Statoil (U.K.) Limited 2008 Offshore Environmental Statement 23 March 2009 Statoil (U.K.) Limited Statoil House 11a Regent Street London SW1Y 4ST (until 19 June 2009) Statoil (U.K.) Limited 1 Kingdom Street Paddington Central London W2 6BD (from 20 June 2009)
Contents Introduction...2 Statoil (U.K.) Limited...2 2008 Activities...3 Health, Safety and Environment Policy...5 Environmental Management System...6 Environmental Goals and Objectives...7 Environmental Performance...7 Oil and Chemical Discharges... 7 Regulated Chemicals... 8 Waste Products Generated... 8 Atmospheric Emissions... 9 Page 1 of 9
Introduction This document is the public environmental statement for the 2008 offshore petroleum activities of Statoil (U.K.) Limited. The statement has been prepared in accordance with recommendation 2003/05 of the Convention for the Protection of the Marine Environment of the North East Atlantic (the OSPAR Convention ), which has been adopted by the United Kingdom government and offshore industry. For more information about Statoil (U.K.) Limited, its offshore activities, its environmental management systems and its environmental performance, please contact: Raymond Wells HSE and Authority Liaison Manager UK Heavy Oil, Statoil (U.K.) Limited Statoil House 11a Regent Street London SW1Y 4ST (until 19 June 2009) rawe @ statoilhydro.com Raymond Wells HSE and Authority Liaison Manager UK Heavy Oil, Statoil (U.K.) Limited 1 Kingdom Street Paddington Central London W2 6BD (from 20 June 2009) rawe @ statoilhydro.com Statoil (U.K.) Limited Statoil (U.K.) Limited is a company registered in United Kingdom, with its principal U.K. office at 11a Regent Street, London. Statoil (U.K.) Limited is wholly owned by StatoilHydro ASA, an international integrated energy company that is based in Norway and listed on the Oslo and New York stock exchanges. StatoilHydro ASA was created on 1 st October 2007 by the merger of Statoil ASA (founded 1972) with the oil and gas activities of Norsk Hydro. StatoilHydro ASA is the leading oil and gas operator on the Norwegian continental shelf, and has operations in 40 countries worldwide. Approximately 29,500 employees in 40 countries The world s largest oil and gas operator in waters more than 100 metres deep Operator for 39 producing oil and gas fields Market capitalisation of more than 35 billion Production of over 1.9 million barrels of oil equivalent per day in 2008 Proven reserves more than six billion barrels of oil equivalent World leader in the use of deepwater technology World leader for carbon capture and storage One of the world s largest crude oil and gas suppliers Biggest seller of oil products in Scandinavia One of the world s 50 largest listed companies Statoil (U.K.) Limited is the operator of the Bressay, Mariner and East Mariner oil discoveries and the Broch exploration licence in the U.K. sector of the North Sea. These heavy oil fields and prospects are located north-east of Scotland, close to the North Sea median line between the continental shelf areas of the U.K. and Norway, as shown in Figure 1. Page 2 of 9
Other companies with an interest in these licences are Shell U.K. Limited for Bressay; ENI UKCS Limited, Nautical Petroleum plc and OMV (U.K.) Ltd for Mariner/Mariner East; and Silverstone Energy and Wilderness Energy UK Limited for Broch. Figure 1: Location of Statoil (U.K.) Operated Heavy Oil Fields In addition to its status as operator for these licences, Statoil (U.K.) Limited is a licence partner in the Alba field operated by Chevron North Sea Limited, the Jupiter field operated by ConocoPhillips UK Limited and the Schiehallion field operated by BP Exploration Operating Company Limited. It is also a licence partner in the Rosebank and Lochnagar fields, the development potentials for which are being assessed by the operator, Chevron North Sea Limited. StatoilHydro ASA is also the 100% owner of Scira Offshore Energy Ltd, which is the lease and consent owner for the Sheringham Shoal offshore wind energy project that is to be constructed off the north Norfolk coast. 2008 Activities Statoil (U.K.) Limited acquired the operatorship of the Mariner, Mariner East and Bressay licence areas after it purchased the interests of Chevron North Sea Limited in late 2007. At the same time the company farmed-in to the Broch licence from Silverstone and Wilderness. Since then, Statoil (U.K.) Limited has been actively pursuing development options for these fields, including offshore appraisal work and project feasibility studies. Page 3 of 9
During the summer of 2008 a high-resolution 3-dimensional seismic survey was undertaken over a large portion of the Mariner field, supplemented by an ocean bottom cable seismic survey over the central area. The survey areas are as shown in Figure 2. 9/11a High-resolution 3D 9/11b survey area OBC survey area 5 km Figure 2: Area of 2008 Mariner Seismic Surveys In the second half of 2008 an appraisal well was drilled and tested at the Bressay field, and an exploration well was drilled at the Broch field, both using the Stena Spey semisubmersible drilling unit. For the Bressay well test, the BW Carmen was chartered for use as an anti-pollution testing vessel, enabling the oil to be collected rather than flared. A total of approximately 2000 tonnes of reservoir fluid was produced, most of which was sold to market whilst some was retained for assay and for flow experiments. Well No. Spud Date Completion Coordinates Mud Type Test Volume Bressay 3/28a-6 23 Aug 2008 21 Nov 2008 60.0102778 N 1.4035 E Broch 9/11e-14 30 Nov 2008 25 Dec 2008 59.5106944 N 1.1680556 E Table 1: Details of Bressay and Broch Wells Water based Approx 2000 tonnes Water based - The Mariner and Bressay development projects passed through Decision Gate 1 the end of the project feasibility stage in late 2008 and have now entered the concept selection phase. If sanctioned by partners and approved by the authorities, offshore construction for both these projects is currently schedule to commence in 2013/4, with first oil production in 2015. Page 4 of 9
Health, Safety and Environment Policy Statoil (UK) Limited adopts the health, safety and environment policy of its parent company, StatoilHydro ASA. This policy states that: We ensure safe operations that protect people, the environment, communities and assets. We use natural resources efficiently, and provide energy that supports sustainable development. We believe that all accidents can be prevented. We are committed to: Integrating HSE in how we do business Improving HSE performance in all our activities Contributing to the development of sustainable energy systems and technology Demonstrating the importance of HSE through hands-on leadership and behaviour Openness in all HSE issues and active engagement with stakeholders. How we work: We take responsibility for our own and others safety and security We work systematically to understand and manage risk We provide employees with necessary resources, equipment and training to deliver according to designated responsibilities We cooperate with our contractors and suppliers based on mutual respect We stop unsafe acts and operations We apply clean and efficient technologies to reduce the negative environmental impact of existing operations We work to limit greenhouse gas emissions We aim for a safe and attractive working environment characterised by respect, trust and cooperation We monitor our people s health in job-related risks We establish work processes, goals and performance indicators to control, measure and improve them We run HSE improvement processes based on surveys and risk assessments, and we involve our people We build robust installations/plants and maintain them to prevent accidents If accidents occur, our emergency preparedness shall do the utmost to reduce injury and loss. Saving lives is our highest priority. Page 5 of 9
StatoilHydro is known internationally as a company that demonstrates great commitment to health, safety and the environment. Its environmental performance is world-leading, and for the years 2004 to 2007 Statoil ASA was ranked number one among the world s oil and gas companies in the Dow Jones Sustainability World Index (DJSI World). As an example of StatoilHydro s environmental performance, in 2007 its carbon dioxide emissions in petroleum production were below 8 kg per barrel of oil equivalent produced. This may be compared with industry average emissions of around 19 kg per barrel of oil equivalent, both for the United Kingdom continental shelf and worldwide. For more details of the company s environmental activities and performance, refer to the environment and sustainability pages of the StatoilHydro web-site. Environmental Management System The StatoilHydro environmental management system (EMS) is an integral part of its overall business management. The StatoilHydro management system has a hierarchical form, as illustrated below, in which the corporate values are supported by our people and leadership processes, and in turn by an operating model comprising our organisational principles, our business improvement model ambition to action, our capital value process, our business review processes ( arenas ) and our monitoring systems. These are then supported by corporate policies in nine key areas, the first of which is for health, safety and environment. Corporate functional requirements, applicable to all of StatoilHydro, dictate how businesses are to be managed, through setting of standards and by defining the management activities that must take place. These are then supplemented at the level of individual business areas or geographical units by more detailed documents that are compliant with the corporate requirements, whilst being adapted for individual business area needs and to comply with local legislation. People & Leadership Our people partnership Leadership in StatoilHydro Corporate policies in nine areas of significant importance Our values Operating model Organisational principles Ambition to action Capital value process, arenas and networks Monitoring Corporate requirements Business Area requirements Requirements valid across StatoilHydro Organisation descriptions and requirements for individual Business Work process requirements Figure 3: StatoilHydro Management System Structure Page 6 of 9
The StatoilHydro environmental management system is fully compatible with recognised environmental management standards such as ISO 14001. For the purpose of its 2008 drilling activities, Statoil (U.K.) Limited engaged Lloyds Register to review the system and related project documentation against ISO 14001, and these were fully verified as meeting the OSPAR and government authority EMS requirements. The government authority has indicated that this is sufficient to enable Statoil (U.K.) Limited to apply for any environmental regulatory permits etc. associated with the project, but notwithstanding this Statoil (U.K.) Limited plans to work towards formal certification to ISO 14001 during the course of the Mariner and Bressay development. Environmental Goals and Objectives Statoil (U.K.) Limited uses the StatoilHydro Ambition to Action process to establish its high level objectives, performance indicators and improvement actions. For UK Heavy Oil group in 2008 the overall ambition was to mature the UK Heavy Oil portfolio towards sanctioning and establish StatoilHydro as the dominant heavy oil area developer. Under this overall ambition, the strategic objective for health, safety and environment was to conduct safe and environmentally sound operations, minimize emissions and disposals from planned developments, and manage reputational risks. Specific actions related to the environment were to: Perform the drilling, testing and seismic operations with zero harm to people and environment Establish targets for carbon dioxide emissions in the development project and seek solutions to minimise these emissions The first of these targets related to the 2008 offshore activities, whilst the second recognises the potential for relatively high emission levels from heavy oil developments, and commenced the process to minimise the potential greenhouse emissions from Mariner and Bressay facilities. Environmental Performance This section presents data on emissions and discharges from installations operating during 2008 at licence areas for which Statoil (U.K.) Limited was the operator i.e. from the Stena Spey drilling unit operating at Bressay and Broch. The vessels used for seismic activities at Mariner are not included, and neither are vessels used to support the drilling activities, as all these fall under maritime legislation and are not considered to be offshore installations for the purposes of OSPAR. However, it may be noted that these maritime operations were conducted with zero significant adverse health, safety or environment incidents. Oil and Chemical Discharges There were no accidental spills to sea during the course of the operations, such as to require a PON1 notification. Discharges of regulated chemicals were as detailed in the following section. Page 7 of 9
Regulated Chemicals Use and discharge of regulated chemicals was as shown in the chart below. 120 100 80 Tonnes 60 40 20 0 Teq-Lube Carbogel D600G Erifon Rigwash Antifoam Foamtreat Discharged Used Figure 4: Use and Discharge of Regulated Chemicals Waste Products Generated Waste products generated by our offshore activities, together with the relevant disposal routes, were as shown below. 200 150 Tonnes 100 50 0 Sludges Metal Oils General Waste Type Misc Drums Chemicals Clinical Incinerated Reused Energy To Landfill Recycled To Sea Disposal Route Figure 5: Waste Products Generated Offshore Page 8 of 9
Discharges to sea, most of which was sludge, were all carried out under the necessary permits. Most of the other significant waste quantities principally sludge, metal, oil and some segregated waste were recycled. The most significant waste sent to landfill comprised back-loaded drill cuttings. Atmospheric Emissions The principal atmospheric emissions were from diesel engines, with total fuel consumption and resultant emissions as shown below. 5000 4000 Tonnes 3000 2000 1000 0 Fuel Used CO2 NOX N2O SO2 CO CH4 VOC Usage / Emissions Figure 6: Atmospheric Emissions Offshore There was negligible venting of gas from the Bressay well test, due to the low gas content of the fluid, and there was no flaring. Page 9 of 9