UK Upstream Environmental Statement 2011 UK Upstream Environmental Statement 2011 Contents 1Introduction page 2 2Achievements 3 Environmental Management page 3 1.1Purpose 1.2ConocoPhillips 3.1 Environmental Management 3.2Planning 3.3 Objectives and targets 3.4Controls 4Operations page 1 page 4 4.1 Central North Sea - J-Block 4.2 Greater Britannia 4.3 Southern North Sea 4.4 East Irish Sea 4.5 Other - MacCulloch 4.6 Business Development 4.7Drilling 4.8 Operating Areas 5 Environmental Aspects and Performance 5.1 Atmospheric Emissions 5.2 Produced Water 5.3 Chemical Discharges 5.4Waste 5.5 Spills to Sea 6 Goals and Performance page 6 page 11 page 15 2011 UK Upstream Environmental Statement 1 Introduction Purpose The purpose of this document is to provide stakeholders and the public with an overview of ConocoPhillips (U.K.) Limited upstream operations and environmental performance for 2011. This statement aims to: • Describe our main upstream assets and activities. • Provide a brief overview of Environmental Management within the company. • Provide details on key environmental aspects and their impact. • Summarise our upstream UK business unit’s environmental performance and progress against our objectives for the year. ConocoPhillips On May 1, 2012, ConocoPhillips completed its repositioning into two independent companies through the spinoff of its downstream businesses to a new company, Phillips 66. Headquartered in Houston, Texas, ConocoPhillips has operations in almost 30 countries. As of May 1, 2012, the company had more than 16,500 employees worldwide. ConocoPhillips conducts exploration activities in 19 countries and produces hydrocarbons in 13 countries, with proved reserves located in 15 countries as of Dec. 31, 2011. ConocoPhillips’ upstream involvement in the United Kingdom began in September 1964 when acreage was awarded to the company in the first U.K. licensing round. In 1968, the Viking gas field was discovered, and first gas was produced in 1972. Since then, the U.K. portfolio has grown to include additional operated assets, as well as interests in non-operated assets. Our goal at ConocoPhillips is to have zero injuries, illnesses and incidents in our workplaces and communities. We consider health, safety and environment (HSE) excellence, as well as sustainable development (SD), throughout our worldwide operations essential to our success and the foundation of our SPIRIT values. page 2 UK Upstream Environmental Statement 2 Achievements A number of significant accomplishments were made across the ConocoPhillips UK, upstream organisation during 2011 including: • Installation of the Jasmine wellhead platform jacket and commencement of the Jasmine drilling campaign • A successful oil spill response exercise reviewed by the Secretary of State’s Representative for the Department of Transportation and Energy and Climate Change (SoSRep) • Submission of Environmental Statements for two proposed developments – Enochdhu in the Central North Sea (CNS) and Katy in the Southern North Sea (SNS) • Conclusion of a farm in agreement into a new CNS prospect ConocoPhillips in conjunction with University of St Andrews continued to support the St Andrews Prize for the Environment initiative. The Prize recognises significant contributions to environmental conservation and since its launch in 1998 has attracted entries from more than 50 countries each year on many diverse topics. page 3 2011 2011 UK Upstream Environmental Statement 3 Environmental Management Environmental Management Objectives and targets The ConocoPhillips UK, upstream Health Safety and Environmental (HSE) policy provides a framework for the integrated management of environmental issues related to ConocoPhillips’ UK business activities. It commits the company to comply with environmental legislation and strive for continuous improvement in environmental performance. The HSE Policy is included overleaf. Measurement of performance against defined objectives is a critical part of environmental management which covers a range of measurable activities from tracking of emissions data to monitoring training activities and audits. ConocoPhillips UK, upstream has implemented a dedicated environmental management process within its Operating Management System. This process demonstrates how the ConocoPhillips UK, upstream HSE Policy is implemented throughout operations and how the process itself follows the requirements of recognized environmental management standards. The Environment Management Process applies to all activities onshore and offshore carried out by ConocoPhillips UK upstream. As well as being the mechanism by which legislative and regulatory requirements are satisfied, significant environmental aspects are addressed, emissions and wastes are managed, non-conformances are identified, corrective actions are collated and monitored and environmental awareness is maintained through the environmental management process. The system is fully certified to the requirements of ISO14001:2004 and one of the key strategies is the maintenance of certification for all assets and all parts of the business. Planning Key management processes are in place to control the major environmental aspects of our activities and to ensure that our operations are carried out in an environmentally responsible manner. These fall into the following categories: planning, implementation, performance measurement, auditing and performance review. The aim of the planning process is to maintain the basis upon which ConocoPhillips will continue to improve its environmental performance. Specific focus is given to improvement projects addressing annual UK upstream environmental goals and assessing the impact of our activities. Environmental programmes for assets are monitored regularly. Controls All activities which may have an environmental impact are controlled through the environmental management process. Pre-job risk assessments are carried out on tasks which cover pollution risk, spill prevention and the management of waste generated during the task. Fuel bunkering procedures are strictly adhered to on all platforms and drilling rigs. The use of management tools such as safety and environment tours, audits and supervisor inspections all reinforce the responsibility of all personnel in ensuring continuous improvement. The environmental management process and associated documents are subject to periodic audit and review in accordance with company requirements. page 4 page 5 2011 UK Upstream Environmental Statement 4 Operations Central North Sea – J-Block Judy/Joanne Commercial oil production and gas sales from Judy/ Joanne began in 1997. Gas processed on the Judy platform is transported through the Central Area Transmission System (CATS) Pipeline, and liquids are transported to Teesside through the Norpipe system. J-Block Fields’ net production in 2011 was 11 MBD of liquids and 74 MMscfd of natural gas. Jade The Jade field came on stream in 2002 and consists of a normally unmanned platform tied back to Judy. Jasmine ConocoPhillips operates in both the Central and Southern North Sea The Jasmine development, located approximately 5½ miles west of the Judy production facility, will comprise a Jasmine wellhead platform (WHP) and an accommodation and utility platform bridgelinked to the WHP; a Judy riser and separation platform (JRP) with additional Judy well slots bridge-linked to the existing Judy Platform; and a multiphase pipeline from the WHP to the JRP. Development consent was granted for Jasmine Phase 1 in 2010. Peak production is expected to be achieved in 2014. page 6 UK Upstream Environmental Statement 2011 4 Operations Southern North Sea ConocoPhillips has various interests in producing gas fields in the Rotliegendes and Carboniferous areas of the Southern North Sea (SNS). Net production for the SNS in 2011 averaged 127 MMscfd of natural gas. Rotliegendes LOGGS Greater Britannia Britannia Satellites - Brodgar and Callanish Brodgar, discovered in 1985, is located in Block 21/3. Callanish, discovered in 1999, is located in Blocks 15/29b and 21/4a. Production commenced in 2008. The fields produce via subsea manifolds and pipelines linked to the Britannia platform. Net production in 2011 was 20 MBD of liquids and 57 MMscfd of natural gas. (Environmental data is reported under the public statement for Britannia). page 7 The Lincolnshire Offshore Gas Gathering System (LOGGS) Complex started operating in 1988. The facility receives natural gas from the V-fields, Vampire, Viscount, Valkyrie; the Saturn Unit Area: Saturn, Mimas and Tethys; the Jupiter Area natural gas fields: Ganymede, Sinope, Callisto, Europa and NW Bell; as well as the third-party fields: Ann, Alison, Annabel, Audrey and Anglia. Natural gas from Viking, Victor, Vixen and Victoria is transported through the LOGGS facilities where it is commingled and forwarded on to the Theddlethorpe gas terminal. V-Fields V-fields comprise four separate gas accumulations (North Valiant, South Valiant, Vanguard and Vulcan) and are produced via normally unmanned production platforms. 2011 UK Upstream Environmental Statement Carboniferous Saturn Unit - Saturn, Mimas and Tethys The Saturn Unit lies in Blocks 48/10a and 48/10b and consists of gas accumulations Atlas, Hyperion and Rhea. First production began in September 2005. Viking The Saturn Unit lies in Blocks 48/10a and 48/10b and consists of gas accumulations Atlas, Hyperion and Rhea. First production began in September 2005. Victor Victor is an unmanned platform and subsea wellhead structure located in Blocks 49/17 and 49/22. Caister Murdoch System The Caister Murdoch System (CMS) consists of the Murdoch Complex, the Caister Satellite Platform, and the gas trunk line to the Theddlethorpe gas terminal. CMS acts as a hub for the Murdoch, Caister, Boulton, Munro, CMS III and Kelvin fields and also provides third-party transportation. Theddlethorpe Gas Terminal Located in Lincolnshire, the Theddlethorpe Gas Terminal (TGT) receives and processes natural gas produced through LOGGS, CMS and Viking systems as well as natural gas produced through third-party operated systems. page 8 2 UK Upstream Environmental Statement 2011 4 Operations East Irish Sea ConocoPhillips’ interests in the East Irish Sea include the Rivers Terminal at Barrow-in-Furness and five gas fields: Millom, Dalton, Calder, Darwen and Crossens. Net production in 2011 averaged 62 MMscfd of natural gas. The Rivers Terminal is capable of handling 145 MMcfd of natural gas. It processes sour gas from the Calder Field, providing compression and removing hydrogen sulphide before piping the sweetened gas to the Other – MacCulloch The MacCulloch Field is located in Block 15/24b. The wells are tied back subsea via two drilling centres to the North Sea Producer (NSP) Floating Production, Storage and Offtake facility (FPSO) owned by the North Sea Production Company (NSPC) Limited. Net production in 2011 was 2.9 MBD of liquids. Environmental data is reported under the public statement for NSPC Ltd. ConocoPhillips entered into an agreement in December 2011 to sell its interest in the MacCulloch Field to Endeavour Energy U.K. Limited. This sale is expected to be completed in the fourth quarter 2012. Business Development In 2011 ConocoPhillips entered into a farm-in agreement in Moth located in the CNS. Drilling As well as development drilling operations, ConocoPhillips continues to explore for and appraise reserves in the UK oil and gas sector. Operating Areas The following schematics illustrate ConocoPhillips UK upstream operating areas within the Central and Southern North Sea and the East Irish Sea. third-party North Morecambe Terminal for further processing, including nitrogen removal. In 2011 a project to replace the terminal’s acid plant began and is being implemented for start up in 2012. ConocoPhillips’ assets in the East Irish Sea are operated by Hydrocarbon Resources Limited (a subsidiary of Centrica PLC.). Environmental data is reported under the public statement for Centrica Energy-Hydrocarbon Resources Limited. page 9 page 10 UK Upstream Environmental Statement 2011 5 Environmental Aspects and Performance Atmospheric Emissions In 2011, ConocoPhillips’ UK upstream operations emitted approximately 852,000 tonnes of CO2. The UK oil and gas industry emits a little more than 3 percent of the total carbon dioxide (CO2) produced by all of the UK’s industries. Most of the carbon dioxide produced by the oil and gas industry is from compression and power generation. Other atmospheric emissions from these sources include nitrogen oxides. Flaring and venting are used to safely dispose of excess produced gas (primarily methane), released as a result of pressure control within the process system during oil and gas production and during unplanned operations. Flaring and venting are kept to an absolute minimum required for the safe operation of the installation. The release of these different gases may contribute to a variety of environmental effects ranging from acidification to climate change. Projects such as floating roofs on storage tanks at TGT and compressor optimisation at Viking will result in emissions reduction CO2 Emitted from Conoco Phillips’ UK Locations 2011 Thousand Tonnes 250 The major combustion processes on all ConocoPhillips (UK) Ltd. locations resulting in the production of CO2 are the generation of electrical power and the compression of gas and pumping of oil for transportation to the shore. A small amount of reservoir gas provides the primary fuel source with diesel used as a backup. 200 150 100 50 0 TGT LOGGS VIKING MURDOCH JUDY Locations 2011 Performance B - Nitrogen Oxides (NOx) and Methane (CH4) A - Carbon Dioxide (CO2) The European Union Greenhouse Gas Emissions Trading System (EU ETS) governs all CO2 emissions from qualifying locations by means of a cap and trade system with each qualifying asset being allocated an amount of CO2 that it can emit in a year. Each operator is required to buy or sell credits depending on whether they were over or under the allocation. In addition to the monitoring and reporting of CO2 emissions, the UK Methane government calculation andrequires Nitrogenthe Oxide Emissions from and external reporting ofConocoPhillips’ other gases in UK the Locations atmospheric 2011 emissions streams from the installed combustion 2,000 equipment. 1,800 Nitrogen Oxides (NOx) are produced by chemical reactions between oxygen and nitrogen present in 1,200air during combustion, and are generated in the gas 1,000compression and power generation turbines; NOx may 800include NO, NO2 and N2O. 1,600 The process through which the fuel gas and diesel use is recorded, and how this is translated into the resulting amount of CO2 generated, is subject to a rigorous annual verification. This is conducted by an independent organisation and all of ConocoPhillips’ UK locations received the appropriate certification for 2011. Tonnes 1,400 Nitrogen O 600 ConocoPhillips was the first operator in the UK offshore sector to install a low NOx emissions gas turbine (on the 200 Murdoch platform) and also utilises this technology at the 0 Theddlethorpe gas terminal. 400 TGT LOGGS VIKING Locations page 11 Methane MURDOCH J 2011 UK Upstream Environmental Statement produces only a small percentage of the produced water generated by the industry from the Judy platform. Despite having systems in place to separate oil from the produced water, the discharge still has some residual oil content. The amount of NOx discharged in 2011 from ConocoPhillips UK offshore locations ranged from approximately 320 tonnes to 580 tonnes, with the amount depending on turbine type and individual operating profile. Less NOx was discharged from Theddlethorpe gas terminal (approximately 106 tonnes), and this reflects the reduced requirement here for gas compression, coupled with the fact that the main compressor is driven by a low NOx emissions turbine. 2011 Performance 2 Thousand Tonnes 250 Methane can be discharged to the atmosphere through venting and incomplete combustion. The amount of methane released in 2011 from venting ranged from approximately 130 tonnes to 1,850 tonnes across the locations. Small amounts are emitted in exhaust from CO Emittedand from engines Conoco Phillips’ Locations 2011 the incomplete turbines andUK results from combustion of the natural gas that is used as a fuel, and during flaring. 200 150 100 50 0 TGT 150 100 50 0 The PPC permit contains maximum annual tonnages of the gases NOx, SOx, CO, CH4 and non-methane VOCs contributory to anthropogenic global warming TGT LOGGS VIKING MURDOCH JUDY and acidification Locations of rainwater. These annual tonnages are currently calculated based on fuel consumption and composition data. The amounts shown below were within the maximum permitted limits for each asset. 2,000 1,800 1,600 1,400 Tonnes Thousand Tonnes 200 1,200 1,000 800 Methane and Nitrogen Oxide Emissions from ConocoPhillips’ UK Locations 2011 2,000 1,800 Methane JUDY Judy Oil in Produced Water 2011 1,000 6.00 25 800 400 5.00 20 Cumulative Mass of Oil Discharged (te) 200 LOGGS VIKING MURDOCH J-BLOCK Locations Produced Water Description 25 20 Judy Oil in Produced Water 2011 Water from oil and gas reservoirs (more commonly called produced water) is one of the largest single discharges Monthly Average OIW (mg/l) from the offshore oil and gas industry. ConocoPhillips Cumulative Mass of Oil 15 3.00 10 2.00 5 0 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 6.00 5.00 Discharged (te) 4.00 15 3.00 10 1.00 ass of Oil Discharged (te) TGT Oil in Water mg/l 4.00 0 Cumulative Mass of Oil Discharged (te) Monthly Average OIW (mg/l) 600 in Water mg/l Tonnes Nitrogen Oxides 1,200 MURDOCH The Judy oil in water discharge maintained OPPC compliance (monthly average below 30 milligrammes oil LOGGS VIKING MURDOCH J-BLOCK per TGT litre of water) throughout 2011. The annual average Locations concentration of oil in water was 15.34 mg/l and the total oil discharged to sea with the produced water from the Judy platform was 4.86 tonnes in 2011. 400 0 1,400 VIKING 600 200 1,600 LOGGS Most producedLocations fluids from ConocoPhillips’ Southern North Sea assets flow to Theddlethorpe gas terminal with the export gas, so there is no discharge of produced water offshore from those offshore locations. Water can Methane Nitrogen Oxide Emissions from which involves be re-injected onandthe LOGGS platform ConocoPhillips’ UK Locations 2011 returning fluids to a depleted gas reservoir under the seabed and also involves no discharge to sea. However, Methane the produced water re-injection system was not used in 2011. Produced water received at TGT is discharged to Nitrogen Oxides sea under permit following treatment. 2 250 The Offshore Petroleum Activities (Oil Pollution CO Emitted from Conoco Phillips’ UK Locations 2011 Prevention and Control) Regulations 2005 (OPPC) regulate all produced water discharges to sea via a permit system. Systems are in place to remove as much oil as possible prior to discharge of water to sea from ConocoPhillips’ installations in the UK. page 12 UK Upstream Environmental Statement 2011 5 Environmental Aspects and Performance Chemical Discharges 2011 Performance Description The minimum quantities of production and utility chemicals are used offshore to ensure the continuation of production. Typical production chemicals include hydrate inhibitors, corrosion inhibitors, biocides, de-oilers and utility chemicals such as turbine wash and deck-cleaning agents. In most cases none of the chemicals used are discharged and only small fractions of the others go to sea. Production chemicals are regulated under the Offshore Chemicals Regulations 2002 (as amended) - a key objective of these regulations is ‘to identify chemicals that might be considered hazardous and to ensure wherever possible their substitution by less hazardous or non-hazardous chemicals.’ A substitution warning, in UK legislation, is assigned to an offshore chemical if a component appears on the OSPAR prescribed lists for priority action, or if the component fails to meet set criteria with respect to biodegradation, bioaccumulation potential or toxicity. Chemical Use and Discharge from ConocoPhillips UK Offshore Installations in 2011 Installation Used (te) Discharged (te) Judy 482.6 (24)337.7 (18) LOGGS 5.0 (0)2.9 (0) Murdoch 12.7 (1.5)8.1 (0) Viking 2.5 (0)2.3 (0) Drilling 9108 (208.5)1,445 (1.6) Note: The total figure is shown in blue. The figure in orange represents the amount within this total that carries a substitution warning page 13 The ConocoPhillips 2011 offshore permitted chemical use is shown in the previous table. For the Judy platform methanol, glycol, corrosion inhibitor, wax inhibitor and scale inhibitor are used in the largest quantities. For Southern North Sea installations methanol, corrosion inhibitor and water-based hydraulic fluid make up the majority of offshore chemical use, but none of these are routinely discharged. There were no non-compliances with the Offshore Chemicals Regulations for any of the chemical permits held by ConocoPhillips in 2011. Waste Description The production and processing of oil and gas from ConocoPhillips’ assets inevitably generates waste materials. Waste can be divided into two main categories - general waste and hazardous waste. General waste typically consists of redundant packaging, galley and accommodation wastes, composites, wood and other non-hazardous or non-recyclable wastes. Examples of hazardous waste includes drill cuttings contaminated with oil, batteries, fluorescent tubes, spent solvent, oily rags, used chemicals and electrical and electronic equipment. ConocoPhillips ensures that waste is managed and disposed of responsibly and in accordance with statutory obligations. ConocoPhillips offshore and onshore assets work with waste management contractor companies to reduce waste, recycle and reuse wherever possible. 2011 Performance Waste management, as an important component of the Environmental Management System (EMS), ensures compliance with regulations governing waste disposal and transfer. A total of 2,064 tonnes of waste was generated in 2011 from ConocoPhillips’ UK offshore production platforms and the Theddlethorpe Gas Terminal onshore; 50% of that waste was recycled. 1,800 1,600 Methane Nitrogen Oxides 1,200 1,000 800 600 400 200 0 TGT LOGGS VIKING MURDOCH J-BLOCK Locations 2011 UK Upstream Environmental Statement Judy Oil in Produced Water 2011 6.00 25 5.00 20 Cumulative Mass of Oil Discharged (te) Oil in Water mg/l 4.00 15 3.00 10 2.00 5 1.00 0 Cumulative Mass of Oil Discharged (te) Monthly Average OIW (mg/l) 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Waste Disposed from ConocoPhillips’ UK Locations 2011 Number & Amount of Production Oil Spills 2011 1000 900 Hazardous 800 General 700 Tonnes Tonnes 1,400 600 Recycled 500 400 300 200 100 0 TGT LOGGS VIKING MURDOCH J-BLOCK Installation No of Spills Total Amount Spilled (Tonnes) Jasmine Project 1 0.14110 Boulton 1 0.01300 Judy 2 0.01276 LOGGS 1 0.00400 Note: European Waste Catalogue (EWC) is a classification system for wastes, common across the EU. The classification of waste as hazardous is determined by reference to the EWC where wastes containing certain dangerous substances may either be unconditionally classified as hazardous or only defined as hazardous if the substance is present above a defined threshold concentration. Jade 1 0.00085 Caister 1 0.00006 Spills to Sea Number & Amount of Oil Spills from Drilling Rigs 2011 Description Installation Locations All offshore spills are notifiable to the authorities and are categorised as oil or chemical spills. ConocoPhillips has in place strict operating and maintenance procedures to minimise the likelihood of accidental spills of oil or chemicals to the sea. Spill reduction will be a focus area for ConocoPhillips during 2012 2011 Performance Unplanned discharges of oil or chemicals to sea must be reported using a Petroleum Operations Notice 1 (PON1) form, which provides details of the spill and preventative actions taken. All spillages to the sea are reported and investigated, regardless of size. The total number of spills from ConocoPhillips upstream UK operations in 2011 was 17 (1.83 tonnes). Increased focus on environmental hazards and increased awareness amongst the offshore workforce, along with better management of flexible hoses, are areas to focus on during 2012 to reduce the number of spills. TOTAL70.17177 No of Spills Total Amount Spilled (Tonnes) Maersk Resilient (Jacqui) 2 0.04800 Ensco 102 (Jasmine) 1 0.00086 TOTAL 3 0.04886 Number & Amount of Production Chemical Spills 2011 Installation No of Spills Total Amount Spilled (Tonnes) Viking BA 1 0.83600 Judy 2 0.72626 Jade 1 0.00100 MacCulloch 1 0.00100 TOTAL 5 1.56426 Number & Amount of Chemical Spills from Drilling Rigs 2011 Installation No of Spills Total Amount Spilled (Tonnes) Ensco 102 (Jasmine) 1 0.04380 Maersk Resilient (Jacqui) 1 0.00002 TOTAL 2 0.04382 page 14 UK Upstream Environmental Statement 2011 6 Goals and Performance 2011 GOALS2011 PERFORMANCE Although there were ten hydrocarbon releases to sea, all were below 0.15 tonnes. Spill reduction is a focus area for 2012. This goal was not met. Spill reduction will be a focus area for 2012 An assessment of emission reduction opportunities was completed. Several projects were identified, which are being worked toward implementation. This goal was not met Manage oil in water to comply with regulatory requirements (30 mg/l) and target reduction in volume of oil discharged This goal was met Implement lessons learned from Macondo incident – implement industry recommendations and conduct major oil spill exercise This goal was met The following objectives were developed for 2012: 2012 GOALS Each asset to develop specific plans to prevent releases with serious environmental impact (spills to sea) Manage oil in water to comply with regulatory requirements and target reduction in volume of oil discharged Implement an Environmentally Critical Element management process across all assets Maintain independent recertification in ISO14001 environmental management process Implement the climate change action plan Prepare a Biodiversity Action Plan Rubislaw House Anderson Drive Aberdeen AB15 6FZ Tel: +44 1224 205000 www.conocophillips.co.uk page 15