Sakhalin-2 Project and Western Gray Whales: lessons learnt - IUCN ...

Sakhalin-2 Project and Western
Gray Whales: lessons learnt
Author: Alexey Vladimirov, PhD
Date: 09.09.2012
Security Classification: Non-restricted

Sakhalin-2 Project
and Sakhalin Energy

Sakhalin Energy
Sakhalin Energy Headquarter
• Established in 1994
• Operates under Production Sharing
Agreement with Russian Federation and
Sakhalin Oblast Administration
• Investor and operator of the Sakhalin-2
project.
• Owns licenses for the development of
offshore Lunskoye and Piltun-
Astokhskoye oil and gas fields on
Sakhalin Island shelf, Russia.
• Company’s shareholders are:
‒ Gazprom - 50% plus one share;
‒ Shell – 27,5%;
‒ Mitsui – 12,5%;
‒ Mitsubishi – 10%.
• Two offices:
‒ head office in Yuzhno-Sakhalinsk;
‒ representative office in Moscow.
3

Corporate Management
4

Climate and Geography in the Area of Operations
Piltun-Astokhskoye
field
Sakhalin
Lunskoye field
Yuzhno-Sakhalinsk
Winter season:
220-240 days;
Average Temperatures:
winter, in the north: –24°С;
in the south: –6°С
summer, in the north: +10°С;
in the south: +19°С
the lowest: –35 - –42 о С
the highest: +27 - +35 о С
Ice season:
6-6.5 months
Storm wave height:
13-16 m
Seismic activity:
(up to 7-8 points)
5

Project Infrastructure
Launched in 1996 with Molikpaq (PA-A) platform -
first fixed ice-class production platform in Russia.
The first system for minimal flaring of associated
gas ever used in Russia.
First oil achieved in July 1999.
Piltun-Astokhskoye-B and Lunskoye-A CGBS are
the first structures built in Russia.
Installed on the Sakhalin sea shelf in 2005.
Lun-A topsides installed on Sakhalin in June 2006 -
First gas offshore platform in Russia.
PA-B topsides installed in July 2007, a world record
for marine works.
Finalization of the pipeline system and year-round
oil production since October 2008.
Start-up of the first LNG plant and the first offshore
gas production in Russia in 2009
6

Geography of LNG and Oil Trade
10,6 mln t/y of
LNG is an equivalent
9% of of all
Russian gas
exported to Europe.
4% of global
LNG market
43 mln bbl/y of oil
7

Supplies of Sakhalin Oil and LNG
(2011)
Oil supplies
LNG supplies

Sakhalin-2 Project
• It is one of the world’s largest integrated oil and gas production projects.
• It is the first project in Russia to develop offshore oil and gas fields.
• The Sakhalin-2 is the first project in Russia developed under Production
Sharing Agreement (PSA).
• It is the first project in Russia to be “Project Financed”.
• The project was conducted in two phases:
‒ Phase 1 – development of Astokh area of Pultun-Astokhskoe field;
‒ Phase 2 – full development of Piltun-Astokhskoe and Lunskoye fields.
• It includes three offshore platforms (PA-A, PA-B, Lun-A), an onshore
processing facility (OPF), TransSakhalin pipeline system, liquefied natural gas
(LNG) plant and oil export terminal (OET).
• One of the most complex and innovative Project in the World.
9

Sakhalin-2 Project and
Environment

Our Home
Sakhalin Island is the biggest island in the
Russia:
• territory – 87,000 km 2 .;
• length – 948 km;
• rich onshore and offshore wildlife;
• endangered endemic and relic species of
plants, fish, birds and mammals
• fragile ecosystems;
• population – appr. 500,000 people;
• indigenous communities
• lack of infrastructure;
• economics is highly depended on fishery
11

Environmental Programmes
• Steller’s Sea Eagle Monitoring
• Western Gray Whale Monitoring
• Marine Mammals Observation
• Offshore Local Environmental Monitoring
• Ballast Water Monitoring
• Monitoring of Invasive Species in Aniva Bay
• Sakhalin Taimen Monitoring
• Monitoring of Rare and Threatened Birds
• Monitoring of Wetlands
• Monitoring of Rivers Ecology
• Monitoring of Landscape Processes
• Monitoring of Flora and Wegetation
• Monitoring of Terrestrial Mammals
• Remote Sensing Programme
• Monitoring of Soils
• Archeology and Monitoring of Cultural Heritage
12

Western Gray Whales - baseline
• Considered to be extinct by the middle
of XX century
• Discovered near Sakhalin Island in 1983
• A lot of uncertainties and luck of data
• Consists of 80-100 individuals
• Thought to be slightly decreasing
• The only feeding area located near
Piltun Bay offshore north-east coast of
Sakhalin Island
• Extremely important for calf survival
• Unique fragile habitats
• Threatened to extinction by oil and gas
exploration
Photo by Yu.Yakovlev
13

Joint Western Gray Whale Monitoring
Sakhalin Energy started to research Western Gray Whales in 1997. Since 2002
has cooperated with Exxon Neftegaz Limited, operator of Sakhalin-1 Project, to
conduct these studies under the joint Programme. The key objectives are:
•to monitor the spatial and the temporal distribution and abundance in both nearshore
and offshore feeding areas
•to acquire information about the composition of benthos, food availability and
sustainability of the feeding habitats
•to gather the information about the demographic structure and ecology of the
Western Gray Whale population and to assess the population size and dynamic
•to measure the ambient noise and the different variations in the sound levels in
the feeding areas resulting from the anthropogenic activities
•to monitor the inter-seasonal and the inter-annual variability in the hydrological
parameters that may have the effects on the productivity and the biomass of the
benthos
•to develop scientific-based protective measures based on the most recent data
14

Photo by Yu.Yakovlev
Programme Components
The studies under the Programme (2002-2012):
1.Aerial-based Distribution surveys (dropped in 2006)
2.Vessel-based Distribution surveys (started in 2002; in the current scope for 2012)
3.Shore-based Distribution surveys (started in 2003; in the current scope for 2012)
4.Shore-based Behaviour studies (moved to activity-based in 2011)
5.Shore-based Acoustic studies (moved to activity-based in 2007)
6.Vessel-based Acoustic studies (started in 2003; in the current scope for 2012)
7.Vessel-based Hydrological studies (started in 2006; in the current scope for 2012)
8.Vessel-based Photo-ID studies (started in 2002; in the current scope for 2012)
9.Vessel-based Benthic studies (started in 2002; in the current scope for 2012)
10.Vessel-based Biopsy sampling (started in 2010; in the current scope for 2012)
The joint studies outside the Programme:
1.Kamchatka Distribution and Photo-ID studies (started in 2008; dropped in 2012)
2.Vessel-based Satellite tagging (started in 2010; postponed till 2013)
15

Key Findings
• The second feeding area was found in the eastern Sakhalin offshore waters and
boundaries of the both Piltun and Offshore feeding areas were determined
• The number of Gray Whales feeding near north-east Sakhalin is assessed of over
131 living animals and slightly increases (about 3% a year)
• The duration, start and end dates of main feeding period near Sakhalin were
determined
• Gray whales feeding near Sakhalin are back to healthy physical conditions to the
autumn
• New Gray Whale feeding areas within the Russian Far East waters were discovered
• Mother with calves can be met not in Piltun feeding area only and the same pairs and
yearlings were sighted feeding near Sakhalin and Kamchatka within one season
• There was no evidence or statistically significant record of the negative impacts of
industrial activities on the pods or individual Gray Whales or other cetaceans near
Sakhalin
• The recent Photo-ID and Satellite tagging data shows that at least the part of Gray
Whales feeding near Sakhalin belongs to Eastern Gray Whale population
16

"This research was conducted by A.N.
Severtsov Institute of Ecology and
Evolution of the Russian Academy of
Sciences (IEE RAS) and Oregon State
University Marine Mammal Institute in
collaboration with the U.S. National
Marine Fisheries Service, Kronotsky
State Nature Biosphere Reserve and
the Kamchatka Branch of the Pacific
Institute of Geography. The research
was contracted through the
International Whaling Commission
(IWC) and International Union for
Conservation of Nature (IUCN) with
funding from Exxon Neftegas Ltd. and
Sakhalin Energy Investment Company
Ltd."
Satellite Tagging
17

Risk Mitigation and Protective
Measures

Western Gray Whale Advisory Panel
In 2003 Sakhalin Energy approached IUCN to create and convene
independent international Panel of the best marine mammal experts to
strengthen Gray whale conservation:
• ISRP established in 2004
• WGWAP established in 2006
• In 2011 WGWAP mandate was renewed for another 5 years
Goals and objectives:
• Increase the output from Gray whale research and monitoring
• Provide advice on how industry can minimize the impacts
• Provide advice on protective measures required
Specific tasks:
• Review Joint Programme Results
• Review Marine Mammal Protection Plan
• Review Oil Spill Response Plans
• Develop Monitoring and Mitigation Measures
19

Marine Mammal Protection Plan
First version of MMPP was developed in 2001
and was based on the world’s best available
practice (Vers.08 is currently in force):
• Establishment of navigation corridors for
vessels
• Prohibition to enter Gray whale feeding
grounds
• MMOs onboard every vessel
• Vessel speed limitations
• Minimum flight heights limitations
• Special measures to avoid collisions
• Regular revision of MMPP according to the
most recent scientific information
• Reviewing by WGWAP before adoption
20

2006 Pipeline Re-routing
• In 2003 the base case for pipeline route
was directly from PA-A to shore
• Noise Modeling for different options
• In 2005 based on ISRP report the
Alternative route 3 was chosen to
prevent crossing Piltun Feeding Area
• Pipeline construction was held in 2006
• Acoustic Monitoring during the
construction
• Behavior Monitoring during the
construction
• MMOs onboard every vessel
• Mitigation Measures to Physical and
Chemical Impacts
21

2010 4-D Seismic Survey
•Archival acoustic recording of natural and humangenerated
sounds before, during, and after the
survey;
•Sound propagation modelling and in situ verification
of acoustic footprints around operations in relation to
important whale habitat areas;
•Real-time measurements of sounds produced
during the survey and strict adherence to specific
operational protocols based on received sound
levels;
•Shore-based visual detection of whales using scan
sampling techniques;
•Shore-based monitoring of movements and
behaviour of individual whales using theodolite
tracking; and
•Vessel-based visual detection of whales by onboard
observers with direct authority to call for specific
changes in operations (including shut-down) based
on whale proximity and behaviour.
Prepared by R.Racca
22

2012 2-D Seismic Survey
The main mitigation measure is to start and complete survey as early in the season
as ice conditions allow to prevent noisy activities during the main feeding period.
•Archival acoustic recording of natural and
human-generated sounds before, during,
and after the survey;
•Sound propagation modelling and in situ
verification of acoustic footprints around
operations in relation to important whale
habitat areas;
•Shore-based monitoring of movements and
behaviour of individual whales using
theodolite tracking; and
•Vessel-based visual detection of whales by
onboard observers with direct authority to
call for specific changes in operations
(including shut-down) based on whale
proximity and behaviour.
Modeled by JASCO Research Ltd.
23

South Piltun Project
• Production Sharing Agreement
prescribes to ensure full exploration of
the license area
• Hydrocarbon deposits cannot be
developed from PA-A or PA-B platforms
• There are several options which are
highly depend on many factors including
the commerciality of the Project
• One of the options is a construction of a
3 rd platform between the existing and
further offshore but the decision hasn’t
been taken yet
• Basic environmental risks are not
different from the other platforms but the
assessment of cumulative impact is the
issue to be addressed
PA-A
PA-B
South Piltun
24

The Challenge

Steps Forward
• The joint work IUCN, Sakhalin Energy and WGWAP is very efficient
and positive and should serve as an example of the bridge between
conservation and development needs
• The experienced gained should be considered as a BAP and used in
other projects worldwide
• Conservation requires an open dialog with various stakeholders
• Need of information about the activities of other operators
• Lack of information about other offshore activities (non-related to
oil&gas exploration)
• Lack of information about potential impacts along the migration routes
and at the breading grounds
• A lot of gaps in our knowledge about Gray whales
• A broad cooperation is essential within the Gray whale range
• International-based mechanism of management is required
26

Thank you for your attention!
Contact us
Tel.: +7 (4242) 66 2000
Fax: +7 (4242) 66 2012
E-mail: Ask-Sakhalinenergy@sakhalinenergy.ru
Web site: www.sakhalinenergy.com