Final Report EIA Drilling Prepared for: Wisma Pondok Indah II, Suite 602 Jl. Sultan Iskandar Muda, Kav. V-TA Jakarta 12310, Indonesia October 2010 Delivering sustainable solutions in a more competitive world TABLE OF CONTENTS TABLE OF CONTENTS ..........................................................................................i LIST OF TABLES.....................................................................................................v LIST OF FIGURES ..............................................................................................viii LIST OF APPENDICES .........................................................................................ix 1 INTRODUCTION......................................................................................1-1 1.1 GENERAL INTRODUCTION TO THE PROJECT ...............................................1-1 1.2 GENERAL INFORMATION ABOUT STATOIL ..................................................1-3 1.3 POLICY, LEGISLATIVE AND ADMINISTRATIVE FRAMEWORK......................1-3 1.4 IMPACT ASSESSMENT APPROACH METHODOLOGY....................................1-6 1.4.1 Scoping ........................................................................................1-10 1.4.2 Describing the Baseline .............................................................1-10 1.4.3 Impact Prediction.......................................................................1-10 1.4.4 Evaluating the Significance of a Predicted Impact................1-11 1.4.5 Mitigation & Benefit Enhancement .........................................1-12 1.4.6 Residual Impacts........................................................................1-13 1.4.7 Management & Monitoring......................................................1-13 2 PROJECT DESCRIPTION........................................................................2-1 2.1 INTRODUCTION .............................................................................................2-1 2.2 PROJECT OVERVIEW AND LOCATION ..........................................................2-2 2.3 PRINCIPLE PROJECT ACTIVITIES ...................................................................2-2 2.3.1 Positioning of the Drill Ship .......................................................2-2 2.3.2 Drilling Activities.........................................................................2-2 2.3.3 Drilling Mud & Cement Usage ..................................................2-6 2.3.4 Cuttings & Mud Disposal ...........................................................2-7 2.3.5 Well Testing and Clean Up.........................................................2-7 2.3.6 Well Abandonment......................................................................2-7 2.3.7 Supply, Support Logistics...........................................................2-8 2.4 DRILL SHIP SPECIFICATIONS.........................................................................2-8 2.4.1 Storage facilities ...........................................................................2-9 2.4.2 Electrical Power Generation .......................................................2-9 2.4.3 Cooling Water and Drilling Water Supply...............................2-9 2.4.4 Sewage Treatment........................................................................2-9 2.4.5 Drainage System ........................................................................2-10 2.5 DRILLING SCHEDULE ..................................................................................2-10 2.6 EMISSIONS, DISCHARGES, WASTE & NOISE EMISSIONS............................2-10 2.6.1 Air Emissions..............................................................................2-10 ENVIRONMENTAL RESOURCES MANAGEMENT STATOIL EIA DRILLING i 2.6.2 Discharges to Sea .......................................................................2-11 2.6.3 Hazardous and Non-hazardous Waste Generation..............2-13 2.6.4 Noise ............................................................................................2-13 3 CHARACTERIZATION OF THE INFLUENCED AREA ...................3-1 3.1 PETROSEA OFFSHORE SUPPLY BASE (POSB) ...............................................3-1 3.1.1 Climate ..........................................................................................3-1 3.1.2 Socio Economy and Cultural......................................................3-3 3.2 PROJECT LOCATION FOR DRILLING ACTIVITY-KARAMA BLOCK...............3-5 3.2.1 Defining the Project Zone of Influence .....................................3-5 3.2.2 Meteorology..................................................................................3-7 3.2.3 Tectonics and Geology ................................................................3-7 3.2.4 Oceanography ..............................................................................3-7 3.2.5 Water and Sediment Quality....................................................3-16 3.2.6 Marine Flora and Fauna............................................................3-21 3.2.7 Fish...............................................................................................3-22 3.2.8 Marine Mammals.......................................................................3-22 3.2.9 Turtles..........................................................................................3-24 3.2.10 Sea Birds in Open seas and Coastal areas...............................3-26 3.2.11 Coastal habitats ..........................................................................3-28 3.2.12 Mangrove Forest ........................................................................3-28 3.2.13 Coastal Forest .............................................................................3-29 3.2.14 Social Characterization..............................................................3-33 3.2.15 Custom and Religion.................................................................3-37 3.2.16 Education and Literacy .............................................................3-38 3.2.17 Public and Private Infrastructure ............................................3-40 3.2.18 Socio-Economics and Livelihood.............................................3-44 3.2.19 Health ..........................................................................................3-57 3.2.20 Stakeholder Identification and Engagement..........................3-60 3.2.21 Statoil CSR Program ..................................................................3-64 3.2.22 Identification and Characterization of Indigenous Groups .........................................................................................3-67 4 IMPACT EVALUATION AND CONTROL .........................................4-1 4.1 SCOPING.........................................................................................................4-1 4.2 AIR QUALITY .................................................................................................4-4 4.2.1 Sources of Impact.........................................................................4-4 4.2.2 Assessment Approach.................................................................4-4 4.2.3 Evaluation of Impacts..................................................................4-5 4.2.4 Mitigation Measures & Residual Impacts ................................4-6 4.3 NOISE LEVELS................................................................................................4-6 4.3.1 Sources of Impact.........................................................................4-6 ENVIRONMENTAL RESOURCES MANAGEMENT STATOIL EIA DRILLING ii 4.3.2 Assessment Approach.................................................................4-6 4.3.3 Evaluation of Impacts..................................................................4-7 4.3.4 Mitigation Measures & Residual Impacts ................................4-9 4.4 WASTE GENERATION AND DISPOSAL..........................................................4-9 4.4.1 Sources of Impact.........................................................................4-9 4.4.2 Assessment Approach.................................................................4-9 4.4.3 Evaluation of Impacts................................................................4-11 4.4.4 Mitigation Measures & Residual Impacts ..............................4-12 4.5 WATER QUALITY.........................................................................................4-12 4.5.1 Sources of Impact.......................................................................4-12 4.5.2 Assessment Approach...............................................................4-13 4.5.3 Evaluation of Impacts................................................................4-13 4.5.4 Mitigation Measures & Residual Impacts ..............................4-14 4.6 SEABED & BENTHIC COMMUNITIES ...........................................................4-15 4.6.1 Sources of Impact.......................................................................4-15 4.6.2 Assessment Approach...............................................................4-15 4.6.3 Evaluation of Impacts................................................................4-16 4.6.4 Mitigation Measures & Residual Impacts ..............................4-16 4.7 FISHERIES .....................................................................................................4-17 4.7.1 Sources of Impact.......................................................................4-17 4.7.2 Assessment Approach...............................................................4-17