SHELL / BG OFFSHORE SEISMIC SURVEY CAMPAIGN IEE PROCESS Lessons learned

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SHELL / BG OFFSHORE SEISMIC SURVEY CAMPAIGN IEE PROCESS

Lessons learned

Agnes McLaverty

11 July 2016

SHELL/BG EXPLORATION ACREAGE OFFSHORE MYANMAR

n 7 blocks (5 operated by Shell/BG, 2 operated by Woodside), Bay of Bengal (6) and Andaman Sea (1).

n PSC: ‘Study Period’ – activities: mainly seismic surveys.

n ‘Drill or drop’ decisions for Shell operated blocks due 2017.

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BUILDING BLOCKS FOR GOOD SOCIAL AND ENVIRONMENTAL PERFORMANCE

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Consultation with local authorities

Consultation w NGOs + civil society orgs

Consultation w local

communities

Initial regulatory engagements

Environmental and social

mitigation plan (ESMP)

Grievance procedure

Social Performance

strategy

Disclosure/Pre-commencement engagements

Environmental /social impact assessment

Continue to build

relationships

Social Performance

plan

Demonstrate compliance with

ESMP

Preparing for seismic operations Operate surveysIEE

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5 OPERATED BLOCKS OFFSHORE RAKHINE

n 1 nearshore block, 4 deep water blocks

n Mainly deep water; AD-02, AD-09, AD-11 ~ 2,000 m.

n A4 nearshore, survey activities in water depths from ~ 50m – significant fishing grounds nearshore but also in deeper waters.

n Seismic survey season coincides with fishing

season.

COMMUNITY CONSULTATION DURING IEE STUDIES

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STAKEHOLDER ENGAGEMENT - EXAMPLES

n Formal engagements

n Government level (union and state)

n Local authorities (townships)

n Informal engagements

n Communities (villages)

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ISSUES RAISED DURING IEE PROCESS

n Government / agencies (union level):

n Companies to undertake consultation with local communities

n Impact on fish populations and fishing of seismic surveys

n Potential for Cumulative Impact (fishing)

n Local:n Concern about impact on fishing (by excluding fishermen from fishing grounds or by

physically impacting fish stocks) / local communities

n Concern about pollution from (future) activities

n What is the potential for community gain?

n Local jobs

n Skills / training opportunities

n Social investment e.g. health care, educational opportunities, infrastructure

n Expressions of general support for activities

n Revenue sharing

n Contract transparency7/18/16 7

OBSERVATIONS

Item Observations

Fishing None

Marine Mammals 133 sightings, 1141 individuals

Turtles 78

Shipping Tail buoy lost

Misc Floating debris – a lot appears to be fishing gear, posing hazards to turtles in particular

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Item Observations

Fishing None

Marine Mammals

18 sightings, 252 individuals

Turtles 0

Misc Floating debris

AD09 / AD11

MD05

A4/AD02

Item Observations

Fishing Interaction with more than 250 fishing vessels

Marine mammals

142 sightings, > 1,000 individuals

Turtles >50

Shipping n.a.

Misc Floating debris

KEY POINTS

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Activities / observations Lessons learned – mitigation appliedNearshore block Deepwater blocks

Consultation with communities

7 villages 2 – 7 villages Important to consult with potentially impacted communities.

Potential Impact on fish and fishing

Interaction with fisheries

Fishing occurs up to 100 km from shore in very deep water

More fishing than predicted in the impact assessment –deployed additional guard vessel, and guard vessels running further ahead of boats.

Marine mammals MMOs and JNCC standards applied

MMOs and JNCC standards applied

Numbers higher than expected, mitigation appropriate

CETACEAN SIGHTINGS BAY OF BENGAL

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Spinner dolphin

Spinner dolphin

Bryde’s whale

Bryde’s Whale

Sperm whale

ENTANGLED TURTLES

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HIGH-LEVEL TIMELINE – IEE PROCESS

Feb 2015

April 2015

Dec 2016

Offshore Survey(s)Start Acquisition

IEE submissions

Jul 2016

June 2016

IEE process

Timeline

July 2015

1st Project proposals submitted

EIAworkshop

EIALegislation

in place

Offshore Survey(s) Complete acquisitionPublic

Consultation commenced

Oct 2015

IEE1st comments

received

PSCs signed

IEE disclosure

May 2016

1st IEE approval (NC)

received

IEE POTENTIAL IMPACTS / MITIGATION MEASURES

n Potential Impactn Fishing (significance: minor)

n Shipping (significance: minor)

n Marine fauna (cetaceans and turtles) (significance: minor)

n Accidental discharges (significance: moderate)

n Observationsn Significant fishing up to 100 km from

shore.

n Shipping interaction (3RD party vessel impacted tail buoy)

n Large numbers of cetaceans (mainly dolphins) and turtles observed

n No spills

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Mitigation applied• Engagement with fisheries representatives, marine notice, mobile safety zone and deployment of

guard boats • Grievance mechanism • Marine mammal observers / soft starts and turtle guards • International environmental maritime standards applied on vessels including maritime standards

(MARPOL)