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Worleyparsons Formal Report Template Environmental Impact Assessment (EIA) Offshore Exploratory Drilling Well Kiwi A-1X, El Dabaa Offshore Concession, Egypt 455/EJ6172 – 000-EN-REP-06 16 December 2010 Infrastructure & Environment 21, Misr Helwan Agriculture Road Maadi Cairo Egypt Telephone: + 202 2359 1487/1576/3819/5628 Facsimile: + 202 2359 1038 www.worleyparsons.com © Copyright 2010 WorleyParsons Disclaimer This report has been prepared on behalf of and for the exclusive use of Statoil, and is subject to and issued in accordance with the agreement between Statoil and WorleyParsons Engineers Egypt Ltd. WorleyParsons Engineers Egypt Ltd accepts no liability or responsibility whatsoever for it in respect of any use of or reliance upon this report by any third party. Copying this report without the permission of Statoil or WorleyParsons Engineers Egypt Ltd is not permitted. ENVIRONMENTAL IMPACT ASSESSMENT (EIA) OFFSHORE EXPLORATORY DRILLING WELL KIWI A-1X, EL DABAA OFFSHORE CONCESSION, EGYPT 0NON-TECHNICAL SUMMARY WorleyParsons Engineers Egypt Ltd (WPEEL) has conducted an Environmental Impact Assessment (EIA) study for Statoil’s proposed offshore exploratory “Kiwi A-1X” well located in the Mediterranean Sea, El Dabaa Offshore Concession, Egypt (Figure 1). WorleyParsons has been also retained by Statoil to conduct an Environmental Risk Assessment (ERA) study for the same offshore exploratory drill well (455/EJ6172-000-EN-REP-07). This EIA report details the environmental impact assessment and summarizes the ERA study. Figure 1 Statoil Concession and Well Location Statoil contracted Petro Environmental Service Company (PESCo) to perform a surface modelling study of hypothetical oil spills to assess the potential impact of the surface release of oil in case of a blow out event from Kiwi A-1X well. The surface model identified an initial indirect area of influence early in the process, upon which PESCo developed an Oil Spill Response Plan (OSRP) and WorleyParsons developed a Form B study (455/EJ6172-000-EN-REP-04 and 455/EJ6172-000-EN- REP-05). Both the Form B and OSRP have granted the approval of the Egyptian Environmental Affairs Agency (EEAA). At a later stage, Statoil contracted Applied Science Associates (ASA) to conduct a subsurface trajectory and fates modelling report of a blow out event from Kiwi A-1X offshore well. The indirect Page iii 455/EJ6172 : 000-EN-REP-06 Rev D : 16 December 2010 ENVIRONMENTAL IMPACT ASSESSMENT (EIA) OFFSHORE EXPLORATORY DRILLING WELL KIWI A-1X, EL DABAA OFFSHORE CONCESSION, EGYPT area of influence was consequently updated according to the subsurface model results. According to the subsurface model, the updated indirect area of influence covers about 100 km of the eastern Libyan coast, the Egyptian north coast, Gaza, Israel, Lebanon, Syria, western Cyprus, about 50 km of Turkey’s southeast coast and Greece’s southeast waters. This EIA study will only address the indirect area of influence within the Egyptian territories. Other indirect area of influence than those covered in this EIA report will be studied in a separate report, “Desktop Screening Report” (455/EJ6172-000-EN- REP-08), which is included in Appendix 9 of this EIA. The overall objectives of the EIA are to assure compliance with Statoil requirements which draw on IFC standards and; identify and analyse sensitive components of the existing environment; determine the type, nature and importance of the probable environmental impacts during construction and operation; identify and recommend practical and cost effective mitigation measures; recommend a framework for an environmental management and monitoring plan for the project; and ensure that all stakeholders deemed to be influenced by the projects or activities are fully considered. All offshore activities will be performed using Discoverer Americas drill ship (Figure 2), about 170 km northwest of Abu Qir and 140 km north of El-Dabaa district. The drill ship is fully equipped with drilling and mud management equipment necessary for the proposed operations, with supporting vessels from Abu Qir shore base facility. The Transocean-owned drill ship is newly constructed. It is an offshore enhanced enterprise class with a double hull and dual-activity capability. The supporting vessel, M/V Claire Candies, has a cargo deck of 1000 m3. Its storage capacities include: 1,793 m3 of liquid mud (6 tanks with independent discharges), 324 m3 of dry bulk storage (4 tanks), 80 m3 of methanol and 23 m3 of sewage storage. Standby vessels shall also be present near the drill ship throughout the project, for support and emergencies. The Kiwi A-1X offshore exploratory well will involve drilling, casing, cementing and coring activities. It is scheduled for drilling during the second half of November 2010. Figure 2 Drill Ship and Supporting Vessel All activities undergone by Statoil shall comply with the Egyptian environmental legislation and regulations, international legislations, regional/international conventions, and Statoil policies and procedures. Page iv 455/EJ6172 : 000-EN-REP-06 Rev D : 16 December 2010 ENVIRONMENTAL IMPACT ASSESSMENT (EIA) OFFSHORE EXPLORATORY DRILLING WELL KIWI A-1X, EL DABAA OFFSHORE CONCESSION, EGYPT An environmental impact analysis was carried out to classify the potential positive and negative impacts from the different phases of the proposed project and including impacts due to non-routine (accidental) events. The most important aspects during routine operations include: vessel movement, drilling operations, waste disposal and discharge, and drill cuttings. No major negative impacts have been identified in any phase of the normal operational activities. All major negative impacts identified before applying any mitigation measures are due to impacts from non-routine events such as inappropriate waste disposal, minor leaks and spills, vessel collision, fire or explosion and well blowout. Potential negative impacts on the regional and national scale are plausible in the unlikely event of a well blowout. Table 1 summarizes the major project activities and their mitigation measures. Applying appropriate mitigation measures ensures that there will be no major residual impacts resulting from the project. In conclusion with the effective implementation of mitigation measures, negative impacts shall be reduced or eliminated. Table 1 Major Project Activities and Mitigation Measures Planned Project Activities Mitigation Measures Drill ship movement Comply with the requirements of the Egyptian Environmental Supporting vessels movement Law on accepted levels of exhaust emissions. Drill ship operations Choose energy sources/fuels for heavy equipment that produce the least amount of CO . WBM drill cuttings 2 Apply International good practice and established Statoil Waste disposal and discharge standards to operations particularly in emissions reporting Helicopter operations Avoiding unnecessary discharge of ballast water Implementation of Statoil’s HSE technical and professional requirements Implementation of Waste Management Plan WMP Waste disposal to comply with MARPOL Implementation of Communications Plan Implementation of Environmental Management and Monitoring Plan EMMP Page v 455/EJ6172 : 000-EN-REP-06 Rev D : 16 December 2010 ENVIRONMENTAL IMPACT ASSESSMENT (EIA) OFFSHORE EXPLORATORY DRILLING WELL KIWI A-1X, EL DABAA OFFSHORE CONCESSION, EGYPT Unplanned Project Activities Mitigation Measures Inappropriate waste disposal Applying International good practice and established Statoil standards to operations Leaks and minor spills Implementation of Statoil’s HSE Management and Risk Vessel collision (Fuel spill) Management Implementation of Statoil’s HSE technical and professional Explosion and Fire requirements Well Blowout Conducting regular risk reduction reviews on facilities Implementation of OSRP Development of Ship Onboard Pollution and Environmental Protection SOPEP manual Availability of sorbent material and/or necessary oil spill response equipment onboard drill ship and vessels Regular oil spill drills, exercises and training Positive impacts are expected during the mobilization phase; although very limited, these positive impacts are mainly economic. Potential positive impacts are also possible, on the regional and national economy, in the event of gas/oil discovery. For all potential accidental events, emergency response plans have been developed to immediately respond to the event, and all employees shall be appropriately trained to implement the response plans in the event of an emergency. Statoil has taken several precautions to circumvent emergency situations including: well blowout analysis, area of influence study, environmental risk assessment, trajectory modelling of worst case oil spill scenarios, Oil Spill Response Plan (OSRP), general HSE Emergency Response Plan (ERP) and this Environmental Impact Assessment study. Furthermore, Section 13 of this EIA presents a guide for developing an environmental management and monitoring plan. This will ensure environmental statutory compliance and promote effective environmental management at the proposed site during all project phases. The EIA study also presents a monitoring plan, which is necessary for the elimination and/or minimisation of potential negative environmental impacts. Finally, based on the findings and recommendations of the environmental and social impact assessment for the proposed exploratory activities, the assessment team concludes that if mitigation and monitoring measures are followed properly, the project shall be operating meeting
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