Myanmar: Environmental & Social Impact Study for Offshore Bay of Bengal Block A-4 Initial Environmental Examination Report – Executive Summary 25 November 2015 Environmental Resources Management www.erm.com The world’s leading sustainability consultancy Myanmar: Environmental & Social Environmental Resources Management Impact Study for Offshore Bay of Bengal ERM-Hong Kong, Limited Block A-4 16/F, Berkshire House 25 Westlands Road Quarry Bay Initial Environmental Examination Report – Hong Kong Executive Summary Telephone: (852) 2271 3000 Facsimile: (852) 2723 5660 Document Code: 0274927_IEE Report_Block A4_cover_Exec Summ.docx http://www.erm.com Client: Project No: BG Exploration & Production Myanmar Pte Ltd 0274927 Summary: Date: 25. Nov. 2015 Approved by: This document presents the Initial Environmental Examination Report – Executive Summary as required under the study Myanmar: Environmental & Social Impact Study for Offshore Bay of Bengal Block A-4 (Tender Ref 118899TND). Craig A Reid Partner 2 FINAL for MOGE Var BS CAR 20/11/15 1 Revised Final for MOGE Var BS CAR 14/10/15 0 Draft for MOGE Var JNG CAR 17/07/15 Revision Description By Checked Approved Date Distribution Internal Public Confidential 1 EXECUTIVE SUMMARY 1.1 THE PURPOSE AND EXTENT OF THE IEE REPORT Myanma Oil and Gas Enterprise (MOGE) have the exclusive authority to carry out all Petroleum Operations in Myanmar and BG Group, as operator, is responsible to the MOGE for the execution of Petroleum Operations in the A-4 Contract Area. BG Group (through its local branch company BG Exploration and Production Myanmar Pte Ltd) is planning to undertake a geophysical and geological sampling campaign to test the prospectivity of the waters offshore of the Rakhine State for hydrocarbons using seismic, gravity and magnetics surveys in conjunction with seabed sampling surveys (‘the Project’). These works will take place within a specific Activity Area within Block A-4 shown in Figure 1.1. As per the draft Environmental Impact Assessment (EIA) Procedures, the Project requires an Initial Environmental Examination (IEE) as the appropriate level of assessment. BG Group has commissioned Environmental Resources Management (ERM), supported by local specialists Resource and Environment Myanmar (REM), to undertake the IEE Study. More details on the project overview, justification and purpose are provided in Section 2 of the IEE Report (1). This Final IEE Report is available on BG Group’s website: http://www.bg-group.com/484/where-we-work/myanmar/ and upon request via email: [email protected]. A Project Proposal Report was submitted to the Ministry of Environmental Conservation and Forestry (MOECAF) on 16th February 2015. The Report provided the Screening Study for the Project, including a discussion on the potential impacts and likely mitigation. The Report allowed the MOECAF to determine what type of assessment was required. Under Section 7 of the Environmental Conservation Law (2012) and Articles 52 and 53 of the Environmental Conservation Rules (2014) of the Republic of the Union of Myanmar, it was determined that BG Group is required to undertake an Initial Environmental Examination (IEE) and to obtain an Environmental Compliance Certificate (ECC) in accordance with the Environmental Impact Assessment (EIA) Procedures (“the Procedures”). The Project Proposal Report allowed a Terms of Reference (ToR) to be created for the Project which set out the required contents of the IEE Report. The new EIA Administrative Instruction (July 2015) provided by MOECAF to ERM in August 2015 was also used to create the IEE Report, this Executive Summary and the Environmental and Social Management Plan. (1) The Final IEE Report will be available on BG’s website: http://www.bg-group.com. ENVIRONMENTAL RESOURCES MANAGEMENT BG GROUP 0274927_IEE_BG_A4_FINAL_COMPLETE_EN.DOCX NOVEMBER 2015 1-1 400000 450000 500000 550000 600000 650000 92°0'0"E 92°30'0"E 93°0'0"E 93°30'0"E 94°0'0"E 94°30'0"E 2150000 Kyaukpyu (! 2150000 Myanmar Thailand Zin Bay of Bengal Chaung ! San Tin Ramree (! Maw ! Kyauk Legend Oo Mou ! 19°0'0"N 19°0'0"N (! Town 2100000 Depth (m) 2100000 ! Key Villages / < 0 Settlements 0.1 - 10 Kyauk Ni Maw Area of Interest ! 10.1 - 20 Manaung (! Toungup (! Blocks Za Ku 20.1 - 30 Zee Taw Kyun 3D Survey Area ! ! 30.1 - 40 Kamar Activity Area ! Magyee Kyun showing 40.1 - 50 A-4 ! orientation of 50.1 - 60 Ka Ei Seismic Lines ! BG Operated 60.1 - 70 Block 70.1 - 80 Ye Kyun ! 80.1 - 90 Sin Gaung 90.1 - 100 ! 100.1 - 200 2050000 2050000 200.1 - 300 18°30'0"N 18°30'0"N Thandwe (! 300.1 - 400 400.1 - 500 Gyeiktaw 500.1 - 1,000 ! 1,000.1 - 1,500 Thabyugyaing 1,500.1 - 2,000 ! 2,000.1 - 2,500 > 2,500 Kilometres ® 0210 0 Service Layer Credits: Sources: Esri, HERE, DeLorme, USGS, Intermap, increment P Corp., 2000000 2000000 NRCAN, Esri Japan, METI, Esri China (Hong Kong), Esri (Thailand), TomTom, MapmyIndia, © OpenStreetMap contributors, and the GIS User Community 18°0'0"N 18°0'0"N 92°30'0"E 93°0'0"E 93°30'0"E 94°0'0"E 94°30'0"E 400000 450000 500000 550000 600000 650000 Figure 1.1 Environmental Block A-4 and Area of Interest Resources Management File: T:\GIS\CONTRACT\0274927\Mxd\Report_A4\0274927_Block_and_AoI_for_Summary_A4.mxd Date: 17/7/2015 1.2 SUMMARY OF THE ACTIVITIES UNDERTAKEN DURING THE IEE STUDY The Project commenced with a screening and scoping phase under which the Project identified potentially affected stakeholders, Project Area of Interest (1), potential impacts and gathered baseline data. The Project also conducted consultations with a number of government bodies, scientific organisations and NGOs in order to collect data. This information fed into the Project Proposal Report. In addition, a scoping assessment was prepared for internal use at BG Group in order to define the study limits and the key potential impacts from the Project. After the initial screening and scoping phase, the environmental and social impact assessment (ESIA) phase commenced. The ESIA phase included stakeholder consultations in Sittwe, Kyaukphyu, Ramree, Manaung and Thandwe. These consultations were undertaken in order to present the Project information, present BG Group, discuss the currently known baseline conditions and potential impacts and gather comments, concerns or queries from stakeholders to be included in the impact assessment and development of mitigation measures for the IEE Report. Collecting relevant baseline information also involved a literature review, using a range of published materials, including journals and online resources to help gain an understanding of the biological, physical and social environment. This baseline information was then verified to the extent possible through consultations within Rakhine with a variety of stakeholders during the public consultations. 1.3 PROJECT ALTERNATIVES AND SELECTED ALTERNATIVE The Project is the initial data-gathering phase, which if the area appears prospective for hydrocarbons may lead to an exploration drilling program, which if successful in finding economic reserves of gas or oil may lead to development and production. Each of these three phases of activity will be preceded by an environmental and social assessment. Securing indigenous resources for the development of Myanmar is strategically important for the country and this first data gathering exercise is both key to an accurate assessment of prospectivity and has a very low environmental and social impact. Nevertheless consideration of Project alternatives was undertaken as part of the IEE study in order to attempt to avoid or reduce any adverse environmental and social impacts and maximise or enhance any potential project benefits. The different options included: (1) The Project Area of Interest was defined as the area within Block A-4 as well as its immediate surroundings including the adjacent nearshore waters and coasts of Rakhine State mainland. ENVIRONMENTAL RESOURCES MANAGEMENT BG GROUP 0274927_IEE_BG_A4_FINAL_COMPLETE_EN.DOCX NOVEMBER 2015 1-2 • The type of streamer to be used; it was suggested that solid or gel-filled streamers would be preferential as they do not leak when damaged, and are less sensitive to weather and wave noise. • The project would be located as far as practicably possible from any key sensitive receivers. In this instance, the Activity Area is around 10 km from the coastline of Manaung Island where there are sensitive coastal habitats (e.g. corals). In addition, although BG Group are licensed for the entirety of Block A-4, BG are not undertaking any Project activities in water depths of less than 50 m; and • The navigational safety zone during seismic operations was proposed to be mobile (i.e. around the seismic vessels and equipment), instead of covering the whole Block, in order to reduce impacts on other marine users. • The “No Project” alternative was also considered (i.e. no exploration campaign would be implemented). However, this would imply that no further exploration activity could be conducted in this Block; such as drilling exploration wells. This would in turn mean that no oil and gas development project could be undertaken. As a result, “No Project” would result in fewer opportunities for future gas supply to the domestic market as well as less direct and indirect employment opportunities. The Selected Project Alternative A fuller description of the project activities is provided in Section 4 of the IEE Report and is summarised below. Programme and Seismic Survey Area The exploration campaign in Block A-4 is proposed to consist of seismic and gravity / magnetic surveys as well as a seabed sampling survey. The seismic and gravity / magnetic surveys are planned to commence in approximately November 2015, and last for a period of two to three months. The seabed sampling survey is due to take place between approximately March and April 2016. The timing of the surveys coincides with the Northeast monsoon (December to April) so as to avoid the cyclone season.