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2D Seismic Survey in Block AD- 10, Offshore Myanmar

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2D Seismic Survey in Block AD- 10, Offshore Myanmar Initial Environmental Examination 02 December 2015 Environmental Resources Management www.erm.com The world’s leading sustainability consultancy 2D Seismic Survey in Block AD-10, Environmental Resources Management Offshore Myanmar ERM-Hong Kong, Limited 16/F, Berkshire House 25 Westlands Road Initial Environmental Examination Quarry Bay Hong Kong Telephone: (852) 2271 3000 Facsimile: (852) 2723 5660 Document Code: 0267094_IEE_Cover_AD10_EN.docx http://www.erm.com Client: Project No: Statoil Myanmar Private Limited 0267094 Summary: Date: 02 December 2015 Approved by: This document presents the Initial Environmental Examination (IEE) for 2D Seismic Survey in Block AD-10, as required under current Draft Environmental Impact Assessment Procedures Craig A. Reid Partner 1 Addressing MOECAF Comments, Final for MOGE RS CAR CAR 02/12/2015 0 Draft Final RS JNG CAR 31/08/2015 Revision Description By Checked Approved Date Distribution Internal Public Confidential CONTENTS 1 EXECUTIVE SUMMARY 1-1 1.1 PURPOSE AND EXTENT OF THE IEE REPORT 1-1 1.2 SUMMARY OF THE ACTIVITIES UNDERTAKEN DURING THE IEE STUDY 1-2 1.3 PROJECT ALTERNATIVES 1-2 1.4 DESCRIPTION OF THE ENVIRONMENT TO BE AFFECTED BY THE PROJECT 1-4 1.5 SIGNIFICANT ENVIRONMENTAL IMPACTS 1-5 1.6 THE PUBLIC CONSULTATION AND PARTICIPATION PROCESS 1-6 1.7 SUMMARY OF THE EMP 1-7 1.8 CONCLUSIONS AND RECOMMENDATIONS OF THE IEE REPORT 1-8 2 INTRODUCTION 2-1 2.1 PROJECT OVERVIEW 2-1 2.2 PROJECT PROPONENT 2-1 2.3 THIS INITIAL ENVIRONMENTAL EVALUATION (IEE) 2-1 2.4 IEE OBJECTIVES 2-2 2.5 STUDY LIMITATIONS 2-2 2.6 ENVIRONMENTAL AND SOCIAL EXPERTS 2-3 2.7 REPORT STRUCTURE 2-4 3 POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK 3-1 3.1 CORPORATE ENVIRONMENTAL POLICY OF THE PROJECT PROPONENT 3-1 3.2 POLICY AND LEGAL FRAMEWORK 3-3 3.2.1 Draft EIA Legislation in Myanmar 3-3 3.2.2 Relevant Legislation in Myanmar 3-4 3.2.3 International Standards and Guidelines 3-7 3.2.4 International Conventions 3-9 3.3 INSTITUTIONAL FRAMEWORK OF THE PROJECT PROPONENT AND MYANMAR GOVERNMENT 3-9 3.3.1 Administrative Structure of Myanmar 3-9 3.3.2 Production Sharing Contract (PSC) Requirements 3-11 3.4 ENVIRONMENTAL AND/OR HEALTH STANDARDS RELATED TO THE PROJECT 3-12 4 PROJECT DESCRIPTION AND ALTERNATIVES 4-1 4.1 PROJECT BACKGROUND AND OBJECTIVES 4-1 4.2 PROJECT LOCATION 4-1 4.3 ALTERATIVE SELECTION AND COMPARISON 4-1 4.4 DESCRIPTION OF SELECTED ALTERNATIVE 4-2 4.4.1 Seismic Survey Operations 4-2 4.4.2 Materials, Supplies, Labour & Logistics 4-5 4.4.3 Emissions, Discharges & Wastes 4-5 5 BASELINE CONDITIONS 5-1 5.1 SETTING THE STUDY LIMITS 5-1 5.2 METHODOLOGY FOR DATA COLLECTION AND ANALYSIS 5-1 5.3 PHYSICAL COMPONENTS 5-1 ENVIRONMENTAL RESOURCES MANAGEMENT STATOIL 0267094_IEE_AD10_FINAL_20151202_EN.DOCX DECEMBER 2015 5.3.1 Climate and Meteorology 5-1 5.3.2 Storms and Cyclones 5-2 5.3.3 Currents and Tides 5-2 5.3.4 Seabed Topography 5-3 5.3.5 Seabed Composition 5-3 5.4 BIOLOGICAL COMPONENTS 5-3 5.4.1 General 5-4 5.4.2 Coral Habitats 5-5 5.4.3 Mangroves 5-5 5.4.4 Seagrass 5-5 5.4.5 Plankton 5-6 5.4.6 Benthic Invertebrates 5-7 5.4.7 Fishes 5-7 5.4.8 Marine Mammals 5-10 5.4.9 Marine Turtles 5-12 5.4.10 Seabirds 5-14 5.4.11 Protected and Environmentally Sensitive Areas 5-15 5.4.12 Seasonality of Sensitivities 5-15 5.5 SOCIO-ECONOMIC COMPONENTS 5-16 5.5.1 Introduction and Area of Interest 5-16 5.5.2 Social Context 5-16 5.5.3 Fishing Activity in and around Block AD-10 5-21 5.5.4 Regional Oil and Gas Exploration 5-28 5.5.5 Shipping and Navigation 5-28 5.6 CULTURAL COMPONENTS 5-29 5.7 VISUAL COMPONENTS 5-29 5.8 BASELINE SUMMARY 5-30 5.9 KEY SENSITIVE RECEPTORS 5-31 6 IMPACT ASSESSMENT 6-1 6.1 IMPACT ASSESSMENT METHODOLOGY AND APPROACH 6-1 6.1.1 Prediction of Impacts 6-2 6.1.2 Evaluation of Impacts 6-2 6.1.3 Impact Magnitude, Receptor/Resource Sensitivity and Impact Significance 6-3 6.1.4 Identification of Mitigation and Enhancement Measures 6-8 6.1.5 Residual Impact Evaluation 6-9 6.1.6 Management and Monitoring 6-9 6.1.7 Cumulative Impact Assessment 6-10 6.2 IDENTIFICATION OF IMPACTS 6-10 6.2.1 Key Potential Impacts 6-11 6.2.2 Scoped Out Impacts 6-12 6.3 DETERMINATION OF IMPACT SIGNIFICANCE, MITIGATION MEASURES AND RESIDUAL IMPACT SIGNIFICANCE 6-14 6.3.1 Impacts from Underwater Sound Generation on Marine Fauna 6-14 6.3.2 Impacts from Unplanned Entanglement of Marine Turtles with Towed Equipment 6-24 6.3.3 Impacts from Unplanned Hydrocarbon Spills to Marine Fauna and Habitats6-26 6.3.4 Impacts on Fishing Activity from Physical Presence of Seismic Vessel and Equipment 6-29 ENVIRONMENTAL RESOURCES MANAGEMENT STATOIL 0267094_IEE_AD10_FINAL_20151202_EN.DOCX DECEMBER 2015 6.3.5 Impacts from Unplanned Collisions on Fishing Vessel and Other Marine Users 6-32 6.3.6 Cumulative Impact Assessment 6-33 6.3.7 Summary of Impacts 6-35 7 PUBLIC CONSULTATION AND DISCLOSURE 7-1 7.1 PURPOSE OF THE CONSULTATION 7-1 7.2 METHODOLOGY AND APPROACH 7-1 7.2.1 Identification of Relevant Stakeholders and Potential Issues 7-1 7.2.2 Overall Approach and Scope of Engagement for the Impact Assessment 7-2 7.2.3 Format and Content of Consultation Meetings 7-4 7.3 SUMMARY OF CONSULTATION ACTIVITIES UNDERTAKEN 7-6 7.4 SUMMARY OF MAIN COMMENTS RECEIVED DURING CONSULTATION MEETINGS7-6 7.4.1 Social Investment 7-6 7.4.2 Impact on Fishing 7-7 7.4.3 Impacts from Future Operations 7-7 7.5 INFORMATION DISCLOSURE AND RECOMMENDATIONS FOR FUTURE CONSULTATIONS 7-7 7.5.1 Further Disclosure 7-7 7.5.2 Further Consultations 7-7 7.5.3 Grievance Mechanism 7-8 8 CONCLUSION AND RECOMMENDATIONS 8-1 8.1 RECOMMENDATIONS FOR FUTURE ACTIONS 8-1 8.2 CONCLUSION 8-1 ENVIRONMENTAL RESOURCES MANAGEMENT STATOIL 0267094_IEE_AD10_FINAL_20151202_EN.DOCX DECEMBER 2015 ACRONYMS AND ABBREVIATIONS Acronym Definition % Percentage 2D Two-dimensional ALARP As Low As Reasonably Possible BANCA Biodiversity and Nature Conservation Association CH4 Methane CITES Convention on International Trade of Endangered Species cm Centimetres CM Chief Minister CO Carbon monoxide CO2 Carbon dioxide CPUE Catch per unit effort dB Decibels DoF Department of Fisheries ECC Environmental Compliance Certificate ECD Environmental Conservation Department EHS Environmental Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan ERM Environmental Resource Management ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan FLO Fisheries Liaison Officer ft. Feet GAD General Administration Department GIIP Good international Industry Practise GRM Grievance Redressal Mechanism HES Health, Environment and Safety HF High Frequency Hz Hertz IA Impact Assessment IEE Initial Environmental Examination IFC International Finance Corporation IFC PS International Finance Corporation Performance Standards ITCZ Inter-Tropical Convergence Zone IUCN International Union for the Conservation of Nature JNCC Joint Nature Conservation Committee kHz Kilohertz km Kilometres km2 Square kilometres LNG Liquefied Natural Gas m Metres m3/day Cubic metres per day MARPOL International Convention for the Prevention of Pollution from Ships MCS Monitoring, Control and Surveillance ENVIRONMENTAL RESOURCES MANAGEMENT STATOIL 0267094_IEE_AD10_FINAL_20151202_EN.DOCX DECEMBER 2015 Acronym Definition MDO Marine Diesel Oil MFA Myanmar Fisheries Association MFF Myanmar Fisheries Federation MGO Marine Gas Oil MIC Myanmar Investment Commission MODIS Moderate Resolution Imaging Spectrometer MOECAF Ministry of Environmental Conservation and Forestry MOGE Myanma Oil and Gas Enterprise MOH Ministry of Health MPRL Myanmar Petroleum Exploration and Production ms-1 Metres per second MSDS Material Safety Data Sheets NGO Non-Governmental Organisation NMHC Non-Methane Hydrocarbons NOAA National Oceanic and Atmospheric Administration NOx Nitrogen oxides Pa Pascal PAPs Project Affected Populations ppm Parts per million PSC Production Sharing Contract PTS Permanent Threshold Shift REM Resource and Environment Myanmar SIA Social Impact Assessment SO2 Sulphur dioxide SOLAS International Convention for the Safety of Life at Sea SOPEP Shipboard Oil Pollution Emergency Plan sq. km Square kilometres TTS Temporary Threshold Shift UKOOA United Kingdom Offshore Operators Association UNDP United Nations Development Programme UNEP United National Environment Programme UNEP- United National Environment Programme - World Conservation Monitoring WCMC Centre USD United States Dollar USEPA United States Environmental Protection Agency WBG World Bank Group ENVIRONMENTAL RESOURCES MANAGEMENT STATOIL 0267094_IEE_AD10_FINAL_20151202_EN.DOCX DECEMBER 2015 1 EXECUTIVE SUMMARY 1.1 PURPOSE AND EXTENT OF THE IEE REPORT Statoil Myanmar Pte Ltd (Myanmar Branch) (Statoil) is planning to undertake an exploratory campaign by means of a two-dimensional (2D) seismic survey in Block AD-10, which was awarded to Statoil in 2014 as part of the Myanmar Government’s 2013 Offshore Bid Round. This campaign will provide information that will be basis for future decisions on if, and where, to drill exploration wells. Statoil signed the Production Sharing Contract (PSC) with the Myanma Oil and Gas Enterprise (MOGE) on the 30th April 2015. The location of the Block is shown in Figure 1.1. As per the draft Environmental Impact Assessment (EIA) Procedures, the Project requires an Initial Environmental Examination (IEE) as the appropriate level of assessment. Statoil has commissioned Environmental Resources Management (ERM), supported by local specialists Resource and Environment Myanmar (REM), to undertake the IEE Study.
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