section 2: general context - srk · section 2: general context . ... must request the applicant ......

The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd. Reg. No.1970/008130/07

EMPr for the E-BK Production Right Area

DOCUMENT DATE PREPARED BY REVIEWED BY REVISION PAGE

March 2017 SRK Consulting (South Africa) (Pty) Ltd

Errol Cerff and Leon Bezuidenhout

00 General Context - 1

2.1 KEY LEGISLATIVE REQUIREMENTS 2

2.1.1 National Environmental Management Act 107 of 1998 2

2.1.2 Mineral and Petroleum Resources Development Act 28 of 2002 2

2.1.3 Other relevant legislation 3

2.2 SUMMARY DESCRIPTION OF THE AFFECTED ENVIRONMENT 4

2.2.1 Physical oceanography 4

2.2.2 Biological oceanography 5

2.2.3 Human utilisation 5

2.3 SOCIO-ECONOMIC GOALS AND OBJECTIVES 6 2.4 SUMMARY OF THE POTENTIAL IMPACTS OF RELATED TO THE DEVELOPMENT OF

THE E-BK PRODUCTION RIGHT AREA 6 2.5 MANAGEMENT OF POTENTIAL ENVIRONMENTAL IMPACTS 13

2.6 ENVIRONMENTAL POLICY 13 2.7 FINANCIAL PROVISION 14 2.8 MONITORING AND EMPR PERFORMANCE ASSESSMENT 14

2.9 PLANS AND PROCEDURES FOR ENVIRONMENTAL RELATED EMERGENCIES AND

REMEDIATION 14

2.10 UNDERTAKING BY THE PROPONENT 14

S e c t i o n 2 : G e n e r a l C o n t e x t







2.1 KEY LEGISLATIVE REQUIREMENTS

This section outlines the key legislative requirements and guiding principles underpinning the EMPr and the

associated S&EIR process. This is not intended to be an exhaustive list and should be verified against

PetroSA’s legal register, which is continually updated.

2.1.1 National Environmental Management Act 107 of 1998

Sections 24 and 44 of NEMA make provision for the promulgation of regulations that identify activities

which may not commence without an Environmental Authorisation (EA) issued by the competent authority.

In this context, the EIA Regulations, 2014 (GN R982, which came into effect on 8 December 2014),

promulgated in terms of NEMA, govern the process, methodologies and requirements for the undertaking

of EIAs in support of EA applications. Listing Notices 1-3 in terms of NEMA list activities that require EA

(“NEMA listed activities”).

GN R982 of the EIA Regulations lays out two alternative authorisation processes. Depending on the type of

activity that is proposed, either a Basic Assessment (BA) process or a S&EIR process is required to obtain

EA. The regulations for an S&EIR process stipulate that:

Public participation must be undertaken as part of the assessment process;

The assessment must be conducted by an independent Environmental Assessment Practitioner;

The relevant authorities must respond to applications and submissions within stipulated time frames;

Decisions taken by the authorities can be appealed by the proponent or any other Interested and

Affected Party; and

A draft EMPr must be compiled and released for public comment.

GN R982 sets out the procedures to be followed and content of reports compiled during the S&EIR process.

An EMPr be submitted along with the EIA Report to demonstrate how environmental management and

mitigation measures will be implemented. This EMPr has been prepared to meet the requirements

prescribed in Appendix 4 of the EIA Regulations, 2014.

2.1.2 Mineral and Petroleum Resources Development Act 28 of 2002

The MPRDA makes provision for equitable access to and sustainable development of South Africa’s mineral

and petroleum resources and aims to inter alia provide for security of tenure in respect of prospecting,

exploration, mining and production operations. The fundamental principles of the MPRDA are:

Mineral resources are non-renewable;

Mineral resources belong to the nation and the State is the custodian;

Protection of the environment for present and future generations to ensure sustainable development

of the resources by promoting economic and social development;

Promotion of local and rural development of communities affected by mining;







Reformation of the industry to bring about equitable access to the resources and eradicating

discriminatory practices; and

Guaranteed security of tenure.

Section 5A of the MPRDA states that any proponent may not explore for and produce petroleum or

“commence with any work incidental thereto on any area” without –

An EA;

A Production Right; and

Notifying the landowners or lawful occupiers of the land in question.

Chapter 6 deals with Petroleum Regulation and provisions with regard to application for a Production Right

are set out in Section 83. Section 83 (4) stipulates that, in response to an application for Production Right,

the “designated agency” – in this case the PASA – must request the applicant to:

Notify and consult with interested and affected parties; and

Conduct an EIA process and submit an EMPr for approval within 180 days1.

In support of the Production Right application, PetroSA is required to undertake an EIA in compliance with

the requirements of NEMA and the EIA Regulations, 2014, and submit an EMPr for approval. This EMPr has

been prepared to meet the requirements of the EIA Regulations, 2014, and the MPRDA.

2.1.3 Other relevant legislation

In addition to the foregoing, PetroSA must also comply with the provisions of other relevant international

and national legislation and conventions, which includes, amongst other, the following:

International Conventions

International Convention for the Prevention of Pollution from Ships 73/78 (MARPOL) including

amendments;

International Convention on Oil Pollution Preparedness, Response and Co-operation, 1990 (OPRC

Convention);

Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972 (the

London Convention) and the 1996 Protocol (the Protocol);

The United Nations Convention on Law of the Sea, 1982 (UNCLOS); and

The Convention on Biological Diversity, 1992.

Other South African legislation

National Heritage Resources Act 25 of 1999;

National Environmental Management: Air Quality Act 39 of 2004;

National Environmental Management: Integrated Coastal Management Act 24 of 2008);

1 PASA acknowledged that the submission deadline of 180 days is not achievable and confirmed that the EIA must be undertaken according to the timeframes stipulated in the EIA Regulations, 2014.







Dumping at Sea Control Act 73 of 1980;

Marine Pollution (Control and Civil Liability) Act 6 of 1981;

Marine Pollution (Intervention) Act 65 of 1987;

Marine Pollution (Prevention of Pollution from Ships) Act 2 of 1986;

Marine Traffic Act 2 of 1981;

Maritime Safety Authority Act 5 of 1998;

Maritime Safety Authority Levies Act 6 of 1998;

Maritime Zones Act 15 of 1994;

Merchant Shipping Act 57 of 1951;

Mine Health and Safety Act 29 of 1996;

National Environmental Management: Biodiversity Act 10 of 2004;

National Environmental Management: Protected Areas Act 57 of 2003;

National Environmental Management: Waste Act 59 of 2008;

National Nuclear Energy Regulator Act 47 of 1999;

National Ports Act 12 of 2005;

National Water Act 36 of 1998;

Nuclear Energy Act 46 of 1999;

Sea Birds and Seals Protection Act 46 of 1973;

Sea-Shore Act 21 of1935;

Ship Registration Act 58 of 1998;

The Occupational Health and Safety Act 85 of 1993 (OHSA) and the Major Hazard Installation

Regulations; and

Wreck and Salvage Act 94 of 1995.

2.2 SUMMARY DESCRIPTION OF THE AFFECTED ENVIRONMENT

The following is a summary of the affected environment as presented in the EIA Report (SRK Report No.:

454131/3) prepared as part of the S&EIR undertaken for the development of the E-BK Production Right

Area.

2.2.1 Physical oceanography

The E-BK Production Right Area is located approximately 100 km off the south coast of South Africa near

Mossel Bay. This region is dominated by the Agulhas Bank, a large, shallow area of the continental shelf

where it is at its widest along the South African coast. The oceanography of the outer Agulhas Bank is

greatly influenced by the warm, fast-flowing Agulhas Current.

The western Agulhas Bank (between Cape Point and Cape Agulhas) is considered to form part of the

Southern Benguela ecoregion, but its eastern margin is directly influenced by the warm Agulhas Current







which forms the western boundary of the southern Indian Ocean (Southwest Indian ecoregion). The central

Agulhas Bank has its own distinct oceanographic characteristics

2.2.2 Biological oceanography

The Agulhas ecoregion hosts both warm and cool temperate water benthic species, as well as a high

number of South African endemic sparid reef fish, octocorals, other invertebrates and algae. The midshelf

region, between 80 and 120 m water depths, supports a particularly high benthic invertebrate biomass,

representing an important food source to carnivorous species (e.g. shrimp, squid and demersal fish).

Beyond the 120 m isobath, benthic biomass declines and is consistently low on the outer shelf beyond 200

m depth.

The Agulhas Bank is also an extremely important area for pelagic fish that are caught in the fisheries along

the west coast, such as anchovy, pilchard and horse mackerel. Large migratory pelagic species that occur in

deeper offshore waters include dorado, sailfish, a number of marlin species and several species of tuna.

Demersal species that are widely distributed across the Agulhas Bank include Cape hake, kingklip, panga,

kob, gurnard, monkfish, John Dory and angel fish.

Three globally threatened turtle species are known to occur in the south coast region of South Africa. Blue

whale, fin whale and sei whale migrate through the area along the continental shelf edge. One pinniped,

the Cape fur seal occurs along the south coast and is the only seal species that has breeding colonies in the

area, including one at Seal Island in Mossel Bay.

2.2.3 Human utilisation

The Agulhas ecoregion supports several important commercial fisheries including: demersal trawl;

demersal long-line; mid-water trawl; large pelagic long-line; traditional line; small pelagic; and South Coast

rock lobster.

The majority of shipping traffic is located on the outer edge of the continental shelf with traffic inshore of

the continental shelf along the South Coast largely comprising fishing vessels.

Offshore mining and exploration off the south coast is dominated by oil and gas exploration and

production. Historical oil and gas exploration and production have focused on the central part of the

Bredasdorp Basin, particularly offshore licence Block 9, where PetroSA operates the F-A production

platform. Gas and associated condensate from the F-A, E-M and SCG and F-O fields are processed on this

platform and exported through two pipelines to the PetroSA Gas-to-Liquid (GTL) facility in Mossel Bay. Oil

production at the Oribi/Oryx development (E-AR and E-BT fields) is currently suspended. The Sable Oil Field

(E-CE reservoir) was converted to gas production in 2008.

A 500 m statutory exclusion zone is in effect around any oilfield structures, which prohibits entry of all

unauthorized vessels and aircraft. Larger safety zones around the E-M, F-A, SCG and Oryx/Oribi







developments have been established by the SA Navy Hydrographic Office, which prohibit any activities that

impact on the seafloor within these areas, such as anchoring, deploying of trawling gear, etc.

2.3 SOCIO-ECONOMIC GOALS AND OBJECTIVES

The goals and objectives presented in this section is a summary of those identified in the Social and Labour

Plan, which has been submitted to PASA as part of the current application process for a Production Right.

The key needs activities identified in the area include:

Education and Training;

Employment opportunities;

Skills development; and

Infrastructural development in relation to sports fields, play parks, clinics, etc.

PetroSA has embarked on a short to medium term plan to enhance the production life of its GTL facility

through the development of a number of smaller fields around the existing producing fields in Block 9. EBK

presents an opportunity to supply feedstock to the GTL Refinery in Mossel Bay. Gas reserves are declining

and expected to fall below sustainable economic operational levels, resulting in the need for

supplementary feedstock.

The development of the E-BK field (and other adjacent prospective accumulations) present PetroSA with

the opportunity to produce some of the gas needed to meet this objective.

Currently the GTL plant processes a constant stream of gas from the existing offshore hydrocarbon fields.

Once these fields start to decline, the production rates to sustain the GTL plant will no longer be sufficient.

It is therefore critical that additional accumulations of gas and condensate be tied in to the existing supply

to the GTL facility to supplement the current fields when their production starts to decline.

2.4 SUMMARY OF THE POTENTIAL IMPACTS OF RELATED TO THE DEVELOPMENT OF

THE E-BK PRODUCTION RIGHT AREA

A summary of the key potential impacts of the project are provided in Table 2-1.

Relevant observations with regard to the overall impact ratings, assuming mitigation measures are

effectively implemented (to be verified through audits), are:

The predicted air quality impacts are rated as insignificant to low during construction.

The predicted impacts on marine ecology are rated as insignificant to medium during construction,

very low to low during operations and insignificant to very low during decommissioning.

The predicted socio-economic benefits are rated as very low to low during construction, very low to

medium during operations and insignificant to very low during decommissioning.

The predicted socio-economic impacts on the fishing industry are rated as very low to low during

operations and very low during decommissioning.







The predicted impacts from accidental (non-routine) releases of hydrocarbons are rated as

insignificant to medium during construction and operations.

Cumulative impacts in the region may derive from existing and proposed PetroSA gas and condensate

developments in Licence Block 9 and proposed exploration drilling in Licence Block 11B/12B. Cumulative

impacts are of relatively low significance given the location of the project approximately 100 km offshore

and the distance of the project from other offshore Oil and Gas projects. The contribution of the project to

cumulative impacts is relatively limited at a local to regional scale.







Table 2-1: Summary of potential impacts of the project

Potential negative impacts are shaded in reds, benefits are shaded in greens. Insignificant impacts have not been shaded. Only key (non-standard essential) mitigation/optimisation measures are presented.

ID # Impact

Significance rating

Key mitigation/optimisation measures Before mitigation/

optimisation

After mitigation/

optimisation

CONSTRUCTION PHASE IMPACTS

A Impacts on Air Quality

A1 Deterioration of air quality and impacts on health

Insignificant Insignificant Maintain all generators, vehicles, vessels and other equipment in good working order to minimise

exhaust fumes; and

Flare only when necessary to remove excess gas. A2 Contribution to climate change and global warming

Low Low

M Marine Ecology

M1 Direct physical disturbance to seabed affecting benthic fauna

Low Very low

Avoid sensitive seabed features such as reefs when planning for the installation of wellheads and subsea infrastructure; and

Restrict disturbance to the seabed to the area designated for the installation of wellheads and subsea infrastructure.

M2

Smothering and toxicity effects of drill cuttings and fluids on marine fauna

Very low Very low

Utilise WBM as far as possible. If NADF is to be used, then undertake an environmental risk assessment prior to use;

Undertake a seabed survey prior to drilling to identify any irregular topographic features on the seafloor;

Avoid sensitive seabed features such as reefs when planning for the installation of wellheads; and

Ensure compliance with relevant national and international regulations (e.g. MARPOL) for treatment and discharge of drill cuttings and fluids.

M3 General discharges to sea affecting water quality and marine fauna

Very low Insignificant

Ensure compliance with relevant national and international regulations for discharge at sea;

Use only low-toxicity, biodegradable detergents on the vessels and mop up deck spills as soon as possible; and

Comply with PetroSA’s Waste Management Procedure.

M4 Movement, noise and light of vessels affecting seabirds, fish and squid

Insignificant Insignificant Keep any disoriented but otherwise unharmed seabirds found on vessels at night in dark containers

and release during daylight;

Minimise non-essential lighting on vessels;

Shield and/or reduce the number of lights shining directly down onto the water and/or use non-attracting lights (e.g. low intensity bulbs);

M5 Movement, noise and light of vessels affecting

Low Very low







ID # Impact

Significance rating


optimisation

After mitigation/

optimisation

marine turtles Keep a record of all sightings made, which can assist research and planning additional avoidance strategies; and

Undertake environmental awareness training of all staff on the drill ship and supply vessels, which includes training on the conservation status of turtles / whales.

M6 Movement, noise and light of vessels affecting marine mammals

Medium Medium

M7 Equipment lost overboard affecting marine fauna and habitats

Very low Very low Adhere to the Dropped Object Incident Response Procedure.

S Socio-economic

S1 Increased employment and skills development

Very low Very low Maximise employment of local workers; and

Promote skills development as opposed to the importation of skills, where possible.

S2 Increased income Low Low Procure services and resources from local sources wherever possible.

HS Accidental Releases of Hydrocarbons2

HS1 Effects on seabird populations


Maintain equipment to limit spillage of oils, fuel or toxic substances;

Ensure that oils and lubricants used for maintenance of equipment are correctly contained;

Refuel only in calm conditions and using reinforced hosing;

Ensure all vessels have onboard oil spill contingency plans that comply with IMS; and

In the event of an oil spill ensure the immediate implementation of an oil spill emergency response plan.

HS2 Effects on marine turtles Low Very low

HS3 Effects on marine mammals

Low Very low

HS4

Effects on open coastal, estuarine and lagoon habitats and coastal conservation areas

High Medium

HS5 Effects on fishing activities

Very low Very low

HS6 Effects on tourism and recreation activities

Low Low

2 These impacts also apply to the Operational Phase.







ID # Impact

Significance rating


optimisation

After mitigation/

optimisation

OPERATIONAL PHASE IMPACTS

M Marine Ecology

M8 General discharges to sea affecting water quality and marine fauna

Low Very low

Ensure compliance with relevant national and international regulations for discharges at sea;



M9 Movement, noise and light of vessels affecting marine fauna

Medium Low

Keep any disoriented but otherwise unharmed seabirds found on vessels at night in dark containers and release during daylight;



Keep a record of all sightings made, which can assist research and planning additional avoidance strategies; and

Undertake environmental awareness training of all staff on the drill ship and supply vessels, which includes training on the conservation status of turtles / whales.

M10 Equipment lost overboard affecting marine fauna and habitats

Very low Very low Adhere to the Dropped Object Incident Response Procedure.

F & S Socio-economic

F1 Reduced fishing effort by demersal trawl sector

Low Low

Notify fishing stakeholders of drilling operations and location of all well drilling activities at least 30 days prior to drilling.

Notify fishing stakeholders of subsea infrastructure installations and locations at least 30 days prior to installation;

Notify SAMSA and HydroSAN of the location of all well drilling activities at least 7 days prior to drilling; and

Notify SAMSA and HydroSAN of the locations of all subsea infrastructure at least 7 days prior to installation.

F2 Reduced fishing effort by mid-water trawl sector

Very low Very low

F3 Reduced fishing effort by demersal long-line sector

Low Low

F4 Reduced fishing effort by south coast rock lobster sector

Very low Very low

F5 Reduced research effort on the demersal sector by

Low Low







ID # Impact

Significance rating


optimisation

After mitigation/

optimisation

DAFF


Very low Very low Maximise employment of local workers.

No-Go Alternative

No-Go Alternative Initiate consultation with key stakeholders before any planned closure of the GTL Refinery.

High High

S4 Increased income and revenue

Medium Medium Procure services and resources from local sources wherever possible.

No-Go Alternative

No-Go Alternative Initiate consultation with key stakeholders before any planned closure of the GTL Refinery.

High High

DECOMMISSIONING PHASE IMPACTS

M Marine Ecology

M11 Direct physical disturbance to seabed affecting benthic fauna

Very low Very low Restrict disturbance of the benthic environment to the smallest area possible.

M12 General discharge to sea affecting water quality and marine fauna


Ensure compliance with relevant national and international regulations for discharges at sea;



M13 Movement, noise and light of vessels affecting marine fauna




Keep any disoriented but otherwise unharmed seabirds found on vessels at night in dark containers and release during daylight;

Keep a record of all sightings made, which can assist research and planning additional avoidance needs; and

Undertake environmental awareness training for all vessel staff.

M14 Buoying of infrastructure for retrieval affecting marine fauna

Very low Very low Ensure moorings are secure; and

Deploy buoys for as short a time as possible.







ID # Impact

Significance rating


optimisation

After mitigation/

optimisation

F & S Socio-economic

F6 Reduced fishing effort by demersal trawl sector

Very low Very low

Recover subsea infrastructure as far as possible;

Identify possible snag zones and implement measures to reduce the risk of snagging;

Notify fishing stakeholders of decommissioning activities at least 30 days prior to decommissioning; and

Notify SAMSA and HydroSAN of decommissioning activities at least 7 days prior to decommissioning


Insignificant Insignificant Maximise employment of local workers; and

Promote skills development as opposed to the importation of skills, where possible

S6 Increased income and revenue

Very low Very low Procure services and resources from local sources wherever possible.







2.5 MANAGEMENT OF POTENTIAL ENVIRONMENTAL IMPACTS

Potential impacts associated with the project were identified and assessed as part of the EIA. A summary of

the significance of potential impacts is presented in Table 2-1. Impact management, which includes all

mitigatory measures listed in the EIA Report, is set out in this EMPr in the following sections:

Section 3: Well drilling;

Section 4: Construction (including infrastructure installation); and

Section 5: Production (including decommissioning).

2.6 ENVIRONMENTAL POLICY

A copy of PetroSA’s Health, Safety and Environmental Policy is presented in Appendix 1. This policy sets out

PetroSA’s commitment to ensure successful implementation of the project and EMPr.







2.7 FINANCIAL PROVISION

Section 24P of NEMA requires that an applicant for EA relating to prospecting, mining, exploration,

production or related activities on a prospecting, mining, exploration or production area must determine

the financial provision for the rehabilitation, management and closure of environmental impacts.

Section 10 of the Regulations Pertaining to the Financial Provision for Prospecting, Exploration, Mining or

Production Operations (GN R1147, which came into effect on 20 November 2015) requires that an

applicant must submit the financial provision determination and a decommissioning plan as part of the

information submitted for consideration by the Minister responsible for mineral resources.

PetroSA is obliged to submit the financial provision determination and a decommissioning plan as part of

the EA application.

2.8 MONITORING AND EMPr PERFORMANCE ASSESSMENT

PetroSA would undertake appropriate monitoring, auditing and reporting on an ongoing basis during

drilling, construction, production (including decommissioning) (see Sections 3.12, 4.10 and 5.10). PetroSA

would track performance against objectives and targets specified in this EMPr. Audits would generate a list

of recommended corrective actions, which would be used as a tool to document all corrective actions taken

and how they were performed.

In order to comply with the MPRDA and its relevant Regulations, PetroSA would undertake annual

performance assessments in order to ensure compliance with the EMPr and to assess the continued

appropriateness and adequacy of the EMPr. Performance assessment reports shall be submitted to PASA

for consideration.

2.9 PLANS AND PROCEDURES FOR ENVIRONMENTAL RELATED EMERGENCIES AND

REMEDIATION

All offshore emergencies would be managed in terms of PetroSA’s current procedures, Oil Spill Contingency

and Response Plan (EP/SHE/PR/001) and General Onshore Plan for Offshore Emergencies (EP/SHE/PR/006).

Where necessary, a bridging document would be drawn up between these procedures and the emergency

response procedures and plans of the selected contractor(s).

2.10 UNDERTAKING BY THE PROPONENT

PetroSA undertakes to comply with the provisions of the EMPr (see Appendix 2).

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