OIL AND GAS INDUSTRY

GROUP I

4th Year

OIL AND GAS INDUSTRY

GROUP ONE YEAR FOUR

  ABURA FRANCIS NAMUGABO JACQUELINE SARAH AWOII BOB WILLY KICONCO JUSTINE KIYUBA BETTY BEATRICE KABOGOZA MAURICE WASSWA JOHN HANS

OUTLINE

Introduction Global trends National trends National relevant legislation and policies Occupational health and safety

issues/hazards Environmental concerns/impact/stressors (if

any) Impact on the workers/general

population/communities Mitigation measures in place Recommendations

INTRODUCTION

The oil and gas industry globally provides the world’s 7.05 billion population with 55% of their daily energy needs.

The 45% comes from coal, nuclear, hydroelectric power, biomass products( e.g. firewood) solar and wind power.

The oil and gas industry forms part of the Energy industry

GLOBAL TRENDS WORLD ENERGY CONSUMPTION….

NATIONAL TRENDS

History and Development of Oil & Gas in Uganda

The discovery of oil in Uganda dates as back as the 1920s after documentation of the presence of hydrocarbons in the Albertine and Graben regions by British geologist E.J. Wayland.

But due to world war II in the 1940s and the political turmoil that engulfed Uganda shortly after independence, there has been little stability to facilitate full exploration and production of the oil.

The Albertine is located in western Uganda, covering the districts of Masindi, Kibale, and Hoima.

NATIONAL TRENDS….

The Graben, forms the northernmost part of the western arm of the East African Rift Valley, is situated along the Ugandan-Congolese border, and stretches northward to Uganda’s border with South Sudan.

The Albertine Graben region is estimated to hold more than 6 billion barrels of oil, expected to produce approximately 100,000 barrels of oil per day (for approx. 200 yrs), placing Uganda among the foremost African oil producers.

NATIONAL RELEVANT LEGISLATION AND POLICIES

Oil extraction developments have necessitated putting in place a number of legislations and policies in order to meet and protect all the interests of the local population, government, investors and preservation of the environment.

NATIONAL RELEVANT LEGISLATION AND POLICIES….

Constitution of Uganda (1995)o Article 244 of the Constitution provides that

parliament shall enact laws regulating the exploitation and development of minerals.

o Exploitation shall take into account the interests of individual land owners, local governments, and the central government.

o The constitution further states that all minerals are held by the government on behalf of the people of Uganda.

OIL LAWS AND POLICIES..

Petroleum Laws and Policieso The National Oil and Gas Policy for Uganda, 2008o  The Oil and Gas Revenue Management Policy, 2012o Petroleum (Exploration, Development and Production)

Bill, 2012o Petroleum (Refining, Gas Processing and Conversion,

Transportation and Storage) Bill, 2012o Public Finance Bill, 2012 o Uganda Mining Act 2003

THE NATIONAL OIL AND GAS POLICY FOR UGANDA, 2008

Goal and Objectives of the PolicyThe goal of the National Oil and Gas Policy is to “use the country’s oil and gas resources to contribute to early achievement of poverty eradication and create lasting value to society”.

The objectives of the Policy are;a) To establish and efficiently manage the country’s oil and gas resource potential.

b) To ensure collection of the right revenues and use them to create lasting value for the entire nation. c) To efficiently produce the country’s oil and gas resources.d) To promote valuable utilization of the country’s oil and gas resources.

THE NATIONAL OIL AND GAS POLICY FOR UGANDA, 2008…

e) To ensure optimum national participation in oil and gas activities.f) To ensure efficiency in licensing areas with potential for oil and gas production in the country.

g) To promote the development of suitable transport and storage solutions which give good value to the country’s oil and gas resources. h) To support the development and maintenance of national skills and expertise.i) To ensure that oil and gas activities are undertaken in a manner that conserves the environment and biodiversity

THE PETROLEUM BILLS 2012 

The two Bills are-

1. The Petroleum (Exploration, Development and Production) Bill, 2012 and

2. The Petroleum (Refining, Gas Processing, Conversion, Transportation and Storage) Bill, 2012.

Objectives to regulate petroleum exploration, development and

production; to establish the Petroleum Authority of Uganda; to regulate the licensing and participation of

commercial entities in petroleum activities;

THE PETROLEUM BILLS 2012 …

to create a conducive environment for the promotion and exploration of Uganda's petroleum potential;

to provide for efficient and safe petroleum activities; to provide for the cessation of petroleum activities and

decommissioning of infrastructure; to provide for the payment arising from petroleum

activities; to provide for the conditions for the restoration of

abandoned lands after oil exploration; to provide for an open, transparent and competitive

process of licensing.

PUBLIC FINANCE BILL, 2012

o Goal

Public Finance Bill 2012 seeks ‘’to regulate revenue management in the oil sector.’’

o Objectiveso To ensure that oil revenues contribute to Ugandan

development and that Uganda escapes the problems faced by so many other resource-rich countries.

o To ensure that Parliament’s oversight on oil revenue activities is strengthened.

o Note: Provided this bill is well managed, reports explain that this could position Uganda to accelerate growth and reduce petroleum import costs, currently at around $600 million annually.

THE OIL AND GAS REVENUE MANAGEMENT POLICY, 2012

Goalo To ensure the highest standards of transparency and

accountability in the management of oil and gas revenues through giving institutional and governance structures to be used to achieve this.

o the policy provides for a mechanism for the sharing of royalty revenues with the local governments within the oil producing region.

ENVIRONMENTAL LAWS AND POLICIES

Oil and Gas operations have the potential for a variety of negative impacts on the environment, so a number of laws and policies had to be put in place.

o The National Environment Acto The National Environment Management Policy for

Ugandao The National Wildlife Regulationso The National Environment (Environmental Impact

Assessment) Regulationso The National Environment (Waste Management)

Regulationso The National Environment (Audit) Regulations

ENVIRONMENTAL LAWS AND POLICIES….

The National Environment Act, Cap. 153, 1995 The National Environment Act is a framework law on

environment and establishes the National Environment Management Authority (NEMA) as the overall body, charged with the management of environmental issues and provides for sustainable management of the environment.

Objectives The Act provides for environmental monitoring and impact

assessment; environmental audit; environmental restoration orders and improvement notices; environmental easements; environmental performance bonds; licensing and standard setting; use of economic and social incentives; civil and penal sanctions, including community service, among others.

ENVIRONMENTAL LAWS AND POLICIES….

The National Environment Management Policy for Uganda

Objectives Ensures that Oil exploration activities are closely

monitored to ensure compliance with mitigation measures and their effectiveness, approval conditions and any other issues of concern that were not anticipated at the time of approval but become significant during implementation.

ENVIRONMENTAL LAWS AND POLICIES….

Uganda Wildlife Authority (UWA)

Objective UWA ensures that oil exploration activities in

protected areas such as Queen Elizabeth and Murchison Falls National parks are carried out in a responsible manner.

ENVIRONMENTAL LAWS AND POLICIES….

Regulatory Bodies  National Environment Management Authority - NEMA, Directorate of Water Resource Management - DWRM, National Forestry Authority - NFA, Petroleum Exploration and Production Department -

PEPD, Uganda Wildlife Authority - UWA, Fisheries Resources Department - FRD, Directorate of Environmental Affairs - DEA District Environmental Officers – DEOs

OCCUPATIONAL HEALTH AND SAFETY ISSUES/HAZARDS

1. Air pollution – Hydrogen sulphide and other air emissions. exposure to these regular emissions these people suffers from chronic sinus infections, headaches, dizziness, nosebleeds, red and burning eyes, cancerous tumours, and body perspirations having an odour of sulphur.

2. Waste and by-product disposala) Risks of produced water include;o potential contamination of stream and groundwater

sourceso potential contamination of fish or other organisms

in the food chain.

CONT’D…

b) Pits These are open earthen deep holes where

toxic chemicals such as runoffs from operations are disposed.

The risk currently exists that animals and children may access pits, or that pits may be left in an unclean state - for years after production.

CONT…

3.Operational hazards – contamination, subsurface disturbance and vibration

4. Noise – increased noise, hearing and stress5. Accidents – Equipment and pipelines,

tampering

ENVIRONMENTAL IMPACTS…

1. Acoustics (Noise)2. Poor Air Quality-Excess increases in dust

could decrease forage palatability for wildlife and livestock and increase the potential for dust pneumonia.

3. Cultural Resourceso Destruction of cultural resources in areas

undergoing surface disturbance. e.g. sacred landscapes, historic burial grounds

CONT’D….

4. Ecological Resources causes potential for the introduction of invasive or noxious weeds. Depletion of surface waters from perennial streams could result in a reduction of water flow, which could lead to habitat loss and/or degradation for aquatic species.

5. Environmental Justice noise, dust, visual impacts, habitat destruction and evictions could have an adverse affect on traditional tribal life ways, religious and cultural sites.

6. Hazardous Materials and Waste Management for example solids, produced water, drilling and industrial waste

CONT’D…

7. Socioeconomics Drilling/development phase activities would contribute to the local economy by providing employment opportunities, monies to local contractors, and recycled revenues through the local economy

8. Soils and Geologic Resources Potential impacts to soils during the drilling/development phase would occur as a result of :

a. Removal of vegetation,

b. Mixing of soil horizons ,

c. Soil compaction,

d. Increased susceptibility of the soils to wind and water erosion,

e. Contamination of soils with petroleum products

ENVIRONMENTAL IMPACTS…

9. Transportation Development of an oil and gas field would result in the

need to construct and/or improve access roads and would result in an increase in industrial traffic (e.g., hundreds of truck loads or more per well site).

Increased traffic would also result in a potential for increased accidents within the project area.

10. Water Resources (Surface Water and Groundwater)

Impacts to water resources could occur due to water quality degradation from increases in ; turbidity, sedimentation, and salinity.spills,cross-aquifer mixing and water quantity depletion.

CONT’D

Water quality can also be affected by: Activities that cause soil erosion or dust that can be

washed into water bodies; Weathering of newly exposed soils,

causing leaching and oxidation that can release chemicals into the water;

Discharges of waste or sanitary water; Use of herbicide and dust suppressants (e.g.,

magnesium chloride); and Contaminant spills.

MITIGATION MEASURES IN PLACE

Acoustics (Noise) Mitigation Measures Limit noisy activities to the least noise-

sensitive times of day (weekdays only between 7 a.m. and 10 p.m.).

Whenever feasible, schedule different noisy activities (e.g., blasting and earthmoving) to occur at the same time, since additional sources of noise generally do not add a significant amount of noise. All equipment should have sound-control devices.

Notify the residents of the timings Heavy trucks should have alternative routes

from residents

AIR QUALITY MITIGATION MEASURES

Use dust abatement techniques on unpaved, unvegetated surfaces to minimize airborne dust

Post and enforce speed limits to reduce airborne fugitive dust caused by vehicular traffic.

Revegetate disturbed areas as soon as possible after disturbance.

Conduct slash burning , if necessary, in compliance with open burning permit requirements.

AIR QUALITY MITIGATION…

Cover construction materials and stockpiled soils if they are a source of fugitive dust.

Train workers to handle construction materials and debris during construction and dismantlement to reduce fugitive emissions.

Keep soil moist while loading into dump trucks. Keep soil loads below the freeboard of the truck. Minimize drop heights when loaders dump soil

into trucks. Tighten gate seals on dump trucks. Cover dump trucks before traveling on public

roads

ECOLOGICAL MITIGATION MEASURES

Mitigation measures to avoid or reduce ecological impacts from oil and gas production.

Educate workers regarding the occurrence of important resources in the area and the importance of their protection, including the appropriate regulatory requirements.

Schedule activities to avoid disturbance of resources during critical periods of the day

Avoid the spread of invasive nonnative plants by keeping vehicles and equipment clean and reseeding disturbed areas with native plants.

CULTURAL RESOURCES MITIGATION MEASURES

Educate workers and the public on the consequences of unauthorized collection of artifacts.

During all phases of the project, keep equipment and vehicles within the limits of the initially disturbed areas.

Prepare a cultural resources management plan, if cultural resources are present in the area of potential effect or if areas with a high potential to contain cultural material have been identified.

Use existing roads to the maximum extent feasible to avoid additional surface disturbance.

CULTURAL RESOURCES MITIGATION…

Avoid the spread of invasive nonnative plants by keeping vehicles and equipment clean and reseeding disturbed areas with native plants.

Limit herbicide  use to non persistent, immobile herbicides and apply in accordance with label and application permit directions and stipulations for terrestrial and aquatic applications.

Apply spill prevention practices and response actions in refueling and vehicle-use areas to minimize accidental contamination of habitats.

Turn off all unnecessary lighting at night to avoid attracting migratory birds.

CULTURAL RESOURCES MITIGATION… Apply erosion controls. Apply practices such as

jute netting, silt fences near disturbed areas. Reclaim all areas of disturbed soil using weed-

free native grasses, and shrubs. Undertake reclamation activities as early as possible on disturbed areas.

Use dust abatement  techniques on unpaved, unvegetated surfaces to minimize airborne dust.

Regularly monitor the well pads, access roads, and other facilities for invasive nonnative plant species establishment. Initiate control measures immediately upon evidence of invasive species  introduction or spread.

CULTURAL RESOURCES MITIGATION…

Address spills immediately per the appropriate spill management plan, and initiate soil cleanup and soil removal if needed.

HAZARDOUS MATERIALS AND WASTE MANAGEMENT MITIGATION MEASURES

Mitigation measures to avoid or reduce impacts from hazardous materials and waste management associated with oil and gas production.

Prepare a comprehensive list of all hazardous materials to be used, stored, transported, or disposed of during all phases of activity.

Develop a hazardous materials management plan addressing storage, use, transportation, and disposal (interim and final) for each item in the comprehensive list. The plan should identify specifics regarding disposal response.

CONT’D

Develop a waste management plan identifying anticipated solid and liquid waste streams and addressing determination, inspection and waste minimization procedures, storage locations, and waste-specific management and disposal requirements. Include a recycling strategy to be practiced by workers during all project phases.

Develop a spill prevention and response plan for addressing storage locations of hazardous wastes , spill prevention measures, training requirements, waste-specific spill response actions, spill response kits, and notifications to authorities.

CONT’D

Implement plans for hazardous materials management, waste management, spill prevention and response, stormwater management, and pesticide management. Train employees to promptly contain, report, and/or clean up any oil or hazardous material spill.

Provide secondary containment  for all on-site hazardous materials and waste storage, including fuel. (Fuels storage should be a temporary activity and fuel storage facilities should be removed immediately upon completion of the construction)

CONT’D…

Containerize and periodically remove wastes for disposal at appropriate off-site permitted disposal facilities. The goal would be to minimize the amount of hazardous materials and waste onsite.

Document accidental releases as to cause, corrective actions taken, and resulting environmental or health and safety impacts.

HEALTH AND SAFETY MITIGATION MEASURES

Mitigation measures to avoid or reduce health and safety impacts from oil and gas production.

Conduct a safety assessment to describe potential safety issues (site access, construction, work practices, hazardous materials , security, transportation of heavy equipment, traffic management, emergency procedures, wildlife encounters, and fire control and management) and measures to mitigate them.

Develop and implement a health and safety program for workers and the public, addressing all of the safety issues identified in the assessment and all applicable safety standards.

CONT’D

Consult with local planning authorities regarding traffic and traffic hazards. Address specific issues (e.g., school bus routes and stops) in a traffic management plan or in the health and safety program.

Follow the health and safety program. Use appropriate procedures for storage and

transportation of blasting equipment and explosive materials, including appropriate signage indicating their location.

SOILS AND GEOLOGICAL RESOURCES (INCLUDING SEISMICITY AND GEO HAZARDS) MITIGATION MEASURES

Reclaim or apply protective covering on disturbed soils as quickly as possible.

Apply erosion controls to prevent/minimize soil erosion from vehicular traffic and during drilling/development activities (e.g., jute netting, silt fences).

Maintain vegetative cover to prevent erosion and periodically monitor to assess erosion.

Clean and maintain drainage ditches regularly. During all phases of the project, keep

equipment and vehicles within the limits of the initially disturbed areas.

CONT’D

In areas of potential wind erosion, apply gravel to access road surfaces.

WATER RESOURCES MITIGATION MEASURES

Mitigation measures to avoid or reduce water resource impacts from oil and gas production

Apply erosion controls relative to possible soil erosion from vehicular traffic and during construction activities (e.g., jute netting, silt fences).

Regularly monitor access roads, and other project areas for indications of erosion.

Use dust suppression techniques to minimize impacts of vehicular traffic and wind on roads and exposed soils.

Reclaim or apply protective covering (e.g., vegetative cover) on disturbed soils as quickly as possible.

WATER RESOURCES MITIGATION MEASURES

Mitigation measures to avoid or reduce water resource impacts from oil and gas production

Apply erosion controls relative to possible soil erosion from vehicular traffic and during construction activities (e.g., jute netting, silt fences).

Regularly monitor access roads, and other project areas for indications of erosion.

Use dust suppression techniques to minimize impacts of vehicular traffic and wind on roads and exposed soils.

Reclaim or apply protective covering (e.g., vegetative cover) on disturbed soils as quickly as possible.

CONT’D Clean and maintain drainage ditches regularly. Refuel in a designated fueling area to limit the spread

of any spill. Use drip pans during refueling to contain accidental

releases and under fuel pump and valve mechanisms of any bulk fueling vehicles parked at the project site.

Limit pesticide use to nonpersistent pesticides .

SOILS AND GEOLOGICAL RESOURCES MITIGATION MEASURES

Mitigation measures to avoid or reduce impacts on soils and geological resources from oil and gas production.

Identify and avoid areas with unstable slopes and local factors that can cause slope instability (groundwater  conditions, precipitation, slope angles).

Minimize the amount of land disturbed as much as possible. Use existing roads, disturbed areas. Minimize vegetation removal.

Place access roads to follow natural topography , and avoid or minimize side hill cuts. Design roads with eventual reclamation  in mind.

CONT’D Design runoff control features to minimize soil erosion. Construct drainage ditches only where necessary. Use

appropriate structures at culvert outlets to prevent erosion.

Use special construction techniques in areas of steep slopes, erodible soils, and stream crossings.

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Unique Hazards/impacts to the Oil and Gas industry workers

Catheads

Poor Machine Guarding

Rotary Tables

High Pressure Hoses

GasesFalls

Slipping Tripping

CAN YOU FIND THE HAZARD(S)?

54

11

22

33

44

55

Is there a Hazard?

56

Is there a Hazard?

57

How about this? See any problems with this?

58

Cathead = Pinch Point

78

75

Stabbing a joint, prior to make-up. Note spinning chain, position of arm and hand ??

61

Racking Pipe – Strains-Sprains, Caught Between etc….

62

TONGS – SPINNING CHAIN

Cut off fingers, thumbs

Smashed fingers, hands etc

TEAM WORK !!

Be a Team,

Work Together

Watch out for each other

63

This happens on a daily basis.

Yes, its just a picture, but what if it was YOUR hand.

Could you work again? What could you do? Play with your kids, on your computer, drive????

HEALTH AND SAFETY RECOMMENDATIONS More than 90 % of all accidents are avoidable, being

caused by human error rather than by mechanical failure.

It is extremely important that every person on a drilling rig develop a sense of safety in drilling operations.

o Employee orientation/training The orientation is to help acquaint those personnel

with oilfield safety rules, regulations and/or procedures, particular to this company

o Educational activitieso Employee meetingso Inspectionso Accident reportingo Safety responsibilities

CONT’D

Hazard recognition -Identify unsafe acts and conditions

-Determine the corrective actions

-Implement corrective action

-is there a danger of striking against, being struck by, or making contact with an object?

-Are rotating equipment ,Nip points such as a belt, sheave, chain, gear or other projections exposed?

-Is the hand/arm in contact with moving parts at the point of operation?

- Are machine controls safely guarded?

- Do machines vibrate, move, or walk while in operation?

CONT’D Machines/equipment receive regular maintenance? Work area well illuminated Ventilation adequate Room for maintenance operations? Never exceed design load Inspect elevators, latches, latch locks, pins, springs;

replace if worn/damaged Personal Protective Equipment (PPE) Fire Protection Equipment Welding Fumes and Ventilation