SP-2036, Well Engineering General Operational Safety Specification

Petroleum Development Oman LLCRevision: DRAFT

Effective: Dec-5

Petroleum Development Oman LLCVersion: 3.0Effective: Jan 2009

Petroleum Development Oman L.L.C.

RESTRICTED Document ID: SP-1011Feb-09 Filing Key: Business Control Health Safety Environment & Sustainable Development

Specification for BiodiversityUser Note:

The requirements of this document are mandatory. Non-compliance shall only be authorised by the Document Owner or his Delegate through STEP-OUT approval.

A controlled copy of the current version of this document is on PDO's EDMS. Before making reference to this document, it is the user's responsibility to ensure that any hard copy, or electronic copy, is current. For assistance, contact the Document Custodian or the Document Controller.

Users are encouraged to participate in the ongoing improvement of this document by providing constructive feedback.

Please familiarise yourself with the

Document Security Classification DefinitionsThey also apply to this Document!This page was intentionally left blank

i Document Authorisation

ii Revision History

The following is a brief summary of the 4 most recent revisions to this document. Details of all revisions prior to these are held on file by the issuing department.Version No.DateAuthorScope / Remarks

Version 3.0Feb 2008Mohammed Al ShuailyMSEl24Updated to reflect current regulatory requirements and re-structuring specification content (see section 1.2)

Version 2.0Feb 2003Faisal Al-Lamki CSM/24To incorporate Ministerial Decision 130/2000 endorsing the Management Plan for the Arabian Oryx Sanctuary and other relevant decrees enforced between Dec 1998 and Feb 2003

Version 1.0Dec 1998Frans Willekes, CSM

Corporate Functional Discipline Head for HSEOriginal guideline

iii Related Business Processes

CodeBusiness Process (EPBM 4.0)

iv Related Corporate Management Frame Work (CMF) Documents

The related CMF Documents can be retrieved from the Corporate Business Control Documentation Register TAXI. TABLE OF CONTENTS

3iDocument Authorisation

4iiRevision History

4iiiRelated Business Processes

4ivRelated Corporate Management Frame Work (CMF) Documents

61Introduction

61.1Purpose

61.2Changes to the Specification

62Scope

72.1Definitions & Abbreviations

72.2Deliverables

72.2.1Records

72.2.2Reports

82.3Performance Monitoring

82.4Review and Improvement

82.5Performance Standards

82.5.1Requirements

92.5.2Execution

103Appendix A

103.1Appendix 1: General Land Use Policies by Zones (MD 130/2000)

1 Introduction

1.1 Purpose

This Specification describes PDO's minimum requirements for protection of flora and fauna in its concession areas or when activities taking place in a conservation or environmentally sensitive areas.

1.2 Changes to the Specification

The following overall changes have been made:

The adoption of an agreed common format for all Environmental specifications

The adoption of corporate specification template

Updating to ensure that all the key requirements emanating from Omani environmental regulations, SIEP GES and International standards to which PDO subscribes are current.

Additional supporting details contained in the above requirements will be made available in this specification through a direct web-link to the document concerned.

The intent of a specification is to focus on the specific requirements; hence details of how specifications to be met, which are included in other procedures are removed. Where relevant this information is re-allocated to appropriate procedures.

2 ScopeDescribe the specification scope within clearly defined boundaries, noting any specific exclusions.

2.1 Definitions & Abbreviations

Flora - Includes agricultural areas and natural vegetation.Fauna - Includes livestock, wild animals and birds.MECA: Ministry of Environment and Climate Affiars

2.2 Deliverables

2.2.1 Records

Records shall be maintained to document the management of flora and fauna protection

2.2.2 Reports

Sightings of the Arabian Oryx within the boundaries of the Arabian Oryx Sanctuary and other threatened animal species are required to be reported to the White Oryx Project (WOP) field manager.

Any non-compliances with this Specification shall be notified, investigated and reported as per CP-122 PDOs Code of Practice for Health Safety and Environmental Protection.Directors Within their area of authority (including contractors activities where appropriate) Function Directors have the overall responsibility, either directly or through delegation, for ensuring that protection of flora and fauna are managed in accordance with the requirements of this Specification.

Project Managers and Company Site Representatives have the responsibility for ensuring that protection of flora and fauna are managed in accordance with the requirements of this Specification.

Such Flora and fauna shall be:

identified

recorded, as appropriate (refer to Section 2.2.1)

reported, as appropriate (refer to Section 2.2.2)In the event that circumstances prevent compliance with this Specification, Delivery Team Leaders shall seek the advice and if necessary, a step-out approval from the Document Authority. This approval requires recording subject areas, which do not conform as a non-compliance (refer to the Non Compliance Report Form CP 122 HSE Management System Manual, Part 2 Chapter 6).Corporate Functional Discipline Heads are responsible for ensuring that the requirements of this Specification are reflected in the technical standards for which they are responsible.

Contractors are responsible for ensuring that protection of flora and fauna, in the course of carrying out their contractual requirements, is managed in accordance with the requirements of this Specification and reported, when applicable

Document Custodian

The Document Custodian is responsible for ensuring compliance with this specification and that it is updated as necessary to reflect any changes to Omani legislation, Shell standards and other requirements to which PDO subscribes.

2.3 Performance Monitoring

A program shall be developed, implemented and maintained to demonstrate compliance with this Specification and any additional requirements specified in an Environmental Permit, and to supply the necessary data to prepare required reports.

To supply the necessary data to prepare required reports associated with the above (see Section 2.2.2).

2.4 Review and Improvement

Any user of this document who encounters a mistake or confusing entry is requested to immediately notify CORPORATE HSE& SD MANAGER using the form provided in CP 122 HSE Management System Manual, Part 2 Chapter 3, Section 5.

This Specification shall be reviewed every 4 years. However changes to the current version may be made in less than four years as the need arises depending upon the issue of new and relevant environmental legislation and or major organizational changes in PDO.2.5 Performance Standards

2.5.1 Requirements

The relevant Omani legislation for the protection of the environment and conservation of biological diversity is the Royal Decree 6/2003 on Issuing a Nature Reserves & Wildlife Conservation. This states that:

It is prohibited to establish any activity in a Natural Reserve before obtaining ministerial approval (Article 4). An Environmental assessment is required in support of such an approval (Article 5)

A permit must be obtained in order to hunt, restrain, breed, or transport any protected animal in these areas and in order to cut protected trees in these areas (Article 14).

In addition the protection of wildlife is generally addressed by Royal Decree 114/2001 Law of the Conservation of the Environment and Prevention of Pollution, (Articles 7 and 21). There are supporting Royal Decrees and Ministerial Decisions and in principal the following is a summary of the process:

An RD or MD would establish the borders of reserves in Oman

Individual MDs would specify the requirements for a particular area / reserve.

Further to these Omani requirements, PDO subscribes to Shells Biodiversity Standard which is committed to:

work with others to maintain ecosystems

respect the basic concept of protected areas

seek partnerships to enable the Group to make a positive contribution towards the conservation of global biodiversity.

To satisfy these commitments Shell Companies will:

conduct environmental assessments, including the potential impacts on biodiversity, prior to all new activities and significant modification of existing ones, and

bring focused attention to the management of all activities in internationally recognised hotspots, including the identification of, and early consultation with, key stakeholders.

The environmentally sensitive areas shall be classified as Areas of Concern, Sites and Areas of Special Interest, as in the Arabian Oryx Sanctuary (AOS).

Royal Decree 4/94 Arabian Oryx Nature Reserve established a protected nature reserve with defined boundaries. Management of the reserve and approvals for any activities within the reserve boundaries is assigned to the MECA. This represents a typical example of how such areas are identified and managed.

Oil and Gas exploration and production activities in officially designated protected areas are to be permitted only after consultation between the Ministry of Oil and Gas, the concession holders and the MECA.The demarcations of these zones have been incorporated in PDO operations maps and a guideline is available describing the process of implementing these requirements within PDOs concession areas.Oil companies shall be totally responsible for the activities of any contractors or sub-contractors employed by them, and shall ensure adequate and effective supervision of these contractors and sub-contractors to ensure compliance with the above.

2.5.2 Execution

No activities may commence in these areas without first preparing an Environmental Impact Statement and the granting of a relevant permit (See SP 1013 Environmental Permitting).

3 Appendix A

3.1 Appendix 1: General Land Use Policies by Zones (MD 130/2000)

Zone 1, Special Protection Zone:To be a refuge for the Arabian for the Arabian Oryx, Gazelle, Ibex and other wildlife in times of drought or other adverse conditions and thus ensure their long time survival. Zone 1 and a representative of the Huqf escarpment will be managed to keep human disturbance and competition from domestic stock to a minimum.

Zone 2, Controlled Use Zone:

Encompasses tracts of land containing other important biological resources (including habitat regularly used by the Oryx), wilderness areas, scenery of exceptional beauty and sites of geological and archaeological interest. Access would be allowed, but controlled, and the nature of development activities would be compatible with achieving the conservation aims.

Zone 3, Buffer Zone:

Encompassing further sites of interest, but with control of existing activities in order to help to protect the inner zones. The boundary of zone 3 corresponds to the overall boundary of the Sanctuary.

Zone 4, Utility Zone:

Areas within which essential infrastructure will be sited and planned so as to minimize impact upon the sanctuary resources. Abu Mudhabi, Al-Ajaiz and Abu Dhahr are specified as local service centers and a number of other locations designated for the provision of other specified services.

Zone 5, Special Use Zone:

To demarcate areas of land over which agreement has been reached that the concerned Government authorities or other party, in the national interest may have a permanent facility or occasional access.

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Page 2'xxxxxxx' ProcedurePrinted 24/01/09

The controlled version of this CMF Document resides online in Livelink. Printed copies are UNCONTROLLED.

Page 8Specification for Biodiversity

The controlled version of this CMF Document resides online in Livelink. Printed copies are UNCONTROLLED.