Pecten Cameroon Itindi

completed

- 2 - 23 December 1996International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Cameroon-Pecten III Offshore Oil and GasRegion Sub-Saharan AfricaSector Oil and GasProject No. 007621This project involves a third investment by IFC in Pecten Cameroon for continued development of the offshore oilfields in the Lokele and Rio del Rey permit areas. Pecten has an interest in both permit areas, but Pecten is the operator of the Lokele fields, whereas Elf operates the Rio del Rey fields. Pecten’s fields are located about 35 kilometers offshore in about 38 to 50 m of water. An Environmental Review Summary for IFC’s second investment in this project was released to the Bank’s Public Information Center in February 1994. The proposed third investment by IFC is planned to help finance: infill wells to complete extraction from fault blocks; installation of two or three new platforms of four to six wells each; and additional gas lift projects, in the Elf-operated Rio del Rey concession. The additional gas lift projects will reduce flaring in the Rio del Rey concession by an estimated 5 to 6 million cubic feet per day, which is a reduction in flaring of about 10%. Gas has always been used in the Pecten-operated Lokele concession for fuel and gaslift to the maximum extent practical. Over the life of the field the reduction in flared gas volume is estimated at 10 Bscf. There are no on-shore facilities associated with production and development of these two permit areas. This is a category B project according to IFC''s environmental review procedure because a limited number of specific impacts may result which can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines, or design criteria.Environmental and occupational health and safety issues that were of key interest during IFC’s environmental review of this project included: discharge of drilling muds and cuttings; treatment and disposal of produced water and other liquid effluents from the platforms; gas flaring; and oil spill contingency plans and response capability. The following is a summary of findings of IFC’s environmental review of this proposed investment.An Environmental Assessment (EA) of Pecten’s production activities in the Lokele concession was submitted to IFC in February 1992 as a requirement of IFC’s initial investment in Pecten Cameroon. The EA included an oil spill contingency plan for Pecten operations in Cameroon. IFC also reviewed Pecten’s internal manual on environmental policies and procedures. Pecten has committed to operate its offshore fields in accordance with environmental practices and standards applicable to offshore operations in the United States waters of the Gulf of Mexico. Because an EA has been prepared for Pecten’s offshore production activities in the Cameroon and because the proposed new investment involves additional well development and improvements in existing offshore oil fields, the potential impacts of this additional activity are well understood. Significant adverse impacts are not expected from normal offshore drilling and production operations, but could be severe in the event of a major oil spill.An environmental consultant recently conducted an environmental audit for internal use by Pecten in improving operational performance. The two primary recommendations made by the consultant have been addressed by Pecten; these involve improvements in waste minimization programs, and an improved method of measuring and monitoring oil and grease levels in produced water discharges. Pecten has also expanded its connections with Oil Spill Response Ltd. in England, with the objective of expanding response capability in the event of a major spill.Pecten recently submitted to IFC a monitoring report on produced water discharge that indicates ongoing environmental compliance with World Bank environmental guidelines for offshore oil and gas production. Monitoring data for 1995 indicate monthly oil and grease levels average 6 ppm in produced water. In 1995, a total of 10 spills were reported, with the largest spill recorded at 1 barrel. Based on its review of information submitted by Pecten regarding potential environmental impacts and proposed mitigation measures, IFC’s Environment Division concludes that the continued development of the fields is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements. Elf’s offshore operations in this part of Africa are well known to IFC as a result of IFC’s investments in Elf’s offshore operation in the Congo. Therefore, IFC has determined that Elf’s commitment is to operate in the offshore fields in Cameroon in accordance with the Marpol Convention of 1973 regarding oil pollution. Detailed records are kept of all oil spills and oily discharges, with a limit of 15 ppm oil in effluent from drilling rigs, and 100 ppm oil in produced water. Annual environmental audits are carried out by Elf for internal use, with the last audit in April 1996. Monitoring data from Elf’s production platforms in the Cameroon report oil in the produced water discharge ranging between 40 and 100 ppm. Elf is also using the same low-toxicity water based drilling muds used by Pecten in the Lokele field. In 1993, Elf carried out a major oil spill emergency response drill that covered all its operations in the Gulf of Guinea region.pecten3#.ers