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Strategic Study of Environment Impact of the Framework Plan and Program of the Onshore Exploration and Production of Hydrocarbons

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Strategic Study of Environment Impact of the Framework Plan and Program of the Onshore Exploration and Production of Hydrocarbons Strategic Study of Environment Impact of the Framework Plan and Program of the Onshore Exploration and Production of Hydrocarbons Non-Technical Summary Zagreb, July 2015 Consortium: Elektroprojekt d.d. STUDY IMPLEMENTERS: Alexandera von Humboldta 4, 10 000 Zagreb Ires ekologija d.o.o. za zaštitu prirode i okoliša Prilaz baruna Filipovića 21, 10 000 Zagreb STUDY LEADER: Mr.sc. Zlatko Pletikapić, BEng ASSISTANT STUDY LEADER: Mirko Mesarić, dipl. ing. biol.. COORDINATOR: Jelena Likić, prof. biol. Table of Contents 1. Description of the Framework Plan and Programme ...................................................................................... 1 2. Main objectives of the Framework Plan and Programme ............................................................................... 2 3. Overview of the previous onshore exploration and production of hydrocarbons............................................. 2 4. Technical aspects of exploration and production of hydrocarbons ................................................................. 3 5. Environmental Impact of the Framework Plan and Programme ..................................................................... 7 6. Environmental protection measures ............................................................................................................. 22 7. Environmental monitoring ............................................................................................................................. 28 8. Conclusions and recommendations .............................................................................................................. 29 Strategic Environmental Impact Study under the Framework Plan and Programme for Onshore Exploration and Production of Hydrocarbons 1. Description of the Framework Plan and Programme The Strategic Study analyses the draft Framework Plan and Programme for the Onshore Exploration and Production of Hydrocarbons (hereinafter: the FPP). A Main Assessment of the Acceptability of the FPP for the Ecological Network shall also be carried out within this strategic assessment, pursuant to the Decision of the Ministry of Environmental and Nature Protection. The FPP includes the continental region of the Republic of Croatia with a surface of approximately 52 000 km2 and it covers an area in which hydrocarbon exploration and production related data have already been recorded. The onshore hydrocarbon exploration and production area which is the subject matter of the first tender procedure is a part of the Croatian continental area of approximately 15 000 km2. It is divided into 6 blocks (DR-02, DR-03, DR- 04, SA-08, SA-09 and SA-10) varying from 2 100 to 2 600 km2 in size in the area of the river Drava, Eastern Slavonia and the river Sava ( (Key: Blocks from the First Onshore License Round; Remainder of mainland Croatia to be covered by the Strategic Environmental Impact Assessment; Part of mainland Croatia that will not be covered by the Strategic Environmental Impact Assessment; Defined onshore hydrocarbon production fields (excluded areas) Figure 1). In accordance with the FPP, the flow and the scope of the activities are divided into the exploration and production period. The exploration period shall include exploration activities which include primarily 2D and 3D seismic survey acquisition and exploratory drilling, as well as many other analytical studies the joint purpose of which is to collect geological and geophysical data with the aim of obtaining accurate hydrocarbon potential assessment and recognition of geological structures (geological prospecting, gravity, geochemical, magnetic, magneto-telluric, transient electro magnetic and satellite gravity surveys, environmental baseline survey prior to the commencement of works and the environmental impact assessment of works). Pursuant to Article 19, paragraph 3 of the Act on Exploration and Production of Hydrocarbons (Official Gazette 94/13 and 14/14) the exploration period shall last up to 5 years, with the possibility of two extensions of 6 months. Following the expiry of the exploration period and provided the assumptions under the Act on Exploration and Production of Hydrocarbons (Official Gazette 94/13 and 14/14) for direct grant of a concession have been fulfilled, the production period shall commence and last 25 years, with a possibility of extension. During the production period the following activities shall be carried out: development of the reservoir development studies, development drilling and well completion, construction of production plants and, finally, production of hydrocarbons. 1 Strategic Environmental Impact Study under the Framework Plan and Programme for Onshore Exploration and Production of Hydrocarbons (Key: Blocks from the First Onshore License Round; Remainder of mainland Croatia to be covered by the Strategic Environmental Impact Assessment; Part of mainland Croatia that will not be covered by the Strategic Environmental Impact Assessment; Defined onshore hydrocarbon production fields (excluded areas) Figure 1 Hydrocarbon exploration and production blocks published in the first public tender procedure and the remaining continental area to be included in the SEA procedure (source: Decision on the implementation of the strategic environmental assessment of the Framework Plan and Programme) 2. Main objectives of the Framework Plan and Programme The FPP provides for the actions to be carried out in the continental area of the Republic of Croatia during the exploration and production period. The FPP is developed with the aim of accurate monitoring of the activities concerning onshore exploration and production of hydrocarbons, issuance of licences, conclusion of agreements, determination of fees, as well as quality inspection, monitoring and foreseeing of the status of onshore hydrocarbon reserves, as determined under the Act on Exploration and Production of Hydrocarbons (Official Gazette 94/13 and 14/14). 3. Overview of the previous onshore exploration and production of hydrocarbons The onshore exploration and production of hydrocarbons in the Republic of Croatia has been taking place for decades. The first Croatian oil field Gojlo was discovered in 1941 with the use of deep drilling methods, while the first Croatian gas field Bujavica was discovered in 1917. 45 oil fields and 30 gas fields have been installed and started operating in Croatia in the period from 1952 to this day. A total of 106 million tonnes of oil, around 9 million tonnes of condensate and 74 billion m3 of natural gas have been recovered. Around 4 500 exploratory and development wells have also been developed, as well as approximately 1 200 production oil wells and 200 2 Strategic Environmental Impact Study under the Framework Plan and Programme for Onshore Exploration and Production of Hydrocarbons production gas wells. The largest annual recovered oil amount in Croatia was recorded in 1981 and it amounted to 3 140 777 tonnes. Also, the largest recovered natural gas amount of 2 176 657 000 m3 was recorded in 1989. Large onshore oil fields in the Republic of Croatia are the following: Beničanci, Stružec, Žutica, Šandrovac, Ivanić, Lipovljani, Jamarice, Đeletovci, Jagnjedovac and Bilogora; large onshore gas fields in the Republic of Croatia are: Molve, Bokšić, Kalinovac, Stari Gradac and Okoli. 550 exploratory wells have been developed in the Croatian continental area. The location of the existing production fields and exploratory wells is shown in figure 2. Figure 2 Positions/locations of exploratory wells and production fields (source: Croatian Hydrocarbon Agency) 4. Technical aspects of exploration and production of hydrocarbons Technology of well drilling The execution of mining activities and/or construction of mining facilities and plants require the drafting of a mining project, in accordance with the Mining Act (OG No. 56/13 and 14/14). Therefore, mining activities involving drilling and testing at each specific location of an exploration or production well must be carried out according to the approved mining project in accordance with the legislation. A Simplified mining project of the exploration well is made for the drilling and completion of a new well and mining activities carried out on the well. Excerpts from the spatial planning documentation confirm that the project is based on the county, municipal or town plans. Except for the excerpts from graphical representations, municipal and town plans also provide for the possibility of a spatial intervention based on their general implementing provisions for plan categories not shown graphically (unclassified roads and paths, local utility networks and lines). For the purpose of drilling the well, a typical mining drilling plant designed for onshore activities shall be located at the working area of a well (Figure ). The choice of the rig is dependent on the planned depth of the well. For example, the National-402 drilling rig, which can be used for drilling wells of up to 4000 m in depth has the following features: derrick working load of 280 tonnes (on the hook) with 12 ropes, rig strength of 750 kW (drawworks), height 3 Strategic Environmental Impact Study under the Framework Plan and Programme for Onshore Exploration and Production of Hydrocarbons of the L. C. Moore tower: 44.5 m + substructure of 7.6 m, with a total of 52.1 m (top of the derrick), base of the derrick approx. 20 x 10 m (derrick – rig substructure) and a storage facility for 4000 m of drillpipes 127 mm (5“) in diameter. A drilling rig is installed/dismantled
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