to the HP system; condensatefrom the gas system will be processed in the LP system.

Utility systems will be provided on BO-A CPP. These will include producedwater, water injection, flare, closed drains, hazardous and non-hazardous opendrain, power generation, diesel storage and supply, chemical injection andfirewater systems.

2.4 BUNGA O RKID W ELLHEAD R ISER P LATFORMS

2.4.1 Bunga Orkid WHRP Layout

In addition to the CPP, three normally unmanned WHRPs will be installed:




MS-5

• BO-D Wellhead Riser Platform will be linked to BO-A CPP via a 70 minterconnecting bridge. BO-D will serve as the riser platform for the subseapipelines to and from the Bunga Orkid satellite platforms, gas export to BR-E and will also house manifolds and distribution of various production,water injection and gas streams to the satellite platforms.

• BO-B and BO-C will be two remote Wellhead Riser Platforms withminimum facilities. BO-B will be located about 2.5 km away from BO-D onthe northeast and BO-C will be approximately 5.5 km east of BO-D. BO-Cwill produce oil as well as gas whilst BO-B will be an oil-producingplatform only.

BO-D and BO-C will have a 4-legged jacket supporting six primary topsidesdecks, namely Main Deck, Upper Mezzanine Deck, Lower Mezzanine Deck,Cellar Deck, SDV Service Platform and Sub-cellar Deck. BO-B will be smallerbut with similar layout as BO-C. It will comprise four primary decks, namely

Main Deck, Wellhead Access Platform, Cellar Deck and Sub-cellar Deck, andwill be installed on a 4-legged jacket.

2.4.2 Bunga Orkid WHRP Process

Incoming wellfluids from the wells will be routed to the production headerwhere they will be commingled. Testing of individual well streams will beaccomplished by manually diverting the flow into the test header andassociated test separator. Wellfluids from the production headers will then beexported to BO-A CPP.

The wells on the WHRPs will be made up of oil producers, gas producers,water injectors or gas injectors. Gas lift facilities will be provided for the oilwells and will be supplied from BO-A CPP via BO-D through the GasliftHeader.

The WHRP facilities will be designed for simultaneous production and drillingoperations (SIPROD). The WHRPs will be provided with pig launching/receiving facilities.

2.4.3

Bunga Orkid WHRP Utility SystemsAs BO-D will be bridge-linked to BO-A CPP, the utility systems will becommon. Utility systems will be provided on BO-B and BO-C. These willinclude closed hazardous drains system, open drains system, vent system,diesel fuel system, chemical injection system and firewater system.






MS-7

Following installation of the WHRPs, a drilling programme will be carried outon BO-D, and interfield pipelines and the gas export pipeline to BR-E will beinstalled.

A feasibility study has shown that prior to installation and commissioning ofthe BO-A CPP, early gas phase production could be commenced directly by

free-flowing full wellstream (FWS) gas to BR-E through BO-D to the BR-Epipeline.

The implementation of the Early Gas Production Phase will be determined asthe Project design progresses. A full description of the modifications to theproposed facilities as a result of the Early Gas Production Phase is presented inthe EIA report together with the assessment of the environmental impacts.

3 ENVIRONMENTAL PROFILE

3.1 C LIMATE AND M ETEOROLOGY

3.1.1 Prevailing Climatic Conditions

Offshore Peninsular Malaysia experiences an equatorial monsoonal climate,with warm, humid conditions throughout the year and two distinct monsoonseasons. Offshore wind conditions are dominated by the monsoonal winds.During the Northeast Monsoon, prevailing winds are typically from the north,northeast and east; during the Southwest Monsoon, prevailing winds aretypically from the west, southwest and south. During the inter-monsoonperiods (April and October), winds become light and changeable with agradual shift towards the direction of the advancing monsoon.

3.1.2 Wind Speed

Wind speeds for PM-3 CAA are mainly in the range 1 – 13 m/s; wind speeds inexcess of 13 m/s are relatively infrequent. The prevailing wind directions arefrom the northeast (~12%), east (~14%), southeast (~15%) and southwest(~20%).

3.1.3 Temperature, Rainfall and Humidity

The annual average air temperature recorded offshore Terengganu was 27 C.Cumulative annual rainfall recorded at Kuala Terengganu Airport over theperiod of 1985 to 2005 averaged 2,606 mm per year with an average of 166rainy days per year. Relative humidity offshore east coast Peninsular Malaysiais generally in the range of 81% to 87% with a mean of about 83%.

3.1.4 Tropical Storms

Historical storm trajectories indicate that tropical storms and cyclonesgenerally develop in the Pacific Ocean off the southeast of the Philippine






MS-9

considered to be typical background levels for the South China Sea at offshorelocations ( KUSTEM, 2006).

3.3 OCEANOGRAPHY

3.3.1 Currents and Tides

The pattern of currents in the South China Sea is largely determined by thechanging patterns of monsoon winds. Off the east coast of PeninsularMalaysia, a generally southerly current flows from November to March andreverses to a north/ northeasterly current from May to October. Currentsrecorded at the Northern Fields during the 2006 baseline survey ( KUSTEM,2007 ) ranged between 0.07 - 0.60 m/s.

The tidal cycle at the Northern Fields is predominantly diurnal with arelatively small range (~ 2 m).

3.3.2 Waves

Wave direction distributions for the PM-3 CAA location shift from apredominantly northeasterly (47%) direction during the NE Monsoon to asouthwesterly direction (36%) with the onset of the SW Monsoon. Waveheights are generally less than 2 m during the NE Monsoon (85%) and SWMonsoon (90%). During the transition period in April, waves arepredominantly from the southeast/ east; wave distributions in October arevariable. Wave heights are generally less than 1 m during the transition

periods in April (73%) and October (69%).

3.3.3 Water Temperature and Salinity

The South China Sea is generally warm with sea surface temperatures (SST)ranging from 26 C to 31 C. During the baseline survey at Northern Fields in2006, surface water temperatures were in the range of 29.42 to 29.56 C; watertemperatures near the seabed were in the range of 26.12 to 26.29 C. Only asmall variation with depth was recorded ( KUSTEM, 2007 ).

Measurements conducted at Northern Fields ( KUSTEM, 2007 ) indicated amean water salinity of 30.95‰ at the sea surface increasing to 32.25‰ near thebottom. The results showed only a small variation in salinity with depth.

3.3.4 Water Column Chemistry at the Northern Fields

Seawater sampling was undertaken as part of the baseline survey of theNorthern Fields conducted in July 2006 ( KUSTEM, 2007 ). Water columnsamples and in-situ measurements were taken at the sea surface and near thebottom at eight sampling stations, and one control station locatedapproximately 5 km from BO-A. The following parameters were examined:pH, dissolved oxygen (DO), oil and grease, total hydrocarbons, total petroleumhydrocarbons (TPH), total polycyclic aromatic hydrocarbons (PAH), total






MS-11

3.4.3 Benthic Community

The sediment at Northern Fields is densely populated with a density rangingfrom 2,940 to 4,860 individuals/m 2. A total of 71 macrobenthos species wereidentified. Overall the benthic community present within the Northern Fieldswas found to be characterized by high density, diversity and species numbers(KUSTEM, 2007 ).

3.4.4 Phyto/Zooplankton and Benthic Community at the Bunga Raya Field

The biological communities identified at the Bunga Raya Field were typical ofthose of the South China Sea. Phytoplankton, zooplankton and macrobenthosspecies diversity, density and abundance indicate a fertile water column(KUSTEM, 2006).

3.4.5 Demersal & Pelagic Fish

The South China Sea has a rich diversity of fish species, however littleinformation is available on species distribution and species composition. Mostof the data available for fish resources of the South China Sea is derived fromcommercial fish landings. Some 712 species of fish representing 28 orders and138 families have been previously identified from marine fish landings.

3.5 COASTAL R ESOURCES

3.5.1 Potentially Sensitive Coastal Habitats

The potentially sensitive coastal habitats on the east coast of PeninsularMalaysia primarily comprise coastal swamps/ wetlands (mangrove), sandy/muddy beaches, rocky headlands and coral reefs.

The Bunga Orkid field is approximately 200 km from the coastline and thusremotely located with regards to sensitive coastal resources potentiallyvulnerable to oil spillages.

3.5.2 Turtles

Specific information on turtle migration paths in the South China Sea is notavailable but it is reasonable to presume that turtles will be transiting throughBunga Orkid’s waters.

3.5.3 Birds

Shorebirds and seabirds may occasionally transit through the project area;however the proposed facilities will be remotely located with regards toecologically sensitive areas for birds located along the east coast of PeninsularMalaysia or southern Vietnam.




MS-12

3.5.4 Marine Mammals

Limited data is available on the occurrence and distribution of marinemammals offshore Peninsular Malaysia, however, based on the data availableon the spatial distribution of marine mammals in the South China sea, it isexpected that dolphins or small whales inhabit the waters surrounding BungaOrkid and may occasionally be sighted.

3.5.5 Marine Parks

No marine parks or areas of conservation value have been identified inproximity of the proposed project area. Marine parks are primarily locatedalong the coast of Kelantan, Terengganu, Pahang and Johor and thus remotelylocated with regards to the proposed offshore facilities.

3.6 H UMAN E NVIRONMENT

3.6.1 Fishing and Aquaculture

Fisheries play an important role in the economy and welfare of coastalcommunities of the east coast of Peninsular Malaysia. Fishing activities in thewaters of PM-3 CAA are likely to be primarily associated with commercialdeep sea fishing, however offshore fishing/deep sea fishing at distances ofmore than 30 nautical miles from shore by vessels of 70 gross registered tonnes(GRT) and above is not widely practiced by Malaysian fishermen. Inshorewaters off the coast of Terengganu between Northern Fields and TML’s supplybase at Kemaman are likely to be more widely fished.

No aquaculture facilities have been identified in proximity to the proposedproject’s facilities.

3.6.2 Vessel Navigation

No specific information on shipping routes/ numbers for merchant vesseltraffic was available for use in this study (no vessel tracking systems areoperated by the Malaysian authorities in this region).

Notwithstanding the above, international shipping in transit betweenSingapore and other western ports, from and between ports on the east coast ofPeninsular Malaysia as well as destinations in the Gulf of Thailand and thecoast of Vietnam would be expected to transit the waters of the South ChinaSea around the Northern Fields.

3.6.3 Oil & Gas Production Facilities and Infrastructure

Extensive oil & gas infrastructure and associated onshore support, receivingand processing facilities are already established on the east coast of Peninsular

Malaysia (Terengganu State). A number of oil and gas fields, such as Lawit,Bintang and Tujoh, are located between the PM-3 CAA and the Terengganucoastline. The northwest boundary of PM-3 CAA abounds the Malaysia-




MS-13

Thailand Joint Development Area (MTJDA) with the Cakerawala gas fieldfacilities. There are no other oil and gas facilities within PM-3 CAA other thanTML’s facilities.

3.7 SOCIO -ECONOMIC D ATA

3.7.1 Population and Land Area

The State of Terengganu had an estimated total population of 1,055,943 in 2005,approximately 4% of the total population of Malaysia. The State occupies aland area of 12,955 km 2, approximately 10% of the land area of PeninsularMalaysia. The population density in 2005 was approximately 82 people/km 2

(Terengganu State Economic Planning Unit, 2007 ).

3.7.2 Petroleum Industry

Terengganu (offshore) has the largest reserves of crude oil and gas in Malaysia.Of the total Malaysian reserves of 3.9 billion barrels of crude oil, 2.7 billionbarrels are found in Terengganu. Production of crude oil in 2005 forTerengganu was estimated to be 257 million barrels ( Terengganu State EconomicPlanning Unit, 2007 ).

Oil and gas exploration and production is one of the largest contributors to thestate GDP.

4

IMPACT ASSSESSMENT

4.1 M ETHODOLOGICAL A PPROACH

The assessment of potential impacts has been subdivided into two distinctphases:

• Phase I – Scoping Phase : Potential environmental impacts (positive andnegative) were identified through a systematic process whereby project

activities were considered with respect to their potential to interact with theexisting environmental resources or receptors. The outputs of the scopingexercise are a ‘Scoping Matrix’.

• Phase II – Assessment of the Impacts : The assessment of potential impactsis an objective exercise to determine, by means of a set of impactassessment criteria (see Appendix B of the EIA report), the significance ofthe environmental impacts.




MS-14

4.2 K EY F INDINGS

A summary of the key findings of the impact assessment of the Project ispresented in the following sections.

4.2.1 Air Emissions & Air Quality

4.2.1.1 Construction, Installation, Drilling, Pre-commissioning & Operation

Air quality problems are not typically a significant issue for offshore activitiesas they are remote from land-based influence (hence baseline ambient airquality is therefore likely to be good) and away from potential sensitivereceivers. Furthermore the influences from other offshore oil & gas productionfacilities and passing shipping are unlikely to have more than a marginal effecton ambient concentrations of gaseous pollutants.

Total CO 2 emissions during drilling are estimated to be in the order of 60,093

metric tonnes. This represents approximately 0.04% contribution to the 156.7million MT/year CO 2 emissions generated by Malaysia as a whole (CO 2 Emissions – 2003 Basis, UN 2006).

CO2-eq emissions from vessel operations are dominated by CO 2 emissions andhave been estimated to amount to ~22,500 metric tonnes (MT) for theinstallation and commissioning phase (considering a 45 day installation andcommissioning phase). This contribution is very small when compared toyearly CO 2 emissions generated by Malaysia.

Estimated CO 2 emissions from BO-A CPP normal operations are 2,078MT/day. If averaged over a year, emissions will be approximately 0.48% oftotal annual Malaysian CO 2 emissions.

Overall air quality impacts associated with the project are considered to benegligible/minor.

4.2.2 Aqueous Effluents/ Discharges to Sea & Seawater Quality

4.2.2.1 Construction, Installation, Drilling & Pre-commissioning

No significant water quality impacts from construction and installationactivities are expected. Natural dispersion by wave action and current flowand the assimilative capacity of the water column should ensure any adverseenvironmental effects are minimal providing all the materials discharged arebiodegradable.

Moderate residual impacts are foreseen from the disposal of drilling wastes.The bulk constituents of the discharged material will include bentonite (clay)starch, cellulose and polymers. SBM retained on cuttings in the discharge will

also include about 10 – 15 %wt. base oil.

Finally, minor impacts are expected from the discharge of treated water




MS-15

following the hydrostatic testing of the proposed pipelines and risersproviding that factors such as toxicity, degradability and biological fate aregiven careful consideration during the inhibitor chemical selection process.The quantity of inhibitor chemicals discharged compared to the total estimatedvolume of hydrotesting water will be very small and further dilution anddispersion will occur following discharge.

4.2.2.2 Operation

The operation of BO-A CPP will result in a moderate water quality impact dueto the overall increase of aqueous effluents/ discharges within the project areamainly associated with the discharges of produced water.

Although produced water has the potential to alter the water qualityparameters within the project area through the discharge of dissolved salts,dissolved and colloidal hydrocarbons, trace metals, chemical additives injectedand suspended/ dissolved solids, its discharge in a dynamic offshore marineenvironment will quickly dilute its contaminants to concentrations which areunlikely to pose significant impacts to the water quality and marine organisms.Furthermore waters surrounding the BO-A CPP are considered to be of goodquality and are not expected to be ecologically sensitive to change.

Potential water quality impacts associated with other operational dischargessuch as platform runoff, standby/support vessels discharges and sacrificialanodes of subsea structures are not considered to be significant.

4.2.3 Physical Impacts to the Seabed/ Sediments


Moderate residual physical impacts on the seabed are expected as a result ofthe discharge of drilling waste. The principal zone of impact is expected tooccur within a distance of approximately 100 – 200 m from the dischargelocation at the drilling site and the depth of accumulated drilling material islikely to range from a few millimetres in thickness to a maximum of severalmetres immediately below the point of release.

Installation of the jacket/ pipelines and jack up operations are expected toresult in the creation of a number of new seabed features (eg. anchor scars,small craters) with a resultant long-term although localised change in theseabed profile. Residual physical impacts to the seabed are considered to benegligible to minor.

Other construction, installation, drilling & pre-commissioning activities areexpected to result in negligible/minor physical impacts to the seabed.

4.2.3.2 Operation

Negligible/minor physical impacts to the seabed are expected as a result of theoperational activities.




MS-16

4.2.4 Waste Generation and Disposal


All non-hazardous and hazardous wastes generated offshore by the project’sactivities will be returned to shore. Onshore disposal activities will be conducted

by local waste disposal contractors. Provided all generated wastes are managedin accordance with TML’s HS&E management procedures and legalrequirements then residual impacts associated with non-hazardous andhazardous waste generation and disposal are expected to be negligible/minor.

4.2.5 Biological/Ecological Issues


The benthic community at Bunga Orkid is not considered to be particularlysensitive in terms of scarcity or uniqueness. No sensitive marine habitats havebeen recorded and no coral formations are expected to be present.

Provided installation and jack-up rig activities are carefully controlled andoperational discharges from the vessels are in accordance with therequirements of applicable legal requirements (eg. MARPOL, EEZ Act 1984)then residual impacts on marine life are expected to be negligible to minor.

Moderate residual impacts to the marine environment are however expected asa result of the discharge of drilling wastes. Deposition of mud and cuttings on

the seabed in the immediate vicinity of the discharge locations may inevitablyresult in some smothering of sessile benthic organisms and adverse impacts onbenthos (particularly filter feeders) may occur over a wider area, as fineparticles entrained in the plume settle out.

4.2.5.2 Operation

The artificial reef effect associated with the installed facilities is considered tohave a localised positive impact on marine biodiversity. Overall the residualimpacts on biological resources associated with the operational activities of theproject are considered positive.

4.2.6 Noise & Light Pollution


Residual impacts associated with changes in underwater and terrestrial noiseas well as light emissions from project activities at Bunga Orkid are expected tobe negligible.




MS-17

4.2.7 Resource Users – Shipping and Fishing


Local and international shipping in transit between Singapore and otherwestern ports, from and between ports on the east coast of Peninsular Malaysiaas well as destinations in the Gulf of Thailand and the coast of Vietnam would

be expected to transit the waters of the South China Sea around the BungaOrkid field. No significant interferences between installation/ supply vesselsand normal shipping activities are expected.

The designation and enforcement of a safety exclusion zone around theconstruction area represents a small loss of available deep sea fishing areasoffshore Peninsular Malaysia.

4.2.8 Socio-Economics


Construction, installation and drilling activities would be expected to have asmall positive socio-economic impact in terms of demand for services andgeneration of revenue for local and regional businesses.

4.2.8.2 Operation

Bunga Orkid’s production operations would be expected to have a positivesocio-economic impact in terms of both provision of employment (both directand indirect in the services, support and supply sectors) and from thegeneration of revenue for the State of Terengganu/ Malaysia.

4.2.9 Occupational Health & Safety


Providing occupational safety & health management procedures are in placeand implemented and are effective then associated risks are expected to bemaintained to a level that is as low as is reasonably practicable (ALARP).

4.2.10 Loss of Containment (Accidental Spills & Leaks)


Accidental spills and leaks from construction, installation, drilling & pre-commissioning have been assessed under the following categories:

• Well fluids (liquid drop out from temporary burners);• Base oil spills (SBM base oil);• Drilling fluid spills (WBM & SBM);• Drilling fluid constituent/ chemical spills (transfer, storage and handling);• Fuel spills (transfer, storage and handling);• Lubricating product spills (transfer, storage & handling); and




MS-18

• Well blowout.

Provided control measures and response plans are in place and effective thenresidual environmental risks associated with the project’s construction,installation drilling & pre-commissioning spills and leaks are considered to benegligible/minor.

4.2.10.2 Operation

Accidental operational spills and leaks have been assessed under the followingcategories:

• Chemical spills (transfer, storage and handling);• Fuel/ lubricating product spills (transfer, storage and handling);• Topsides spills; and• Blowout.

Large spills and leaks are unplanned events and generally of low occurrence.Provided in place controls and response plans are in place and effective thenresidual impacts associated with these events will be negligible/minor.

5 ENVIRONMENTAL MANAGEMENT & MONITORING

5.1 I NTRODUCTION

A key element of the EIA process is the Environmental Management Plan(EMP) which summarises the key environmental issues identified in the EIAand provides, for each of these issues, a list of mitigation measures andmonitoring activities that shall be carried out by the project proponent toensure further minimisation of the significance of the residual impacts.

An outline EMP for the project is presented in Tables 5.1a - c drawing on theresults of the EIA. The EMP will be updated and presented in accordance withthe DOE’s EMP format on receipt of the DOE’s conditional approval of theEIA.







ENVIRONMENTAL RESOURCES MANAGEMENT 0031828 NORTHERN FIELDS EIA REV 1

MS-21

Sec. Ref

Activity/ Source of Impact

Potential Environmental Impacts Significanceof Impact

Mitigation Measures

6.3 Physical Impacts on the Seabed6.3.1 Jacket & Pipelines

Installation, JackUp Operations

• Substrate damage, disturbance to seabedsediment and associated alterations to seabedprofile

• Secondary impacts on water quality (localincreases in turbidity) and harm to marinefauna living in seabed

• Localised sediment disturbance andredistribution around the structures

• Long-term anchor scars

Negligible –Minor

• Site surveys, including side scan sonar have beto identify seabed features which may be impacwhich may impact upon the installed facilities

• Installation activities are subject to detailed plainstallation activities are closely monitored andconducted in a very controlled manner so as to damage to the structures but also to minimise sdisturbance effects

• Local scour can influence the stability of a strusediment scour will be closely monitored durinunderwater surveys and inspections

• Site surveys and soil coring are conducted priopositioning to identify potential hazards and to likely leg penetration distances

• Jack-up legs are typically provided with spud-creduce the depth to which the legs penetrate the




MS-22

Sec. Ref



Mitigation Measures

6.3.2 Drilling WasteDisposal

Settling of drill cuttings and adhered drill fluidson the seabed resulting in changes in the physicalnature (particle size distribution) and chemicalcharacteristics/ composition (oxygen, metals,organic materials and hydrocarbon content) ofthe surface seabed sediments

Accumulating drilling waste will give rise tosecondary impacts on the benthic community

Moderate • Selection of drilling fluid constituents with lowenvironmental impact (biodegradable, non-bioalow toxicity etc.)

• Optimised operations of solids control system tthe useful life of drilling fluids

• Rig modifications/ upgrades to ensure a closedduring SBM drilling

• Regular mud samples will be collected for analdrilling operations

6.3.3 Dropped Objects The drill rig and construction vessels (eg. pipelaybarge) will be supplied with materials by supplyvessel; supply vessels also collect waste and othermaterials from the drill site and construction

vessels to return it to shore. As with any liftingoperation there is a risk of dropped objects whichpotentially fall into the sea where they can eitherfloat or sink.

Minor • Crane operations will be carefully controlled (SOperating Procedures)

• Only correct packaging/ sizing of loads will be• Only loads within the maximum lifting capacity

systems are lifted• Objects which are dropped into the sea are reco

wherever practicable




MS-23

Sec. Ref



Mitigation Measures

6.4 Generation and Disposal of Wastes 6.4.1 Non-hazardous

wastesInappropriate handling, storage and disposal ofnon-hazardous wastes generated offshore mayresult in fouling/ contamination of the marineand onshore environments

Minor All wastes generated offshore will be managed in acwith TML’s HS&E/ waste management requiremeninclude:• Waste minimisation at source• Waste segregation by type• Transport of wastes in suitable containers to av

wind blown release of waste materials• Completion of transportation consignment note

document the transfer of materials from BO-A Kemaman Supply Base

• Recycling of waste where possibleLarger vessels and the drilling rig will comply withrequirements of MARPOL Annex V.

6.4.2 Hazardous Wastes Inappropriate hazardous waste management maycause:• Toxic effects or physical damage to marine

organisms• Water pollution/ fouling/ contamination of

the sea/ shoreline or onshore environment(onshore storage, transport and disposalactivities)

• Risks of fire and explosion• Risks to human health

Minor All hazardous wastes generated offshore will be maaccordance with TML’s HS&E management procedlegal requirements, which include waste minimisatsegregation, safe storage & handling and transferdocumentation.

All hazardous wastes, which are classified as schedunder the First Schedule of the Environmental QWastes) Regulations (2005), will be managed in acthe requirements of the regulations.






MS-25

Sec. Ref



Mitigation Measures

6.7 Interference with Other Resource Users6.7.1 Physical presence

of Bunga Orkidfacilities oncontinental shelf

Hazard to and constraint on shipping and fishing Negligible • Notices to Mariners will be issued via regular rbroadcasts and will also be posted at ports and internet to alert shipping to the infield activitiesOrkid field

• A permit to install (PTI) as required under thewill be obtained prior to commencing the work

• TML will ensure that the Marine Dept is informmobilisation and infield activities. TML will coFisheries Department to ensure that fishermen aof the development plans for the Bunga Orkid a

• Encroaching fishing vessels will be reported toDepartment

6.8 Socio-economic Impacts6.8.1 Requirement for

support andsupply servicesand labour

Bunga Orkid field development activities willgenerate temporary employment and income

Positive • Maximise contracting services with local Malaycompanies where possible




MS-26

Sec. Ref



Mitigation Measures

6.9 Occupational Health & Safety6.9.1 Operation of

vessels and drillingrig and theirequipment

• Exposure of workers to elevated noise, dustand heat with concomitant risk of hearingimpairment, respiratory problems and heatexhaustion

• Exposure of workers to potentially hazardousmaterials (eg. fuel, oils chemicals etc.).

• Fire & explosion risks associated with naturalgas/ fuels etc.

• Risks associated with marine operations (eg.drowning).

• Exposure of workers to potentially dangerousworking conditions (eg. risk of workerphysical injury from machinery, droppedobjects, working in elevated positions,electrocution etc.).

• Risk of illness from communicable diseases

etc.

As Low asReasonablyPracticable(ALARP)

Measures to control occupational health and safetyinclude:• Management Controls• Operational Controls• Health & Safety Procedures and Protective Con• Recovery/ Response Measures• Others (eg. health surveillance, information, ins

training, safety officers/ inspectors, tool box mepersonal hygiene, control equipment maintenanmonitoring)

6.10 Loss of Containment (Spills and Leaks)6.10.2 Well Flow-testing/

Clean-up FlaringSpills

Hydrocarbons may enter the marine environmenteither as a result of poor combustion or flareflame-out.

Negligible –Minor

The following measures are typically employed to risk of spills/ liquid drop-out from flow-test/ clean-activities:• Use of high combustion efficiency burners• Provision of supplementary fuel (diesel) to aid

and hence reduce the likelihood of a flame-out• Close monitoring of burner boom operation du

operations• Provision of liquid knock-out facilities to reduc

quantities of liquids discharged to the burner• In place response & contingency procedures (T

Contingency & Response Plan (OSCRP))






MS-28

Sec. Ref



Mitigation Measures

6.10.7 Fuel/ Diesel Spills Diesel is non-persistent and is unlikely to form astable emulsion; it can however result in toxiceffects on marine life when fresh

Negligible –Minor

• Quick disconnect couplings on transfer hoses• Check valves on diesel transfer pipework• Main diesel storage tanks are typically fitted wi

low level alarms• Overflow lines from diesel storage tanks typica

to the drains system• Level gauges on diesel tanks• Standard Operating Procedures for bunkering a

handling/ storage• Shipboard Oil Spill Emergency Plan (MARPOL

requirements) for drilling rig• Oil Spill Contingency and Response Plan

6.10.8 Blowout Blowouts can result in an uncontrolled release ofhydrocarbons from a well. Hydrocarbons canpersist in the environment with toxic effects onmarine life

Minor • Careful planning of drilling operation• Site surveys to identify shallow gas hazard• Drilling and well control Standard Operating P• Drill fluid formulation, provision of well kill flu

loss control and weighting agents• Monitoring of downhole conditions and mud re• Physical well construction (cemented casings)• Blowout preventor (BOP) stack

Emergency response/contingency procedures will aplace to respond to such events including: • Shipboard Oil Spill Emergency Plan (MARPOL

requirements) for drilling rig• Oil Spill Contingency & Response Plan• TML Emergency Response Plan and Procedure






MS-30

Sec. Ref



Mitigation Measures

7.2.2 Platform drainage Discharge of platform runoff into the sea Negligible –Minor

Provision of mitigation and control measures inclu• Provision of a closed drain system for areas tha

become contaminated• Manual collection of drains from drip pans into

capacity containers by operators during maintepigging operations

• Recovery of collected liquid for pumping back production line

7.2.3 Operationaldischarges fromsupply/ supportvessels

Discharge of sanitary effluents, bilge water, deckdrainage and cooling water during transit to/from location and on station at Bunga Orkid field

Negligible –Minor

• Supply and support vessel operations in complTML HS&E Management System requirement

• All vessel operations in EEZ in compliance wit1984 requirements

• Larger vessel operations in compliance with MAnnex I

7.2.4 Releases fromsacrificial anodes

Release of trace amounts of metal from gradualdepletion of anodes into the marine environment

Negligible • None considered necessary

7.3 Physical Impacts to Seabed/ Sediments7.3.1 Dropped objects As for Section 6.3.3 Negligible –

MinorAs for Section 6.3.3

7.3.2 Vertical Structures The presence of vertical structures on the seabedhas the potential to affect the current flowresulting in localised sediment disturbance andredistribution of sediments around the structures.

Negligible –Minor

• None considered necessary

7.3.3 Seabed subsidence Gradual subsidence or depression of seabedsurface induced by withdrawal of wellfluids fromBunga Orkid reservoir formations

Negligible • Possible subsidence of seabed allowed for in ththe facilities








MS-33

Sec. Ref



Mitigation Measures

7.10.2 Fuel &Lubricating/Hydraulic oil spills

Oil spill arising as a result of accidental eventsduring transfer from supply boats to facilities orfrom storage and handling systems on BungaOrkid

Negligible –Minor

In-place management and hardware controls to minfuel spillages, including:• Quick disconnect couplings on transfer hoses• Check valves on diesel transfer pipework• Overflow lines from diesel storage tank dischar

system• Provision of level gauges on diesel tank• Standard Operating Procedures• Oil Spill Contingency & Response Plan

7.10.3 Topsides spills Topsides leaks arising as a result of corrosion,physical impact and material defects

Negligible –Minor

In-place procedural and hardware controls to reductopsides equipment leaks, including:• Design of facilities in accordance with all appli

standards• Verification/ certification of facilities design an

construction by third party verification body• TML’s plans to operate facilities in line with be

practice• Standard Operating Procedures• Continuous monitoring & control• Safety measures (PSVs, level alarms, shutdown• Routine inspection & maintenance programme• Containment systems around storage facilities d

drains• Emergency/ spill response plans






MS-35

5.2 E NVIRONMENTAL M ONITORING

5.2.1 Introduction

Monitoring programmes have been recommended for key emissions,discharges and wastes during construction, installation, drilling and

production phases of Bunga Orkid’s development. Monitoring activitiesshould be integrated into the existing monitoring programmes for PM-3 CAA.

5.2.2 Construction, Installation and Drilling Phases

5.2.2.1 Drilling Waste

Drilling wastes will be inventorised during drilling activities and will bemanaged in accordance with TML’s Drilling Waste Management Procedure.

5.2.2.2 Waste Management

Recommended monitoring requirements for waste generation include aninventory of all wastes generated offshore. The Waste Consignment Notesystem will be used to record and track the transportation and treatment/disposal of all wastes for offshore activities. Monitoring and recording ofhazardous/ scheduled wastes will be in accordance with the relevantMalaysian legislation.

5.2.2.3 Loss of Containment (Accidental Spills & Leaks)

A log of non-routine events, spills and accidents will be maintained throughoutBunga Orkid’s construction, installation and drilling phases and the necessaryroot cause analysis will be undertaken.

5.2.2.4 Post Drilling Seabed Sediments & Water Quality

Given that physico-chemical and ecological impacts associated with thedischarge of drilling waste were evaluated to be of most (albeit acceptable)significance, it is recommended that the predictions made in this study areconfirmed through post-drilling seabed sediment and seawater quality

monitoring. The proposed monitoring programme for seawater quality andseabed sediment is summarised in Table 9.4a of the EIA report.

5.2.3 Production Phase

5.2.3.1 Air Emissions

An air emissions inventory should be established for fuel gas combustion,fugitive emissions and diesel fuel consumption.

5.2.3.2 Aqueous Discharges

In order to demonstrate that hydrocarbon releases from the drain caissons donot exceed legal limit values, it will be necessary to monitor hydrocarbon



Documents

EIA - Executive Summary - Talisman