2009 April

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2009 April Powered By Docstoc
					International Association of Oil & Gas Producers

•	 To foster learning about the context for environmental impact assessments (EIAs) in China •	 To share experiences on developing biodiversity standards in EIAs •	 To discuss challenges faced by the extractive industries in the EIA process The session was in response to a perceived need to strike a balance between resource use and conservation in China. While there are many tools and a good deal of information available on biodiversity assessment, the co-ordination and accessibility of these efforts could be improved. In particular, there is limited access to comprehensive biodiversity data and information, highlighting a need for co-operation between the different repositories of this information. The event, on 24-26 March, attracted over 100 participants from several sectors and countries including Mongolia, Cambodia, Myanmar, Thailand, Australia, India, the US and the UK. According to IPIECA Biodiversity Project Manager Erica Dholoo, ‘The business case for biodiversity may still need to be sharpened in China and beyond. While Chinese companies are moving towards international standards and approaches, it is clear that there is still some way to go in raising awareness within Chinese industry. In the Chinese context, particularly, collaboration between government, industry and NGOs is likely to produce the best solutions. The IPIECA/OGP workshop was a step in that direction,’ she says. According to one participant, ‘Further sharing of best practice is definitely needed, especially around co-ordination of assessment and data collection

2009 April

consensus on the key principles and practices for organising and implementing effective and sustainable food and water management programmes. The two building blocks cited are the Hazard Analysis Critical Control Point (HACCP) system and the generic food safety management system (FSMS) developed under the 2005 International Organization for Standardization (ISO) 2200 standard. Aimed at corporate and project-level HSE managers, operations managers, company physicians, clinic medical staff, occupational health and hygiene supervisors and company, contractor and franchise retail site managers and staff, the new guide is an evidencebased reference that scientifically and systematically describes: •	 Fundamental medical principles that explain the transmission and development of food- and waterrelated illnesses •	 How to develop effective management systems for food and water safety based on the key medical principles •	 The process of developing appropriate monitoring and evaluation strategies The publication includes generic programme templates, checklists, audit protocols, layperson guidance documents, web-based resources and evidence-based technical and scientific articles. To download a copy of A guide to food and water safety for the oil and gas industry, visit the publications page of

New guide to food & water safety
he joint OGP/IPIECA Health Committee has just issued a new publication focusing on the importance of food and water safety within the oil and gas industry. It comes at a time when the World Health Organization (WHO) reports a rising incidence of food- and water-related illnesses in both developed and developing countries. According to recent data, unsafe food and water is implicated in three million deaths per year and 2.4 billion episodes of illness. Vulnerability extends to developed nations as well as those still lacking modern infrastructure. In the USA alone, for example, every year an estimated 76 million people get sick from food- and water-related infections, more than 325,000 are hospitalised and 5,000 die. Given the global extent of the problem, all sectors of the oil and gas industry, from frontier exploration and production locations to retail operations, are potentially ‘at risk’ from diseases related to food and water, the report says. Such diseases, some of them potentially fatal, ‘can have significant adverse impacts on workforce productivity, particularly during large-scale construction phases of a project.’ The strategies set out in the guide are based on an emerging international


Working group looks at biodiversity EIAs in Beijing
he joint IPIECA/OGP Biodiversity Working Group staged a workshop in China’s capital. The event’s aims were threefold:


activities, the importance of letting strategic environmental assessments (SEA) drive alternatives rather than vice versa and the need for SEAs and EIAs at the outset.’ OGP member CNOOC was host of the workshop, which was organised in collaboration with the International Council on Mining and Metals and the International Association of Impact Assessment. For further information, contact:

up to the producers themselves. He stressed, however, the importance of getting Turkey fully engaged. On a vision for 2050, the Commissioner said he would like to set up a high-level group within the EU similar to the one that had dealt with financial supervision. He pointed out that he would welcome input to and discussion on the topics and composition of such a group. One of the topics related to oil and gas production could be future relations between companies and resource owners. ‘The meeting with Mr Piebalgs and his team was particularly open and co-operative in tone,’ says Beate. ‘It’s clear that the Commission is looking to OGP for further consultation on indigenous production and wider reaching ideas on the future of energy production and supply for the EU. We look forward to working ever more closely with DG TREN to make all this happen.’ For additional information, contact:

spacious venue of the Netherlands Foreign Ministry,’ John reports. On the agenda were: •	 Work on the various texts for the OSPAR Quality Status Reports (QSRs) •	 A review of the Offshore Strategy •	 Produced water management, with emphasis on the development of the ‘Risk Based Approach’ •	 The Relationship between the EU’s REACH regulations and OSPAR’s own Harmonised Mandatory Control System •	 Implications on OSPAR of the European Marine Strategy Framework Directive Lending immediacy to the discussions was the prospect of the next meeting of OSPAR’s Environment Ministers, scheduled for Bergen in September 2010. According to John, adoption of QSRs will be one of the main activities of that event, alongside establishment of Marine Protected Areas beyond the limits of natural jurisdiction and discussions on the implications of climate change. Accordingly, these guided the debate during the Hague meeting. At the invitation of the Executive Secretary, John gave a presentation on the Sound & Marine Life Joint Industry Programme. ‘It was well-received and I was delighted at the range of questions that the OIC raised,’ John notes. As for definitive outcomes from the OIC gathering, these were few and far between. ‘Offshore chemicals are in a state of paralysis while OSPAR tries to sort out its relevance to the EU’s REACH regulations,’ John says. ‘And the focus of the debate on produced water has moved away from oil in water to other constituents – including natural components. These will be assessed using a risk-based approach. Regarding QSR, the process grinds on.’ On the positive side, the issue of cuttings piles management ‘has at last been recognised as a decommissioning issue,’ John says. A full set of meeting documents is available to OGP members on the webpage of the European Environmental Sub-Committee, which will also feature the official minutes of the OIC meeting when produced by OSPAR.

OGP briefs EU Energy Commissioner on strategy


briefing session between OGP and EU Energy Commissioner Andris Piebalgs on 31 March was appreciated by both the upstream industry and the Commission, says OGP EU Affairs Director Beate Raabe.

Leading the OGP delegation was Management Committee Chair Raphael Vermeir. In addition to Beate, his team included EU Committee Vice Chair Lex Huurdeman and EU Affairs Manager Richard Hall. Christof Schoser of the Commissioner’s Cabinet and Ioannis Samouilidis of DG TREN accompanied the Commissioner. As Beate reports, the meeting covered a wide range of issues. Among them was indigenous production. ‘The Commissioner wanted to know why indigenous production, even of unconventional oil and gas, was doing better in the US than in the EU - despite opposition to oil and gas activities in many areas of the US. We suggested that, among other factors, this could be attributed to a more efficient permitting regime,’ Beate says. In response, the Commissioner suggested that the Commission prepare a Communication on the promotion of indigenous oil and gas production. Speaking on the energy relationship between the EU and Russia, Mr Piebalgs focused on the difficulties in implementing bilateral agreements – despite EU-friendliness on Russia’s part. In another issue related to supplies from the east, the Commissioner expressed no particular preference for the routing of Caspian gas via a southern corridor. That, he said, was

Notes from an OSPAR Offshore Industry Committee observer
SPAR’s Offshore Industry Committee (OIC) met in the Hague from 16 to 20 March and OGP Technical Director John Campbell was on hand as the upstream industry’s official observer. So was Gordon Harvey of BP, who attended in his capacity as Chair of OGP’s European Environment SubCommittee. ‘All the oil producing nations in OSPAR were present, along with France and Iceland in the suitably grand, light and


PETRONAS leader extols international standards at OGP workshop


s part of an ongoing campaign to promote the use of global standards throughout the oil and gas industry, OGP worked with PETRONAS, the Department of Standards Malaysia and SIRIM Berhad on a workshop in Kuala Lumpur in February. Among the important figures attending was Datuk Abdullah Karim, VicePresident of PETRONAS and MD/CEO of PETRONAS Carigali, who gave the opening address. Commenting on the importance of technical standards to the oil and gas industry, he noted that ‘They are now well embedded in almost everything we do’ from plant design to decommissioning. Moreover, ‘these technical standards have helped us in designing better and more reliable facilities. They help to

improve our efficiency and eliminate wastefulness and poor quality work. They have helped most of us to realise better returns for our stakeholders and more importantly, they ensure that our operations are safe. Perhaps it is not an overstatement to say that the industries depend on these technical standards to sustain their profitability and growth. As industries grow, so do their commercial values and competitiveness. Hence the need for standards to regulate and ensure some form of uniformity in the operations of the oil and gas industry is obvious.’ Datuk Abdullah Karim went on to say ‘It would be better for everyone to use the same standards…allowing a more level playing field and making it easier for all to choose an operating partner or a contractor.’ If that were the case, ‘There would be no costly adaptation and testing on reliability of the standards required,’ he said. According to OGP Standards Manager Alf Reidar Johansen, the workshop attracted some 160 attendees, mostly from the Malaysian oil and gas industry. Two principles stand out from the session, he says: the need for Malaysia to accelerate adoption of ISO/IEC standards and to heighten participation in the relevant ISO/IEC standards work. The key, concluding message was

‘Global collaboration is the way to go’, he says. All the presentations are available on the Standards Committee public webpages:

Jack-up Task Force meeting to examine Usumacinta tragedy


n October 2007 PEMEX suffered the industry’s third largest jack-up failure, with 22 fatalities, when the Usumacinta jack-up rig became unstable during a winter storm. The 01 May Houston meeting of OGP’s Jack-up Task Force will review the Battelle Root Cause Analysis report of this incident. PEMEX will be there to provide operator insights. According to Task Force Chair Rupert Hunt, new members are welcome to attend. For further information, contact Alf Reidar at:

In memoriam: Pat O’Brien
Pat had been due to attend a series of industry meetings this month, including a Task Force meeting in London. OGP Technical Director John Campbell, recalling a figure who was ‘an integral and central character’ to OGP’s environmental work, has suggested that ‘Pat would have insisted that those meetings go ahead. And perhaps the Task Force meeting will provide us all with the opportunity to express our remembrances and appreciation of Pat as our friend, colleague and Chair.’ Sympathy cards can be addressed to: Mrs. Pat O’Brien c/o Corinne Robinson Chevron Energy Technology Company 1450 Marine Way South Richmond CA 94804 USA Those who want to contribute to a memory book can send their recollections to: Donations to a memorial fund to benefit Point Reyes Bird Observatory Conservation Science, an organisation for which Pat served on the board of directors for many years, can be made online at:


ighlights regrets to report that Sound & Marine Life Task Force Chair Pat O’Brien of Chevron died suddenly on Easter Sunday. He has been remembered by colleagues for both his ‘dedication’ and ‘humanity’.
•	 Security (with discussions on piracy and plans for the development of a security management system guidance document) After a heavy afternoon, participants will be able to sample Japan’s legendary hospitality with a reception, entertainment and dinner organised by host company INPEX. The next day, Friday 08 May will begin with OGP’s formal Annual General Meeting, featuring votes on the Association’s accounts, auditors, Management Committee members and officers. With those issues wrapped up by 09.30, discussions will resume on a variety of topics including: •	 An overview of the Japanese oil and gas industry with particular focus on INPEX activities •	 A review of supply issues and opportunities within Europe •	 LNG from a global perspective including standards development and OGP’s role in development of best practices •	 Climate change with emphasis on present current OGP activities, the Working Group with IPIECA and actions regarding the EU •	 A review of Arctic issues and OGP actions •	 Health issues including aspects of working in extreme conditions •	 An update on sound and marine life activities •	 Making more of OGP, including the challenges of ensuring a better uptake of OGP guidance and improving awareness of the Association within member companies As usual, there will be a programme of sightseeing and events for partners accompanying OGP members. But to absorb authentic Japanese atmosphere, participants won’t have to go far. The venue itself, the New Otani Hotel in central Tokyo, encompasses one of the city’s most historic traditional gardens, complete with tea pavilion, a stream and a waterfall. For more information contact:

Recent & forthcoming meetings
Mon 6 13 20 27 Tue 7 14 21 28 Wed 1 8 15 22 29 Thu 2 9 16 23 30 Fri 3 10 17 24 Sat 4 11 18 25 Sun 5 12 19 26

Investiture for OGP Chair
GP Management Committee Chair Raphael Vermeir formally received his insignia as an Honorary Commander of the British Empire at a ceremony at the Foreign and Commonwealth Office in London on 27 January. UK Energy Minister Mike O’Brien conducted the investiture in a chamber called ‘L’Entente Cordiale’.

Mon 4 11 18 25 Tue 5 12 19 26 Wed 6 13 20 27 Thu 7 14 21 28 Fri 1 8 15 22 29 Sat 2 9 16 23 30 Sun 3 10 17 24 31


New Vice-Chair for Safety Committee

Committee Safety Data Sub-committee Arctic Co-ordination Task Force teleconference Emission Trading Task Force Asset Integrity KPI Task Force teleconference Air Safety Assessment Mechanism Task Force Fish Behaviour Workshop E&P Sound & Marine Life JIP ExCom Geodesy Sub-committee Surveying & Positioning Committee Sound & Marine Life Task Force UXO Task Force Safety Committee Gas Work Group Jack-up Task Force EGM/AGM Management Committee Offshore Structures Committee HSSE Geophysical Sub-committee EU Committee Coatings Task Force Safety Data Sub-committee RADD Task Force teleconference

Date 01-02 Apr 01 Apr 03 Apr 06 Apr 16 Apr 19-20 Apr 21-22 Apr 22 Apr 23-24 Apr 23-24 Apr 24 Apr 29-30 Apr 30 Apr 01 May 07-08 May 07 May 08 May 11-12 May 12 May 14-15 May 15 May 15 May


oining Lee Turner of Smith Intenational as a new Vice Chair of the Safety Committee (see Highlights March 2009) will be Mohd Radzuan Yusof of Petronas. The two gentlemen will serve as Co-Vice Chairs.

All set for Tokyo
lans for next month’s Association-wide gathering in Tokyo have now been completed. The session will begin on Thursday afternoon, 07 May at 14.00 with a welcoming address from Management Committee Chair Raphael Vermeir. The rest of the afternoon will be devoted to the ‘hot topics’ that are currently high on the upstream industry agenda. These will include: •	 Marine safety •	 Aviation safety (with an update from BP on the recent North Sea helicopter incident)


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