On 19/20 March, two biodiversity, business and human rights events were organised by MCRB in Yangon: a multistakeholder consultation on the draft Briefing Paper, and a training session conducted by a number of international experts on biodiversity and environmental impact assessment (EIA) for around 70 representatives from companies, particularly EIA consultancies. Read more: http://www.myanmar-responsiblebusiness.org/news/reinforcing-connections.html

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ESIA Training Myanmar
Offshore oil and gas –
Key biodiversity risks and mitigation
Dr Iain Dixon
Environmental Specialist

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Marine environment
Marine environment and biodiversity…
What does this include?
Why is it of concern?

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Marine environment
The marine environment
71% of our planet
Averages nearly 4,000m in depth

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Marine environment
Biodiversity – the variety of living things
(species, habitats, communities, ecosystems)
> About 8.7 million (± 1.3 million) species on Earth
> 6.5 million species on land
> 2.2 million in oceans
Estimated that 86% of all species on land and 91% of those
in the seas have yet to be discovered and described

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Marine environment
Why is marine biodiversity important?
> Primary productivity
– ~50% of primary production worldwide by phytoplankton
– ~50 to 85% of world’s oxygen produced by phytoplankton
photosynthesis
– Most of the transfer of CO2 from the atmosphere to the
ocean is by phytoplankton
> Creation of habitats (mangroves, coral reefs)
> Nutrient storage and recycling
> Food and livelihoods

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Marine environment
From coast to deep sea…
> Shorelines (rocky, sandy, muddy)
> Estuaries, mangroves, seagrass meadows, coral reefs
> Continental shelf sedimentary habitats (muds, sands, mixed
sediments)
> Continental slope and deep sea habitats (canyons, sea
mounts, mud volcanoes, carbonate mounds, deep / cold
water corals)
> Plankton, benthos, fish, other pelagic animals, reptiles,
marine mammals, seabirds

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Marine environment
Biodiversity in the oceans has decreased dramatically
since industrialisation began in the 19th century due to:
> Overfishing / demand for food
> Pollution and eutrophication of the seas
> Climate change

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Myanmar marine environment
Myanmar marine biodiversity atlas:
> An excellent source for good quality data – easily available
> Online portal; GIS downloads
> Synoptic climate and oceanographic data
> Bathymetry
> Marine and coastal habitats
> Biodiversity
– Key biodiversity areas
– Marine protected areas (all coastal)
– Some distribution data – sharks, prawns,
cephalopods, dugong
– Some fisheries information
– However, little information at this stage on deep sea
habitats (particularly fragile)

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Oil and gas sector
Offshore oil and gas sector…
Myanmar
Sequence of activities
Types of impacts
Mitigation

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Oil and gas sector
Worldwide, the oil and gas
industry has been operating for a
long time offshore
Impacts are broadly understood in
terms of approaches to
assessment and mitigation
Good international industry
practices – in step with ESIA
processes evolution

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Oil and gas sector
Oil and gas in Myanmar – since
1853
Industry nationalised in 1962
Offshore fields discovered since
1980s:
e.g. Shwe, Yetagun, Yadana
Major natural gas and petroleum
producer in Asia
Mostly gas, some oil
Exports to China and Thailand

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Oil and gas sector
Sequence of activities (oil & gas ‘life
cycle’)
> Exploration – seismic survey,
exploration drilling
> Construction / development –
installation of platforms, floating
production facilities, pipelines
> Decommissioning – reverse of
construction / development

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Oil and gas sector
Types of impacts
> Emissions to atmosphere
> Discharges to sea
> Disturbance to seabed (cuttings
discharges, anchoring, infrastructure
installation)
> Underwater noise (effects on fish,
reptiles and marine mammals)
> Interaction with coast / sea users
> Impacts from unplanned events (e.g.
oil spill)

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Seismic survey
The first part of exploration offshore
> Survey vessel and support vessel (chase boat)
> Towed noise source (air guns)
> Towed array of long streamers with geophone receivers and tail buoy
Potential impacts
> Loud noise underwater:
– Injury or disturbance to marine mammals, fish, turtles
– Physical interactions with wildlife
> Interactions with other sea users (e.g. fishing, shipping)
> Emissions from fuel combustion
> Deck drainage, grey / black water discharges
Mitigation examples
> Knowledge of how marine mammals, fish and other sea users use the area
> Avoidance of peak sensitivities (seasonal)
> Use of Marine Mammal Observer and recognised mitigation guidance
> Noise modelling to predict likely impacts
> Fisheries consultation in advance
> Fisheries Liaison Officer on board
> Towed array and tail buoy turtle-friendly
> Vessel and systems compliant with MARPOL convention

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Exploration drilling
The second step in exploration offshore
> Mobile offshore drilling unit:
– Jack-up (to 150m), semi-submersible (shallow-deep), drill ship (deep)
> Anchoring or dynamic positioning
> Support vessels:
– Tugs / anchor handlers, emergency response vessel, supply ship, helicopter flights
> Drilling with cuttings discharges
> Possible use of small seismic air guns
Potential impacts
> Discharge of cuttings and chemicals through water to seabed (impact to water column,
seabed and biota including fish spawning areas)
> Physical disturbance of seabed by anchors (impact to seabed and communities)
> Loud noise underwater – drilling, air guns / piling, or dynamic positioning systems (injury or
disturbance to marine mammals, fish, turtles)
> Exclusion to other sea users (e.g. fishing, shipping)
> Emissions from flaring during well clean / test
> Emissions from fuel combustion
> Deck drainage, grey / black water discharges, ballast water discharge
> Possible accidental events (blow-out, collision) resulting in oil spill

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Exploration drilling
Mitigation examples for drilling discharges
> Compliance with chemical selection procedures and good international industry practice
(use of benign chemicals, minimise use and discharge)
> Benthic survey work to understand seabed type and communities present at location
> Drill cuttings and mud dispersion modelling to understand fate
> Area of seabed disturbance very small, temporary (good recovery potential)
Mitigation examples for underwater noise
> Avoidance of peak sensitivities (seasonal)
> Use of Marine Mammal Observer and recognised mitigation guidance
> Noise modelling to predict likely impacts
> Fisheries consultation in advance
Routine vessel emissions and discharges mitigation
> Rig, vessels and systems compliant with MARPOL convention
Flaring emissions mitigation
> Minimise duration (usually <48hrs)
> Good international industry practice
Accidental event mitigation
> Blow-out preventer (BOP) and good international industry practice
> Oil spill modelling, contingency planning and resourcing
> Patrolled 500m safety exclusion zone

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Drill cuttings dispersion modelling
Example of modelling output
> Single well in 800m using water-based muds
> Top-hole cuttings as seabed discharge, plus deeper sections treated and discharged
through water column
Key results
> Cuttings pile expected to be around 2.5m thick at centre
> Dimensions of area with >10mm thickness of cuttings (blue area) is 75m wide
> Dimensions of area with >1.0mm thickness of cuttings (dark green area) is 400m long by
300m wide
> Full recovery predicted within 5 years
> Impact due mostly to smothering and introduction of different sediment type
> Predictions in line with observations of ecological impact from monitoring carried out around
wells worldwide since 1970s
Footprint of drilling on seabed (one well)
> Drill cuttings to 1.0mm thickness ~0.13km2
> Anchoring (8 anchors, each with 1km of line on seabed) ~0.08km2
> For comparison, 500m safety zone = 0.8km2

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Development options

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Development
Typical offshore development may comprise
> Development drilling (multiple wells at one or more locations)
> Installation of production platforms or floating production units, with anchor system
> Installation of wellheads, production trees, manifolds on seabed, and pipelines
Development activities – Drilling / Construction / installation phase 1 – 2 years?
> Mobile offshore drilling unit and support vessels:
– Drilling discharges
– Anchoring disturbance
> Infrastructure installation:
– Possible piling for production facilities
– Seabed disturbance footprint (infield
– Seabed disturbance (export pipelines) - interaction with coastal zone?
– Pipeline commissioning discharges to sea
– Onshore facilities / shore bases?
Operational activities (field life of up to 20 years)
> Production processing:
– Fuel combustion emissions, flaring of unwanted gas, fugitive emissions and
emission of volatile organic compounds (VOC)
– Produced water discharges
> Shuttle tankers for oil export, supply and emergency response vessels, plus helicopter
flights (fuel combustion emissions)

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Development
Potential impacts & mitigation
Drilling - multiple wells = more discharge of cuttings to sea / seabed
– Use of oil based drilling muds? Impact to seabed is longer-term
> Mitigation
– Cuttings treatment offshore or onshore?
– Possible reinjection of cuttings downhole?
– Best available techniques (BAT) assessment for options
– Cuttings discharge modelling and baseline survey data to quantify effects
Construction / installation – physical disturbance of seabed
– Anchors, pipelines, rock placement
– Impact to seabed and possibly fish spawning areas temporary or long-term
– Impact to coastal zone?
> Mitigation
– Baseline survey data to understand / quantify effects to seabed habitats
– Most impacts temporary; good recovery potential
– Options for siting of infrastructure and pipeline routing to avoid sensitive features
– Use of existing pipelines and shore facilities for export

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Development
Through all phases – loud noise underwater - from drilling, piling, and dynamic positioning
systems
– Injury / disturbance risk to marine mammals, fish, turtles
> Mitigation
– Risks highest during construction (short-term only)
• Noise modelling and baseline data
• Use of marine mammal observers and international mitigation guidance
Through all phases - exclusion to coast / sea users - temporary and / or long-term
> Mitigation
– Knowledge of use of area by other coast and sea users
• Shipping and collision risk studies
• Socio-economic baseline study
• Consultation with stakeholders

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Development
Through all phases - discharges to sea – impacts to water quality and marine life
> Mitigation
Main issue is what to do with produced water over life of field
– Compliance with chemical selection procedures and good international industry practice
– Possible use in water injection downhole
– If discharged to sea:
• Treatment of oil content to international industry standards
– Discharge modelling
– Best available techniques (BAT) assessment for options
Through all phases - Emissions from fuel combustion, flaring, fugitive emissions –
impacts to air quality and to regional / global issues
> Mitigation
– Export to onshore markets
– Possible use of any produced gas as fuel for field production systems
– Possible reinjection downhole or use as gas lift to aid production
– Emissions modelling
– Best available techniques (BAT) assessment for options

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Accidental events
A large oil spill is a high-consequence event
e.g. Macondo
Environmental impact of a spill depends on a wide variety of factors, which in
the offshore environment include:
> Accidental release volume
> Type of hydrocarbon released
> Direction of travel of the slick
> Weathering properties of the hydrocarbon
> Environmental receptors and sensitivities present in the path of the slick
(these may change with time) including potential beaching locations

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Accidental events
Receptor Observed Impacts Conclusion
Plankton
Impacts difficult to detect, even within hours or days after spill. Juvenile
fish and eggs are potentially the most sensitive life-stage to hydrocarbon
discharges, and of high concern.
Good recovery potential through rapid reproduction and dispersal.
Fish
Adult fish are not generally affected by hydrocarbon slicks on the sea
surface. Consequential effects on adult populations not detected, though
tainting is a possibility.
Spawning/nursery areas and juveniles are most sensitive.
Benthos
Oil typically floats on sea surface, meaning that offshore benthos
generally not of high concern.
Concern much higher in shallow waters or coast.
Birds
Greatest risk to nature conservation from oil on the offshore sea surface
are to seabirds. Main impact of a spill is one of plumage damage,
leading to loss of insulation, waterproofing and ingestion.
Magnitude of impact will depend on the species and number of birds present, and the
proportion of the population present.
Marine mammals
Data on the impacts of spills on marine mammals are limited. Baleen
whales may be particularly vulnerable whilst feeding near sea surface.
Magnitude of impact will depend on the species and numbers present. Population-level
effects unlikely.
Inshore waters and coast
All receptors, environmental and socio-economic, highly sensitive to
impacts through smothering and toxicity.
Main environmental sensitivities at coast include breeding seabird populations, shore
birds, marine mammals, and habitats including seagrass meadows, mangroves,
estuaries, sand and mud flats and wetlands. Major socio-economic risks include
disruption to fisheries, aquaculture, coastal industry, communities, tourism, and marine
protected areas.

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Accidental events
Blow-out and spill statistics – needed in order to assess risk
> Historical international data regarding blowouts compiled in the SINTEF
Offshore Blowout Database (Norway)
> International Association of Oil & Gas Producers (IOGP) published a
summary of SINTEF data in 2010
> UK spill data available from Oil and Gas UK
> Likelihood of a blowout event or well release is remote
Other general oil releases
> In UK over 1990 – 2007, 238 recorded oil releases from rigs; release rate
declined to 0.21/year
> Mostly from drilling or operational incidents; 94% less than 1 tonne
> Production releases 2001 – 2007, mostly maintenance incidents; all less
than 10 tonnes and 96% less than 1 tonne
Other accident types
> Instances of vessel contact with rig – rate now down to 0.12/year
> Vessel collisions with rig – rate now down to 0.014/year
> Explosions on rig – rate now down to 0.009/year
Scenario
Blowout
Historical frequency – IOGP, 2010
(individual units given per operation)
Exploration drilling
(deep)
0.0014 per well
Development drilling
(deep)
0.00035 per well
Producing well 0.000033 per well year
Most spills not major and the figures therefore overstate the
frequency of blowouts that have resulted in significant pollution.
Based on SINTEF international data for wells in water >200m (IOGP
2010).

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Accidental events
> Blow-out preventer (BOP); well / pipeline isolation systems
> Emergency response procedures, including planning for relief
well
> Oil pollution contingency plan with response resources in
place, including aerial surveillance, real time modelling,
dispersants, clean up equipment and specialist staff
> Coastal protection strategy
> Normal drilling / installation management procedures:
– ‘Safety case’
– Well design, inspection and monitoring
– Coastal protection strategy
• Baseline data on resources at risk and for protection
(GIS)
– Maintenance and inspection
– Response exercises
– Training and procedures
Mitigation examples:

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Impact significance summary
Atmospheric emissions – regional effects (& adding to global climate change?)
> As for discharges to sea, routine emissions to atmosphere from rigs and vessels
are minimised through adherence to MARPOL convention articles relating to fuel
use and power plant emissions standards
> In certain circumstances, any produced gas could be exported, used as a fuel
source for field production processing systems, reinjected downhole, or used in
wells for gas lift
> Emissions modelling and BAT assessments
Discharges to sea – risks to water quality and biodiversity
> Routine vessel impacts are minimised by a combination of adherence of vessels
and rigs to MARPOL convention articles relating to waste, sanitation, drainage
and machinery specifications – no further mitigation normally necessary
> Impacts from pipeline hydrotest discharges, and produced water discharges
routinely mitigated through adherence to international good practice in chemical
selection and use
> Discharge modelling and BAT assessments
> In certain circumstances, additional mitigation such as downhole disposal, or in
water injection to improve oil recovery rates may be feasible for developments

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Impact significance summary
Underwater noise – risks to wildlife
> Impact, particularly physical injury, minimised through
– knowledge of use of the locality by marine mammals, fish and turtles, and
– underwater noise modelling
> Areas of particular sensitivity may include ocean upwellings, and possible deep
canyons (beaked whales)
> Scientific understanding still progressing – a specialist area
Seabed disturbance – risks to seabed features and biodiversity
> Area affected in exploration very small and localised (typically less than 0.5 km2)
> Area affected is larger in case of developments, especially those with pipelines
> Impact to seabed features or species (or avoidance of impact) depends on
location, and
> Good site-specific environmental surveys – another specialist area
> Some deep sea features known in Europe and internationally are present in
offshore Myanmar

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Impact significance summary
Interactions with other sea users (‘physical presence’) – competition for space
> Only a potential issue in close proximity to coast, e.g. in relation to fishermen,
other shipping or possibly in terms of visual amenity to onshore communities
> Exclusion of fishermen from a small area on a temporary basis not usually an
issue, especially far offshore in water deeper than 600m, but always benefits from
stakeholder consultation
> Knowing which sea areas are fished by fishermen, and what fishing equipment is
used is important
> In busy sea areas, shipping / fishing intensity studies are recommended, and a
collision risk study may be useful (automated vessel monitoring data (AIS) is of
value here)
Oil spill risk (impact consequence increases exponentially towards coast)
> All oil spills have the potential to be high-consequence events
> Risk of impact increases close to shore
> The main mitigation for this type of impact is having prevention and management
measures to reduce the risk of occurrence to ‘remote’ or ‘extremely remote’

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Case study
Project
> Four development wells
> Minimum facilities platform
> 20″ 48km gas export pipeline with multiple trenching methodologies along route
> Onshore gas processing facilities within existing terminal
Scope
> Environmental Impact Assessment screening and scoping
> Environmental Issues Identification (ENVID)
> Onshore and Offshore EIAs
> Stakeholder engagement advice
> Habitat Regulations Assessment (HRA)
Challenges
> Project within, or passing through, numerous environmental designations (MCZs, SPAs,
SACs, SSSIs)
> Wide ranging stakeholder concerns, especially relating to high rates of regional coastal
erosion – specialist coastal processes study conducted
> Scoped out key aspects – visual, traffic and transport, onshore archaeology, requirement for
further bird surveys, to be able to concentrate on key impacts
> Comparative assessment of different trenching methodologies, to minimise impacts on
protected features
Tolmount Area Development EIA (Premier Oil E&P UK)

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Case study
Project
> One well (two possible locations)
> Deep water
> High pressure, high temperature
> Rig not known
> Close to protected sites (deep sea sponge aggregations, offshore seabirds)
> First well for operator west of Shetland
> Regulatory oversight
Scope
> EIA Scoping meetings with regulator
> Environmental Issues Identification (ENVID)
> Drill cuttings dispersion modelling
> Oil spill modelling
> Impact assessment on worst case scenarios
> Habitat Regulations Assessment (HRA) for protected site
Challenges
> Project close to environmental designations
> Technical benthic ecology expertise required to demonstrate that cuttings
discharges would not affect protected site or deep sea communities
Craster Exploration Well Environmental Impact Assessment (Nexen UK)

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Thank you
www.xodusgroup.com
Offshore Energy Specialists Marine Environmental and Social Impact Assessment Modelling Best Available Techniques