Steinar Nesse (DNV) & Eduard Bukhgalter (VNIIGAZ) 9 December 2010 Working group RN07 - Regular emissions and discharges from ships and offshore units in the Barents Sea Barents 2020 Conference Moscow 9 December 2010

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Outline  Brief overview of Phase 3 scope and main results (RN07)  Mandate Phase 4 (RN07)  Approach  Status of progress  Further work and milestones

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Experts RN07 Phase 4 Russian expertsNorwegian/International experts Eduard Bukhgalter, VNIIGAZ (Russian coordinator) Elena Ilyakova, VNIIGAZ Nicolay Valdman, Krylov institute Vadim Kharitonov, Giprospetsgaz Аlexander Schvyrjajev, Lomonosov MSU Alexander Kichigin, Gazprom Nikolay Shaplov, Rosneft Natalia Kutaeva, FSO "State marine rescue service of Russia“ (observer) Anna Savina, ANO "Industrial Risk Agency” (observer) Knut Aasnes, Statoil Svein Flornes, Transocean Axel Kelley, Eni Norge Haakon Hustad, DNV Salve Dahle, Akvaplan-NIVA Yuri Alexandrovski, SDAG Frederic Hannon, OGP/TOTAL Gina Ytteborg, OGP/Shell Steinar Nesse, DNV

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Scope of work for working group RN07 (phase 3) Decommissioning Tanker export Pipeline commissioning Environmental monitoring

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Phase 3 RN07 main results: Recommended standards for reference, offshore oil & gas  ISO 14001:2004 Environmental Management System - The ISO implies that activities are planned for and executed in a systematic manner considering relevant environmental aspects and aiming at continuous improvement.  International Finance Corporation / World bank Group Environmental, Health, and Safety Guidelines: - Offshore Oil and Gas Development (2007) - Air Emissions - Wastewaters - Waste management - Hazardous Materials Management - Noise - Decommissioning - Ambient Air Quality (2007)  NORSOK S-003 Environmental Care (2005)  OGP waste management guidelines with special focus on areas with limited infrastructure (2009)

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Phase 3 RN07 main results: Recommended standards for reference, maritime  IMO MARPOL 73/78 Annexes with amendments - Annex I. Prevention of pollution by oil - Annex II. Control of pollution by noxious liquid substances - Annex III. Prevention of pollution by harmful substances in packaged form - Annex IV. Prevention of pollution by sewage from ships - Annex V. Prevention of pollution by garbage from ships - Annex VI. Prevention of air pollution from ships  IMO Ballast water Convention  IMO Antifouling Convention

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Phase 3 RN07 main results: Recommendation for new and stricter environmental standards  Development of regional Industry Standard to reflect MARPOL Special Area (SA) requirements on relevant issues for petroleum related ship traffic (oil, garbage)  Develop of regional Industry Standard for ships and offshore installations to work on lighter fuels, instead of heavy grade fuels  New standard for the reduction of burning of liquids in the proximity to ice covered areas  New standard for underwater noise from maritime vessels

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Phase 3 RN07 main results: Recommendation for further harmonization in 2010  Harmonised standard for pollution detection  Harmonised standard for offshore environmental monitoring for the Barents Sea  Joint seminars of Russia and Norway on specific international issues of environmental monitoring  Waste Management – further development and harmonisation  Further work on harmonisation on chemicals management  Further harmonization on recommended discharge/emissions levels

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Mandate RN07 Phase 4  Specify and propose a regional standard for regular emissions and discharges from ships and offshore units in the Barents Sea, including applying the MARPOL Special Area (SA) requirements

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Barents 2020 Phase 4 Mandate Approach RN07 Phase 4 Barents 2020 Phase 3 Report − International reference standards − Suggested changes to existing standards − New standards Technical framework Documents (5) August – December 2010 Further technical harmonisation January – May 2011 − Regular emissions to air − Regular discharges to sea − Waste management − MARPOL SA requirements − Environmental control and monitoring Produce a regional environmental industry standard by end 2011

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Status of progress  Developed Technical framework documents (TFD): - Regular emissions to air - Regular discharges to sea - Environmental monitoring and control - Waste management - MARPOL Special Area issues  Purpose of the TFDs: To establish a common basis and scope for development of the environmental standard, i.e. - Present, discuss and agree on reference standards, issues, parameters, levels and limits.  Draft TFDs developed by International/Norwegian experts mid October 2010  Translated to Russian language and distributed  Commented on by Russian experts  Discussed at RN07 meeting in Moscow 7 December

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Regular emissions to air, examples  Soot/black carbon - Fuel quality  Sulphur contents in fuels (MARPOL; North Sea 0.1% from 2015, IFC/WB, NORSOK S-003)  NOX (MARPOL – NOx curve Tier II, IFC/WB; 25 ppm gas turbine)  nmVOC; loading operations (harmonization)  Emissions reduction technologies

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Discharges to sea, examples  MARPOL Special Area requirements for petroleum associated maritime vessels: - Garbage (incl. food waste in areas with ice) ”0”, - Oil ”0”; SA has 0 discharge for slop and 15 ppm for bilge, Antarctica SA 0 also for bilge  Offshore oil & gas activities; - IFC/WB Environmental, Health, and Safety Guidelines for Offshore Oil and Gas Development (2007) forms the basis, ”minimum standard” - S-003 Environmental care; design - Harmonise with new Russian environmental regulation (2010)  Parameters to be harmonised (e.g. natural components in PW and added chemicals), and aligned with environmental monitoring

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Environmental measurement, monitoring and control  Definition clarification:  1. Monitor effluent streams (discharge to sea) and emission streams (emissions to air)  2. Monitor concentration and contaminant level in external environment (water column, seabed sediment, fish, ice)  3. Monitor biological effects (e.g. benthic fauna diversity)

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Environmental measurement, monitoring and control (2)  Today different regimes in Russia and Norway, and different bodies responsible for execution of monitoring (industry, authorities): Phase 3: “..the Russian monitoring standards are not in depth aligned with offshore conditions, and the Norwegian system needs some development to apply with the Barents Sea conditions (e.g. for ice covered areas). A harmonized system will ensure transparence in monitoring environmental performance (impacts) and facilitate transparence in data exchange and improve opportunity for joint problem solving.”  Establish harmonised list of parameters (pollutants), frequency and scope of monitoring  Establish harmonised methods for monitoring based on internationally approved standards for measurement, analyzes and reporting

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Waste management, example  Basis;  Waste management hierarchy - Remove and reduce - Reuse - Recycling/recovery - Residue treatment - Dispose  Ships: MARPOL Annex V, waste management plans  Offshore oil & gas; OGP guidelines (2009), waste management plans, waste collection, segregation and storage  EU Hazardous waste classification list

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Further work and milestones RN07 Phase 4  Work in dedicated (sub-)groups to develop the adequate technical level of standard per environmental task - Based on international/Norwegian standards and experiences - Harmonized and aligned with Russian standards and practices - May 2011 expert meeting  Compile report and send it for review - September 2011 expert meeting  Finalise report and present results to the 2011 Barents 2020 conference

© Det Norske Veritas AS. All rights reserved. Barents 2020 Phase 4 - Working group RN07 9 December Safeguarding life, property and the environment