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Besar Development in Block PM315, Offshore Terengganu, Terengganu
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CHAPTER ONE
Introduction
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-1
INTRODUCTION
1.1 Introduction
This Environmental Impact Assessment (EIA) study has been undertaken in
conjunction with the proposed development of Besar Field in Block PM315
offshore of the State of Terengganu.
This introductory chapter provides a brief description of the proposed Project
and Project Stakeholders and Environmental Consultants involved in
preparing the EIA report. The legislative requirement of the impact
assessment as well as the Statement of Need of the proposed Project is also
discussed.
1.2 Project Title
The title of this project is Besar Development in Block PM315, Offshore
Terengganu, Terengganu. For brevity, throughout this report it will be
referred to as the Project.
1.3 Legislative Requirement
The Project is located within the Exclusive Economic Zone (EEZ) where
Exclusive Economic Zone Act 1984 is applicable. The Act designates the
Director General of Environmental Quality, as determined in the
Environmental Quality Act 1974 and as administered by the Department of
Environment (DOE), to oversee to the protection and preservation of the
marine environment in the EEZ.
A component of the protection and preservation of the marine environment, as
contained in the Exclusive Economic Zone Act, 1984 is the Directions and
Action to Remove, Disperse, Destroy, or Mitigate Damage to the Environment.
Chapter
1
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-2
To adequately mitigate any potential impact to the marine environment as a
result of this proposed development, an impact assessment is necessary.
Consequently, an Environmental Impact Assessment (EIA) is conducted,
documented and submitted to the DOE for approval prior to Project
implementation.
1.4 Project Brief
The Project is located in Block PM315, approximately 185km from Kerteh
coastline of Peninsular Malaysia in the water depth of 70 metres. Besar is
one of the gas fields under Gas Profit Sharing Contract (GPSC) to supply
overall PMOs Contract Market Supply obligation of 1430 MMscfd of gas.
The Project will be developed in two phases, Phase 1 and Phase 2. Phase 1
consists of the development of BsDP-A platform which is envisaged to be a
12- slot wellhead satellite platform with evacuation of gas via full-well-stream
(FWS) pipeline to existing Angsi Drilling and Riser platform (AnDR-A) and
further processed at existing Angsi Central Processing Platform (AnPG-A),
prior to evacuation to Onshore Slug Catcher (OSC) via an existing 32 166km
pipeline. Fluid management will be handled at the existing AnPG-A. BsDP-A
platform facilities is to be designed to flow up to 150MMscfd of gas.
BsDP-B platform will be developed in Phase 2 and is currently envisaged to
be commissioned in 2019, as a wellhead satellite platform with 6 slots and
shall tie-in to BsDP-A platform.
1.4.1 Project Proponent
The Project Proponent is PETRONAS Carigali Sdn Bhd. Throughout the
report they will be referred to as PETRONAS Carigali or the Project
Proponent. Correspondence details of the Project Proponent are as follows:
PETRONAS Carigali Sdn. Bhd.
Level 59, Tower 2
PETRONAS Twin Towers
Kuala Lumpur City Centre
50088 Kuala Lumpur
Malaysia
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-3
Tel: 03 2331 3207
Fax: 03 2331 5633
Contact Person: Wan Md Jalal Azmi bin Wan Othman (Project Manager-Angsi/Besar Development)
1.4.2 Design Consultant
RNZ Integrated (M) Sdn Bhd is the Design Consultant who is responsible on
the design details of the proposed development. RNZ correspondence details
are as follows:
RNZ Integrated (M) Sdn Bhd
Level 17, Menara Great Eastern
303 Jalan Ampang
50450 Kuala Lumpur
Tel: 03-4264 2600
Fax: 03- 4253 3585
Contact Person: Mohd Ashri Mohamed (Project Manager)
1.4.3 Environmental Consultant
Chemsain Konsultant Sdn Bhd is the appointed EIA consultant for this project.
The correspondence details of the consultant are as follows:
Chemsain Konsultant Sdn Bhd
No. 41,1st Floor
Jalan USJ 10/1D
UEP Subang Jaya
47620 Subang Jaya, Selangor
Tel: 03-5637 0163
Fax: 03-5637 0386
Contact Person: Marina Roland Nawe (EIA Team Leader)
1.4.3.1 EIA Consultants
A list of consultants and individual consultants declarations has been
incorporated at the front of this report. Table 1.4.1 contains the list of EIA
consultants and subject consultants, whereas Table 1.4.2 lists the supporting
team members, who have contributed to this EIA study.
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-4
Table 1.4.1: EIA Team Members
Name Qualification Registration With DOE Proposed Study
Area Category Area/Field ID. No. Valid Date
A. EIA Study Team Leader
Marina Roland Nawe
B. Sc (Biology)
M. Environment
EIA Consultant Ecological Studies
Fisheries
General Environmental Management
C 0059
1 June 2015 Team Leader
Ecology
B. EIA Team Member
Lina Chan B. Sc. (Hons) EIA Consultant Noise
General Environmental Management
C 0098 31 May 2016 Environmental
Management Plan
Ir. Brian Chong Sin Hian
B. Sc (Civil Engineering)
M. Sc (Environment)
EIA Consultant Wastewater
Solid Waste Management
Erosion and Sediment Control
Hydrology
C 0089 31 May 2016 Waste Management
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-5
Name Qualification Registration With DOE Proposed Study
Area Category Area/Field ID. No. Valid Date
Tan Shwu Mei
B. A (Hons.)
Anthropology and
Sociology
M. Sc. (Environmental
Management)
Subject
Consultant
Social Impact Assessment
Land Use Assessment
SS 0113 1 June 2017 Socio Impact
Dr. John Chan Sung
Tong
B.Sc (Chemistry)
PhD (Chemistry)
EIA Consultant Water Quality
Chemical Processes
General Environmental Management
C0152 18 October
2014
Water Quality
Chemical Process
Lim Sze Fook B. Sc (Hons) Physics EIA Consultant Air Quality and Odour
Meteorology
C 0282 18
September
2013
Air Quality
Adnan Bin Yusop Ali
B. Eng. (Chemical) Subject
Consultant
Quantitative Risk Assessment SS 0066 1 June 2017 Risk Assessment
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-6
Table 1.4.2: Supporting Team Members
Name Qualification Registration With DOE Proposed Study
Area
Supervised by
Category Area/Field ID. No. Valid Date
Mazura Murat
B. Sc. (Env) Assistant
Consultant
General Environmental
Management
AC0737 10 Sept
2013
Assisting Team
Leader
Marina Roland Nawe
J Somu Jaya
Kumaran
M. Env
B. Sc. Marine Science
Assistant
Consultant
Ecological Studies
(Marine)
General Environmental
Management
AC0737 - Marine Ecology Marina Roland Nawe
Tan Kai Yuuen B. Sc. (Environmental
Management)
Assistant
Consultant
Ecological Studies
Water Quality
Air Quality
General Environmental
Management
AC1040 - Environmental
Management
Plan
Lina Chan
Richard Rhodes B. Sc. (Hons) Geological
Sciences
- - - Geology Marina Roland Nawe
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
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1.5 Objective of the EIA
The objective of the EIA study is to ensure that all impacts direct and indirect,
especially environmental, social and economic associated with both Phase 1
and Phase 2 of the proposed Besar Field Development Project are identified
and that measures are taken to address them. Consistent with this objective,
the EIA report shall be a self-contained and comprehensive document as
follows:
To identify and evaluate potential environmental impacts arising from
project activities.
To propose mitigating measures and appropriate management plan to
eliminate or minimize the impacts.
To ensure that the proposed development project will be conducted in
compliance with PETRONAS guidelines, PETRONAS Technical Standards
(PTS) and Malaysian regulatory requirements on environment.
1.6 Statement of Need
PETRONAS Carigali, an exploration and production arm of the PETRONAS
Group, is continuously striving to sustain as well as increase oil and gas
production to meet national economic and energy requirements, and to be
competitive in the world petroleum markets. One of these efforts is through the
development of gas fields to discover and utilize the previously untapped gas
reserves.
In view of the projected decline in gas production from the existing sources,
PETRONAS Carigali will be required to supplement a significant portion of the
projected Peninsular Gas Utilization (PGU) gas shortfall. The development of
Besar Field is expected to supplement the shortfall of gas supply.
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-8
1.7 Project Options The following subsections discuss the options considered in the determination
of the final option selected for the proposed Project.
1.7.1 With Project Option As mentioned in Section 1.6, the Besar Field will be developed to supplement
the projected Peninsular Gas Utilization (PGU) gas shortfall. Several benefits
are anticipated to exist due to the development of this Project. The benefits,
among others include the following:
Project Siting
- Locality to existing offshore gas reserves and close proximity to
processing facilities at Angsi which will be transported via existing
pipeline to Onshore Slug Catcher (OSC) at Kerteh
- Close proximity to the Kemaman Supply Base for supplies and port
services
- Located in existing offshore oil and gas development areas in the
South China Sea
Social Benefits
- Opportunities to improve standard of living and quality of life through
the greater stimulation of local and state economies
- Create employment opportunities within the oil and gas industry for
Terengganu residents
Economic Benefits
- Sustaining and increasing of local gas production to meet demand
- Local economic benefits provided to businesses and individuals which
may be contracted to provide goods and services to the Project during
its various stages. This will include cases of development of new
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-9
business areas as well as increase in demand for goods and services
accordingly with the increase of population
- State level economic benefits through the increase use of state based
services, such as shipping, and various state revenues generated from
the operation of the Project
- National level economic benefits, through the increase of gas
production locally, minimising imports to satisfy local demand and
associated costs, and increasing exports of both sales gas and
condensate in the increasingly volatile and profitable petroleum
markets, increasing national GDP
Environmental Benefits
- The potential proliferation of various fish, surrounding subsurface
infrastructures such as seabed pipelines, and platform jackets
- Initiative to implement best management practices measures to
minimise impact to the surrounding environment while maintaining
economic development and growth
1.7.2 No Project Option
The main benefit of considering the No Project option is the understanding
that there will be an absence of all environmental impacts predicted and
documented in Chapter 4 of this EIA report and associated environmental
costs as a result of the proposed project.
However, considering the No Project Option will also present the opportunity
to consider the potential loss of social, economic and environmental benefits
as discussed above.
1.8 EIA Study Guidelines and Approaches
This EIA study and report shall be undertaken in accordance to the following
guidelines and legislation. Since the location of the proposed project is within
the Exclusive Economic Zone (EEZ) outside of Malaysian Territorial Waters,
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
Page C1-10
Malaysian environmental legislation does not directly apply to this Project,
except where activities are conducted in areas within Malaysian waters or
onshore.
The following relevant legislations and guidelines to this Project:
Continental Shelf Act (1966)
Fisheries Act (1985)
EIA Guidelines for Petroleum Industries by DOE, (1997)
Environmental Quality (Scheduled Wastes) Regulations (2005)
Exclusive Economic Zone Act, (1984)
Handbook of Environmental Impacts Assessment Guidelines published by
DOE, (2000)
International Conventions for the Prevention of Pollution from Ships (1973)
as modified by the Protocol of 1978 (MARPOL 73/78)
Malaysia Maritime Enforcement Agency Act (2004)
Merchant Shipping Ordinance (1952)
Occupational Safety and Health Act, (1994)
Petroleum Mining Act (1966)
Petroleum (Safety Measures) Act (1984)
PETRONAS Policy
PETRONAS Carigali HSE Policy
PETRONAS Carigali Environmental Objectives Statement
PETRONAS Technical Standard (PTS)
EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu
Chapter 1 Introduction
Chemsain Konsultant Sdn. Bhd
CK/EV503/5140/12
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PETRONAS E&P Minimum Environmental Specifications (MES)
In conducting the EIA process, the following are carried out:
Review Projects conceptual and front end engineering design reports,
existing published data and EIA reports
Undertake site visit to the project area to conduct baseline survey
Seek additional information through consultations with relevant
government authorities; e.g. Department of Environment, Marine
Department, Department of Fisheries, Meteorological Department, , etc.
Collate and analyse the data
Report on findings and where appropriate, recommend mitigation
measures
Review local and international criteria and standards for marine water,
discharges and sediment for the evaluation of impacts. This review will
include recommending the relevant compliance standards for the Projects
implementation stage
Recommend environmental monitoring, as part of the environmental
management plan, during the various stages of the proposed Project