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Mozambique: Mobilizing Extractive Resources for Development May 2013 Sound energy is pulsed into the seabed to understand the geology and to detect the presence of oil and gas. However, the long-term consequences of such surveys are not well known, though mitigation measures are available. The powerful sound waves generated by seismic surveys are known to have harmful effects on fish. Impacts to fish and whales include damaging orientation systems, reducing their ability to find food, and even death. Moreover, the seismic process might disturb marine animals and cause them to change their swimming and migration patterns. Below is a brief example of an international best practice on legal restrictions on seismic survey: Norway Regulations for Offshore Gas Exploration Prohibition of seismic surveys in fishing zones, observing a buffer zone of 50km around the outer edges of the fishing areas. Surveys within these zones are only allowed when no fishing takes place. Prohibition of seismic surveys during fish migration periods. Prohibition of seismic surveys in shallow areas known to be nurseries for fish. Recommendation 35: Due to the importance of fisheries and marine biodiversity to Mozambique’s environment and economy, the government should exercise caution during their issuance of exploration licenses: - Strategic Environment Assessment (i.e. geological seismic survey) should be conducted with multiple players, such as coastal managers, the fishery sector, environmental nonprofits and local communities. - The SEA should reserve certain areas and prohibit exploration in those sites, including all artisanal fishing areas. - The government should have clear standards for geological seismic surveys, such as enforcing the companies to comply with EIAs and related international treaties. - The government should prohibit seismic surveys in shallow or marine protected areas, given that these areas are very important for renewal of fish stocks. - Companies should also avoid conducting surveys during the migration of key and endangered species. Meanwhile, drilling companies should be required to use “soft start” technique when they are conducting the surveys. Finally, it is important for the company to comply with UNCLOS (“United Nations Convention On the Law of SEA”). 4.3.2 Importance of FPSO regulation After survey, the necessary floating production storage and offloading vessels (“FPSO”) regulation also is also important. The FPSO is an offshore facility to process of hydrocarbons and for storage oil, usually oil 110
Mozambique: Mobilizing Extractive Resources for Development May 2013 and gas that is extracted offshore. Figure 28 illustrates the function of FPSO. Figure 28: FSPO Diagram Source: “LADOL to construct first FSPO in-country” (March 5, 2013) Sweet Crude Reports available at: http://sweetcrudereports.com/wp-content/uploads/2013/03/FPSO_diagram.png. Drilling and Production Operation The third process for most offshore energy companies is drilling and production. Similar to onshore production, a large water reservoir is normally situated under the oil and gas reserves. Once exploratory drilling starts, in the case of large oil field, more than 50 production-wells are drilled. During the drilling, a drill head at the end of drilling tube will penetrate rock layers. In the meantime, drilling fluids are injected to the well for lubricant. In this process, there are two significant sources of pollution. First are drilling muds, which are composed of different kinds of chemical compounds. A typical offshore production platform may discharge about 60,000 m 3 of drilling fluids and 15,000 m 3 of drilling cuttings. These cuttings and fluids can smother seafloor organisms, especially for those are living near the operation spots. There are normally two kinds of drilling fluids. The water-based drilling fluids are the safest for marine environments. On the opposite, oil-based drilling fluids are the most toxic and persistent. It is also difficult for oil-based fluids to break down and degreed in the marine environment. The second source of pollution comes from geological formation water, which also known as produced water. It is by far the largest-volume by-product associated with offshore oil and gas production. Produced water primarily contains dissolved oils, heavy metals and polycyclic, aromatic and hydrocarbons (“PAH”). From an environmental standpoint, produced water can lead to a severe cascading effect: when the PAHs are discharged to sea, it could pass on to the marine life chain. PAHs are carcinogenic and its content from gas field is much higher than oil fields. It will be important for the Mozambique government to conduct further study on PAHs since offshore natural gas reserves are the country’s major hydrocarbon resources. Currently there is no specific environment legal requirement on Mozambique’s offshore gas exploration. Thus popular regulations used by other countries have been listed in Figure 29. 111
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