The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures agreed, comply with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
Environmental Impact Assessment:- EIA studies have concluded that the project can be developed successfully. The majority of the environmental impacts are expected to occur during the development phase, while those in production are considered negligible. The field development schedule is 12 months to first gas from project go-ahead. Currently, first gas is scheduled for January 1st 2003. Detailed front-end engineering and design work is well advanced, and all approvals have been obtained from the Land Commission for rights-of-way for the onshore route. Compensation payments are currently being negotiated by Petreco for those using the land for farming or other economic purposes, based on a valuation made by third parties and with reference to current market prices. The overland pipeline has been carefully planned to avoid local communities and sensitive environmental habitats. No structures or houses are to be acquired; the majority of the land to be acquired is either agricultural land or secondary forest. No important biological resources are affected or damaged. A pipeline restoration plan has been prepared for the onshore route and compensatory forestry planting as determined by a separate procedure is required in areas predetermined by the Government. A “Zone Sanitaire” is observed within 300m of the nearest habitation. The landing point for the offshore pipeline has been relocated southwards by approximately 200m to minimize the potential environmental impact in an area of ecological sensitivity. Gas production will be compressed on-shore at a stand alone gas processing facility, approximately two years from first production. The offshore section of the gas export pipeline follows a route from the Galata field platform to a beach approximately 8.6 km south of Varna Gulf in the northern part of Pasha Dere, a total distance of 22.6km. No gas flaring from the platform will occur; an assessment of the potential for greenhouse gas generation indicates that the project will produce significantly less than 100,000 t of CO2 equivalents per annum and does not require a formal estimate for the purposes of project appraisal. Offshore drilling and production is planned from a drilling rig and platform positioned over the Galata reservoir. If the field is used as a storage facility, abandonment will be postponed for an indefinite period. However, at the end of its useful life, the platform will be abandoned in accordance with the requirements of the regulatory authorities, as well as the provisions of the Bulgarian Underground Resources Act and the Joint Operating Agreement.
Design Controls:- The length of the onshore pipeline will be approximately 60km with similar design flow-rates and pressures to those offshore. Corrosion protection will be provided by an impressed current system and by external applications of a polyethylene coating. It is anticipated that the entire onshore pipeline will be buried to a minimum 1 meter depth. Weight coating or anchoring may be required in areas flooded during rainy conditions. All pipeline sections are designed with a minimum pipe bend radius of 5D to accommodate the use of intelligent pigs (if necessary). Personnel safety and environmental protection:- Galata gas is very dry and is not expected to produce liquids during the early field life. As a contingency measure, process equipment is being designed to separate liquids from the gas and hydrocarbons from the produced water. Produced water would be treated by a water polisher to the required quality before sea discharge. The design of the offshore platform will provide a reliable facility which in conjunction with a comprehensive Environmental Management program will minimize potential risks. These include accidental gas releases from process equipment, storage of diesel; storage of chemicals; fire and natural events. A Gas Explosion/Oil Spill Contingency Plan has also been produced in conjunction with the Bulgarian Authorities. This document was prepared under the assumption that Galata would be an oil bearing reservoir. Further review of this document is required to reflect more fully the conditions which will exist when Galata produces gas. The design of the offshore platform will be in conformance with international industry and API codes as applied to platforms in similar operational areas. The platform and facilities will also be certified during the design and construction phase by a “Classification Society” as “ Fit for Purpose” with respect to local environmental conditions. As recommended by API, the platform is being designed to resist a 100 – year return period storm wave, and a 200 – year return period earthquake without significant damage to the main structure. Emergency systems on the platform include process safety instrumentation and isolation and shutdown valves. The design features of the onshore pipeline including strength and flexibility, protect it from most natural phenomena including low level earthquakes and minor landslides. Careful selection of the pipeline route has also minimized many of these possibilities, however unforeseen natural disasters can occur. For this reason, the onshore pipeline is fitted with isolation valves located at strategic points that automatically close in the event of a pipeline rupture. A HAZOP Study is required for the Galata Gas Field to receive an operational permit. A final version of each document will be completed and submitted to IFC following Platform Detailed Design.
Management Controls during Construction and Operation:- To date, the Environmental Action Plan (EAP) for the project has been prepared for the development and production phases. It still needs to be prepared for the decommissioning phase which are still subject to several project development options. The EAP is the main tool which will be used by Petreco to ensure that any of its operations in the Galata field are environmentally sound and addressed in an appropriate manner. The performance of the EAP is also aimed to ensure continuous compliance with Bulgarian environmental legislative requirements. The EAP defines the roles and responsibilities for environmental and social management during construction and operations, together with project related environmental objectives, a timetable and resource implications. The EAP also outlines a program for the development of project related environmental management procedures and protocols and is composed of single action issues scheduled as a continuous program throughout the development, production and decommissioning phase. For illustration, in Group A of the EAP, there are operational procedures covering a wide range of project related activities:- a Waste Management Plan is to be prepared according to obligations set out in the LRHIWE (Article 37 of the Law for Reduction of the Harmful Impact of Waste upon the Environment), as well as the project’s environment permit. In Bulgaria, Petreco is obliged to contract a licensed waste disposal contractor who will be responsible for the collection, transport, disposal and treatment of waste materials. The contracted company also has the responsibility to record all operations while the producer has to maintain a complete inventory of wastes generated for cross checking by the Local Authorities. All waste generated at sea from the production platform is to be shipped and transferred for disposal. Any landfill site used for the disposal of waste needs to be approved by the Bulgarian Authorities including the Regional Inspectorate. Contractor''s obligations:- Petreco requires all of its contractors to operate in an environmentally sensitive manner. Key environmental issues to be determined by Petreco environmental Staff for separate contracted operations together with environmental performance criteria will be developed together with a scope of work which will be included in both the Contractor’s RFP and Tender Brief. This will include the requirement to monitor for archaeological finds during the construction of the onshore pipeline.
Environmental Monitoring:- An environmental monitoring plan (EMP) has been agreed with the MEW to cover all project operations. It will build on the data collected during the Baseline Survey and during the development period prior to facilities construction. It will end after the decommissioning stage of the project with a final environmental survey. The performance of the Environmental Monitoring Program will be assigned to project contractors according to a detailed technical specification included within the RFP and Tender Brief. Currently four types of monitoring activity are conducted:-gas emission monitoring; seawater monitoring; marine biological monitoring and marine sediment monitoring. The current EMP is being reviewed in light of the emissions standards included within the IFC’s Onshore and Offshore Oil and Gas Development Guidelines. An annual report will present each survey result, together with conclusions for the monitoring period.
Community Development and Employment:- From the beginning of the project, Petreco has always recognized the need to establish long-term, high quality relationships within the local communities impacted by the project. The company has accepted that it has an obligation to make some return to the local community; it will not provide direct financial donations, but prefers to provide tangible products/assets in the form of equipment and or support. As part of an ongoing commitment, Petreco has also arranged for three training courses to be provided to the Ministry of Energy in Sofia. External consultants are to provide short courses on media training, the legal aspect of Concession Law and International Licensing within the Oil and Gas Sector, as well as Oil and Gas Reservoir Simulation. In addition, IFC is also actively involved with Petreco in supporting the development of environmental, health and safety training in the Oil and Gas Sector in Bulgaria as a capacity building exercise. As an infrastructure project, 100 per cent of the investment value of the project remains in Bulgaria. Petreco is also committed to maximize supply chain opportunities in Bulgaria and currently estimates that approximately 50% of the value of project related contracts will pass directly to Bulgarian companies. All subcontractors are currently required to use Bulgarian services and personal. During construction, the expected size of the workforce is estimated to be between 3-500 people. During the operational phase of the project, numbers are expected to be between 30-50.
