AUGUST 2013 Environmental Impact Statement. Additional Offshore Oil and Gas Exploration Drilling in Block 2, Tanzania Volume I Main Report FINAL PROPONENT Statoil Tanzania AS P.O. Box 713, 79 Haile Selassie, Oysterbay Dar es Salaam Tanzania SUBMITTED FOR APPROVAL TO: National Environment Management Council Migombani Street Plot 29/30 Regent Estate, Mikocheni P.O. Box 63154 Dar es Salaam, Tanzania Tel: +255 22 2774852/4889 Email: [email protected] 21st August 2013 PREPARED BY: COWI Tanzania. 398 Kawawa Road PO Box 1007 Dar es Salaam, Tanzania Security Classification: Open - Status: Final Page 1 of 293 ADDRESS COWI Tanzania 398, Kawawa Road P.O. Box 1007 Dar es Salaam Tanzania TEL +225 22 266 6161 FAX +225 22 266 6094 WWW cowi.co.tz AUGUST 2013 STATOIL Environmental Impact Statement. Additional Offshore Oil and Gas Exploration Drilling in Block 2, Tanzania Volume I Main Report FINAL PROJECT NO. A038540 DOCUMENT NO. Final VERSION 1.0 DATE OF ISSUE 21. August 2013 PREPARED ERP, NAVO,IPON CHECKED Mathew Richmond/Statoil APPROVED Statoil Security Classification: Open - Status: Final Page 3 of 293 EIS for additional offshore drilling in Block 2, Tanzania 5 CONTENTS 1 EXECUTIVE SUMMARY 15 1.1 Title and location of the project 15 1.2 Proponent and consultant conducting the EIA 15 1.3 Project description 15 1.3.1 Background for the Project 15 1.3.2 Planned wells 16 1.3.3 Operation 17 1.4 Scope of the EIS 17 1.5 Project environment 18 1.5.1 Environment in Block 2 area 18 1.5.2 Coastal areas 19 1.6 Stakeholders and stakeholder involvement 19 1.6.1 Stakeholders consulted 19 1.6.2 Stakeholders opinions and concerns 20 1.7 Impacts 21 1.7.1 Environmental and social impact significance 21 1.7.2 Environmental risk 22 1.8 Cumulative effects 23 1.9 Alternatives considered 24 1.10 Mitigating measures 24 1.11 Environmental and Social Management Plan 25 1.12 Auditing and Monitoring Plan 25 1.13 Cost benefit analysis 26 1.13.1 Costs 26 1.13.2 Benefits 26 1.14 Decommissioning 27 1.15 Conclusion 27 2 INTRODUCTION 28 2.1 Background for the Project 28 2.2 Nature of the project 29 Security Classification: Open - Status: Final Page 5 of 293 6 EIS for additional offshore drilling in Block 2, Tanzania 2.3 Structure of the EIS Report 29 3 PROJECT DESCRIPTION 31 3.1 Location of the Project 31 3.2 Project phases 32 3.3 Site selection and design phase 33 3.3.1 Site selection 33 3.3.2 Design of project 37 3.3.3 Drill ship 38 3.4 Mobilization phase 41 3.4.1 Delivery of good and supplies 41 3.4.2 Survey of seabed 41 3.4.3 Establishment of safety zones 41 3.5 Operation (Well-drilling) phase 42 3.5.1 Drilling procedure 42 3.5.2 Well design 45 3.5.3 Materials that will be used during the drilling operations 48 3.5.4 Blowout prevention 55 3.5.5 Occupational Health and Safety 55 3.5.6 Supply, Support Logistics 56 3.5.7 Waste generation, discharges and emissions to air 61 3.5.8 Drill stem testing 62 3.6 Decommissioning phase 65 3.7 Project alternatives 66 3.7.1 No project (no-go) alternative 66 3.7.2 Technological and process alternatives 66 3.7.3 Supply Port Base 67 3.7.4 Airport Support Base 68 3.7.5 Navigation route alternatives 68 4 POLICY, ADMINISTRATIVE AND LEGAL FRAMEWORK 69 4.1 National policies, legislation and regulations 69 4.1.1 National policies 69 4.1.2 Principle legislation 73 4.1.3 Regulations 79 4.2 International Agreements and Conventions 83 4.3 Administrative framework 83 5 EXISTING ENVIRONMENTAL AND SOCIOECONOMIC CONDITIONS 87 5.1 EIA Boundaries 87 5.1.1 Primary impact areas 87 http://team.statoil.com/sites/ts-28393/permiting/EIA Block 2/Shared Documents/EIS Vol_1 Additional Offshore Oil and Gas Exploration Drilling in Block 2 Tanzania - FINAL EIS.docx EIS for additional offshore drilling in Block 2, Tanzania 7 5.1.2 Secondary impact areas 88 5.2 Environmental baseline 89 5.2.1 Physical features Tanzanian waters 89 5.2.2 Physical features in Block 2 90 5.2.3 Biological features in Block 2 91 5.2.4 Coastal Biological features 103 5.2.5 Sensitivity ranking of the Tanzanian coastline (Environment) 116 5.3 Socio-economic baseline 119 5.3.1 Economic activities in the primary influence area 119 5.3.2 Economic activities in the secondary influence area 122 5.3.3 Infrastructure and Social Services Mtwara Mikindani Municipal Council (Mtwara Urban) 130 5.3.4 Sensitivity ranking of the Tanzanian coastline (Socio-economy) 131 6 STAKEHOLDER CONSULTATIONS 133 6.1 Stakeholders identified and consulted 133 6.2 Stakeholder opinions and concerns 135 6.2.1 Positive opinions about the project 135 6.2.2 Negative concerns about the project 135 6.3 Addressing Stakeholder opinions and concerns 137 7 ASSESSMENT OF ENVIRONMENTAL AND SOCIO-ECONOMIC IMPACTS 139 7.1 EIA methodology 139 7.2 Environmental Impacts 144 7.2.1 General 144 7.2.2 Impacts during the site selection and design phase 145 7.2.3 Impacts during the mobilization/site preparation phase 145 7.2.4 Impacts during the operation (well drilling) phase 156 7.2.5 Impacts during the decommissioning/demobilization phase 210 7.2.6 Cumulative effects 216 7.3 Socio-economic impacts 217 7.3.1 Impacts during the mobilization phase 218 7.3.2 Impacts during the operation (well drilling) phase 220 7.3.3 Cumulative socio-economic impacts 229 7.4 Summary of impacts 230 7.4.1 Environmental impact significance 230 Security Classification: Open - Status: Final Page 7 of 293 8 EIS for additional offshore drilling in Block 2, Tanzania 7.4.2 Environmental risk 230 8 ENVIRONMENTAL AND SOCIAL MITIGATION MEASURES 236 8.1 Introduction 236 8.2 Mitigation measures for environmental impacts 237 8.2.1 Mitigating measures for accidental spills from ships 237 8.2.2 Mitigating measures for oil blow-out 241 8.2.3 Mitigating measures for the risk of introduction of invasive species via ballast water 242 8.2.4 Slop treatment 243 8.2.5 Mitigating measures for the discharge of cuttings with adhered SOBM components 244 8.2.6 Waste Management Plan 248 8.3 Occupational Health and Safety 251 8.3.1 Project phases when measures are implemented 251 8.3.2 Measures 251 8.4 Mitigation measures for socio-economic impacts 252 8.4.1 Use of local supplies and service 252 8.4.2 Employment 252 8.4.3 Health and Safety Risks 252 8.4.4 Loss from collision with other marine vessels 253 8.4.5 Piracy 254 8.4.6 Blow out 254 9 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN 255 9.1 Introduction 255 9.2 Statoil's HSE Principles 255 9.3 Environmental and Social Management Plan 256 9.4 Roles and responsibilities 264 9.4.1 Role of Statoil organisation 264 9.4.2 Responsibilities the drill ship contractor 265 9.4.3 Responsibilities of the supply/security vessel contractor 265 9.4.4 Responsibilities of the Base logistics Contractor 266 9.4.5 Responsibilities of the waste management contractor 266 10 ENVIRONMENTAL AND SOCIAL MONITORING AND AUDIT PLAN 267 10.1 Inspections and Audits/verifications 267 10.1.1 Daily Inspections and follow up 267 10.1.2 Audits/verifications 267 10.1.3 Ad-hoc Audits/verifications 268 http://team.statoil.com/sites/ts-28393/permiting/EIA Block 2/Shared Documents/EIS Vol_1 Additional Offshore Oil and Gas Exploration Drilling in Block 2 Tanzania - FINAL EIS.docx EIS for additional offshore drilling in Block 2, Tanzania 9 10.1.4 Audit Reporting 268 10.1.5 Monitoring 268 11 COST BENEFIT ANALYSIS 273 11.1 Overall cost implications 273 11.1.1 Investment costs 273 11.1.2 Environmental costs 273 11.1.3 Socio-economic costs 274 11.2 Overall potential benefits 274 11.2.1 Environmental benefits 274 11.2.2 Socio-economic benefits 274 12 DECOMMISSIONING PLAN 275 13 SUMMARY AND CONCLUSIONS 276 13.1.1 Environmental and socio-economic impact significance 277 13.1.2 Environmental risk 278 14 REFERENCES 280 Appendix A NEMC Approval letter for the Terms of Reference Security Classification: Open - Status: Final Page 9 of 293 EIS for additional offshore drilling in Block 2, Tanzania 11 ABBREVIATIONS AND ACRONYMS BG: British Gas Group BOD: Biological Oxygen Demand BOP: Blow-Out Preventer CBD: Convention on Biological Diversity CH4 Methane CO: Carbon Monoxide COD: Chemical Oxygen Demand CO2: Carbon dioxide CSR: Corporate Social Responsibility DMI: Dar es Salaam Maritime Institute DREAM: Dose related Risk and Effect Assessment Model DSFA: Deep Sea Fisheries Authority DST: Drill Stem Test DWH: Deepwater Horizon EACC: East African Coastal Current EEZ Exclusive Economic Zone EIA: Environmental Impact Assessment EIS: Environmental Impact Statement EMA Environmental Management Act ERP: Emergency Response Plan ESIA: Environmental and Social Impact Assessment ESMaP: Environmental and Social Management Plan HIV/AIDS Human immunodeficiency virus infection / acquired immunodeficiency syndrome Security Classification: Open - Status: Final Page 11 of 293 12 EIS for additional offshore drilling in Block 2, Tanzania HOCNF Harmonised Offshore Chemical Notification Format H&S Health and Safety HSE: Health Safety and Environment IBA Important Bird Areas ILO: International Labour Organisation IMT: Incident Management Team ITCZ Inter-Tropical Convergence Zone IUCN: International Union for Conservation of Nature JIT Joint Industry Project Klif The Norwegian Climate and Pollution Agency LDCs Least Developed Countries LGA Local Government Authority LNG: Liquefied Natural Gas MARPOL: Marine Pollution (International Convention for the Prevention of Pollution from Ships) MBREMP: Mnazi Bay-Ruvuma Estuary Marine Prk MEG Mono Ethylene Glycol MIMP: Mafia Island Marine Park MMO Marine mammal observer MPA: Marine Protected Area MRCC: Marine Rescue and Coordination MSDS: Material Safety Data Sheets MUFA: Multiple Use