Petronas Besar Project

CHAPTER ONE

Introduction

EIA for Besar Development in Block PM315, Offshore Terengganu, Terengganu

Chapter 1 Introduction

Chemsain Konsultant Sdn. Bhd

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INTRODUCTION

1.1 Introduction

This Environmental Impact Assessment (EIA) study has been undertaken in

conjunction with the proposed development of Besar Field in Block PM315

offshore of the State of Terengganu.

This introductory chapter provides a brief description of the proposed Project

and Project Stakeholders and Environmental Consultants involved in

preparing the EIA report. The legislative requirement of the impact

assessment as well as the Statement of Need of the proposed Project is also

discussed.

1.2 Project Title

The title of this project is Besar Development in Block PM315, Offshore

Terengganu, Terengganu. For brevity, throughout this report it will be

referred to as the Project.

1.3 Legislative Requirement

The Project is located within the Exclusive Economic Zone (EEZ) where

Exclusive Economic Zone Act 1984 is applicable. The Act designates the

Director General of Environmental Quality, as determined in the

Environmental Quality Act 1974 and as administered by the Department of

Environment (DOE), to oversee to the protection and preservation of the

marine environment in the EEZ.

A component of the protection and preservation of the marine environment, as

contained in the Exclusive Economic Zone Act, 1984 is the Directions and

Action to Remove, Disperse, Destroy, or Mitigate Damage to the Environment.

Chapter

1




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To adequately mitigate any potential impact to the marine environment as a

result of this proposed development, an impact assessment is necessary.

Consequently, an Environmental Impact Assessment (EIA) is conducted,

documented and submitted to the DOE for approval prior to Project

implementation.

1.4 Project Brief

The Project is located in Block PM315, approximately 185km from Kerteh

coastline of Peninsular Malaysia in the water depth of 70 metres. Besar is

one of the gas fields under Gas Profit Sharing Contract (GPSC) to supply

overall PMOs Contract Market Supply obligation of 1430 MMscfd of gas.

The Project will be developed in two phases, Phase 1 and Phase 2. Phase 1

consists of the development of BsDP-A platform which is envisaged to be a

12- slot wellhead satellite platform with evacuation of gas via full-well-stream

(FWS) pipeline to existing Angsi Drilling and Riser platform (AnDR-A) and

further processed at existing Angsi Central Processing Platform (AnPG-A),

prior to evacuation to Onshore Slug Catcher (OSC) via an existing 32 166km

pipeline. Fluid management will be handled at the existing AnPG-A. BsDP-A

platform facilities is to be designed to flow up to 150MMscfd of gas.

BsDP-B platform will be developed in Phase 2 and is currently envisaged to

be commissioned in 2019, as a wellhead satellite platform with 6 slots and

shall tie-in to BsDP-A platform.

1.4.1 Project Proponent

The Project Proponent is PETRONAS Carigali Sdn Bhd. Throughout the

report they will be referred to as PETRONAS Carigali or the Project

Proponent. Correspondence details of the Project Proponent are as follows:

PETRONAS Carigali Sdn. Bhd.

Level 59, Tower 2

PETRONAS Twin Towers

Kuala Lumpur City Centre

50088 Kuala Lumpur

Malaysia




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Tel: 03 2331 3207

Fax: 03 2331 5633

Contact Person: Wan Md Jalal Azmi bin Wan Othman (Project Manager-Angsi/Besar Development)

1.4.2 Design Consultant

RNZ Integrated (M) Sdn Bhd is the Design Consultant who is responsible on

the design details of the proposed development. RNZ correspondence details

are as follows:

RNZ Integrated (M) Sdn Bhd

Level 17, Menara Great Eastern

303 Jalan Ampang

50450 Kuala Lumpur

Tel: 03-4264 2600

Fax: 03- 4253 3585

Contact Person: Mohd Ashri Mohamed (Project Manager)

1.4.3 Environmental Consultant

Chemsain Konsultant Sdn Bhd is the appointed EIA consultant for this project.

The correspondence details of the consultant are as follows:

Chemsain Konsultant Sdn Bhd

No. 41,1st Floor

Jalan USJ 10/1D

UEP Subang Jaya

47620 Subang Jaya, Selangor

Tel: 03-5637 0163

Fax: 03-5637 0386

Contact Person: Marina Roland Nawe (EIA Team Leader)

1.4.3.1 EIA Consultants

A list of consultants and individual consultants declarations has been

incorporated at the front of this report. Table 1.4.1 contains the list of EIA

consultants and subject consultants, whereas Table 1.4.2 lists the supporting

team members, who have contributed to this EIA study.




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Table 1.4.1: EIA Team Members

Name Qualification Registration With DOE Proposed Study

Area Category Area/Field ID. No. Valid Date

A. EIA Study Team Leader

Marina Roland Nawe

B. Sc (Biology)

M. Environment

EIA Consultant Ecological Studies

Fisheries

General Environmental Management

C 0059

1 June 2015 Team Leader

Ecology

B. EIA Team Member

Lina Chan B. Sc. (Hons) EIA Consultant Noise


C 0098 31 May 2016 Environmental

Management Plan

Ir. Brian Chong Sin Hian

B. Sc (Civil Engineering)

M. Sc (Environment)

EIA Consultant Wastewater

Solid Waste Management

Erosion and Sediment Control

Hydrology

C 0089 31 May 2016 Waste Management




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Area Category Area/Field ID. No. Valid Date

Tan Shwu Mei

B. A (Hons.)

Anthropology and

Sociology

M. Sc. (Environmental

Management)

Subject

Consultant

Social Impact Assessment

Land Use Assessment

SS 0113 1 June 2017 Socio Impact

Dr. John Chan Sung

Tong

B.Sc (Chemistry)

PhD (Chemistry)

EIA Consultant Water Quality

Chemical Processes


C0152 18 October

2014

Water Quality

Chemical Process

Lim Sze Fook B. Sc (Hons) Physics EIA Consultant Air Quality and Odour

Meteorology

C 0282 18

September

2013

Air Quality

Adnan Bin Yusop Ali

B. Eng. (Chemical) Subject

Consultant

Quantitative Risk Assessment SS 0066 1 June 2017 Risk Assessment




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Table 1.4.2: Supporting Team Members


Area

Supervised by

Category Area/Field ID. No. Valid Date

Mazura Murat

B. Sc. (Env) Assistant

Consultant

General Environmental

Management

AC0737 10 Sept

2013

Assisting Team

Leader

Marina Roland Nawe

J Somu Jaya

Kumaran

M. Env

B. Sc. Marine Science

Assistant

Consultant

Ecological Studies

(Marine)


Management

AC0737 - Marine Ecology Marina Roland Nawe

Tan Kai Yuuen B. Sc. (Environmental

Management)

Assistant

Consultant

Ecological Studies

Water Quality

Air Quality


Management

AC1040 - Environmental

Management

Plan

Lina Chan

Richard Rhodes B. Sc. (Hons) Geological

Sciences

- - - Geology Marina Roland Nawe




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1.5 Objective of the EIA

The objective of the EIA study is to ensure that all impacts direct and indirect,

especially environmental, social and economic associated with both Phase 1

and Phase 2 of the proposed Besar Field Development Project are identified

and that measures are taken to address them. Consistent with this objective,

the EIA report shall be a self-contained and comprehensive document as

follows:

To identify and evaluate potential environmental impacts arising from

project activities.

To propose mitigating measures and appropriate management plan to

eliminate or minimize the impacts.

To ensure that the proposed development project will be conducted in

compliance with PETRONAS guidelines, PETRONAS Technical Standards

(PTS) and Malaysian regulatory requirements on environment.

1.6 Statement of Need

PETRONAS Carigali, an exploration and production arm of the PETRONAS

Group, is continuously striving to sustain as well as increase oil and gas

production to meet national economic and energy requirements, and to be

competitive in the world petroleum markets. One of these efforts is through the

development of gas fields to discover and utilize the previously untapped gas

reserves.

In view of the projected decline in gas production from the existing sources,

PETRONAS Carigali will be required to supplement a significant portion of the

projected Peninsular Gas Utilization (PGU) gas shortfall. The development of

Besar Field is expected to supplement the shortfall of gas supply.




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1.7 Project Options The following subsections discuss the options considered in the determination

of the final option selected for the proposed Project.

1.7.1 With Project Option As mentioned in Section 1.6, the Besar Field will be developed to supplement

the projected Peninsular Gas Utilization (PGU) gas shortfall. Several benefits

are anticipated to exist due to the development of this Project. The benefits,

among others include the following:

Project Siting

- Locality to existing offshore gas reserves and close proximity to

processing facilities at Angsi which will be transported via existing

pipeline to Onshore Slug Catcher (OSC) at Kerteh

- Close proximity to the Kemaman Supply Base for supplies and port

services

- Located in existing offshore oil and gas development areas in the

South China Sea

Social Benefits

- Opportunities to improve standard of living and quality of life through

the greater stimulation of local and state economies

- Create employment opportunities within the oil and gas industry for

Terengganu residents

Economic Benefits

- Sustaining and increasing of local gas production to meet demand

- Local economic benefits provided to businesses and individuals which

may be contracted to provide goods and services to the Project during

its various stages. This will include cases of development of new




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business areas as well as increase in demand for goods and services

accordingly with the increase of population

- State level economic benefits through the increase use of state based

services, such as shipping, and various state revenues generated from

the operation of the Project

- National level economic benefits, through the increase of gas

production locally, minimising imports to satisfy local demand and

associated costs, and increasing exports of both sales gas and

condensate in the increasingly volatile and profitable petroleum

markets, increasing national GDP

Environmental Benefits

- The potential proliferation of various fish, surrounding subsurface

infrastructures such as seabed pipelines, and platform jackets

- Initiative to implement best management practices measures to

minimise impact to the surrounding environment while maintaining

economic development and growth

1.7.2 No Project Option

The main benefit of considering the No Project option is the understanding

that there will be an absence of all environmental impacts predicted and

documented in Chapter 4 of this EIA report and associated environmental

costs as a result of the proposed project.

However, considering the No Project Option will also present the opportunity

to consider the potential loss of social, economic and environmental benefits

as discussed above.

1.8 EIA Study Guidelines and Approaches

This EIA study and report shall be undertaken in accordance to the following

guidelines and legislation. Since the location of the proposed project is within

the Exclusive Economic Zone (EEZ) outside of Malaysian Territorial Waters,




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Malaysian environmental legislation does not directly apply to this Project,

except where activities are conducted in areas within Malaysian waters or

onshore.

The following relevant legislations and guidelines to this Project:

Continental Shelf Act (1966)

Fisheries Act (1985)

EIA Guidelines for Petroleum Industries by DOE, (1997)

Environmental Quality (Scheduled Wastes) Regulations (2005)

Exclusive Economic Zone Act, (1984)

Handbook of Environmental Impacts Assessment Guidelines published by

DOE, (2000)

International Conventions for the Prevention of Pollution from Ships (1973)

as modified by the Protocol of 1978 (MARPOL 73/78)

Malaysia Maritime Enforcement Agency Act (2004)

Merchant Shipping Ordinance (1952)

Occupational Safety and Health Act, (1994)

Petroleum Mining Act (1966)

Petroleum (Safety Measures) Act (1984)

PETRONAS Policy

PETRONAS Carigali HSE Policy

PETRONAS Carigali Environmental Objectives Statement

PETRONAS Technical Standard (PTS)




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PETRONAS E&P Minimum Environmental Specifications (MES)

In conducting the EIA process, the following are carried out:

Review Projects conceptual and front end engineering design reports,

existing published data and EIA reports

Undertake site visit to the project area to conduct baseline survey

Seek additional information through consultations with relevant

government authorities; e.g. Department of Environment, Marine

Department, Department of Fisheries, Meteorological Department, , etc.

Collate and analyse the data

Report on findings and where appropriate, recommend mitigation

measures

Review local and international criteria and standards for marine water,

discharges and sediment for the evaluation of impacts. This review will

include recommending the relevant compliance standards for the Projects

implementation stage

Recommend environmental monitoring, as part of the environmental

management plan, during the various stages of the proposed Project

Petronas Besar Project

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