7.1.6Environmental and Process Safety Reporting
The environmental and process safety offshore performance reporting scope is comprised of 11 offshore units that use the following reporting boundaries1:
- Units in the Company’s fleet producing and/or storing hydrocarbons under lease and operate contracts during 2015
- Units in which the Company exercises full operational management control
- Units in which the Company has full ownership or participates in a Joint Venture (JV) partnership, where the Company controls 50% or more of the shares
The environmental and process safety performance of the Company is reported by region: Brazil, Angola, Asia and Rest of the World. Based on the criteria stated above, SBM Offshore reports on the environmental performance for the following 11 vessels:
- Brazil – Espirito Santo, Capixaba, Cidade de Paraty, Cidade de Anchieta, Cidade de Ilhabela
- Angola – FPSO Mondo, FPSO Saxi Batuque and N’Goma FPSO
- Rest of World – Aseng, Yetagun and PFC Deep Panuke
One additional vessel in Brazil, 3.1 Operations and Lease Fleet for details.Marlim Sul has been added to the Environmental Discharges scope as the unit is in demobilization phase therefore not producing but still has crew onboard, see section
The environmental offshore performance reporting methodology was chosen according to the performance indicators relative toand guidelines. This includes:
- Greenhouse Gases, referred to as GHG which are N2O (Nitrous Oxide), CH4 (Methane) and CO2 (Carbon Dioxide)
- emissions per hydrocarbon production from flaring and energy generation
- Non Greenhouse Gases which are CO (Carbon Monoxide), NOx (Nitrogen Oxides), SO2 (Sulphur Dioxide) and VOCs (Volatile Organic Compounds)
- Gas flared per hydrocarbon production, including gas flared on SBM Offshore account
- Energy consumption per hydrocarbon production
- Oil in Produced Water per hydrocarbon production
SBM Offshore reports some of its indicators as a weighted average, calculated pro rata over the volume of hydrocarbon production per region. This is in line with the Environmental Performance Indicators.
The calculation of air emissions from offshore operations units uses the method as described in the EEMS-Atmospheric Emissions Calculations (Issue 1.810a) recommended by Oil & Gas UK (OGUKA).
Emissions reported in the Company’s emissions records include:
- emissions for the production of energy. Records of emissions from steam boilers, gas turbines and diesel engines used by the operating units.
- emissions from gas flared. Records of the volume of gas flared below the limit defined by the Client, above the limit attributable to SBM Offshore account or at the request of the client to optimize production.
Offshore Energy Consumption
The energy used to produce oil and gas covers a range of activities, including:
- Driving pumps producing the hydrocarbons or re-injecting produced water
- Heating produced oil for separation
- Producing steam
- Powering compressors to re-inject produced gas
- Driving turbines to generate electricity needed for operational activities.
The main source of energy consumption of offshore units is Fuel Gas and Marine Gas Oil.
Oil in Produced Water Discharges
Produced water is a high volume liquid discharge generated during the production of oil and gas. After extraction, produced water is separated and treated (de-oiled) before discharge to surface water. The quality of produced water is most widely expressed in terms of its oil content. Limits are imposed on the concentration of oil in the effluent discharge stream (generally expressed in the range of 15-30 ppm) or discharge is limited where re-injection is permitted back into the reservoir. The overall efficiency of the oil in water treatment and as applicable reinjection can be expressed as tonnes of oil discharged per million tonnes of hydrocarbon produced.
Environmental releases to air, water or land from the offshore operations units are reported using the data recorded in the Single Reporting System (SRS) database. SBM Offshore has embedded a methodology for calculating the estimated discharge and subsequent classification within thetool.
SBM Offshore reports on its onshore scope 1 and 2 emissions by operational control and discloses on the following locations; Amsterdam, Monaco, Rio de Janeiro, Schiedam, Houston, Kuala Lumpur and Marly. In 2015 the scope was extended to include shore bases in Malaysia, United States, Brazil and Canada. Efforts are being made to extend the reporting scope to include all shore bases. SBM Offshore does not have absolute targets as the Company is focused on the maturity of its data collection.
For the onshore energy usage, the Company uses the World Resources Institute Greenhouse Gas Protocol (GHG Protocol) method to calculate CO2 equivalents. CO2 equivalency is a quantity that describes, for a given mixture and amount of greenhouse gas, the amount of CO2 that would have the same global warming potential (GWP), when measured over a specified timescale (generally, 100 years). In some instances, SBM Offshore estimated the energy, fuel and/or gas consumption for onshore based on extrapolations.
Construction Yards environmental data, specifically emissions, energy and water usage have not been included in scope. SBM Offshore is aware that the constructions yards may have a large impact on the environment and have identified this as part of its licence to grow under the initiative ‘Manage Environmental Impact’.
There was a minor restatement of the 2014 onshore scope 1 environmental emissions. New information became available during 2015 for electricity and natural gas consumption of 2014 which led to minor restatements in the total energy consumption andemissions.