CHAPTER ONE

Introduction

EIA for Besar Development in Block PM315,

Offshore Terengganu, Terengganu

Chapter 1 Introduction

Chapter

1
1.1

INTRODUCTION

Introduction
This Environmental Impact Assessment (EIA) study has been undertaken in
conjunction with the proposed development of Besar Field in Block PM315
offshore of the State of Terengganu.
This introductory chapter provides a brief description of the proposed Project
and Project Stakeholders and Environmental Consultants involved in
preparing the EIA report.

The legislative requirement of the impact

assessment as well as the Statement of Need of the proposed Project is also

discussed.

1.2

Project Title
The title of this project is Besar Development in Block PM315, Offshore
Terengganu, Terengganu.

For brevity, throughout this report it will be

referred to as the Project.

1.3

Legislative Requirement
The Project is located within the Exclusive Economic Zone (EEZ) where
Exclusive Economic Zone Act 1984 is applicable. The Act designates the
Director

General

of

Environmental

Quality,

as

determined

in

the

Environmental Quality Act 1974 and as administered by the Department of

Environment (DOE), to oversee to the protection and preservation of the
marine environment in the EEZ.
A component of the protection and preservation of the marine environment, as
contained in the Exclusive Economic Zone Act, 1984 is the Directions and
Action to Remove, Disperse, Destroy, or Mitigate Damage to the Environment.

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Chapter 1 Introduction

To adequately mitigate any potential impact to the marine environment as a

result of this proposed development, an impact assessment is necessary.
Consequently, an Environmental Impact Assessment (EIA) is conducted,
documented and submitted to the DOE for approval prior to Project
implementation.

1.4

Project Brief
The Project is located in Block PM315, approximately 185km from Kerteh
coastline of Peninsular Malaysia in the water depth of 70 metres. Besar is
one of the gas fields under Gas Profit Sharing Contract (GPSC) to supply
overall PMOs Contract Market Supply obligation of 1430 MMscfd of gas.
The Project will be developed in two phases, Phase 1 and Phase 2. Phase 1
consists of the development of BsDP-A platform which is envisaged to be a
12- slot wellhead satellite platform with evacuation of gas via full-well-stream
(FWS) pipeline to existing Angsi Drilling and Riser platform (AnDR-A) and
further processed at existing Angsi Central Processing Platform (AnPG-A),
prior to evacuation to Onshore Slug Catcher (OSC) via an existing 32 166km
pipeline. Fluid management will be handled at the existing AnPG-A. BsDP-A
platform facilities is to be designed to flow up to 150MMscfd of gas.
BsDP-B platform will be developed in Phase 2 and is currently envisaged to
be commissioned in 2019, as a wellhead satellite platform with 6 slots and
shall tie-in to BsDP-A platform.

1.4.1

Project Proponent
The Project Proponent is PETRONAS Carigali Sdn Bhd. Throughout the
report they will be referred to as PETRONAS Carigali or the Project
Proponent. Correspondence details of the Project Proponent are as follows:
PETRONAS Carigali Sdn. Bhd.
Level 59, Tower 2
PETRONAS Twin Towers
Kuala Lumpur City Centre
50088 Kuala Lumpur
Malaysia

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1.4.2

Chapter 1 Introduction

Tel:

03 2331 3207

Fax:

03 2331 5633

Contact Person:

Wan Md Jalal Azmi bin Wan Othman (Project

Manager-Angsi/Besar Development)

Design Consultant
RNZ Integrated (M) Sdn Bhd is the Design Consultant who is responsible on
the design details of the proposed development. RNZ correspondence details
are as follows:
RNZ Integrated (M) Sdn Bhd
Level 17, Menara Great Eastern
303 Jalan Ampang
50450 Kuala Lumpur

1.4.3

Tel:

03-4264 2600

Fax:

03- 4253 3585

Contact Person:

Mohd Ashri Mohamed (Project Manager)

Environmental Consultant
Chemsain Konsultant Sdn Bhd is the appointed EIA consultant for this project.
The correspondence details of the consultant are as follows:
Chemsain Konsultant Sdn Bhd
No. 41,1st Floor
Jalan USJ 10/1D
UEP Subang Jaya
47620 Subang Jaya, Selangor

1.4.3.1

Tel:

03-5637 0163

Fax:

03-5637 0386

Contact Person:

Marina Roland Nawe (EIA Team Leader)

EIA Consultants
A list of consultants and individual consultants declarations has been
incorporated at the front of this report. Table 1.4.1 contains the list of EIA
consultants and subject consultants, whereas Table 1.4.2 lists the supporting
team members, who have contributed to this EIA study.

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Chapter 1 Introduction

Table 1.4.1: EIA Team Members

Name

Qualification

Registration With DOE

Proposed Study

Category

Area/Field

ID. No.

Valid Date

EIA Consultant

Ecological Studies

C 0059

1 June 2015

Area

A. EIA Study Team Leader

Marina Roland Nawe

B. Sc (Biology)
M. Environment

Fisheries

Team Leader
Ecology

General Environmental Management

B. EIA Team Member
Lina Chan

B. Sc. (Hons)

EIA Consultant

Noise

C 0098

31 May 2016

Management Plan

General Environmental Management

Ir. Brian Chong Sin Hian

B. Sc (Civil Engineering)
M. Sc (Environment)

EIA Consultant

Wastewater

Environmental

C 0089

31 May 2016

Waste Management

Solid Waste Management

Erosion and Sediment Control
Hydrology

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Name

Qualification

Tan Shwu Mei

Chapter 1 Introduction

Registration With DOE

Proposed Study
Area

Category

Area/Field

ID. No.

Valid Date

B. A (Hons.)

Subject

Social Impact Assessment

SS 0113

1 June 2017

Socio Impact

Anthropology and

Consultant

C0152

18 October

Water Quality

Land Use Assessment

Sociology
M. Sc. (Environmental
Management)
Dr. John Chan Sung
Tong

B.Sc (Chemistry)

EIA Consultant

PhD (Chemistry)

Water Quality

2014

Chemical Processes

Chemical Process

General Environmental Management

Lim Sze Fook

B. Sc (Hons) Physics

EIA Consultant

Air Quality and Odour

C 0282

18

Air Quality

September

Meteorology

2013
Adnan Bin Yusop Ali

B. Eng. (Chemical)

Subject

Quantitative Risk Assessment

SS 0066

1 June 2017

Risk Assessment

Consultant

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Chapter 1 Introduction

Table 1.4.2: Supporting Team Members

Name

Qualification

Mazura Murat

J Somu Jaya
Kumaran

B. Sc. (Env)

M. Env
B. Sc. Marine Science

Registration With DOE

Proposed Study

Supervised by

Area

Category

Area/Field

ID. No.

Valid Date

Assistant

General Environmental

AC0737

10 Sept

Assisting Team

Consultant

Management

2013

Leader

Assistant

Ecological Studies

AC0737

Marine Ecology

Marina Roland Nawe

Consultant

(Marine)

AC1040

Environmental

Lina Chan

Marina Roland Nawe

General Environmental
Management
Tan Kai Yuuen

B. Sc. (Environmental

Assistant

Management)

Consultant

Ecological Studies

Management

Water Quality

Plan
Air Quality
General Environmental
Management
Richard Rhodes

B. Sc. (Hons) Geological

Geology

Marina Roland Nawe

Sciences

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EIA for Besar Development in Block PM315,

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1.5

Chapter 1 Introduction

Objective of the EIA

The objective of the EIA study is to ensure that all impacts direct and indirect,
especially environmental, social and economic associated with both Phase 1
and Phase 2 of the proposed Besar Field Development Project are identified
and that measures are taken to address them. Consistent with this objective,
the EIA report shall be a self-contained and comprehensive document as
follows:

To identify and evaluate potential environmental impacts arising from

project activities.

To propose mitigating measures and appropriate management plan to

eliminate or minimize the impacts.

To ensure that the proposed development project will be conducted in

compliance with PETRONAS guidelines, PETRONAS Technical Standards
(PTS) and Malaysian regulatory requirements on environment.

1.6

Statement of Need
PETRONAS Carigali, an exploration and production arm of the PETRONAS
Group, is continuously striving to sustain as well as increase oil and gas
production to meet national economic and energy requirements, and to be
competitive in the world petroleum markets. One of these efforts is through the
development of gas fields to discover and utilize the previously untapped gas
reserves.
In view of the projected decline in gas production from the existing sources,
PETRONAS Carigali will be required to supplement a significant portion of the
projected Peninsular Gas Utilization (PGU) gas shortfall. The development of
Besar Field is expected to supplement the shortfall of gas supply.

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1.7

Chapter 1 Introduction

Project Options
The following subsections discuss the options considered in the determination
of the final option selected for the proposed Project.

1.7.1

With Project Option

As mentioned in Section 1.6, the Besar Field will be developed to supplement
the projected Peninsular Gas Utilization (PGU) gas shortfall. Several benefits
are anticipated to exist due to the development of this Project. The benefits,
among others include the following:

Project Siting
-

Locality to existing offshore gas reserves and close proximity to

processing facilities at Angsi which will be transported via existing
pipeline to Onshore Slug Catcher (OSC) at Kerteh

Close proximity to the Kemaman Supply Base for supplies and port
services

Located in existing offshore oil and gas development areas in the

South China Sea

Social Benefits
-

Opportunities to improve standard of living and quality of life through

the greater stimulation of local and state economies

Create employment opportunities within the oil and gas industry for
Terengganu residents

Economic Benefits
-

Sustaining and increasing of local gas production to meet demand

Local economic benefits provided to businesses and individuals which

may be contracted to provide goods and services to the Project during
its various stages.

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This will include cases of development of new

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Chapter 1 Introduction

business areas as well as increase in demand for goods and services

accordingly with the increase of population
-

State level economic benefits through the increase use of state based
services, such as shipping, and various state revenues generated from
the operation of the Project

National level economic benefits, through the increase of gas

production locally, minimising imports to satisfy local demand and
associated costs, and increasing exports of both sales gas and
condensate in the increasingly volatile and profitable petroleum
markets, increasing national GDP

Environmental Benefits
-

The potential proliferation of various fish, surrounding subsurface

infrastructures such as seabed pipelines, and platform jackets

Initiative to implement best management practices measures to

minimise impact to the surrounding environment while maintaining
economic development and growth

1.7.2

No Project Option
The main benefit of considering the No Project option is the understanding
that there will be an absence of all environmental impacts predicted and
documented in Chapter 4 of this EIA report and associated environmental
costs as a result of the proposed project.
However, considering the No Project Option will also present the opportunity
to consider the potential loss of social, economic and environmental benefits
as discussed above.

1.8

EIA Study Guidelines and Approaches

This EIA study and report shall be undertaken in accordance to the following
guidelines and legislation. Since the location of the proposed project is within
the Exclusive Economic Zone (EEZ) outside of Malaysian Territorial Waters,

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Chapter 1 Introduction

Malaysian environmental legislation does not directly apply to this Project,

except where activities are conducted in areas within Malaysian waters or
onshore.
The following relevant legislations and guidelines to this Project:

Continental Shelf Act (1966)

Fisheries Act (1985)

EIA Guidelines for Petroleum Industries by DOE, (1997)

Environmental Quality (Scheduled Wastes) Regulations (2005)

Exclusive Economic Zone Act, (1984)

Handbook of Environmental Impacts Assessment Guidelines published by

DOE, (2000)

International Conventions for the Prevention of Pollution from Ships (1973)

as modified by the Protocol of 1978 (MARPOL 73/78)

Malaysia Maritime Enforcement Agency Act (2004)

Merchant Shipping Ordinance (1952)

Occupational Safety and Health Act, (1994)

Petroleum Mining Act (1966)

Petroleum (Safety Measures) Act (1984)

PETRONAS Policy

PETRONAS Carigali HSE Policy

PETRONAS Carigali Environmental Objectives Statement

PETRONAS Technical Standard (PTS)

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Chapter 1 Introduction

PETRONAS E&P Minimum Environmental Specifications (MES)

In conducting the EIA process, the following are carried out:

Review Projects conceptual and front end engineering design reports,

existing published data and EIA reports

Undertake site visit to the project area to conduct baseline survey

Seek

additional

government

information

authorities;

e.g.

through

consultations

Department

of

with

Environment,

relevant
Marine

Department, Department of Fisheries, Meteorological Department, , etc.

Collate and analyse the data

Report on findings and where appropriate, recommend mitigation

measures

Review local and international criteria and standards for marine water,
discharges and sediment for the evaluation of impacts. This review will
include recommending the relevant compliance standards for the Projects
implementation stage

Recommend environmental monitoring, as part of the environmental

management plan, during the various stages of the proposed Project

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