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Environmental Impact Assessment for Offshore Drilling the Falkland Islands to Desire Petroleum Plc

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Environmental Impact Assessment for Offshore Drilling the Falkland Islands to Desire Petroleum Plc ENVIRONMENTAL IMPACT ASSESSMENT FOR OFFSHORE DRILLING THE FALKLAND ISLANDS TO DESIRE PETROLEUM PLC Report No. : EOE0534 RPS Energy, Goldsworth House, Author(s) : J. Perry Denton Way, Goldsworth Park, Woking, Surrey, GU21 3LG, UK. Reviewed : I. Wilson T +44 (0)1483 746500 I. Duncan / M. Gillard F +44 (0)1483 746505 E [email protected] Date : November, 2005 W www.rpsgroup.com EOE0534 Desire Falklands EIA DS.doc THIS PAGE LEFT INTENTIONALLY BLANK EXECUTIVE SUMMARY Background and Framework This report, also referred to as an Environmental Impact Statement (EIS), presents the findings of an Environmental Impact Assessment (EIA) conducted by RPS Energy with regard to exploratory drilling in the North Falkland Basin. The EIA has been carried out on behalf of Desire Petroleum PLC, who are planning a three well drilling campaign in Tranches C and D of the North Falkland Basin. A non-technical summary of this report has also been prepared and provides a concise version of the principal findings and recommendations presented here. The Falkland Islands are a UK Overseas Territory located on the edge of the Patagonian Shelf in the South Atlantic Ocean. Desire Petroleum PLC (Desire) have been awarded Production Licences by the Falkland Islands Government for the exploration and production of oil and gas in Tranches C and D of the North Falkland Basin. Tranches C and D lie approximately 150km north of the main Islands, with proposed operations taking place in water depths of 350-420m. Once a suitable drilling rig has been contracted, Desire plan to drill three wells, each +/- 3000m and each taking +/- 22 days (excluding well tests). The prime objective of the drilling programme is to evaluate the prospects identified by 3D seismic acquired in 2004. Of the prospects so far identified it is most likely that drilling will take place in three prospects out of Liz, Beth, Ninky or Ann (see Figure 6). A consortium of oil companies drilled six wells in the North Falkland Basin during 1998. An EIA was carried out prior to drilling and identified significant gaps in the level of environmental data for this area. As a result of this drilling programme a number of environmental studies were commissioned, focussing primarily on the North Falkland Basin (the area of the proposed drilling campaign). Environmental studies conducted around the earlier drilling included: • Seabird, penguin and cetacean studies • Current modelling and drill cuttings dispersion modelling • Benthic surveys (before and after drilling) • Metocean (Meteorological and Oceanographic) studies • Oil spill modelling These studies have greatly increased knowledge of the baseline environment in this area. The proposed drilling campaign will expand on the level of environmental knowledge to the north of the Falkland Islands by facilitating seabird and marine mammal recording, providing seabed ROV footage, 3D seabed surveys and offshore meteorological data. The significant level of baseline data now available for this area has allowed this environmental assessment to be carried out based on currently available data. No additional environmental monitoring or sampling has been commissioned for this assessment, although both information gathering and consultation exercises have been undertaken in the Falkland Islands. A large number of publications and websites have been used and referenced within this EIS and particular recognition is extended to Falklands Conservation, both for the commissioning of seabird and marine mammal at-sea surveys and for compiling the "Falkland Islands Environmental Baseline Survey 2004" (Munro 2004). As the choice of drilling contractor and drilling unit has not been finalised, an addendum to this EIS will be produced once these are known in order to verify the assessment is both accurate and up-to- date. Any change to the proposed operations likely to significantly alter the environmental impact, will lead to a reassessment of relevant impacts. The addendum will also provide an operations- specific Environmental Management Plan and detailed mitigation measures and controls. EOE0534 Desire Falklands EIA DS.doc Operations and Impacts The main sensitivities and environmental constraints identified in the licence area (Tranches C and D) are the highly important seabird populations, presence of marine mammals and fisheries interests. In addition, the benthic (seafloor) habitat is considered to be both sensitive to disturbance and relatively unstudied, although benthic surveys have revealed a relatively homogeneous (uniform) macrofauna in a relatively homogenous environment, with no significant indication of pollution from previous drilling. Although not in the licence area, the near-shore and coastal environments are also included within this assessment and are considered to be both extremely important and sensitive to any forms of pollution. An assessment of the likely environmental impacts of the three well drilling programme in Tranches C and D has been undertaken. The principal results of this assessment (Section 7 of this report) are as follows: The environmental aspects of the operations that have been assessed as resulting in potential impacts of high significance include the discharge of drill cuttings, the risk of offshore and near- shore spills and the onshore disposal of waste material. Environmental aspects assessed as resulting in potential impacts of medium significance include emissions to air from routine operations and potential well tests, the risk of chemical spills during drilling, waste management options other than onshore disposal (e.g. incineration, shipment to the UK, storage and re-use), the physical presence of the rig and potential for interference with other sea users and seabed disturbance from anchoring. The potential impacts of these operations will be mitigated in a number of ways, including: • Maintaining a spirit of openness and ongoing consultation with the Falkland Islands Government (FIG), the public and key stakeholders. • Applying International best practice and established UK standards to operations, particularly in offshore chemical use and emissions reporting. • Using only water based drilling muds and low toxicity chemicals approved under the UK Offshore Chemical Notification Scheme. • Implementing a high level of environmental management offshore and applying environmental procedures for potentially impacting operations (chemical storage, bunkering, waste handling, maintenance programmes, seafloor surveys etc). • Monitoring and reporting consumption and emission figures in accordance with the UK Environmental Emissions Monitoring System (EEMS). • Establishing and implementing a project specific Oil Spill Response Plan and carrying out training of key personnel in spill response. Employing Oil Spill Response Ltd in the UK to provide outside assistance in the case of a major spill. • Implementing a detailed waste management plan to minimise the quantity of waste going to landfill, prevent unsuitable disposal of waste, maximise the re-use of materials and establish the Best Practicable Environmental Option (BPEO) for storage, treatment, transfer and disposal of waste materials. • Collecting and sharing environmental data wherever possible, for example in offshore sightings, seabed surveys and metocean conditions. A more detailed description of recommended mitigation measures and environmental management is provided in Sections 7 and 8 of this report. EOE0534 Desire Falklands EIA DS.doc CONTENTS 1. INTRODUCTION 1 1.1. LOCATION 1 1.2. EXPLORATION HISTORY - NORTH FALKLAND BASIN. 2 1.3. OVERVIEW & STRUCTURE 4 1.4. SCOPE 5 1.5. CONTRIBUTORS AND CONSULTEES 5 2. LEGISLATIVE FRAMEWORK 7 2.1. INTERNATIONAL CONVENTIONS AND AGREEMENTS 7 2.2. NATIONAL LEGISLATION 9 2.2.1. Environmental Impact Assessment 11 2.2.2. Environmental Protection 12 2.3. INDUSTRY STANDARDS & GUIDELINES 13 2.3.1. E&P Forum: 13 2.3.2. E&P Forum / UNEP: 13 2.3.3. IAGC: 14 2.3.4. UKOOA: 14 3. PROJECT DESCRIPTION 15 3.1. DRILLING PROGRAMME 15 3.1.1. Objective 15 3.1.2. Prospectivity 16 3.1.3. Overview 16 3.1.4. Drilling 17 3.2. WELL TESTING 24 3.3. SUPPORT OPERATIONS 25 4. ENVIRONMENTAL MANAGEMENT FRAMEWORK 27 4.1. DESIRE PETROLEUM ENVIRONMENTAL MANAGEMENT SYSTEM 27 4.2. OPERATIONAL CONTROLS AND PROCEDURES 28 4.3. MONITORING 30 4.3.1. Emissions and Consumption 30 4.4. REPORTING 30 4.5. OIL SPILL CONTINGENCY PLAN 32 5. OPERATIONAL ASPECTS 33 5.1. EMISSIONS TO AIR 33 5.2. EMISSIONS TO WATER 35 5.2.1. Controlled 35 5.2.2. Cuttings 36 5.2.3. Uncontrolled 38 5.3. WASTE MANAGEMENT 40 5.4. RESOURCE USE 45 6. DESCRIPTION OF THE ENVIRONMENT 47 EOE0534 Desire Falklands EIA DS.doc 6.1. GENERAL 47 6.2. METOCEAN DATA 47 6.2.1. Meteorology 47 6.2.2. Oceanography 49 6.2.3. Bathymetry 51 6.2.4. Sediments & seafloor topography 52 6.3. PHYSICAL ENVIRONMENT 54 6.3.1. Geological Setting 54 6.4. BIOLOGICAL ENVIRONMENT 55 6.5. PLANKTON 55 6.6. BENTHIC FAUNA 56 6.7. FISH, SQUID AND SHELLFISH 58 6.7.1. Cephalopods 59 6.7.2. Finfish 60 6.7.3. Shellfish 61 6.8. MARINE MAMMALS 61 6.8.1. Cetaceans 62 6.8.2. Pinnipeds 67 6.9. BIRDS 70 6.9.1. Penguins Spheniscidae 71 6.9.2. Albatrosses Diomedeidae 72 6.9.3. Petrels and shearwaters Procellariidae 73 6.9.4. Shags Phalacrocoracidae 75 6.9.5. Ducks Anatidae 76 6.9.6. Skuas Stercorariidae 76 6.9.7. Gulls Laridae 76 6.9.8. Terns Sternidae 77 6.9.9. Rare seabirds 77 6.9.10. Seabird Vulnerabilities 78 6.10. MARINE & COASTAL FLORA 82 6.11. PROTECTED AND VULNERABLE SPECIES 83 6.12. HABITATS AND PROTECTED AREAS 83 6.13. SOCIO-ECONOMIC ENVIRONMENT 85 6.13.1. General Characteristics 85 6.13.2. Fisheries and Aquaculture 85 6.13.3. Marine Archaeology 88 6.13.4. Communications 88 6.13.5. Navigation and Maritime Transport 88 6.13.6. Tourism and Marine Leisure Activities 88 6.13.7. Military 89 6.13.8. Oil industry infrastructure 90 6.14. CONSULTATION 90 7. IMPACT ASSESSMENT 91 7.1. INTRODUCTION 91 7.2.
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