#1KAA ENERGY Sakhalin II Phase 2 Oil Spill Response Preparedness for Expansion to Phase 2 Operations Presentation for the Petroleum Association of Japan Oil Spill Symposium February 2008 Phase 2 Development • Piltun-B platform. Piltun-A year round production. • Lunskoye-A platform. • Onshore processing facility (OPF). • Oil and gas pipelines. LNG plant and oil export terminal. Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 2 1#2Sakhalin Energy Oil Spill Response: Objectives • To establish a world class OSR system that will provide the best possible protection to the environment in the event of a spill. • To establish a scientifically based and practically focussed work programme that will sustain longer term development of OSR within SEIC, on Sakhalin and within the region. • To cooperate with municipal, Sakhalin Oblast and Russian Federal authorities in developing wider OSR capabilities. Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Sakhalin Energy Response Preparedness • • Sakhalin Energy response capability is supported by: Sakhalin Energy Emergency Response Organisation Participation in the RF Unified Command • Oil Spill Response Plans and supporting documents • OSR Work Programme ° • OSR Equipment Stockpile and Professional OS Responders International equipment and personnel resources of Oil Spill Response Limited (OSRL, UK) & East Asia Response Limited (EARL, Singapore) Cooperative OSR agreement with ENL and MoU with other oil companies on Sakhalin Island MoU with Marine Disaster Prevention Centre of Japan Spill prevention systems; hardware coupled with operating and maintenance procedures Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 3 4 2#3Challenges ■ Cultural Considerations ■ Effects of Climate on Oil Behaviour ■ Oil Spill Response in Ice Conditions ■ Environmental and Social Sensitivities ▪ Remoteness and Infrastructure ■ Equipment Suitability Trans-boundary Issues Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Emergency Response Organisation RFIRegion RSCHS United Command [As appropriate) Government SEC External Affairs Teams SEIC Crisis Management Team CMT SEIC Support Teams SEIC Emergency Coordination Team ECT Crisis Management Emergency Management External Support (OSRL, Response Contractors) Site Teams RSCHS - Unified State System for Prevention of and Response to Emergencies Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 5 6 3#4Sakhalin Energy OSR Documentation GIS Data and Systems OSR Policies Background Papers Corporate OSRP OSR Procedures Facility OSRPS ECT Handbook Key Operations Facility Handbooks OSRP Handbooks Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC OSR Work Programme Phase 1 Review of Existing Environmental Data Phase 2 Ground and Aerial Surveys Ecological Studies Risk Assessments Oil Spill and OSR impact Assessments Development of Gil for OSR Review of Existing OSR and ER Plans Oil Character and Behaviour Studies Development of OSR Plans Review of Existing OSR Equipment C in Ice Studies Review of OSR Equipment Review of Existing OSR & ER Training Pilot Training Courses Purchase of OSR Equipment OSR Training Standard and Schedule Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Phase 3 Ongoing Studies 8 7 4#5Effects of Climate on Oil Behaviour • Character of Fresh Oil and Weathering Behaviour Specific Gravity - Viscosity (at various temperatures) - Pour point Wax content - Asphaltene content Emulsification potential and water miscibility Evaporative Loss • ⚫ Biodegradation • In Situ Burning Effectiveness of Chemical Dispersants Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Oil Spill Response in Ice Conditions • The presence of ice does present challenges for OSR. High ice cover inhibits access by response vessels and also limits the range of recovery devices that can be deployed. High ice cover also inhibits the spread of oil and slows trajectory. Sakhalin Energy has reviewed, and is continuing to review the available equipment for oil recovery in ice conditions. These are being assessed against the conditions that exist offshore and onshore Sakhalin Island. Ongoing development is carried out through continuing Oil in Ice studies and participation in industry R & D programmes. Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 9 10 5#6Effectiveness of OSR Strategies Offshore equipment deployment in winter conditions December 2007 Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Remoteness and Infrastructure Field survey of island road & bridge infrastructure Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 11 12 6#7Remoteness and Infrastructure Field survey of shoreline & river accessibility and physical characterisation Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Field Survey Results ■ Identification of access points to the shoreline and rivers in areas downstream of pipeline crossing Description of river characteristics by means of coded forms, pictures and sketches ■ Mapped access routes with road and bridge conditions ■ Shoreline characteristics recorded in several formats: written forms, ground-truth pictures and aerial video ■ Geo-referenced database ■ Information for OSR Planning and Emergency Responders Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 13 14 7#8Site specific response Extensive field data has allowed for the development of site specific response strategies high water, low water and winter conditions. RIVER BOOM Bank 1m 30° Willow 70% 50m 1 SHORE SEAL BOOM Bank 1m 30° Willow 5m Open area 1 High water bed 2 Small island 3 Log debris Access to river Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC RECOVERY Fit-for-Purpose Transportation • Equipment and deployment methods chosen with the ПК ЛАРН consideration for "SEIC OSR" "C3M.PH* logistics challenges. Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 16 15 8#9Vessels, Depots & Equipment Deployment Onshore Equipment Pipeline Maintenance Depots: • Nogliki • OPF • Yasnoye • Gastello (BS2) • Sovetskoye Prigorodnoye OSR Garage Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Ice Class Vessels Pacific Endeavour Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIF Offshore ■ PA-B ■ PA-A ■ Lun-A ■ Aniva Bay Marine Equipment Nogliki ■ Kholmsk Prigorodnoye Smit Vessel 9#10Prigorodnoye: Marine and Shoreline Response . ⚫ Offshore, shoreline and near shore response equipment is stored at the marine emergency response depot. . • The list of equipment is extensive including small landing craft various booms, skimmers, temporary oil spill storage tanks and sorbents, with total of approx 150 different items stored in a dedicated warehouse. Sakhalin Energy 19 THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Prigorodnoye Marine Emergency Response Depot Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Line boats are 15m in length, 1.5m draft and with 8 tonnes bollard pull ideal for ease of deployment and to assist tugs with "J" type formation of boom. • Boom ramp is integral with marine base allowing two booms to be set up ready for immediate deployment. 20 10#11Onshore Emergency Response Depots Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Equipment Procurement Vessel-based OSR Kits ➡ Booms Skimmers Rapid Deployment Packs ➡Storage Tanks ➡ All Terrain Vehicles River Vessels ➡PPE & Misc. Equipment Total 1400 Line Items Sakhalin Energy + Marine Vessels Heavy Equipment Transport Vehicles THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 21 22 11#12Training & Exercises Sakhalin E 23 THE NEW ENERGY SOURC Training & Exercises Exercises for Oil Spill Response teams in winter conditions December 2007 Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC 24 12#13Health and Safety Communications, Climate, Natural Hazards Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC OSR Trans-boundary Issues Potential for oil spills to enter Japanese waters. SEIC have modelled spills in Aniva Bay and La Perouse Strait as well as northeast Sakhalin. Cross border response coordination. - MoU with Marine Disaster Prevention Center of Japan - Hokkaido Regional Oil Spill Response Plan - Spill reporting to Lenders, Shareholders and MDPC Information Sharing Hokkaido OSR Expert Committee North West Pacific Action Plan (NOWPAP) Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC Bear Horn 25 26 13#14General Approach Strategies and methods in OSRPs are based on existing and proven techniques. Strategies and equipment selected represent world's best practice and best available technology. ■ Sakhalin Energy OSR continues to assess new technology with a view to acquiring this and incorporating it into OSRPs. ▪ This an ongoing process and an ongoing commitment. Sakhalin Energy THE NEW ENERGY SOURCE FOR THE ASIA PACIFIC ACKAR ENERGY Sakhalin II Phase 2 Oil Spill Response Preparedness for Expansion to Phase 2 Operations End 27 14