Early Production System EIA
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Early Production System EIA Final Report: Environmental Impact Assessment for the Proposed Early Production System, Kaiso-Tonya Area, Block 2, Lake Albert, Uganda. March 2008 www.erm.com Delivering sustainable solutions in a more competitive world Tullow Uganda Operations (Pty) Ltd Early Production System EIA: FINAL REPORT Environmental Impact Assessment for the Proposed Early Production System, Kaiso- Tonya Area, Block 2, Lake Albert, Uganda March 2008 Reference 0068662 Prepared by: Environmental Resources Management (ERM) Southern Africa (Pty) Ltd; and Environmental Assessment Consult Limited (EACL) For and on behalf of Environmental Resources Management Approved by: Stuart Heather-Clark Signed: Position: Partner-in-Charge Date: 29 February 2008 This report has been prepared by Environmental Resources Management the trading name of Environmental Resources Management Southern Africa (Pty) Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. Stuart Heather-Clark Certified Foreign Environmental Practitioner Project Manager Environmental Resources Management Pty Ltd Moses Kagoda Certified Environmental Practitioner In-country Project Co-ordinator Environmental Assessment Consult Limited (EACL) Zoe Day Certified Foreign Environmental Practitioner Assistant Project Manager Environmental Resources Management Pty Ltd (ERM) Gertrude Binta Mgezi Certified Environmental Practitioner In-country Socio-economic Specialist Environmental Assessment Consult Limited (EACL) Sheila D.C. Namuwaya In-country Stakeholder Consultation Environmental Assessment Consult Limited (EACL) Mr David Nkuutu Certified Environmental Practitioner In-country Flora Specialist Environmental Assessment Consult Limited (EACL) 1 NON-TECHNICAL SUMMARY This non-technical summary incorporates the main results of the Environmental Impact Assessment (EIA) for the proposed Early Production System (EPS), Kaiso-Tonya Area, Block 2, Uganda. The developer, Tullow Uganda Operations Pty Ltd (Tullow) has commissioned Environmental Resources Management Pty Ltd (ERM) to undertake the EIA. ERM is working in partnership with a Ugandan environmental consultancy, Environmental Assessment Consult Limited (EACL). 1.1 INTRODUCTION The primary petroleum prospect area in Uganda is the Albertine Graben. This area is located in the northernmost part of the western rift of the East Africa Rift System. The Albertine Graben stretches from the border of Sudan in the north, to Lake Edward in the south. Although varying in width, it is approximately 45 km wide, extending in some areas into the Democratic Republic of Congo (DRC). The Government of Ugandan (GoU) has divided the Ugandan part of the Graben into five petroleum exploration areas. Lake Albert is located towards the northern extremity of the Graben and is covered by Exploration Areas 1, 2 and 3A. Tullow holds interests in three exploration licences on the Ugandan side of the Albertine Graben - Block 1, Block 2 and Block 3A. The Mputa field is located in Block 2 and to date two wells have been drilled. It is proposed to proceed with the initial development of the Mputa field. The location of Block 2 and the Mputa and nearby fields is shown below in Figure 1.1. ENVIRONMENTAL RESOURCES MANAGEMENT TULLOW UGANDA OPERATION PTY LTD I Figure 1.1 Locality Map for Block 2, Uganda EPS Kingfisher-1 tested Feb 2007 Range of known oil Due to fuel and electricity shortages in Uganda the development of the energy sector in Uganda is a national priority, as such Tullow has a Memorandum of Understanding (MoU) with the GoU to develop an Early Production System (EPS). The proposed development entails the construction and operation of an onshore Early Production System (EPS) which is rated at 4,000 barrels per day (bpd) of crude oil. The distillate products (kerosene and diesel) and heavy fuel oil (HFO), not used for on-site power generation, are intended principally for Ugandan domestic market consumption. 1.2 APPROACH AND METHODOLOGY The purpose of the EIA is to provide relevant, understandable and objective information to inform decisions regarding the authorisation of the EPS for Kaiso-Tonya Area, Block 2, Uganda. The EIA consisted of the following four phases: Screening; Scoping; Specialist Studies; and Integration and Assessment. Screening The initial screening phase identified that a full EIA was required as petroleum exploration and production is classified as a Category III activity in terms of the Environmental Impact Assessment Regulations (1998) promulgated under the National Environment Act of 1995. Scoping The second phase of the EIA process was Scoping. The objectives of Scoping were the following: consultation with stakeholders to identify issues of concern; ensure all potential impacts, key issues and reasonable alternatives are identified; and ensure informed, transparent and accountable decision-making by the National Environment Management Authority (NEMA). As part of the scoping phase, a stakeholder consultation process was conducted to provide stakeholders with an opportunity to raise concerns and comment on the potential impacts and merits of EPS development. Stakeholders input was captured in order to focus the assessment on key concerns, and to better understand expectations of those potentially affected. Figure 1.2 identifies the key stakeholders identified during stakeholder consultation. ENVIRONMENTAL RESOURCES MANAGEMENT TULLOW UGANDA OPERATIONS PTY LTD III Figure 1.2 Key Stakeholder Groups Project participants (Tullow management and employees) Community leaders Local community members Vulnerable groups (e.g. women, refugees) Local businesses National and District level authorities Local authorities International, national and local environment and social NGOs Media groups A range of issues were raised by stakeholders during consultation. The main issues include the following: Site Selection - Some stakeholders mentioned that site alternatives needed to clearly outline both the positive and negatives impacts for each site alternative and that the criteria used for the selection of each alternative site documented. Numerous stakeholders indicated their preference for the EPS to be located outside of the Kabwoya Wildlife Reserve. Awareness Raising and Community Liaison - Many stakeholders felt that Tullow should play a more active role in raising awareness about the project specifically and oil exploration in general. Stakeholders felt there had been a number of misperceptions amongst stakeholders that could easily have been clarified if Tullow had a proactive community liaison strategy. The stakeholders requested that Tullow improve their community liaison capabilities. Biodiversity - The impact on wildlife and the need for biodiversity and habitat conservation was a general concern for many of those consulted; specifically that increased infrastructure and development in the Kaiso- Tonya Valley would lead to further reduction of biodiversity. Fish and Fishing - The majority of villagers raised concerns about the impact on the numbers of fish in Lake Albert during the operation phase of the EPS. The impact of the current ban on night fishing was also raised as a concern since it was felt that it may have severe consequences on the local fishing economy and affect peoples’ income and livelihoods. Waste Management - A number of stakeholders were concerned about the kind of waste that the EPS was going to generate and how that waste was going to be handled or disposed. Oil Spills - Stakeholders wanted to know if Tullow had any management measures in place that would address clean-ups of oil spills. The impact of oil spills on fish stocks and water resources was also a significant concern to local stakeholders. ENVIRONMENTAL RESOURCES MANAGEMENT TULLOW UGANDA OPERATIONS PTY LTD IV Air Quality - Stakeholders were extremely concerned about the impact of the EPS on air quality, especially during flaring (1). Stakeholders also wanted to know what measures Tullow would put in place to mitigate air pollution and greenhouse gases. Flaring - Given the sensitivity of the environment in the project area and the dry conditions during much of the year, stakeholders were concerned about the risks of fire and potentially other risks associated with flaring that could threaten the environment. Water - Some stakeholders expressed concern about the potential extraction of water from Lake Albert and the impact it would have on the level of the lake and the fish. They also feared further contamination of Lake Albert. Kabwoya Wildlife Reserve - Many stakeholders observed that the proposed site was located in the Kabwoya Wildlife Reserve and were concerned that the extraction of oil would adversely impact on the environment within the reserve. Some stakeholders also raised the issue that degazetting the reserve could be a protracted process which could potentially delay the Project. Employment - Expectations around employment opportunities were extremely high among all stakeholders consulted. There were