IMP-MED Project – 7th TRW – 27th March 2014

7th IMP-MED 6th Regional Technical Workshop Offshore Oil and Gas Exploitation New technological challenges New environmental concerns New regulation and integration issues… Tunis – Marseille -Tunis March 2014 IMP-MED Project Team www.imp-med.eu 1

IMP-MED Project – 7th TRW – 27th March 2014

Offshore oil and gas: situation and evolution More and more hydrocarbons extracted from offshore areas Deeper and deeper  Now « ultradeep » > 1500 m

New opportunities, new issues, new risks  E.g. hydrates: low temperature, high pressures  FPSO: floating plants far from land… Risks, emissions, pollutions ?

Technological and regulatory challenges  How to : authorize, do, monitor, control ?

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 Proved reserves have a “reasonable certainty” of being recovered

 “Probable” or “possible” reserves are lower categories of reserves,

Production

Reserves PROVED

PROBABLE

POSSIBLE

RESERVES

Now (commercial)

 Commercially justified for development

EXPLOITATION

Contingent resources RESOURCES

Reserves

Not yet (sub-commercial)

 Unrecoverable  Prospective : estimated + undiscovered  Contingent : not yet mature for exploitation

Discovered

Resources

Undiscovered

IMP-MED Project – 7th TRW – 27th March 2014

Resources, reserves

Unrecoverable

Prospective resources

Unrecoverable

SPE Petroleum Resources Management System

 Already recovered 3

Assessment of resources

Science

 Geology

Determination of reserves  Geology + technology

Planning  Geology + technology + policy

Allocation of blocks to operators

Science and technology Policy

 Geology + technology + policy + industrial strategy  Auction…  Include conditions (resources development, environmental protection)

Regulation

IMP-MED Project – 7th TRW – 27th March 2014

General approach of offshore O&G policy and management

Exploitation  Geology + technology + policy + industrial strategy + economy

Decommissioning  Policy + economy

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IMP-MED Project – 7th TRW – 27th March 2014

Resources/reserves assessment  Resources assessment  Based on geological studies Oil and gas fields exist under specific conditions, related to geological parameters Desktop studies, general surveys

 Reserves inventory  Based on geophysical and geological measurements : exploration Specific surveys and studies Existence of reserves, characteristics, certainty

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IMP-MED Project – 7th TRW – 27th March 2014

Planning Definition of areas open to development  By national regulator  State administration or agency

 Where and When  Based on many elements:     

Reserves National policy Accessibility Market Environment…

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IMP-MED Project – 7th TRW – 27th March 2014

Exploration Geophysical et geophysical surveys  Mainly seismic

Drilling  Exploration offshore platform, « rig »

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IMP-MED Project – 7th TRW – 27th March 2014

Exploitation Offshore exploitation: many techniques  Adapted to conditions and resources  Conventional fixed, moored, floating production storage and offloading facility (FPSO), etc.

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IMP-MED Project – 7th TRW – 27th March 2014

Exploitation (2) Underwater works and installations  Most of works and installations are now underwater  Not visible  But not without risks and impacts…

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IMP-MED Project – 7th TRW – 27th March 2014

Potential problems

Oil spill Accident (Deep Horizon)

Spatial conflicts

Whales stranding Security issues (Nigeria)

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IMP-MED Project – 7th TRW – 27th March 2014

Regulation of O&G activities There are experiences of the whole “cycle” in some areas  Find, exploit, decommission : Gulf of Mexico, North Sea

Some good practices, some bad ones…  Standards are improving, but still low in some regions  Self-monitoring/self-checking vs regulation

Some new regulatory challenges  Noise (exploration)  Deep offshore exploitation  > 2000 m

 Optimization  Stop gas release or flaring  Methane : GHG

 Spatial integration  Share used of installations ?

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IMP-MED Project – 7th TRW – 27th March 2014

Policy and regulation issues Policy  

Explore or not, exploit or not, which resource and when (strategic reserves), in which areas Exclusion areas (MPAs…), allocation of space (exclusive, shared)

Planning 

Strategic environmental assessment (integrated assessment)  Including pipelines, risks…

Regulation 

Exploration : licensing, operations  Noise EIA, technical solutions (« slow start », low power levels…)

 Well drilling, well test EIA, technical solutions (chemicals, waste material, risks, oil spill response)



Exploitation : licensing (rights, royalties…), operations  Risk assessment, monitoring, discharge (water, atmosphere), well flare, gas liquefaction offshore plants…



Transport  Offshore pipeline laying, O&M, decommissioning EIA



Rigs decommissioning  EIA; remove, leave in place options…

Enforcement ! 

Far, dangerous environment, industrial world, private facilities, several administrations concerned (energy, environment, work, health…), not always cooperating…  Many challenges for law and regulations enforcement

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IMP-MED Project – 7th TRW – 27th March 2014

Background : UNCLOS Jurisdictional areas

EEZ Territorial Sea Extended CS

High Sea ZONE

© Stratégies Mer et Littoral

Continental Shelf CS

Internal waters

Continent

IMP-MED Project – 7th TRW – 27th March 2014

Regulatory framework International  Base : UNCLOS  Coastal States have sovereign rights on mineral resources  Continental shelf and EEZ, up to 200 NM, less in the Mediterranean  Each country can exploit mineral resources of seabed (O&G, etc.) Mineral resources, NOT “energy”

 National regulations (general obligation of protecting the environment)

 But not beyond areas under national jurisdiction  Zone, International Seaded Authority

Regional  Regional Seas Conventions  Barcelona Convention : offshore protocol (in force : 2011) General authorization regime, EIA, wastes…

EU  Directive 2013/30/EU (2013)

National  National legislation  Most of the regulatory measures taken at national level 14

Environmental integration  Pollution (water and atmosphere, chemicals, noise)  Risks (oil spills, explosions, collisions…)

Activities & environment

 Reduction and mitigation measures, response plans

National regulation : elaboration, enforcement  Not easy for state to control and monitor on site…

Public & private

 Far from coast

 Very fast technological evolutions  Technical regulations often obsolete

 Balance between regulatory measures and good practices ?  Cooperation between operators and administrations?

 Cooperation between administrations  Energy, environment, fisheries, transport… Planning, regulation, surveillance…

GOVERNANCE

IMP-MED Project – 7th TRW – 27th March 2014

Integration (and regulation) issues

Interministerial

Stakeholders

 Involvement of other stakeholders  Sea users, coastal communities, public

Regional cooperation  Imposed by UNCLOS and BC  Many transboundary issues  Potential issues: SEA, EIA, monitoring, risk management, response

Regional

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IMP-MED Project – 7th TRW – 27th March 2014

7th TRW Workshop: expected outcomes Many integration issues Update on O&G issues in the Mediterranean Information on the existing regulatory frameworks  Regional, EU, national

Exchanges of experiences  Some countries have already gained much experience, some are just starting…  Regulation  Good practices, bad practices

Needs for further cooperation

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IMP-MED Project – 7th TRW – 27th March 2014

Speakers M. PERRIN  O&G in Eastern Mediterranean

M. HERICHI  O&G in Tunisia

M. PHILLIPS  Regulation seen by the industry

Questions, discussion Partner countries presentations  Related to O&G issues

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IMP-MED Project – 7th TRW – 27th March 2014

Thank you

[email protected]

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