THE CHALLENGES OF OIL DISCOVERY IN GHANA MANAGING THE

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					ENVIRONMENTAL MANAGEMENT
     CHALLENGES OF OIL
   DEVELOPMENT IN GHANA
ENVIRONMENTAL MANAGEMENT
     CHALLENGES OF OIL
   DEVELOPMENT IN GHANA

                JONATHAN A. ALLOTEY
          ENVIRONMENTAL PROTECTION AGENCY
                   P. O. BOX M.326
                        ACCRA
                      TEL : 662693

    Email: jallotey@epaghana.org/jan_allotey@yahoo.com
                Introduction:
• The national petroleum organization, Ghana
  National Petroleum Corporation (GNPC) and her
  partners announced in June 2007, the discovery
  of light crude oil in commercial quantities in the
  offshore waters of Ghana’s continental shelf –
  named the Jubilee Field.
• Since the initial discoveries, appraisal work
  conducted has estimated core reserves of oil at
  June 2008 of about one billion barrels by with
  substantial associated natural gas reserves.
The Ghanaian Coastline
                   Concerns:
• The discovery raises a number of concerns which
  include:
  – the environmental impact of the development of the
    resources due to problems associated with petroleum
    development in other countries.
• A legitimate question which requires an answer
  is:
  – How will Ghana develop and manage its petroleum
    resources and revenue streams in a transparent and
    environmentally responsible manner for the benefit of
    Ghanaians now and in the future?.
                       Impacts
• There are negative impacts on ecosystems and
  Livelihoods at all stages of petroleum development –
  prospecting, exploitation, and transport from offshore
  production, maritime traffic, and terrestrial installation.

• Direct impacts from project activities include national
  habitat fragmentation, pollution and accidents.

• Indirect Impacts are triggered by projects presence
  include migration, destabilization of local economic,
  insecurity, opening access for other developments,
  conflicts with other activities, conflicts between
  companies and governments
                  Impacts cont’d
• Negative impacts on environment may also impact people
  through lost of livelihoods of economic opportunities,
  communication, constraints, poverty increase and social
  changes.

Negative long term impacts include:
• Depletion of other sectors (fisheries, tourism, agriculture--)
• Pollution (seas, mangroves, beaches…)
• Reduction of food security
• Conflicts
• Waste of natural and economic resources
Fish Landing Site - Djomba
          Key Challenges and Issues
Environment
Weak institutional capacity to manage the environmental, health
  and safety challenges posed by the petroleum sector.
• Weak compliance and enforcement mechanism.
• Absence of existing baseline data both offshore and onshore.
• Absence of proper mechanisms for coordination and
  monitoring of petroleum related and induced activities.
• Absence of logistics and capacity in managing oil and chemical
  spills.
• Absence of systems for the disposal of hazardous wastes.
• Inadequate data infrastructure to ensure timely information
  access an quick decision making.
• Lack of capacity in petroleum sector related health and safety
  management
                      Health
• Inadequate sanitation systems.
• Inadequate health management system
• Inadequate health personnel


Safety

• Inadequate standards and regulations
• Inadequate navigational aids
                         Community
• Management of high public expectations and responsibility of industry
  players.

• Weak civil society organizations to play advocacy role on behalf of
  communities.

• Absence of appropriate compensation regime for legitimately affected
  operation of the petroleum industry.

• Potential conflict between petroleum operations and other sectors, eg.
  fisheries, marine, transport etc.

• Inadequate capacity to deal with transboundary issues.

• Inadequate human resource due to high staff turnovers and exodus of
  professionals in these areas
     Measures to Address Concerns

• Since the announcement of the discovery, a number of
  measures has been taken to meet the changes in the
  development of oil and gas resources:

• Holding a national forum
• Formulation of Fundamental Petroleum Policy for Ghana
• Preparation of Ghana Petroleum Development Master Plan.
  The plan is to provide a road map for future development
  of oil, upstream gas, transportation and processing, proper
  generation and transmission and petrochemicals.

• All these measures cover environmental aspects of
  petroleum developments.
                       National Forum
• The National Forum discussed potential problems and solutions. The
  environmental management of oil development was one of the issues
  discussed.

   Policy
• The Fundament Petroleum Policy for Ghana, states that:
• “Government shall promote sound and sustainable environmental
  practices in the management of petroleum operators and ensure
  compliance with national health and safety regulations and standards”.

• The policy expects all players in the oil industry to recognize that

• “Achieving excellence in environmental management, health and safety,
  and relating well with community in which it operates not only
  contributes to business results by safeguarding people and conserving
  resources, but also serves as a useful indicator of effective management
  systems”.
    Preparation of Draft Master Plan
The environmental component of the plan includes
  framework for mitigation, management, monitoring
  and institutional measures during petroleum resource
  development.

• Long Term Vision
  The environment, health and safety and community
  issues component envisions ‘a petroleum sector that
  contributes to the present and future needs of the
  Ghanaian, while keeping a balance between economic
  development, environmental protection, social
  responsibility and safe and good conditions of work’.
                              Goal
    To mainstream environmental management, health and
    safety and communities into the petroleum sector operations.
•    The Master Plan is intended to provide the framework for
    rationally and systematic allocation of resources to address the
    potential impacts of the development of petroleum resources
    on the population and the environment.
     – One important component of the master plan is on
        environmental management, health and safety and
        community issues which are considered an integral part of
        the management of the petroleum resources of Ghana.
     – This component of the plan aims to minimize adverse
        environmental health and safety and social impacts of the
        petroleum resources development and maximize benefits to
        Ghanaians and other key stakeholders.
    International Conventions and Agreements
    Ghana is signatory to a number of United Nations and
    Regional Cooperation Conventions and multi-lateral
    agreements which will help in managing environmental
    impacts.

    Some of these conventions include:
•   International Convention for Prevention of Pollution of the
    Sea by Oil London, 1954 (as amended in 1962 and 1969).
•   Convention on Fishing and Conservation of the Living
    Resources of the Seas, Geneva, 1958.
•   Convention on the Continental Shelf, Geneva 1958
•   International Convention for the Conservation of Atlantic
    Tunas, Rio de Janeiro, 1966.
•   International Convention Relating to Intervention on the High
    Seas in Cases of Oil Pollution Casualties, Brussels, 1969
• Convention on Wetlands of International Imperative
  Especially as Water fowl Habitat, Ramsar, 1971.
• International Convention on the Establishment of an
  International Fund for Compensation for Oil Pollution
  Damage, Brussels 1971 and the 1976 Protocol.
• International Convention for the Prevention of Pollution
  from ships and Protocl (MARPOL 73/78)
• Protocol concerning cooperation in combating Pollution in
  cases of Emergency, Abidjan, 1981.
• United Nations Convention on the Law of the Sea, Montego
  Bay, 1982.
• Convention for cooperation in the Protection and
  Development of the Marine and Coastal Environment of the
  West and Central African Region, Abidjan 1981.
    National Policies and Legislation
National Environment Policy
• The environmental impacts of petroleum development can be
  handled within the framework of the National Environmental
  Policy (NEP) which has the ultimate aim :
   – “To ensure sound management of the environment and
     the avoidance of exploitation of resources in ways that
     may result in irreparable damage to the environment”


Some of the principles relevant in this regard are :
•Use of most cost-effective means to achieve
environmental objective.
•Use of incentives in addition to regulatory measures.
•Delegation of decision-making and action to the most
appropriate level of government.
• Polluters pays for the cost of preventing and
  eliminating pollution and nuisances caused by him.
• Public participation in environmental decision-
  making.
• International cooperation.

The Policy puts emphasis on prevention and
  sustainable development through objectives which
  seek to :

• Maintain ecosystems and ecological processes
  essential for the functional of the biosphere.
• Adequately protect humans, animals and plants,
  their biological communities and habitats against
  harmful impacts and destructive practices and
  preserve biological diversity.
• Guide development in accordance with quality
  requirements to prevent, reduce and as far as
  possible, eliminate pollution and nuisance.
• Ensure sound management of national resources and
  the environment.
• Integrate environmental considerations in sectoral,
  structural and socio-economic planning at the
  national, regional, district and grassroots levels.
Legislative and Regulatory Framework
• The Environmental Protection Agency Act 1994, Act
  490 and the Environmental Assessment Regulations
  1999, LI 1652 provides the legal and regulatory
  mechanisms for ensuring adequate safeguards are
  incorporated into planning and development of any
  activity that has the potential to cause significant
  environmental impacts.

• The Environmental Protection Agency is primarily
  responsible for regulating the environment and
  ensuring the implementation of Government policies
  on the environment. The functions of the Agency as
  stipulated in Act 490 include:
• Issues environmental permits and pollution
  abatement notices.
• Prescribe environment standards and
  guidelines.
• Ensure compliance with any laid down
  environmental impact assessment
  procedures.
• Develop a comprehensive database on the
  environment.
• Co-ordinate with relevant institutions.
• Monitoring and compliance enforcement
  under Environmental Assessment
• Under the Environmental Assessment
  Regulations LI 1652, environmental impact
  assessment (EIA) is required for all new
  undertakings (project level). For which a
  permit is issued prior to commencement for
  oil and gas development experience will be
  drawn from handling major projects in mining,
  energy and transportation.
• A number of existing environmental
  management tools applied at different phases
  of project development:
     Strategic Level
• Strategic Environmental Assessment is applied to policies plans and
  programmes to mainstream environmental issues to ensure sustainable
  development.

• Project Development Phase.

• Environmental Impact Assessment

• Project Operations Phase

•   Environmental Management Plans
•   Environmental Monitoring Plans
•   Environmental Performance Rating Disclosure (Akoben Scheme)
•   Oil Spill Contingency Plans

• Project Closure
• Decommissioning and Closure Plans
• Reclamation Bonds (for extractive industries)
     National Oil Spill Response Systems
      (National Spill Contingency Plan)
• The Agency realizing the susceptibility of the country to the
  risk of oil spill due to the transport of oil from surrounding
  countries to Europe, initiated measures in 1986 to develop
  a National Oil Spill Contingency Plan. The Plan provides the
  framework for coordination of an integrated response,
  definition responsibilities, reporting and alerting
  procedures and means of communication, training and
  exercises, equipment etc.

• Environmental Sensitivity Map of the Coastline of Ghana.
  The Agency has developed environmental sensitivity
  indices along the coast of Ghana. This will help in
  determination of action required in the event of oil an
  spillage.
     Environmental Sensitivity Maps
•   GIS Based
•   Covers the Whole Coastline
•   96 Maps in the Atlas
•   Main Features & Ranking
    – Coast type
    – Economic
    – Ecological
A Very High Risk Area
Low Risk Area
High Risk Area – Turtle Nesting Site
                   Way Forward
• To complement and augment the limitations of the
  current environmental framework and management
  tools, the following is required.

• Development of petroleum industry specific
  environmental protection guidelines and appropriate
  regulatory infrastructure, including monitoring
  equipments, compliance enforcement networks and
  also a sanctions regime.

• Development of national emergency response
  capacity for spills, blowers Explosions, fires, natural
  disasters etc.
            Way Forward cont’d
• Development of proper consultations and
  partnerships with local communities in relation to
  proper environmental management and proper
  settlement development planning to accommodate
  requirements and changes induced by the petroleum
  industry.
• Support the environmental management framework
  in terms of capacity building equipments standards,
  management system sanctions and enforcement,
  reviews and permitting.

• Decommissioning and rehabilitation and after care
  guidelines and agreements.
• Conduct of strategic environmental assessments of
  the oil industry
                             References
•   Fundamental Petroleum Policy for Ghana, June 2008

•   Task Team on Environmental Management. Health and Safety and Community
    Issues. October 2008 – Final Draft of Environmental Management, Health and
    Safety and Community Issues Component of the Ghana Petroleum Development
    Managements.

•   Garreau J. – 2008 – ‘Oil and Gas Environmental Management: Towards a Balanced
    ‘People, Plant, Profit Approach’ – Paper prepared at Ghana national Forum on Oil
    and Gas 25-29 February 2008.

•   Environmental Protection Agency Act, Act 490 1994 Part I

•   Environmental Assessment Regulations, 1999 – LI 1652

•   Allotey J.A. 2008 – Application of Ghana’s Environmental Policies and Regulations
    to Oil and Gas Development. Paper presented at the Ghana National Forum on Oil
    and Gas, 25-29 February 2008
THANK YOU

				
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