RESTRICTED Feb-16 Document ID: SP-1008 Filing Key: Business Control Petroleum Development Oman L.L.C. Health Safety Environment & Sustainable Development Specification for Use of Energy, Materials and Water Resources User Note: The requirements of this document are mandatory. Non-compliance shall only be authorised by the Document Owner or his Delegate through STEP-OUT approval. A controlled copy of the current version of this document is on PDO's EDMS. Before making reference to this document, it is the user's responsibility to ensure that any hard copy, or electronic copy, is current. For assistance, contact the Document Custodian or the Document Controller. Users are encouraged to participate in the ongoing improvement of this document by providing constructive feedback. Please familiarise yourself with the Document Security Classification Definitions They also apply to this Document! Petroleum Development Oman LLC Version: 3.0 Effective: Jan2009 This page was intentionally left blank Page 2 Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Petroleum Development Oman LLC i Version: 3.0 Effective: Jan2009 Document Authorisation Page 3 Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Petroleum Development Oman LLC Version: 3.0 Effective: Jan2009 ii Revision History The following is a brief summary of the 4 most recent revisions to this document. Details of all revisions prior to these are held on file by the issuing department. Version No. Version 3.0 Date Sep 2007 Author Mariana MSE/22 Michael Maisoon Riyami CSM/21 Version 2.0 June 2002 Version 1.0 Dec 1998 Maisoon Riyami CSM/21 Scope / Remarks Updated to reflect current regulatory requirements and re-structuring specification content (see section 1.2) Editorial changes. New format. Initial issue. iii Related Business Processes Code Business Process (EPBM 4.0) iv Related Corporate Management Frame Work (CMF) Documents The related CMF Documents can be retrieved from the Corporate Business Control Documentation Register TAXI. CP 122 Health Safety and Evironment Management System Manual SP1005 Specification for Emissions to Atmosphere Page 4 Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Petroleum Development Oman LLC Version: 3.0 Effective: Jan2009 TABLE OF CONTENTS i Document Authorisation ......................................................................................................... 3 ii Revision History ..................................................................................................................... 4 iii Related Business Processes ................................................................................................. 4 iv Related Corporate Management Frame Work (CMF) Documents ........................................ 4 1 Introduction ............................................................................................................................ 6 2 1.1 Purpose ............................................................................................................................ 6 1.2 Changes to the Specification ............................................................................................ 6 Scope ..................................................................................................................................... 7 2.1 Definitions and Abbriviations ............................................................................................ 7 2.2 Deliverables ...................................................................................................................... 7 2.2.1 Records .......................................................................................................... 7 2.2.2 Reports ........................................................................................................... 7 2.3 Process Owner's Responsibility ....................................................................................... 7 2.4 Performance Monitoring ................................................................................................... 8 2.5 Review and Improvement................................................................................................. 8 2.6 Performance Standards ................................................................................................... 8 2.6.1 Energy ............................................................................................................ 8 2.6.2 Water Resources ............................................................................................ 9 2.6.3 Material Use.................................................................................................... 9 Appendix A. Reporting Format ............................................................................................... 10 Page 5 Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Petroleum Development Oman LLC Version: 3.0 Effective: Jan2009 1 Introduction 1.1 Purpose This Specification describes PDO's minimum requirements for managing the use of energy, materials and water resources which result from PDO’s activities, products and services. 1.2 Changes to the Specification The following overall changes have been made: - Page 6 The adoption of corporate specification template Updating to ensure that all the key requirements emanating from Omani environmental regulations, SIEP GES and International standards to which PDO subscribes are current. Additional supporting details contained in the above requirements will be made available in this specification through a direct web-link to the document concerned. The intent of a specification is to focus on the specific requirements; hence details of how specifications to be met, which are included in other procedures are removed. Where relevant this information is re-allocated to appropriate procedures. Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Petroleum Development Oman LLC Version: 3.0 Effective: Jan2009 2 Scope This Specification addresses the use of: Energy - fuel and electricity used for ‘work related activities, (e.g. energy consumed in seismic surveys, drilling, production, transport and offices) under operational control. Water Resources Materials and their associated packaging This Specification does not cover the use of chemicals. For information refer to SP 1194 Chemical Management. 2.1 Definitions and Abbriviations ME&CA: Ministry of Environment and Climate Affairs 2.2 Deliverables 2.2.1 Records Records shall be maintained to document the use of energy, materials, and water resources. See Appendix A for parameters (refer to CP 122 HSE Management System Manual, Part 2 Chapter 6, section 3). 2.2.2 Reports Energy, consumables and resources (water use) data shall be submitted to the Corporate Environmental Department monthly, to the requirements specified in Appendix A. Any non-compliance with this Specification shall be notified, investigated and reported per the ‘Non Compliance Report Form’ in CP 122 HSE Management System Manual, Part 2 Chapter 6, section 4. 2.3 Process Owner's Responsibility Team Leaders/Area Co-ordinators are responsible for ensuring that the use of energy, materials and water resources in their area of responsibility (including contractor activities) are managed efficiently in accordance with the requirements of this Specification. Energy, materials and resources use shall be: identified quantified (either by direct measurement or using appropriate methods of estimation) recorded, as appropriate (refer to Section 2.2.1) reported, as appropriate (refer to Section 2.2.2) In the event that circumstances prevent compliance with this Specification, Discipline Team Leaders shall seek the advice and if necessary, a ‘step-out approval’ from the Document Owner. This approval requires recording subject areas, which do not Specification for Use of Energy, Materials and Water Resources Page 7 The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Petroleum Development Oman LLC Version: 3.0 Effective: Jan2009 conform as a non-compliance (refer to the ‘Non Compliance Report Form’ in CP 122 HSE Management System Manual, Part 2, Chapter 6, section 4). Team Leaders/Area Co-ordinators shall seek the advice and if necessary, a ‘stepout approval’ from the Document Owner . This approval requires recording subject areas, which do not conform as a non-compliance (refer to the ‘Non Compliance Report Form’ in CP 122 HSE Management System Manual, Part 2, Chapter 6). Corporate Functional Discipline Heads are responsible for ensuring that the requirements of this Specification are reflected in the documents for which they are responsible Contract Holders are responsible for communicating this Specification to Contractors, and for ensuring that the requirements of this Specification are adhered to within the scope of their contracts. Contractors are responsible for ensuring that energy, materials and water resources used in the course of carrying out their contractual requirements, are managed in accordance with the requirements of this Specification and reported, when applicable, to the contract holder. Document Custodian is responsible for ensuring that this specification is updated as necessary to reflect any changes to Omani legislation, Shell standards and other requirements to which PDO subscribes. 2.4 Performance Monitoring An energy, materials and resources usage monitoring programme shall be developed, implemented and maintained to demonstrate compliance with this Specification, and to supply the necessary data to prepare required reports (Appendix A). 2.5 Review and Improvement Any user of this document who encounters a mistake or confusing entry is requested to immediately notify Corporate Environment Section using the form provided in CP 122 HSE Management System Manual, Part 2 Chapter 3, Section 5. This Specification shall be reviewed every 4 years. However changes to the current version may be made in less than four years as the need arises depending upon the issue of new and relevant environmental legislation and or major organisational changes in PDO (see Section 2.2). 2.6 2.6.1 Performance Standards Energy There are no specific Omani legal requirements for energy use. However, Shell Global Environmental Standards (GES No. 10) to which PDO subscribes, do provide guidance and requires that all companies action the following: - Energy use and energy efficiency shall be actively monitored at all major installations and 5-year Energy Management Plans shall be in place that describe the continuous improvement process to maximize the efficiency of energy use and throughput. Page 8 Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Petroleum Development Oman LLC Version: 3.0 Effective: Jan2009 - A demonstration of how energy efficiency considerations have been included in the design of the project shall be made for new and modified major installations. Ultimate goal The energy use of all EP operated facilities and activities is demonstrably ALARP and energy management plans are in place to monitor and continuously improve energy efficiency Energy Management Plans shall be developed, as a minimum, for PDO major projects. Energy Management Plans can be developed by applying the EP GHG and Energy Management Plan Templates for the different ORP phases. Refer to EP2005-0161-TO80 and EP2005-0161-TO-81. The plan shall be updated and re-issued as required. EP 2500-0161-GL-01 gives guidance on items to be considered in developing and updating these plans and include a checklist to identify energy saving opportunities for both new and existing operations. 2.6.2 Water Resources Royal Decree RD 29/2000: “Promulgating the Law of Protection of Water Wealth” states that that the water in the Sultanate of Oman is considered a national wealth which is subject to controls, summarised below: - Is utilised in a manner which serves the development plans of the state - It is prohibited to undertake any work which negatively effects the underground water supply. 2.6.3 Material Use No specific requirements are identified in either Omani regulations or the Shell Global Environmental Standards to address this matter. Nevertheless consideration of the possibility for recycling is addressed in some waste management regulations. In PDO’s operations and in the production of oil and gas, materials usage shall be optimised. Recycling / reuse of materials shall be promoted wherever practicable. Page 9 Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Version: 3.0 Effective: Jan2009 Petroleum Development Oman LLC Appendix A. Reporting Format Parameter Units Associated gas production Daily average volume ‘000scm/day Non –Associated gas production Daily average volume ‘000scm/day Oil Production (NET, NGL, LPG) Daily average production ‘000scm/day power Monthly total volume m 3 (stationary & Monthly total volume m 3 (stationary and Monthly total volume m 3 Electricity Consumption from grid. Monthly total MWhr LPG Consumption Monthly total volume m Monthly total volume Tonnes Monthly total volume Tonnes Energy Crude Oil generation Consumption Diesel Consumption mobile) Petrol Consumption mobile) for 3 Materials Drilling Chemicals used Production Chemicals used and Mud use Maintenance Meters drilled with : WBM OBM SBM M M M Other Resources Water consumption Monthly total by: Page 10 m 3 production stimulation domestic use Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED. Petroleum Development Oman LLC Version: 3.0 Effective: Jan2009 This page was intentionally left blank Page 11 Specification for Use of Energy, Materials and Water Resources The controlled version of this CMF Document resides online in Livelink®. Printed copies are UNCONTROLLED.