Environmental Impact Assessment Scoping Report - BP · Environmental Impact Assessment Scoping Report QD-BP-EV-REP-0011 ... FPSO (including temporary suspension of well and production

Environmental Impact Assessment Scoping Report QD-BP-EV-REP-0011 August 2010

Environmental Impact Assessment Scoping Report

QD-BP-EV-REP-0011 Page 2 of 25

Contents Contents ..................................................................................................................... 2

1. Introduction......................................................................................................... 3

2. Project Description ............................................................................................. 8

3. Environment Description .................................................................................. 11

4. Key Potential Environmental Impacts ............................................................... 16

5. Stakeholder Consultation ................................................................................. 20

6. List of Abbreviations ......................................................................................... 23

7. References ....................................................................................................... 25



1. Introduction The purpose of this scoping report is to provide stakeholders1 with an overview of the Quad204 Project and invite early input from stakeholders in the identification of key issues, areas of concern and additional environmental data available in order to inform the Environmental Impact Assessment (EIA) process.

The main objectives of this scoping exercise are to:

• Provide an overview description of the proposed project (Section 2);

• Review existing sources of information and present an overview of the environment in the project area (Section 3);

• Identify what are viewed to be the key areas of potential impact associated with the project and outline supporting studies included within the EIA programme to address these issues further (Section 4); and

• Outline the proposed consultation strategy to be followed during the EIA process (Section 5).

1.1. Quad204 Project Area The Quad204 Project is located within Quadrants 204 and 205 of the United Kingdom Continental Shelf (UKCS) in the northeast Atlantic approximately 130 km west of Shetland and 35 km east of the Faroe-UK boundary across water depths of 300 - 550 m (Figure 1). This area has been under development for more than 15 years with two turret-moored Floating Production Storage and Offloading (FPSO) vessels, Foinaven and Schiehallion.

The Schiehallion FPSO acts as a multi-field hub, producing oil from the Schiehallion and Loyal fields. These fields have been in production since July 1998 and have produced approximately 55.6 million cubic metres (ca. 350 million barrels) of oil and 4.6 billion standard cubic metres (ca. 163 billion standard cubic feet) of gas to the end of 2009.

Foinaven is not included in the scope of the Quad204 Project which is focused on the Schiehallion and Loyal fields.

The potential development of the Alligin field as a subsea tie-back to the Quad204 FPSO is a separate project and is not part of the Quad204 Project EIA scope. If the Alligin field is developed an addendum to the Quad204 Project Environmental Statement (ES) will be produced at the appropriate time.

1 Stakeholders refers to the regulator; statutory consultees; government departments, agencies and local councils; industry and user groups; non-governmental organisations; environmental groups and the general public.



Figure 1: Quad204 Project Area



The existing Quad204 development comprises five drill centres with an existing well stock of 54 wells, an extensive subsea infrastructure, the Schiehallion FPSO vessel and a gas export pipeline to the Sullom Voe Terminal in the Shetland Islands. Oil is exported via shuttle tanker to the Sullom Voe Terminal. Production history, seismic survey data and recent reservoir studies have confirmed that significant oil potential still remains to be extracted from the Schiehallion and Loyal reservoirs. In order to fully develop the remaining reserves the existing FPSO would need to remain on-station until 2045. In recent years operating challenges on the FPSO have resulted in a deterioration of the production operating efficiency and the existing vessel is unable to fulfil the processing requirements of the anticipated economic field life. Redevelopment of the surface production facilities, new wells and an expansion of subsea infrastructure is therefore required to access the remaining hydrocarbon resources.

Additionally, a number of oil and gas discoveries and exploration prospects exist in the area which could potentially be developed in the future by subsea tie-back to the Quad204 infrastructure.

Several concepts have been considered for the Quad204 Project and these are described in Section 1.2.

1.2. Project Concepts BP and its project partners (Shell, Hess, Murphy, Statoil and OMV) evaluated a range of potential development schemes for the Quad204 Project. These included:

• Maintenance and upgrade of the Schiehallion FPSO in-situ;

• Disconnection and tow of the Schiehallion FPSO to dry dock for modification and upgrade;

• New FPSO development;

• Subsea tie-backs to a new steel platform further up the continental shelf;

• New Tension Leg Platform (TLP); and

• New Semi-Submersible development.

During the concept selection process an environmental assessment and Best Available Techniques (BAT) assessment was undertaken of the different options. A number of categories were used as a basis for the comparison of environmental issues, including:

• Air quality;

• Community disturbance;

• Drilling, completions and workover wastes and discharges;

• Energy efficiency;

• Environmental liability prevention;

• Flaring and venting;

• Marine mammals;

• Ozone depleting substances;

• Physical and ecological impacts;

• Waste management; and

• Water management.

The environmental screening focussed on the risks and opportunities of each option and the results were fed into the overall concept selection process, which included consideration of



value, health and safety, environment, strategic benefit, field life operability, technical merit and deliverability.

The selected development concept for the Quad204 Project agreed by the project partners is the installation of a new turret-moored FPSO at the same location as the existing Schiehallion FPSO. This option performed best against all the selection criteria. The selected project concept is described further in Section 2.

1.3. Legislative and Policy Framework The Quad204 Project will be subject to the requirements of UK and EU legislation and international treaties and agreements.

The environmental, as well as other relevant effects, of proposed projects need to be identified, predicted, evaluated and mitigated. This process is referred to as Environmental Impact Assessment (EIA) and is documented in an Environmental Statement (ES).

The Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999 (as amended) require the undertaking of an EIA and production of an ES for certain types of offshore oil and gas projects likely to have a significant effect on the environment. The Regulations set trigger levels for a mandatory EIA based on new or increased oil and gas production. These trigger levels are an increase in oil production of more than 500 tonnes of oil per day (ca. 3.1 mbd) and more than 500,000 cubic metres of gas per day (ca. 17.4 mmscfd). The Quad204 Project, as a continued development of the existing Schiehallion/Loyal field development, is expected to see increases in production levels that would exceed these trigger levels; therefore an EIA is an automatic mandatory requirement.

DECC have been clear in their direction that they would require the project to submit an ES and undertake the associated public consultation. DECC have also indicated that they are content for the potential development of the Alligin field to be outwith the scope of the EIA and for an addendum to the Quad204 Project ES to be prepared at the appropriate time.

BP internal management processes (Environment Group Defined Practice October 2008) also require that an EIA be undertaken for projects such as Quad204. The undertaking of an EIA will ensure that all of the potential impacts from the project are considered and that a full consultation exercise with stakeholders is undertaken.

1.4. EIA Scope Based on guidance from DECC the Quad204 Project EIA/ES will address the following elements:

• Installation and commissioning of new subsea infrastructure and a new FPSO at the existing FPSO location;

• Continued production of the Schiehallion/Loyal fields through the new FPSO including fluids processing and export;

• Drilling of new wells via mobile drilling rigs;

• Facilities on the new FPSO for proposed polymer flood enhanced oil recovery (EOR)2;

• Decommissioning.

2 The field recovery factor could potentially be increased by the inclusion of polymer flood EOR in the Quad204 Project scope and this is currently being evaluated. If EOR is implemented an addendum to the Quad204 Project ES will be produced at the appropriate time if required.



The EIA will also address the future operational life of the Schiehallion/Loyal fields and any potential future tie-backs as far as practicable. This will include consideration of future drilling operations, future subsea infrastructure, and ongoing production and operation of the new FPSO. Future satellite areas will be considered in terms of their holistic/cumulative impacts rather than a detailed assessment, and the ES will identify any survey requirements as appropriate for new satellites.

Based on DECC guidance the EIA scope will not include the disconnection of the existing FPSO (including temporary suspension of well and production operations) or tow away and sale or disposal of the existing FPSO. However, the ES will describe, at a high level, the elements of the disconnection process to further clarify the reconnection/installation of the new FPSO.

Other project elements not within the scope of the EIA are:

• Existing well, subsea and pipeline infrastructure;

• Any potential future modifications at the Sullom Voe Terminal that may be required as a result of receiving, storing and exporting fluids from the new FPSO; and

• Fabrication of the new FPSO and new subsea infrastructure.

BP implements an assurance process to verify the environmental management systems and processes adopted by project contractors, including those contracted to complete offsite fabrication.

1.5. EIA Process The EIA process will:

• Provide a comprehensive description of the environment in which the project is located;

• Identify project components, associated activities and aspects, and assess the significance of potential impacts;

• Address stakeholder concerns regarding the project;

• Identify design solutions and control and mitigation measures to limit significant environmental impacts;

• Identify residual impacts and assess the significance of these;

• Assess cumulative and transboundary impacts.

Key dates in the EIA process include:

• Q2-Q3 2010: Consultation with regulator and statutory consultees. Issue of EIA scoping report. EIA process including necessary supporting studies and ongoing consultation with stakeholders;

• Q4 2010: Issue of ES and statutory public consultation.



2. Project Description

2.1. Introduction This section of the scoping report provides an outline of the Quad204 Project, including an overview of the base case for the design of the chosen project concept.

A requirement of the Quad204 Project is that the integrity of subsea facilities e.g. risers, pipelines, manifolds, umbilicals and jumpers etc. should be suitable through to 2035 from production re-start following project completion. In addition the FPSO facilities (e.g. turret and mooring arrangement, hull and topsides etc.) are to be designed for a minimum life of 25 years. Figure 2 provides an overview of the Quad204 Project concept.

Figure 2: Quad204 Project Concept

2.2. Hull and Marine Facilities The new FPSO has been sized at 270 m in length and 52 m in breadth for design. It will have a total liquids processing capacity of 47,800 tonnes per day (ca. 320 thousand barrels per day) and a storage capacity of ca. 1 million barrels.

The FPSO will be designed for passive weathervaning and thrusters will be installed to moderate vessel motions and help guarantee production efficiency. The new FPSO will have an internal turret mooring system. Most of the existing Schiehallion/Loyal subsea infrastructure will continue to be used; therefore the new turret system will comply with the existing mooring envelope, anchor pattern, riser arrangement and subsea production system layout.

The hull of the FPSO will be of double-sided, double-bottom construction, suitable for service in a harsh environment. The living quarters, which will be located to the aft of the new FPSO, will provide accommodation and service utilities for 125 personnel.



2.3. Topsides Facilities 2.3.1. Process systems Improved processing facilities will help achieve the required production rates and ensure processing of the produced water and crude oil volumes to required specifications. The production regime from the Schiehallion/Loyal area is characterised by significant water volumes which will increase over field life. The new FPSO will therefore need to be able to handle significant quantities of produced water. Following clean-up, produced water will normally be re-injected into the reservoirs, and supplemented with de-aerated seawater injection as required.

The produced gas will be used for fuel, with surplus gas being exported via the existing gas export pipeline to Sullom Voe Terminal. Where gas export is not available, gas will be reinjected into existing Schiehallion/Loyal production wells using the gas for gas lift. The gas compression facilities will facilitate the significant lift gas volumes which are required due to the generally high production water cut.

The flare system on the new FPSO will be designed so that there will be no flaring during normal operational conditions. Purge flow and any leakages into the flare system will be returned to the process system through the provision of a flare gas recovery system.

2.3.2. Power generation FPSO power requirements will be supplied by 4 dual fuel ‘Dry Low Emissions (DLE) ready’ turbines (3 operating plus 1 standby), with waste heat from the turbines being used to provide the process heating requirements through the installation of Waste Heat Recovery Units (WHRUs). The turbines will be of high efficiency and able to be fuelled using produced gas (normal operation) or low sulphur diesel.

2.4. Well and Subsea Facilities The current production from Schiehallion/Loyal comes from 53 subsea production/injection wells (22 producers and 23 water injectors on Schiehallion; and 4 producers and 4 water injectors on Loyal). There is also 1 gas disposal well at An Teallach which is not currently in use. To fully exploit the remaining recoverable reserves it is currently estimated that around 50 new subsea production and water injection wells will be required for Schiehallion and Loyal, drilled in a number of phases. Phase 1 will consist of 20 Schiehallion and 5 Loyal wells and it is anticipated that these wells will be drilled in a continuous programme between 2014 and 2020 using one or two mobile drilling rigs. Options to further refine the drilling programme are under consideration. Additional phases of drilling will be evaluated on a standalone basis and their sanction will be dependent on prevailing economic conditions. The Quad204 wells will be accessed via the 5 existing subsea drill centres at Central, West, North, North West and Loyal, with existing and/or new subsea infrastructure being used when needed to connect the wells into the subsea facilities. It is envisaged that replacements/modifications to manifolds will take place as appropriate to deal with increased production levels.

The Quad204 production and injection fluids will access the new FPSO using the existing subsea architecture with 2 new production manifolds, 5 new production flowlines and their associated risers, and 3 dynamic umbilicals. No additional export pipelines are planned as part of the project. Various subsea drill centres will also be reconfigured and subsea control modules will be upgraded to enable the subsea chemical distribution system to regain full effectiveness.



2.5. Export Facilities Oil from Schiehallion/Loyal will be stabilised and offloaded to shuttle tankers for export. Excess gas will be exported via the existing gas export pipeline to Sullom Voe Terminal as per current operation.

2.6. Project Schedule The current planned schedule for the Quad204 Project is for the project sanction decision to be made in 1Q 2011 and the new FPSO to be on-station in 1Q 2015 with first oil in 4Q 2015. Removal of the existing FPSO is planned for 3Q 2014.



3. Environment Description

3.1. Introduction The key environmental sensitivities in the area are described in the Schiehallion Development: Wider Field Perspective Environmental Statement (DTI reference D/2176/2004). The following provides a summary of that information. A full updated environmental description will be provided in the Quad204 Project ES.

3.2. Physical Environment

Currents in the Quad 204 area are influenced by the predominantly northeast (NE)/southwest (SW) water flow in the area, although this becomes less apparent with decreasing current speeds at depth. Currents on the upper slope are strong at around 0.3 m/s; this may increase up to 1.5 m/s with the arrival of an eddy, which can persist for periods of up to several weeks (Metoc, 2002). Whilst all directions are possible, the current is usually maintained in a northeastward direction, following the depth contours (Metoc, 2002). The 100 year extreme current speed may be up to 2 m/s close to the surface but decreases with depth; at the seabed in water greater than 350 m there is a risk of sudden severe currents (that are both infrequent and unpredictable) that are associated with internal waves (Metoc, 2002).

Seasonally variant winds are experienced predominately from the south-southwest (SSW), west-southwest (WSW) and west (W) with winds from the east-northeast (ENE) and east (E) more uniformly distributed, although less predominant. Winds are typically strong in the winter with moderate breezes during the summer.

The wind conditions that the Quad 204 area experiences generate an extreme wave regime. The hydrography of the West of Shetland region is characterised as being relatively high in energy in terms of wave climate, with the exposed nature of the Atlantic meaning that it is more severe than that found in the North Sea, especially in winter months. The wave conditions are similar throughout much of the West of Shetland area, with a significant wave height of 2.5 m exceeded for 50% of the year and 4 m for 10% of the year (DTI, 2003). Estimated 50 year wave heights in the offshore area are approximately 32 m and wave periods of greater than 20 seconds (Grant et al., 1995, in DTI, 2003).

The Quad 204 area lies in an area dominated by iceberg ploughmarks, which are generally orientated in a northeast to southwest direction throughout the area. Iceberg ploughmarks are particularly prominent in the southeast of the Schiehallion area, and become less frequent to the north and west in water depths greater than 400 – 450 m. A number of boulders and seabed mounds with heights up to 1 m are also present. Seabed surveys of the Schiehallion area indicate that the surface sediment is a thin veneer of sand. The surface sand is generally less than 0.1 m thick, but may be up to 2 m thick in troughs and depressions interpreted as iceberg ploughmarks.

3.3. Plankton

The plankton community as a whole in the Quad 204 area is similar to that encountered in the North Sea, although some individual species differ in abundance. Rates of primary

Plankton forms the basis for all the marine food webs in the West of Shetland area and is therefore an important component of the marine ecosystem. The planktonic community is potentially sensitive to hydrocarbon spills from offshore oil and gas operations.

Physical processes have a direct influence on the ecology of the area and an understanding of these processes is required to understand the potential impact of oil and gas operations.



production vary throughout the year and are dependant on a number of factors including the presence of nutrients and light availability. An increase in light in early spring leads to a bloom of phytoplankton at the end of April or early May. Productivity is maintained during the summer months, and declines in the autumn due to increased turbulence and reduced light.

Large populations of the zooplankton Calanus finmarchicus over-winter in the cold deep waters of the Faroe-Shetland channel and come to the surface during spring.

3.4. Benthic Communities

There have been a considerable number of surveys undertaken to investigate the benthic ecology of the area around Schiehallion, e.g. AFEN, 2000; BP, 2000; Fugro, 2003; and BP, 2007.

The continental shelf area is characterised by two main macrofaunal assemblages, which are approximately separated by the boundary between the north flowing warm North Atlantic waters and the deeper cold water flowing from the Norwegian Sea. The boundary area between these two main macrofaunal assemblages occurs in the 300–600 m depth range (within which Schiehallion lies), and benthic diversity appears to peak at these depths, which correspond with the greatest temperature variations (Hughes et al, 2003).

Seabed habitats in the area exhibit a diverse matrix of (pre-historic) iceberg plough mark troughs, boulder groups and smooth sand, which in turn supports a varied macrofauna, dominated by annelids; crustaceans; molluscs; echinoderms and in some places the brachiopod Macandrevia cranium. Other species have been recorded, including sponges; bryozoans; spirobid polychaete worms and hydrozoans, with sea cucumbers and crab species inhabiting small sediment niches. The limited areas of hard substrate (e.g. boulders) found in the Quad 204 area support epifaunal populations, but abundance is considerably less than that found on similar substrates in shallower water depths.

Colonies of the hard coral species Lophelia pertusa were not found in the area during side scan sonar surveys (BP, 2004). However, records show a number of small colonies on a wreck situated approximately 4 km southwest of East Foinaven (BP Amoco, 2000) and more recently small colonies have been discovered on two umbilicals at the Foinaven FPSO and two risers at the Schiehallion FPSO. The lack of suitable hard substrate for anchoring in the area typically limits Lophelia growth and settlement.

3.5. Fish Populations

Fish species are characterised by both deepwater species at the upper limit of their range and species regarded as typical of the continental shelf at the lower limits of their range. The main demersal species include saithe (Pollachius virens), cod (Gadus morhua), ling (Molva molva), and monkfish (Lophius piscatorius).

Mackerel (Scomber scombrus) migrations are seen in the area twice a year, in May–July and November–March, and mackerel are also known to over-winter here. Pelagic shark and ray species are also found, including the porbeagle (Lamna nasus) and basking shark (Cetorhinus maximus).

Fish and shellfish populations are vulnerable to impacts from offshore installations such as hydrocarbon pollution and exposure to aqueous effluents, especially during the egg and juvenile stages of their lifecycles. Demersal laid fish eggs are particularly sensitive to seabed disturbance during spawning seasons.

Seabed features and their associated sediments can have a significant influence on the benthic communities seen in the area. Seabed fauna are potentially sensitive to physical disturbance e.g. damage from anchors. The seabed may also act as a ‘sink’ for pollutants from land, sea, and air.



3.6. Seabird Populations

Northern fulmar (Fulmarus glacialis) is the most abundant species in the Quad 204 area, whilst black-legged kittiwake (Rissa tridactyla) and Atlantic puffin (Fratercula artica) occur in moderate to high densities at certain times of the year, particularly in March (before returning inshore in April to breed) and summer months. The northern gannet (Sula bassana) and common guillemot (Uria aalge) occur at low densities throughout the year.

Seabird species in the Quad 204 area are most vulnerable to surface pollution during the months of March, May, June and September. However, the overall annual seabird vulnerability to surface pollution is low.

The inshore waters of Shetland and Orkney support internationally important seabird breeding colonies, with many designated under the EU Habitats and EU Birds Directives.

3.7. Marine Mammals

Cetacean species found in the Quad 204 area are dominated by the Atlantic white-sided dolphin (Lagenorhynchus acutus) with highest densities occurring in June, July and September. Moderate to low densities of other species observed in the Quad 204 area are: long-finned pilot whale (Globicephala maelaena); fin whale (Balaenoptera physalus); killer whale (Orcinus orca); white-beaked dolphin (Lagenorhynchus albirostris); bottlenose dolphin (Tursiops truncates) and the harbour porpoise (Phoceana phoceana), with most sightings during the period between May and October.

Grey seals (Halichoenus grypus) and hooded seals (Cystophora cristata) are the only two species observed in the waters around the Quad 204 area and only at low densities.

3.8. Commercial Fisheries

The waters west of Shetland are moderately important for demersal fishing and of moderate-high importance for pelagic fishing on a commercial scale. The Scottish fishing fleet dominates fishing activity in the Quad 204 area, although activity is also seen from the French fleet. Vessels from other countries, in particular Norway, Faroes, Ireland, Germany and England may also be encountered at low levels. Fishing levels in the area have experienced a decline since 1995. This has come about due to a number of reasons, in particular stock depletion, legislation restricting days at sea and decommissioning schemes reducing the number of UK fishing vessels.

Fishing tends to occur in a southwest-northeast direction along the continental slope. Fishing effort is low for pelagic species (increasing when herring and mackerel are present),

Offshore developments have the potential to interfere with fishing activities as their physical presence may obstruct access to fishing grounds. Knowledge of fishing activities is therefore an important issue when considering the impacts of an offshore development.

Marine mammals represent the top level of the marine food chain, and these include whales, dolphins and porpoises (cetaceans) and seals (pinnipeds). Although some species have a restricted distribution, most whales and dolphins have wide ranges. Marine mammals are potentially sensitive to underwater sound from anthropogenic (manmade) sources such as shipping and oil and gas activity. Marine mammals may also be affected by chemical discharges and emissions, either through direct ingestion, or through ingestion of prey.

Birds that inhabit offshore waters are exposed to a range of risks from oil and gas activity. The main potential risk to birds is from surface oil pollution, which can cause direct toxicity through ingestion, and hypothermia as a result of birds being unable to waterproof their feathers should they become covered with oil.



and moderate to high for demersal species (targeting haddock, cod and ling and deepwater species such as Greenland halibut, blue ling and redfish). The most commonly used demersal fishing gear is otter trawls which are designed for use over rough areas of seabed.

BP commissioned a study in 2009 to update its understanding of fishing activity across the fields west of Shetland including Schiehallion and Loyal. The results of this study will be included in the ES.

3.9. Conservation Designations

None of the four marine habitats listed in Annex I of the Habitats Directive are present in the vicinity of the Quad 204 area. The nearest known sites of conservation interest are the Darwin Mounds (160 km to the southwest), designated as a candidate Special Area of Conservation (cSAC) and The Wyville Thomson Ridge (110 km to the southwest) which is designated as a proposed SAC (JNCC, 2008).

Annex II species present in the area include the grey seal, harbour porpoise and bottlenose dolphin. These species are not likely to be present in high numbers. The European storm petrel (Hydrobates pelagicus) has been included in Annex II, and has been recorded across the shelf break west of Shetland, including the Quad 204 area, mainly between May and November.

3.10. Socio-Economic Interests

Levels of shipping in the waters to the north of Scotland are relatively low when compared to other parts of the UK. Commercial traffic in the Quad 204 area is typically comprised of vessels en-route to/from Sullom Voe Oil Terminal and vessels in transit across the Atlantic.

A fibre-optic telecommunications cable has been installed from Faroe to Shetland, with a spur from this connecting the cable to the Schiehallion FPSO. All cables are trenched and buried.

There are no charted military exercise areas or other specified sites in the vicinity of the Quad 204 area, although the area may be used occasionally by aircraft and surface or submarine craft during training and NATO exercises.

A total of 13 wrecks are listed by the UK Hydrographic Office as being present in the area, but none are of major archaeological importance with the majority being oil related and/or fishing vessels.

3.11. Environmental Data Gaps All readily available data have been reviewed and no significant environmental data gaps have been identified. However, it is recognised that some data e.g. in relation to birds, is several years old. Such information will be updated as appropriate as and when new data becomes available within the timescale of this EIA.

The Quad 204 area has been the subject of a series of EIAs and an ongoing environmental survey programme and these data are fully available to this EIA. Nevertheless, the following actions have been identified:

Increased vessel presence during installation and operations has the potential to cause disruption to other sea users in the area. There may also be interaction with other seabed infrastructure (e.g. cables) or with wrecks that may be of historical importance.

Oil and gas activities need to take into account and ensure maintenance of the conservation objectives of habitats and species afforded protection under international and UK legislation.



• Consultation with scientific organisations to identify any newly published reports or data availability (partly through this scoping exercise);

• Review of all BP surveys and studies to ensure appropriate use of baseline and ongoing monitoring data;

• Review of all other BP gathered environmental data, including cetacean observations and metocean data.



4. Key Potential Environmental Impacts

4.1. Introduction This section of the scoping report outlines the key potential environmental impacts from the proposed Quad204 Project. It should be emphasised that these are potential impacts only – whether or not they are likely to occur and the level of significance will be assessed during the EIA. Possible mitigation measures are also included. Benefits from the proposed project will also be addressed during the EIA as appropriate, and in particular through the consideration of alternatives.

4.2. Physical Presence The Quad204 Project will involve the installation of a new FPSO at the location of the existing Schiehallion FPSO and no significant changes to existing subsea infrastructure are envisaged. There will therefore be no significant change to the physical footprint of the development. Any new subsea facilities, including wellheads and manifolds will continue to use the Schiehallion “fishing friendly” design as previously committed to by BP. The Project will however extend the life of the Schiehallion/Loyal fields and therefore the continued presence of an FPSO in the area.

During disconnection and tow of the existing FPSO and installation and commissioning of the new FPSO there will be increased vessel presence in the area. The increased number of vessels, although short term, raises the risk of interference with other shipping in the area and increases the risk of vessel collision. Shipping traffic in the area is low compared to other areas of the UKCS with the closest shipping route (other than the shuttle tankers visiting the Schiehallion FPSO) being approximately 9.5 km away.

Standby/guard vessels will be used following disconnection of the existing FPSO until connection of the new FPSO, to monitor and warn off shipping/fishing vessels that may be in the area.

The EIA programme will include:

• Review of FPSO/subsea infrastructure and changes to physical footprint;

• Review of installation/commissioning vessel schedule and ongoing field support/supply vessels;

• Consultation with fishing organisations;

• Review of BP commissioned fishing study to inform potential impacts on fisheries.

4.3. Seabed and Habitat Disturbance Seabed and habitat disturbance is expected to be minimal with re-use of most of the subsea infrastructure. Some short term disturbance will be seen from the reconnection of risers (laid down on the seabed during disconnection), anchoring of the new FPSO and installation of new infrastructure. Seabed disturbance from the deposit of cuttings during drilling will also continue, but as has been demonstrated by post drilling surveys, will be limited to the immediate vicinity of wellheads. Although it is anticipated that further wells will be required for Schiehallion and Loyal (Section 2.4), the use of existing drill centres and subsea infrastructure should minimise any disturbance. New subsea infrastructure and any associated disturbance will be fully addressed within the EIA as appropriate.


• Assessment of disturbance from FPSO installation and vessel anchoring activities;

• Assessment of disturbance from installation of subsea infrastructure e.g. mattressing and rock dumping activities.



4.4. Discharges to Sea Discharges to sea from drilling operations including drill cuttings, drilling mud and associated chemicals will occur. Drill cuttings contaminated with water based mud (WBM) will be discharged from the mobile drilling rig into the sea following mud recovery operations. The majority of chemicals in WBM pose little or no risk to the marine environment. Discharge of drill cuttings can cause a temporary plume in the water column that may have short-term localised impact on plankton and pelagic fish species (e.g. irritation of gills). The strong water currents in the Quad 204 area (Section 3.2) ensure rapid dispersion thereby minimising potential impacts. Results of seabed surveys at Schiehallion have demonstrated that there are no significant long-term cumulative impacts from the discharge of WBM contaminated cuttings. Oil based mud (OBM) contaminated drill cuttings are currently shipped to shore for treatment and disposal and this will be the base case for the Quad204 well programme. However, offshore treatment of OBM contaminated cuttings is being considered as an option, although the practicability of this will largely depend on rig selection and available deck space.

Produced water is the water produced along with oil and gas from the reservoir, comprising the formation water and also injection water. The produced water will be treated to reduce dispersed oil in water content to less than 30 mg/l and to a target specification of 15mg/l. The operating philosophy for the new FPSO will be based upon minimising disposal of produced water to sea with the produced water to be used for water injection purposes. The principle management measure is to have high produced water re-injection (PWRI) availability and reliable power generation. After going through the final treatment process, the produced water will either be re-injected into the reservoir or discharged overboard to the marine environment if the PWRI system is unavailable. Discharged produced water will contain small amounts of oil and chemicals.

Chemicals, used mainly during production, drilling and workover operations, will enter the marine environment through a number of routes including produced water discharges, subsea control systems and drainage systems. They can affect the marine environment in different ways, mainly through immediate toxic effects (acute toxicity) or over long periods (chronic toxicity).

Enhanced Oil Recovery (EOR) may be used to maximise the recovery of oil from oil bearing reservoirs. BP is currently carrying out studies to determine whether EOR will be implemented or not. EOR will involve the injection of chemicals into the formation. Some of the chemicals will become entrained in the produced water and be reinjected via PWRI. When PWRI is unavailable produced water containing EOR chemicals will be discharged to sea. Studies in to the environmental impact of this discharge are ongoing and will be discussed in the ES.

Other discharges associated with the routine operation of the FPSO, such as those from drainage systems, cooling water, subsea control fluids, produced sand, scale (including low specific activity (LSA) scale), naturally occurring radioactive material (NORM) and sewage are will also be included in the EIA.


• Identification and quantification of all sources of discharges to sea;

• Risk assessment and dispersion modelling of WBM contaminated cuttings;

• Risk assessment and produced water dispersion modelling.

4.5. Underwater Noise Noise can come from many sources associated with exploration, construction, installation and production of offshore oil and gas developments. There are two main types of noise:



• Continuous and intermittent noise sources which include drilling and production operations; noise from ships such as supply vessels, installation vessels and guard vessels; and transponders.

• Temporary impulsive noise sources which include seismic surveys; piling operations; and side scan sonar.

It is important that noise/vibration impacts are assessed during the EIA process and a mitigation strategy developed to minimise disturbance. In recent years there has been increasing concern about the effects of noise on marine mammals. There may be a range of effects from industrial noise, including direct effects such as hearing damage and disturbance and indirect effects such as displacement of prey species or stress.


• Identification of potential noise sources and application of noise reduction opportunities in design;

• Identification of noise control and noise management measures;

• Underwater noise modelling as appropriate;

• Assessment of disturbance, in particular any potential disturbance to marine European Protected Species.

4.6. Atmospheric Emissions The main source of atmospheric emissions from offshore operations is the combustion of fuel gas and diesel for power generation, with the associated release of carbon dioxide (CO2), carbon monoxide (CO), unburnt hydrocarbons (UHC), sulphur oxides (SOx) and oxides of nitrogen (NOx). BP has been monitoring energy efficiency during design, enabling best available technology and energy performance to be taken into consideration.

Flaring also causes the release of CO2 and other combustion emissions. The flare system design on the new FPSO will ensure that under normal operation, flaring will be eliminated. A flare gas recovery system will be provided to ensure that the purge flow and any leakages into the flare system are returned to the process system. Plant availability and reliability will also be a major focus during design to reduce the requirement for trip/maintenance flaring.

Cargo off-loading and storage tank venting are potentially the biggest sources of Volatile Organic Compound (VOC) emissions (methane and other hydrocarbon gas). The FPSO storage tanks will be blanketed with fuel gas to prevent the ingress of air into the tanks. When the oil cargo is being off-loaded to the shuttle tanker, gas is transferred to the cargo tank system in order to maintain a positive pressure in the tanks .As oil from the process is loaded to the storage tanks, this gas containing evaporated hydrocarbon components from the crude oil is displaced. The displaced gas will be compressed and routed to the process system. When off-loading the crude from the FPSO to the shuttle tanker the inert gas in the tanker is displaced by the off-loaded crude. The gas mixture will contain VOCs in addition to the inert gas. Use of shuttle tankers with VOC recovery equipment installed will be the preferred choice.

Other minor sources of VOC emissions include fugitive emissions from valves, connections and seals, and venting.


• Identification and quantification of all sources of atmospheric emissions (including shipping);

• Energy efficiency studies of the Quad204 FPSO design;

• BAT assessment of power generation options;



• Gas plant reliability studies;

• Dispersion modelling of combustion emissions from power generation and flaring;

• Development of a flaring/venting philosophy;

• VOC recovery studies.

4.7. Waste Waste generated from offshore operations comprising special waste (including oils, paints, chemical drums, and hazardous waste) and general waste with non-hazardous properties, which requires being shipped to shore, will be addressed as appropriate in the EIA. Strict legislation governs the separation, handling and disposal of such wastes generated from offshore installations and the ES will detail the compliance measures and waste management strategy in place on the FPSO.


• Identification and quantification of all potential waste sources;

• Waste management strategy based on the hierarchy of remove, reduce, reuse, recycle.

4.8. Accidental Events All marine activities, including offshore oil production and export, carry with them some risk of accidents which can result in the spillage of oil into the sea. Although the consequences of a major oil spill are considered significant (including company reputation, public perception and threats to inshore conservation areas), the probability of such an event occurring is remote and the risk is managed by appropriate mitigation measures. An Oil Pollution Emergency Plan (OPEP) will be developed and implemented to ensure appropriate measures are in place. Schiehallion has undertaken detailed spill response planning and a number of key response measures are already in place e.g. spill response equipment located in Shetland.

In addition, small oil and chemical spills may originate from bunkering and chemical transfer operations; topsides and subsea operations; tanker loading; and drilling operations.


• Identification of potential leak sources and spill pathways and associated risks;

• Leak prevention and review programme during design;

• Oil spill modelling;

• Review of existing Schiehallion OPEP and lessons learned.

4.9. Cumulative and Transboundary Effects Potential cumulative effects of the various impacts identified such as water quality and global warming will be considered in the EIA. This will involve examining the activities and potential impacts of the Quad204 Project in the context of existing and known planned developments in the area. As the Quad204 development lies approximately 35 km southeast of the Faroe/UK transboundary line the potential transboundary impacts will also be considered within the EIA.


• Assessment of the potential cumulative impacts to ecological habitats especially those of rare and protected species;

• Socio-economic impacts including presence, fishing and fishing grounds;

• Shipping and navigational risk.



5. Stakeholder Consultation

5.1. Introduction A key component of the EIA process is communication and stakeholder consultation. Legislation such as the Public Participation Directive prioritises this even further.

BP recognises the benefits of stakeholder consultation to ensure that all relevant concerns and opinions regarding a particular project are integrated into the project decision making process and are adequately addressed in the EIA process.

5.2. Previous and On-going Consultation An initial consultation meeting was held with DTI (now DECC) in June 2007. The objective of this meeting was to make DTI aware of BP’s plans with regard to the Quad204 Project, to solicit feedback on any future changes/additions to legislation which may effect the development, and to discuss the environmental consenting process for the project.

A further meeting was held in May 2008 with BERR (now DECC), Joint Nature Conservation Committee (JNCC) and Fisheries Research Services (now Marine Scotland Science) to provide an update on the project and seek guidance on the project elements to be included within the scope of the EIA.

A follow up meeting was held in May 2010 with DECC, JNCC, Marine Scotland Science (MSS) and the Scottish Fishermen’s Federation (SFF) to provide an update on the project and confirm the scope of the EIA.

DECC, JNCC, MSS and SFF have also been updated with progress on the Quad204 Project at a series of regular meetings BP holds for that purpose.

The next phase of consultation provides stakeholders with an opportunity to enter into a discussion about the proposed project so that any issues and concerns can be identified and clarified at an early stage. This scoping report provides a basis for this dialogue.

Consultation will not be limited to the scoping phase of the project, but will be ongoing as part of the EIA process. In this way, issues are ‘worked through’ to ensure that there are no ‘surprises’ on submission of the ES. This ongoing consultation will take the form of meetings as needed with relevant organisations or individuals on key issues. In addition, a close-out meeting will be held in Aberdeen to present feedback on the consultation and EIA process prior to submission of the ES to DECC.

BP has established a web link to key documents to facilitate the consultation process (BP Scotland home page). This scoping report and the subsequent ES will be downloadable from this site.

A database will be maintained to document all responses received from consultees and track the project’s responses. A summary of the consultee and project responses will be included as part of the ES.

5.3. Summary of Consultees The following provides a list of consultees for the Quad204 Project EIA:

Government, Government Agencies and Local Councils • Association of Shetland Community Councils;

• Centre for Environment, Fisheries & Aquaculture Science (CEFAS);

• Department of Energy and Climate Change (DECC) Oil and Gas Division;



• Faroese Environment Agency;

• Faroese Petroleum Administration;

• Historic Scotland;

• Joint Nature Conservation Committee (JNCC);

• Marine Scotland including Marine Scotland Science (MSS) (previously Fisheries Research Services);

• Maritime and Coastguard Agency (MCA);

• Ministry of Defence (MoD);

• Orkney Islands Council (OIC);

• Scottish Environmental Protection Agency (SEPA);

• Scottish Government;

• Scottish Natural Heritage (SNH);

• Shetland Islands Council (SIC) including Sullom Voe Harbour Authority and North Atlantic Fisheries College;

• The Crown Estate;

• UK Parliament.

Industry and User Groups • Fishermen’s Association Limited;

• Lerwick Port Authority;

• National Register of Historic Wrecks;

• Northern Lighthouse Board;

• Orkney Fisheries Association;

• Scottish Fishermen’s Federation (SFF);

• Shetland Aquaculture;

• Shetland Biological Records Centre;

• Shetland Field Studies Group;

• Shetland Fishermen’s Association (SFA);

• Shetland Oil Terminal Environmental Advisory Group (SOTEAG);

• Shetland Tourism Association

• Shetland Tourist Board/Shetland Island Tourism;

• Visit Orkney.

Non Governmental Organisations (NGOs) and Environmental Groups • Atlantic Frontier Environmental Forum (AFEF);

• Environmental Concern Orkney;

• Friends of the Earth Scotland;

• Greenpeace;



• Joint Links Oil & Gas Environmental Association;

• Local Authorities International Environmental Association;

• Marine Conservation Society (MCS);

• Nautical Archaeological Society;

• Royal Society for the Protection of Birds (RSPB);

• Royal Yachting Association;

• Sea Mammal Research Unit (SMRU);

• Shetland Amenity Trust;

• Shetland Sea Mammal Group;

• Whale & Dolphin Conservation Society;

• World Wildlife Fund Scotland.



6. List of Abbreviations Abbreviation Meaning

AFEF Atlantic Frontier Environmental Forum

AFEN Atlantic Frontier Environmental Network

BAT Best Available Techniques

BERR Department for Business Enterprise and Regulatory Reform (now DECC)

CEFAS Centre for Environment, Fisheries & Aquaculture Science

CO Carbon Monoxide

CO2 Carbon Dioxide

DECC Department of Energy and Climate Change

DLE Dry Low Emissions

DTI Department of Trade and Industry (now DECC)

EIA Environmental Impact Assessment

EOR Enhanced Oil Recovery

ES Environmental Statement

EU European Union

FPSO Floating, Production, Storage and Offloading (vessel)

JNCC Joint Nature Conservation Committee

LSA Low Specific Activity (scale)

MCA Maritime and Coastguard Agency

MCS Marine Conservation Society

MoD Ministry of Defence

MSS Marine Scotland Science

NATO North Atlantic Treaty Organisation

NORM Naturally Occurring Radioactive Material

NOx Oxides of Nitrogen

OBM Oil Based Mud

OIC Orkney Islands Council

OPEP Oil Pollution Emergency Plan

PWRI Produced Water Re-Injection

RSPB Royal Society for the Protection of Birds

SAC Special Area of Conservation

SFA Shetland Fishermen’s Association

SFF Scottish Fishermen’s Federation

SIC Shetland Islands Council

SMRU Sea Mammal Research Unit

SNH Scottish Natural Heritage

SOTEAG Shetland Oil Terminal Environmental Advisory Group

SOx Oxides of Sulphur

TLP Tension Leg Platform



Abbreviation Meaning

UHC Unburnt Hydrocarbon

UK United Kingdom

UKCS United Kingdom Continental Shelf

VOC Volatile Organic Compound

WBM Water Based Mud

WHRU Waste Heat Recovery Unit



7. References AFEN (2000). Atlantic Margin Environmental Surveys of the Seafloor 1996 and 1998. CD Atlantic Frontier Environmental Network and UKOOA. BP (2000a). Seabed Environmental Survey (UKCS Block 204/20, 25a). May 2000. ERTSL R00/207.

BP (2000b). Seabed Environmental Survey (UKCS Block 204/20a). May/June 2000. ERTSL R00/207.

Fugro (2003). Seabed survey Schiehallion Phase V Development UKCS Block 204/20. Report No.245180.

BP (2004). Schiehallion Wider Field Perspective – Environmental Statement. BP Document Reference Z-8000-ZS-4034.

BP (2007). BP Schiehallion North West Drill Centre (Blocks 204/20) Macrobenthic Analysis and Interpretation, Final Report. Report ERT 1616. ERT (Scotland) Ltd, Edinburgh.

BP (2008). Interim Group Defined Practice - Environment. BP Document Reference GDP 3.6-0001.

DTI (2003). Strategic Environmental Assessment Area North and West of Orkney and Shetland. Prepared for the Department of Trade and Industry by Hartley Anderson Ltd.

JNCC (2008). SPAs with Marine Components [Available On-Line: www.jncc.gov.uk/page-1414] and SACs in Offshore Waters [Available On-Line: www.jncc.gov.uk/protectedsites/sacselection/SAC_list.asp?Country=OF]

Metoc (2002). BP - Description of Currents West of Shetland. Prepared for BP - Deepwater Upstream Technology, UK, by Metoc plc, UK. Metoc briefing note 977.

Documents

Environmental Impact Assessment Scoping Report - BP · Environmental Impact Assessment Scoping Report QD-BP-EV-REP-0011 ... FPSO (including temporary suspension of well and production