Maersk Oil UK Environmental Performance Report An ongoing commitment to continual improvement, legal compliance and prevention of pollution
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1 Maersk Oil UK Environmental Performance Report 213 An ongoing commitment to continual improvement, legal compliance and prevention of pollution
2 Maersk Oil North Sea UK Limited Health, Safety & Environment (HSE) Statement In support of the Maersk Oil Health, Safety & Environment (HSE) Policy, Maersk Oil UK recognises that the health, safety and security of everyone who works for us, the security of the wider business, and the protection of the environment, are fundamental to the management of our activities and form an integral part of achieving continual improvement in our business performance. Maersk Oil UK commits to comply with all applicable, health, safety, security and environmental legislation and where practicable embrace industry best practice, including the requirements of the Maersk Oil Corporate Management System. We will strive for business excellence through continual improvement in HSE performance, by adopting an approach of Constant Care in all our activities in order to identify and minimise hazards and risks. We believe that incident-free operations is an achievable goal, and it is the responsibility of every individual to work towards the highest standards of health, safety, security and environmental performance, and quality of delivery. In pursuit of this, Maersk Oil UK will: Demonstrate leadership throughout the organisation to promote a culture that empowers all personnel to understand and contribute to the implementation of this Statement; Maintain a Business Management System which reflects the requirements of our HSE Statement, and provides adequate guidance and instruction to meet organisational objectives; Ensure all personnel have suitable competency to conduct our business safely, securely and responsibly, and with minimum impact on the environment; Establish an annual HSE plan with clear objectives and supporting targets; Strive for compliance against the HSE plan and delivery of improved performance will be monitored via an active audit and review programme; Investigate all accidents and near miss incidents, acknowledge the lessons learned and take appropriate actions to prevent recurrence; Optimise all activities and resources such that we minimise environmental impact and ensure the long term sustainability of our business. Details of how we are organised to deliver excellence in HSE performance are contained in the Maersk Oil UK HSE Policy. Martin Rune Pedersen Managing Director, Maersk Oil North Sea UK Limited, February 213
3 Contents Managing Director s Introduction...4 Our Operations...5 Our Environmental Management System....6 Environmental Aspects Environmental Performance Summary....8 Janice Alpha... 1 Gryphon Alpha Global Producer III Drilling Operations On an annual basis, this environmental performance report is produced to communicate the performance of the previous year. The strategic direction for the year ahead is summarised in the Maersk Oil UK HSSEQ Programme 214. Maersk Oil UK Environmental Performance Report 213 3
4 Managing Director s Introduction I am pleased to introduce the 213 Environmental Performance Report for Maersk Oil UK. The purpose of this document is to report to all our stakeholders on the environmental performance of our offshore operations. We are committed to minimising risks and continually improving performance in the areas of Health, Safety, Security, Environment and Quality across the whole organisation in an aim to achieve incident-free operations. Our environmental aspirations include: minimising harmful discharges from our installations and activities; raising environmental awareness and engagement in the workforce; maintaining standards in improving environmental performance; and meeting and exceeding legal and other environmental requirements. Maersk Oil UK successfully maintained an ISO141 certified Environmental Management System through 213. Whilst legal requirements have been fulfilled and initiatives for continuous improvement undertaken, we did not achieve a significant reduction in avoidable environmental incidents. However, setting of ambitious internal targets which exceed regulatory compliance limits have resulted in good performance and regulatory standards for volumes of oil and chemicals discharged to sea and emissions to air. We welcome comments and questions on the content of this publication. Martin Rune Pedersen Managing Director, Maersk Oil UK Maersk Oil UK Environmental Performance Report 213
5 Our Operations Maersk Oil UK has had a presence in the UKCS since 25. The company operates nine fields: Gryphon, Tullich, Maclure, Janice, James, Affleck, Donan (Dumbarton), Lochranza and Balloch. Exploration activities continue in the UK sector and are an important part of the company s growth strategy. Three operated North Sea assets located within the United Kingdom Continental Shelf (UKCS): N Janice Alpha FPU Shetland Islands kilometres Gryphon Alpha FPSO Global Producer III FPSO During the 213 reporting period, Maersk Oil s activities included an active drilling programme involving four contracted drilling rigs to work on seven wells, two of which continued into 214. Operated Production and Drilling Activity GRYPHON Maersk Oil Subsea/FPSO Orkney Islands BALLOCH Maersk Oil Subsea via GPIII MACLURE Maersk Oil Subsea via Gryphon TULLICH Maersk Oil Subsea via Gryphon Total Operated Production (MMBOE) DONAN (DUMBARTON) Maersk Oil Subsea/FPSO GPIII LOCHRANZA Maersk Oil Subsea via GPIII St. Fergus Drilling Programme (Number of wells completed) Aberdeen JANICE Maersk Oil FPU AFFLECK Maersk Oil Subsea via Janice FIELD/ FIELD AREA Operator Field Type FPSO Floating Production Storage and Offtake FPU Floating Production Unit JAMES Maersk Oil Subsea via Janice 29 5
6 Maersk Oil Environmental Management System Act Check Plan Do Within all our international operating units, Maersk Oil has established a clear framework for the effective management of HSSEQ issues involving exploration, drilling and production activities. Policy Organising Planning & Implementing - Environmental policy Measuring Performance - Resources, roles, responsibility & authority - Competence, training & awareness - Communication Auditing - Environmental aspects - Legal & other requirements - Objectives, targets & programmes - Documentation - Operational control - Emergency preparedness & response Reviewing Perfomance - Monitoring & measurement - Evaluation of compliance - Nonconformity, corrective/ preventive action - Internal audit Control Link Information Link Continual Improvement/Feedback Loop - Management review Within all our international operating units, Maersk Oil has established a clear framework for the effective management of HSSEQ issues involving exploration, drilling and production activities. Maersk Oil UK regards environmental management as being an integral part of our overall management responsibility, the fundamental aims being to support environmental protection, prevent pollution and comply with legislation and regulations. The principles of the International Standard for Environmental Management Systems (ISO141:24) are incorporated within the Maersk Oil UK Business Management System (BMS). The BMS provides the framework for a Plan-Do- Check-Act approach to HSSEQ management, which actively promotes continual improvement in all aspects of the organisation s activities. In 21 Maersk Oil UK successfully secured certification of the EMS to the International Standard ISO141: 24. The scope of certification for Maersk Oil UK is Extraction and production of oil and natural gas on Maersk Oil operated UKCS Fields and onshore support activities, including planning and organisation of development and exploration for all UK operated blocks, carried out at Maersk House. Throughout 213 we have successfully maintained ISO141 certification. Maersk Oil UK Environmental Performance Report 213
7 Environmental Aspects Environmental Performance We are committed to a process of continual improvement and pollution prevention with the intention to minimise discharges and emissions for all our installations and activities. Strenuous efforts are made to prevent incidents, but accidental spillages do happen. All accidental/unplanned discharges of oil or chemicals to sea, regardless of volume, must be reported to the Department of Energy and Climate Change (DECC), the Maritime and Coastguard Agency (MCA) and the Joint Nature Conservation Committee (JNCC). An approved Oil Pollution Emergency Plan (OPEP) is in place for each offshore installation. Atmospheric Emissions Atmospheric emissions generated from our offshore operations come from: Fuel combustion by turbines and generators for power generation; Flaring of hydrocarbons; Venting of unburned hydrocarbons from cargo tanks and cargo transfer: and Use of propane gas cylinders. These activities lead to emissions of carbon dioxide (CO2), nitrogen oxides (NOx), sulphur oxides (SOx), methane (CH4) and other Volatile Organic Compounds (VOCs). CO2 emitted from these activities is regulated by the European Union Emissions Trading Scheme (EU ETS). Phase III of the EU ETS runs from the 1st January 213 to 31st ember 22 which introduces additional procedural and emissions management requirements. Under EU ETS, we report annual CO2 emissions with a view to reducing emissions year on year. Non- CO2 emissions from our installations are regulated under the Offshore Combustion Installation (Prevention and Control of Pollution) (PPC) Regulations. Discharges to Sea - Produced Water Produced Water (PW) is a by-product of oil production and processing. Oil-in-Produced-Water (OiPW) refers to the trace amounts of oil still remaining in the water phase following PW treatment. In the UK, discharge of PW to sea is regulated under the Offshore Petroleum Activities (Oil Pollution Prevention and Control) (OPPC) Regulations. Maersk Oil UK is required to monitor and report PW discharges to sea in particular, the quality (in mg/l) and total volume of oil. It is the produced water management strategy on all Maersk Oil installations to re-inject produced water when re-injection capabilities are available thereby minimising the volume of oil discharged to sea. When produced water oil concentration discharged to sea is increased for any reason the strategy remains to minimise the volume of oil discharged to sea by re-injection rather than discharge overboard to reduce monthly average oil in produced water concentrations. Discharges to Sea - Chemical Management Chemicals are used for a wide variety of purposes in the offshore industry, e.g. to optimise production, aid separation and protect against corrosion and bacterial growth. Chemical use and discharge is regulated in the UK through the Offshore Chemicals Regulations (OCR). Maersk Oil UK aims to minimise the negative impact of chemicals by reducing the use of products with selected harmful, substitution components. Chemical permits must be in place before chemicals can be used or discharged during drilling, workovers, production and pipeline operations. Waste Management A variety of solid, liquid, hazardous and non-hazardous wastes are produced from our offshore operations, including: waste chemicals, waste oil, paper, scrap metal, glass and wood. The Merchant Shipping (Prevention of Pollution by Garbage) Regulations prohibits overboard discharge of offshore waste. All offshore waste is segregated and the majority is disposed of onshore via a variety of disposal routes, including recycling, landfill and incineration. Maersk Oil UK aims to continue reducing the volume of waste produced by our operations, and minimising volume sent to landfill. 7
8 213 Environmental Performance Summary The mapping and monitoring of discharges, emissions and wastes arising from our drilling and production activities is a long established practice within Maersk Oil UK. This information is used for regulatory reporting purposes and helps inform our strategy to improve our environmental performance. Data relating to key Environmental Performance Indicators (EPIs) based on internal targets for 213 is summarised below. Issue Maersk Oil UK 213 Objectives Take all reasonable steps to prevent pollution Environmental Performance Ensure Maersk Oil UK s compliance with relevant environmental legislative requirements Systematically identify and manage environmental risks through a fully functioning EMS which aims to drive continual improvement. Deliver a robust (risk based) internal and third party (contractor) environmental auditing programme Atmospheric Emissions Continue to improve understanding of atmospheric emissions management and where possible reduce GHG emissions in line with permit conditions and operational demands Discharges to sea - produced water Continue to investigate, evaluate and prioritise measures to improve the management of oil in produced water and where possible reduce oil and chemical discharges in line with permit conditions and operational demands Discharges to sea - chemical management Reduce the use and discharge of chemicals with SUB warnings Waste Management Promote waste management practices in line with the principles of the waste management hierarchy Maersk Oil UK Environmental Performance Report 213
9 213 Internal Targets 213 Performance Zero spills Full compliance with permits and consents Production Operations 11 x PON1 Drilling 1 x PON1 Production Operations 1 x NCN 8 x OPPC NCN 2 x OCR NCN Maintenance of the certified EMS to ISO141 across all locations and within scope Certification maintained 9% audit completion against plan 63% completion against plan Production Operations Annual target of 188,61 tonnes CO2 Flaring Production Operations Annual target of 258,69 tonnes CO2 derived from combustion activitiess 169,596 tonnes 15,743 tonnes UK Production Operations YE Target tonnes oil to sea Actual 2.35 tonnes UK Production Operations lnternal Target - OiPW 25 mg/l Actual 2.35 mg/l Production Operations - Target 7 chemicals with SUB warnings by end of year Actual 7 Drilling - <2, kg SUB chemicals discharged 1444 kg Annual target greater than 57% recycling rate from offshore production facilities 44% Annual target >75% recycling rate related to drilling activities (excluding waste sent for onshore treatment) 8.92% 9
10 Environmental Performance Summary Janice Alpha Floating Production Unit (FPU) Location: 156 miles south east of Aberdeen in Block 3/17a Currently produces from the Janice, James and Affleck fields Environmental Performance PON1 4 OPPC NCN OCR NCN PPC NCN 1 Four PON1s: Sheen observed close to the Janice wellhead cluster - P12 Jumper connection leak. Leak of methanol from P6 tree during repair operations using methanol as a carrier fluid. Diesel leakage from a liquid seal on the Hazardous Open Drains System. Leak of oil from deck of MSV Siem Stork during riser recovery operations - residual oil in riser. None of the fluids discharge had a volume greater than.7 tonnes. One OPPC non-compliance notification due to a process upset with the degasser unit resulting in overboard discharge with oil concentration > 1 mg/l. Atmospheric Emissions Total CO 2 Emissions (Tonnes) YTD Actual 14, 12, 213 Target CO2 (Tonnes) 1, 8, 6, 4, 2, Combustion CO 2 Emissions (Tonnes) Flaring CO 2 Emissions (Tonnes) 7, 7, 6, 6, 5, 5, 4, 4, 3, 3, 2, 2, 1, 1, J F M A M J J A S O N D J F M A M J J A S O N D Maersk Oil UK Environmental Performance Report 213
11 Monthly Average OiPW (mg/l) Monthly Average DECC Performance Standard 213 Target OiPW (mg/l) Oil Discharge to Sea (Tonnes) YTD Actual OPPC Permit Oil to Sea (Tonnes) Chemical Discharge to Sea (Tonnes) YTD Actual Regulatory Allowance Chemicals (Tonnes) Waste Management Waste Generated (Tonnes): Landfill Incineration Treated Recycled Total Percentage of Total: 2.22%.23% 46.32% 33.23% Overall environmental performance remained stable and below internal targets. Reductions were achieved in the volume of oil discharged to sea and total emissions to air and a greater percentage of waste was recycled. Janice underwent an extended period of shut-down during Q1 213 due to maintenance and repair work being carried out on the installation. During this time power generation was supplied by diesel combustion and overall emissions and discharges were reduced. 11
12 Environmental Performance Summary Gryphon Alpha Floating Production, Storage and Offloading Vessel (FPSO) Location: 175 miles north east of Aberdeen in Block 9/18b Currently produces from the Gryphon, Tullich and Maclure fields Environmental Performance PON1 2 OPPC NCN OCR NCN PPC NCN 1 1 Two PON1s: Discharge of MEG from heating medium pipework leak. Subsea leak of Hydraulic fluid. Due to the volume of these leaks environmental impact assessments and internal investigations were conducted. Neither incident was found to pose a significant environmental impact. One OPPC non-compliance notification: OiPW discharge greater than 1 mg/l. One OCR non-compliance notification: Unpermitted use of MEG to top up the heating medium. Atmospheric Emissions Total CO 2 Emissions (Tonnes) YTD Actual 14, 12, 213 Target CO2 (Tonnes) 1, 8, 6, 4, 2, Combustion CO 2 Emissions (Tonnes) Flaring CO 2 Emissions (Tonnes) 6, 7, 5, 4, 3, 2, 1, 6, 5, 4, 3, 2, 1, J F M A M J J A S O N D J F M A M J J A S O N D Maersk Oil UK Environmental Performance Report 213
13 Monthly Average OiPW (mg/l) Monthly Average 35 3 DECC Performance Standard & 213 Target. OiPW (mg/l) Oil Discharge to Sea (Tonnes) YTD Actual OPPC Permit Oil to Sea (Tonnes) Chemical Discharge to Sea (Tonnes) YTD Actual Regulatory Allowance 1,4 1, Chemicals (Tonnes)1,2 Waste Management Waste Generated (Tonnes): Landfill Incineration Treated Recycled Total Percentage of Total: 3.48%.4% 14.43% 55.5% Gryphon Alpha was shut down in Febraury 211 after sustaining damage during a storm. In August 212 Gryphon returned to station and production recommenced successfully and incident-free in June 213. For the second half of 213 Gryphon was focussed on regaining stable operations and the tie-in of a new production well. Therefore a comparison of previous year s performance has not been described. 13
14 Environmental Performance Summary Global Producer III Floating Production, Storage and Offloading Vessel (FPSO) Location: 137 miles north east of Aberdeen and 25 miles west of the transboundary line in Block 15/2a and 15/2b Currently produces from the Donan (Dumbarton), Lochranza and Balloch fields. Environmental Performance PON1 OPPC NCN OCR NCN PPC NCN Atmospheric Emissions Total CO 2 Emissions (Tonnes) YTD Cumulative 25, Five PON 1s: Sheen observed between the FPSO and DCC Manifold due to flowline rupture. Subsea Control Module hydraulic fluid leak. Leak from a hydraulic hose supplying hydraulic tools from DSV. Discharge of hydraulic oil from a hydraulic line on walk to work vessel. Failure of a hydraulic return line leading to a spill on deck which was discharged to sea. For larger leaks an environmental impact assessment was conducted with no significant environmental impact identified. Six OPPC non-compliance notification: Three for average monthly oil in water concentration >3 mg/l, two for overboard discharge >1 mg/l oil in water concentration and one for use of an out of date calibration graph. One OCR non-compliance notification : For use of defoamer when the plant was shut-down. GPII OPPC compliance performance is a result of the Maersk Oil PW Management Strategy as described on page 7 discharges to sea - produced water. 213 Target CO2 (Tonnes) 2, 15, 1, 5, Combustion CO 2 Emissions (Tonnes) Flaring CO 2 Emissions (Tonnes) 16, 7, 14, 6, 12, 5, 1, 4, 8, 3, 6, 4, 2, 2, 1, J F M A M J J A S O N D J F M A M J J A S O N D Maersk Oil UK Environmental Performance Report 213
15 Monthly Average OiPW (mg/l) Monthly Average DECC Performance Standard & 213 Target. OiPW (mg/l) Oil Discharge to Sea (Tonnes) YTD Actual OPPC Permit Oil to Sea (Tonnes) Chemical Discharge to Sea (Tonnes) YTD Actual Regulatory Allowance Chemicals (Tonnes) Waste Management Waste Generated (Tonnes): Landfill Incineration Treated Recycled Total Percentage of Total: 41.3%.22% 1.61% 47.87% Significant reduction in oil in produced water discharged to sea and total emission to air. Overall average oil in produced water concentration was also improved on 212 despite a number of OPPC NCNs. 15
16 Environmental Performance Summary Drilling Operations Environmental Performance PON1s & NCNs: OPPC NCN OCR NCN PPC NCN PON1: during well test operations human error resulted in flow being routed to an extinguished flare tip. A maximum of 1kg of oil was released. 1 Environmental Performance During the 213 reporting period, Maersk Oil s activities included an active drilling programme in the UKCS, involving four contracted drilling rigs conducting operations over seven wells with five being completed and two carrying over into 214. Despite not meeting our targeted zero spills we have achieved a 66% reduction over has seen a commitment to challenging environmental key performance indicators to maintain our commitment to continual improvement in reducing our impact on the environment during drilling operations. Atmospheric Emissions CO 2 Emissions (Tonnes) The majority of atmospheric emissions associated with drilling operations result from diesel combustion for power generation. Diesel use quantities depend upon the number of active rigs, well complexity and the time spent drilling. During 213 the TCCRotomill drill cuttings recovery, treatment and disposal unit continued to be deployed on all drilling rigs and as a result atmospheric emissions associated with cuttings transport to shore for treatment remained low. Four well tests were completed in 213 including one extended well test and CO2 emissions from flaring were 12,5 tonnes, representing an increase over 212 emissions. Although overall diesel consumption has reduced during 213 the overall emissions increase is due to completion of an extended well test during exploration activities. Drilling 212 Drilling 213 Flare Combustion Total 1,317 18,676 19,993 12,5 12,476 24,481 Maersk Oil UK Environmental Performance Report 213
17 Discharges to Sea - Target not achieved One accidental release to sea was recorded during 213. Although the overall quantity was small and assessed as of negligible impact to the marine environment, any loss of containment is an unwanted event. Focus on preventing accidental releases to sea will continue to remain a high priority during 214. All discharges of produced water associated with well test operations were carried out as per the conditions of our OPPC permits. All discharges were below 3mg/l. Waste Management - Target achieved Drilling operations produce several varied and complex waste streams ranging from the day to day living and galley wastes to contaminated cuttings and bulk liquid or slops wastes. The number of wells drilled and, to an extent, the complexity of those wells, determines the quantities and types of wastes generated. Sustainable management of these complex streams presents a significant challenge. However, 213 saw 81% of operational waste (excluding waste sent for further treatment onshore) over all drilling operations recycled or reused. Drilling Rig Waste Generated Waste* (Tonnes): Recycled Landfilled Reused Incineration Recorded Water1 Treatment2 Total Waste (t) % of Total: 13.5% 29.9% 11.2%.1% 3.33% 15.6% 1% 1 Water recovered from the waste fluids and cuttings sent for onshore treatment. This is discharged to industrial sewer for further treatment. 2 - Hazardous wastes sent for further treatment onshore (paints, chemicals, etc) 17
18 Maersk Oil UK Environmental Performance Report 213
19 19
20 For further information or to provide comments about this report, contact: Maersk Oil North Sea UK Limited Maersk House Crawpeel Road, Altens Aberdeen AB12 3LG Tel: Fax: Maersk Oil is a Company in the A.P. Moller - Maersk Group
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