Oil Spill Emergency Response. Oil Spill Emergency

Transcription

1 Oil Spill Emergency Response 1 Oil Spill Emergency Response We work to prevent incidents that may result in spills of hazardous substances. This means making sure our facilities are well designed, safely operated, and properly inspected and maintained. It also involves an effective oil spill emergency response capability. We plan, prepare and practice our emergency response to incidents to mitigate the consequences to people and the environment.

2 2 Oil Spill Emergency Response Managing HSSE a systematic approach To achieve continuous performance improvement Shell companies manage health, safety, security, environment and social performance in a systematic way. At Shell, we aim to help meet the energy needs of society in ways that are economically, environmentally and socially responsible. To manage the impact of our operations and projects on the environment and society we have a comprehensive set of business principles and rigorous standards covering health, safety, security, environment (HSSE) and social performance (SP). Our business principles provide high-level guidance and our Commitment and Policy on HSSE & SP reflects our aims on how we operate and involve communities close to our operations. Those aims include: n do no harm to people; n protect the environment; and n comply with all HSSE laws and regulations. To help our staff and contractors to put the Commitment and Policy into practice we launched the Shell HSSE & SP Control Framework in It is a single, mandatory source for rules covering areas such as emergency response. While the Control Framework was launched in 2009, its manuals include all of the HSSE requirements we have followed in the past, such as our industry-first biodiversity standard. We also have a ship quality assurance standard that sets out requirements for all the companies we control and the ships we use. We are building a strong safety culture by focusing on compliance and tackling the cultural issues that can lead to unsafe behaviour. We keep our employees and contractors prepared to effectively deal with emergencies by having regular drills, using realistic scenarios. shell.com/standards shell.com/safety All Shell companies, contractors and joint ventures under our operational control must manage HSSE and SP in line with the Commitment and Policy. HSSE & SP Control Framework

3 Oil Spill Emergency Response 3 International conventions We follow international conventions on oil pollution preparedness and oil spill compensation. In Shell we have a multi-business oil and chemical spill advisory group (MOSAG) that is responsible for developing and promoting advice on the mitigation and control of pollution risk. The group provides advice and guidance to Shell companies based on international conventions. Our operating units are responsible for organising and executing spill response in line with the MOSAG guidelines including resources and contracts, training and emergency response structures and contacts for the management of oil spill response. Standalone audit and assurance programmes are in place to monitor compliance with Shell requirements. Following a number of significant oil spill incidents including the Exxon Valdez spill in 1989, the International Marine Organisation adopted the International Convention on Oil Pollution Preparedness, Response and Cooperation It includes requirements for ships, offshore units, ports and terminals to have an oil pollution emergency plan. It also sets reporting requirements for oil spills and requires parties to work with others to assist in oil spill response. Shell supports this convention and other international conventions that address oil spill compensation, including the Civil Liability Convention and the International Oil Pollution Compensation Fund (1992). Shell also complies with regulations such as the US Oil Pollution Act of 1990 which imposes stringent liability and oil spill response requirements on ship and platform operations. For spills on water Shell has adopted the industry tiered response as defined by the International Petroleum Industry Environmental Conservation Association (IPIECA). This classifies the need for response capabilities in terms of the size of the spill and its proximity to a company s operating facility. n Tier 1 is a small local spill typically managed by an operator s own resources. n Tier 2 is a medium regional spill typically over a larger area requiring clean up resources from a variety of sources. n Tier 3 are large spills that, due to their scale and likelihood to cause major impacts, call for substantial further resources from a range of national and international resources.

4 4 Oil Spill Emergency Response Oil spill response We plan, prepare and practice our emergency response to incidents to mitigate the consequences to people and the environment. Shell companies have developed oil spill response plans for fixed and mobile assets that address credible oil spill scenarios. These plans describe responsibilities and procedures and are documented in emergency response plans and oil spill contingency plans. We have programmes to test our oil spill response plans and procedures on a regular basis as determined by the level of risk. We learn from these exercises and improve our plans. We regularly audit the emergency response readiness of our businesses as part of our Shell maritime business reviews and HSSE audits. We also seek assurance from our business managers that emergency response plans adhere to Shell s standards. Our HSSE & SP Control Framework (see page 2) includes a manual on emergency response that covers our requirements in this area. This includes checking that interfaces with the relevant local and national authorities are in place, that our staff has the appropriate training, and that we practice exercise drills on these plans with external stakeholders. Some recent examples of Tier 3 exercises involving regulatory authorities include the following: n In June 2009 an oil spill was simulated in the UK on the TL- P1 well while coiled tubing intervention work was ongoing. The authorities confirmed that Shell had sound contingency plans in place. n In 2009 the annual crisis exercise organised by Shell Oil Products US took place in Savannah, Georgia, USA based on a scenario involving a fuel oil spill from an LNG carrier off the coast of Georgia. Several hundred Shell staff worked closely with the US Coast Guard and other agencies to exercise and refine response procedures. n In March 2010 Shell partnered with the US Coast Guard and more than 50 other federal, state and commercial organisations to take part in the two-day Spill of National Significance (SONS) exercise in Portland, Maine. The exercise is carried out every three years in the US to test the emergency response to a major oil spill. shell.com/spills Downstream Shell Emergency Response Team - Scotford Refinery, Alberta, Canada

5 Oil Spill Emergency Response 5 Global oil spill response capability We manage oil spill response capability on a global scale. Shell ensures that adequate resources are maintained for managing regional and local spills. We cooperate with industry neighbours and local or national authorities. In countries where national oil spill response plans are in place, our plans and those of Shell operating companies and other companies refer to them where necessary. This includes resources and equipment combined to optimally respond to emergencies. For response to larger spills we use global resources and mobilise Shell staff from around the world. Shell has access to oil industry-funded centres that provide equipment and personnel to manage major spills. These centres are located in Europe (Southampton), Bahrain, the United States and the Far East (Singapore). We are members of a global resource network of seven other oil industry-funded spill response organisations worldwide who provide mutual support in times of need. Spill of National Significance exercise in Portland, Maine, USA

6 6 Oil Spill Emergency Response

7 Oil Spill Emergency Response 7 Cautionary Note The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this publication Shell, Shell group and Royal Dutch Shell are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words we, us and our are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. Subsidiaries, Shell subsidiaries and Shell companies as used in this publication refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as associated companies or associates and companies in which Shell has joint control are referred to as jointly controlled entities. In this publication, associates and jointly controlled entities are also referred to as equity-accounted investments. The term Shell interest is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This publication contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forwardlooking statements included in this publication, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Shell s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this publication are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell s 20-F for the year ended December 31, 2009 (available at shell.com/investor and ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this publication, June Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this publication. The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may have used certain terms in this publication that SEC s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No , available on the SEC website You can also obtain these forms from the SEC by calling SEC Published June 2010 For further information visit shell.com/safety Design and layout by Creative Services The Hague

8 8 Oil Spill Emergency Response