PETRONAS GROUP

MINIMUM ENVIRONMENTAL MANAGEMENT

STANDARDS
IMPLEMENTATION GUIDE

PTS 60.3006

June 2007
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June 2007

Prepared by: Reviewed by: Approved by:

Raihatul J Z Abidin Lee Tzee Wan Iqbal G Abdullah

Executive Environment Principal General Manager
Environment Management
Group HSE Division Group HSE Division Group HSE Division

Proprietary Information
This document contains proprietary information belonging to Corporate HSE
PETRONAS, and must not be wholly or partially reproduced nor disclosed without
prior permission from Corporate HSE PETRONAS

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PETRONAS Group
Minimum Environmental Management Standards
Implementation Guide
Amendment Record Sheet

Section Number:
Section Title:

Revision Chapter
Description of amendment Date Amended By
No. No.

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Contents
June 2007

CONTENTS

1.0 INTRODUCTION
1.1 BACKGROUND
1.2 CONCEPT
1.3 OBJECTIVES
1.4 CRITERIA
1.5 DEVELOPMENT PROCESS
1.6 IMPLEMENTATION SCHEDULE

2.0 MINIMUM ENVIRONMENTAL MANAGEMENT STANDARDS (MEMS)

2.2 MEMS FOR NEW PROJECTS & ASSET ACQUISITION
2.3 MEMS FOR OPERATION
3.4 MEMS FOR EXIT/DECOMMISSIONING

3.0 APPENDICES
1. PROJECT EIA LIST
2. DUE DILIGENCE
3. GREENHOUSE GASES
4. ACID GASES
5. OIL LOADING FROM OPERATIONAL EFFLUENT DISCHARGE
6. OIL SPILL FROM INCIDENTAL DISSCHARGE
7. HAZARDOUS WASTE
8. GROUNDWATER
9. ENERGY EFFICIENCY
10. FRESHWATER
11. BIODIVERSITY CONSERVATION PROJECTS
12. COMMUNITY PROJECTS

ACKNOWLEDGEMENT

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1.0 INTRODUCTION

PETRONAS Group Minimum Environmental Management Standards

(MEMS) is a set of standards that PETRONAS Group of Companies adopts
for implementation in all its operating units (OPUs) to ensure consistent
practice that endeavours to protect, conserve and minimize impact to the
environment.

1.1 BACKGROUND

PETRONAS Group of Companies is currently operating in more than 30

countries across the globe where environmental related national regulations
and practising standards differ.

Figure 1: PETRONAS Worldwide Operations

ALGERIA ARGENTINA
ANGOLA AUSTRALIA
BENIN CAMBODIA
CAMEROON CHINA
CHAD INDIA
CUBA SOUTH AFRICA
EGYPT THAILAND
EQUATORIAL UNITED
GUINEA KING
ETHIOPIA
INDONESIA
IRAN
MAURITANIA
MOROCCO
MOZAMBIQUE
MYANMAR
NIGER
PAKISTAN
PHILIPPINES
SUDAN
TURKMENISTAN
UZBEKISTAN
VIETNAM
YEMEN
UPSTREAM UPSTREAM & DOWNSTREAM
DOWNSTREAM
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Some of its OPUs is more established than the other in terms of

environmental management and the environmental management practices
differ in one way or the other. The Group finds it appropriate to establish a
set of “Minimum Environmental Management Standards” for its operations
worldwide as one of its strategic approaches to sustainable development.

1.2 CONCEPT

MEMS are group requirements for its OPUs. They are set by the Group
Health, Safety & Environment Division (GHSED) for all OPUs to implement
and comply with.

OPUs are, however, encouraged to set specific environmental goals (EGs)

which are appropriate to the nature of the site operations, over and above
the MEMS. Environmental Goals (EGs) are voluntary in general and may be
mandatory for specific OPUs operating in particular country/region. EGs are
set by respective OPUs.

1.3 OBJECTIVES

Many of the MEMS elements are not new to PETRONAS OPUs, especially
for the more established OPUs. The implementation of MEMS shall ensure
consistent approach for all PETRONAS OPUs to meet a common and
minimum standard.

Implementation of a common standard shall enable PETRONAS to make

inventory, reference and reporting at group level. It also acts as a baseline
for PETRONAS OPUs to strive towards environmental excellence by
achieving beyond the MEMS and meeting environmental goals set forth by

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each operation/plant, while taking proactive steps towards conservation of

the environment.

PETRONAS shall then use this as a foundation to influence its Joint Venture
Partners* in the implementation of MEMS for their operations

[ * At this stage, the Joint Venture Partners exclude the Upstream

Production Sharing Contractors (PSCs) ]

1.4 CRITERIA

MEMS are developed based on a set of criteria, viz.:

a) Common environmental issues in petroleum industry due to large
emissions (e.g. CO2), consumption (e.g. energy) or potential impact o the
environment (e.g. oil spill)
b) Key stakeholders’ concerns e.g. SOx and NOx emissions, bio-diversity
conservation
c) Data collection capability & availability – OPUs are able to
collect data without much difficulty

1.5 DEVELOPMENT PROCESS

Extensive research and benchmarking against industrial best practices; and

stakeholders consultation were conducted in order to develop the elements
of MEMS. The MEMS has been endorsed by PETRONAS Health, Safety &
Environment Committee in March 2007.

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Figure 2: MEMS Development Process

Jun-Oct 06 Nov06- Feb 07 Mar 07

Research and Stakeholders GHSEC
Benchmarking Consultation Endorsement

1.6 IMPLEMENTATION SCHEDULE

The MEMS shall be implemented in phases. Phase 1 implementation is

made effective April 2007. Later phases shall be developed and
implemented when the relevant guidelines are made available and when the
phase 1 implementation status are reviewed and assessed.

The implementation of phase 1 MEMS shall be verified under the Tier 3

Assurance Program commencing from 2008.

Phase 2 implementation shall commence from 2008 and beyond.

Figure 3: Implementation Schedule

Apr 07 Apr 08
Phase 1 Phase 1 verification
Implementation Phase 2 Implementation

2.0 MINIMUM ENVIRONMENTAL MANAGEMENT STANDARDS

The MEMS elements are developed based on project life cycle:

1. Project phase - 2 MEMS: 1 for new project development (green field)
and 1 for facilities acquisition or merger (brown field)
2. Operation phase – 11 MEMS

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3. Exit/Decommissioning phase – 2 MEMS: 1 for transfer of facility and

1 for decommissioning of facility

2.1 MEMS for Project Phase

Phase 1

Project managers are required to assess the need to conduct Environmental

Impact Assessment (EIA) in accordance to the PETRONAS Group project
EIA List (Appendix 1). Every EIA shall be accompanied by an Environmental
Management Plan (EMP).

Phase 2

Asset acquisition team shall ensure appropriate due diligence, including the
environmental aspects as established in the “HSE Due Diligence Guidelines”
be conducted prior to the acquisition.

Table 1: MEMS for Projects Phase

Aspect Phase 1 Phase 2
Project Development/ Asset Acquisition
Environmental Conduct Environmental
Impact Assessment Impact Assessment (EIA)
(EIA) and and establish
Environmental Environmental
Management Plan Management Plan (EMP)
(EMP) In accordance to
PETRONAS Group
Project EIA list.
Environmental Due PTS on “HSE Due Conduct Environmental
Diligence Diligence Guidelines” is Due Diligence prior to all
being developed. hand-over of asset, or
merger and acquisition
(M&A).

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2.2 MEMS for Operating Phase

MEMS for operating sites are developed under four (4) areas viz.:

1. Management system – each OPU shall have in place an effective

management system for managing environmental aspects in its
operating sites
2. Common pollutants and waste streams – each OPU shall monitor and
reduce the emission loading of greenhouse gases (GHG) i.e. carbon
dioxide (CO2) and methane gas (CH4) and the emission of acid
gases i.e. sulfur oxides and nitrous oxides (SOx and NOx).
Operational oil discharges through effluent water systems and
incidental oil releases from the operating sites shall be monitored.
Effort shall be made to prevent and control spills in future. The
generation of hazardous wastes shall also be monitored and reduced
3. Natural resources - conservation of energy, freshwater and
biodiversity
4. Social responsibility – sponsorship of community projects for the
development and wellness of communities around the vicinity of
operating facilities

Phase 1

OPUs shall monitor air emissions loading of two types of (2) common air
pollutants from PETRONAS operations. viz. greenhouse gases (GHG) and
acid gases (SOx and NOx) at source. Refer to Appendices 3 & 4 for details.

Operational effluent discharge loading of oil & grease shall be monitored as

well as the incidental discharge of liquid hydrocarbon (oil and condensate).
Refer to Appendices 5 & 6 for details.

The generation of hazardous wastes, which, in Malaysia are mostly

regulated as “scheduled wastes” under the Environmental Quality

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(Scheduled Waste) Regulations 1989 and its amendments, shall be

monitored by weight in tonne. Refer to Appendix 7 for details.

Monitoring of energy efficiency and freshwater consumption are required

during the phase 1 MEMS implementation. Refer to Appendices 8 & 9 for
details.

Phase 2

For phase 2 implementation, OPUs are required to integrate ISO 14001

EMS into the HSEMS as per the guide developed by GHSED. This guide
shall be distributed to OPUs by 2008.

Each operating site shall account for its GHG emission, while those with
significant GHG emissions shall establish a GHG emission reduction
program.

OPUs shall conduct risk assessment for large emitters of SOx and NOx and
provide prevention, control and abatement measures as appropriate.

OPUs shall conduct risk assessment studies for areas with high loading of
oil & grease in the effluent and provide prevention, control and abatement
measures as appropriate.

OPUs with high oil spill incidents shall implement oil spill prevention &
control measures.

In addition to monitoring hazardous wastes generation, OPUs shall

proactively minimize wastes using 3Rs principles.

All existing land-based sites with bulk storage facilities for crude oils/
products/ fuels/ chemicals shall have in place a groundwater (GW)
monitoring program. Refer to Appendix 10 for details.

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OPUs operating in water-scarce areas are required to set target to reduce

freshwater consumption.

OPUs with more than 3 years of production history shall sponsor at least 1
bio-diversity conservation project or at least a community project. Refer to
Appendix 11 for details.

Table 2: MEMS for Operating Sites

Aspect Phase 1 Phase 2
Management System
EMS Integration guide is being To integrate ISO 14001
developed by GHSED EMS elements (aspect &
impact and objectives and
targets setting) into
HSEMS.

Loading of Common Pollutants /Waste Streams

Greenhouse Monitor emissions loading of Promote CDM projects to
Gases (GHG) carbon dioxide (CO2) & reduce GHG emissions.
Methane (CH4)
Inventorize and identify main Set target to reduce
sources for reduction. continuous methane
Implement ELMS to reduce venting
GHG emission

Acid gases Monitor emission loading for Identify large emitters of

(SOx, NOx ) SOx, NOx at source SOx and NOx.
Conduct risk assessment
studies for areas of
concern.
Oil Monitor oil and grease Identify/ conduct risk
loading for all operational assessment studies for
effluent discharges areas with high loading
Monitor number and volume of Implement spill preventive
oil spill & control measures
Hazardous Monitor amount of hazardous Implement Waste
Waste waste generated Minimization Program (a
systematic waste
reduction program using
the 3Rs principles)

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Conservation of Energy & Natural Resources/Social responsibility

Groundwater - All existing land-based
(GW) sites with bulk storage
facilities for crude oils/
products/ fuels/ chemicals
to have in place a GW
monitoring program
Energy Monitor Energy Efficiency
Efficiency Processing Plants to
implement ELMS
Freshwater Monitor amount of freshwater Critical areas ( e.g. water-
consumption scarce areas) to set target
Biodiversity - Operations with more than
Conservation 3 years of production
or community history shall sponsor at
project least 1 project

2.3 MEMS for Exiting Sites

Phase 1

No MEMS is set for phase 1 implementation.

Phase 2

Due diligence, including those environmental aspects as established in the

HSE Due Diligence Guidelines, shall be conducted prior to any asset
ownership/ operatorship transfer.

OPUs shall establish decommissioning and post-de-commissioning plan

(which include EIA and clean-up or restoration plan or post-monitoring
program) prior to decommissioning activities.

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Table 3: MEMS for Exiting Sites

Aspect Phase 1 Phase 2
Exit/De-commission
Exit - Conduct Environmental
Due Diligence on all
facilities before transfer of
ownership/operator-ship
as per HSE Due Diligence
Guidelines

Decommissioning - Establish
decommissioning and
post-de-commissioning
plan (which include EIA
and clean-up or
restoration plan or post-
monitoring program)
before decommissioning
activities

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APPENDIX 1

PETRONAS Group Project EIA

An Environmental Impact Assessment (EIA) is an assessment of the likely influence

a project may have on the environment. “Environmental Impact Assessment can be
defined as: The process of identifying, predicting, evaluating and mitigating the
biophysical, social, and other relevant effects of development proposals prior to
major decisions being taken and commitments made.” (IAIA 1999) The purpose of
the assessment is to ensure that decision-makers consider environmental impacts
before deciding whether to proceed with new projects

PETRONAS has adopted 3 categories of EIA requirement for project development.

Category 1 EIA refers to project that is likely to have significant adverse

environmental impacts that are sensitive, diverse, or unprecedented. These impacts
may affect an area broader than the sites or facilities subject to physical works.
Source: World Bank

Category 2 EIA refers to a project that has potential adverse environmental impacts
on human populations or environmentally important areas—including wetlands,
forests, grasslands, and other natural habitats—but are less adverse than those of
Category 1 projects. These impacts are site-specific; few if any of them are
irreversible; and in most cases mitigation measures can be designed more readily
than for Category 1 projects
Source: World Bank

Category 3 EIA refers to a project that is likely to have minimal or no adverse

environmental impacts. This category will only require environmental aspect and
impact assessment including mitigation measure.

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Management of EIA Study

EIA Category Management of EIA Study

1
Project manager to form EIA management team, advised
by Project HSE manager*. The EIA management team
shall include an Environmental Management Technical
Professional (EM TP)

Group or OPU’s Corporate HSE provides advisory role in
scoping, technical assessment and public review

Project manager shall ensure engagement with competent
authority from scoping through to final approval

Project manager is advised to appoint well-qualified*
external EIA consultant to conduct EIA study

Business Head or his authorized person shall endorse the
EIA study report before submission to respective authorities
for approval

2
Project manager to form EIA management team, advised

by Project HSE Manager. The EIA management team shall
include an EM TP.

Project manager shall ensure endorsement on scoping
from competent authority wherever applicable

Project manager may appoint either well-qualified**
external EIA consultant or internal resources to conduct
EIA study

CEO or his authorized person shall endorse the EIA study
report. In certain countries, approval by competent
authorities may be required.

3
Project manager or project HSE manager to form EIA study

team using internal resources

EIA study team shall comprise of project engineer,

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Environmental Management /HSE executive and an EM

TP.

EIA study team leader shall conduct peer review with at
least one other EM TP within the Group.

Project HSE Manager shall endorse the EIA study report
for the project manager to implement

*Project HSE Manager may be the Project manager or anyone given the responsibility to
manage the HSE aspects of the project.

**In Malaysia, only DOE-registered EIA consultant shall be appointed. For others,
appointment of EIA consultant shall be based on company’s and individual consultant’s
profile with respect to the project and country’s requirement, if any.

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Project EIA List

Project Type Activities Project Phase EIA Category/requirement

/Operation/
Facilities
Oil & Gas Seismic All Category 3 EIA, unless
Exploration survey otherwise specified by the host
country/local authority.
Exploration All Exploration drilling using
drilling (wildcat) oil-base or synthetic fluid are
required to conduct a category 2
EIA, unless otherwise required by
the host country/local authority.
Oil & Gas Field Production/ Development Category 2 EIA, unless
Development(offshore processing facilities are located in
and onshore) facilities environmentally/socially sensitive
areas, or otherwise specified by
the host country/local authority.
Expansion Category 2 EIA for
(Production and facility expansion/decommissioning
expansion)Partial activities that poses potential
decommissioning significant impact, unless
otherwise specified by the host
country/local authority.

Category 3 EIA for

expansion/decommissioning
activities that poses minor
impact, unless otherwise
specified by the host
country/local authority.
Decommissioning Category 2 EIA, unless
facilities are located in
environmentally/socially sensitive
areas, unless otherwise specified
by the host country/local
authority.

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Project Type Activities Project Phase EIA Category/requirement

/Operation/
Facilities
Pipelines for Intra-facility • Developme Category 3 EIA.
delivery of oil, gas and pipelines laying nt
petroleum products or removal • Extension
• Decommis
*intra – pipeline sioning
within PETRONAS Inter- • Developme Category 2 EIA for pipeline
operating site. facilities nt laying/extension/decommissioning
pipelines laying • Extension activities that poses potential
*inter – outside (inclusive of • Decommis significant impact and/or more
PETRONAS operating relocation) or sioning than 50 km, unless otherwise
site. removal specified by the host country/local
authority.

Category 3 EIA for pipeline

laying/extension/decommissioning
activities that poses minor impact,
unless otherwise specified by the
host country/local authority.

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Project Type Activities/ Project Phase EIA Category/requirement

Operation/
Facilities
Plant Production Development Category 2 EIA, unless
and processing otherwise specified by the host
facilities country/local authority
(including energy • Expansion Category 2 EIA for
and water • Partial expansion/partial
supply) decommissioning decommissioning that poses
potential significant impact,
unless otherwise specified by
the host country/local authority

Category 3 EIA for

expansion/partial
decommissioning that poses
minor impact, or otherwise
specified by the host
country/local authority
Decommissioni Category 2 EIA, unless
ng otherwise specified by the host
country/local authority
Petroleum product Storage Development Category 2 EIA, unless
and hazardous material capacity otherwise specified by the host
storage facility >60,000* bbl country/local authority
• Expansion Category 2 EIA for
• Partial expansion/partial
decommissioning decommissioning that poses
potential significant impact,
unless otherwise specified by
the host country/local authority

Category 3 EIA for

expansion/partial
decommissioning that poses
minor impact, unless otherwise
specified by the host
country/local authority
Decommissioni Category 2 EIA, unless
ng otherwise specified by the host
country/local authority
Storage All Category 3 EIA, unless
capacity <60,000 otherwise specified by the host
bbl country/local authority

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Project Type Activitie Project EIA

s/ Operation/ Phase Category/requirement
Facilities
Retail stations Retail All Category 3 EIA, unless
stations otherwise specified by the host
country/local authority
Utilities and services
Propert Development Category 2 EIA, unless
y development otherwise specified by the host

Ports country/local authority
and shipyard • Extension Category 2 EIA for
• Partial expansion/partial
decommissioning decommissioning that poses
potential significant impact,
unless otherwise specified by
the host country/local authority

Category 3 EIA for

expansion/partial
decommissioning that poses
minor impact, unless otherwise
specified by the host
country/local authority
Decommissioni Category 2 EIA, unless
ng otherwise specified by the host
country/local authority
Road and Development Category 2 EIA, unless
railways otherwise specified by the host
country/local authority
Extension Category 2 EIA for
expansion that poses potential
significant impact, unless
otherwise specified by the host
country/local authority

Category 3 EIA for

expansion that poses minor
impact, unless otherwise
specified by the host
country/local authority

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Definitions of Terms

Term Definition/description
Competent Authority The agency/agencies in the host county authorized by the
government to approve project EIA reports
Project Manager The head of the Project team who is responsible for the development
of the project
EIA management The team set up specifically to manage an EIA for the project, the
team team leader reports to the Project manager
EIA study Team The team set up to conduct EIA for the project, may comprised of
external and/or internal personnel. The EIA study team reports to the EIA
management team or it may also reports directly to the project team if it is
a Category 3 EIA.
Primary data Data that is collected directly from a specific, specially conducted
field research, whereby the collection is performed by observation, survey,
direct testing and analysis, on a sample of the population
(Source: USEPA)
Secondary data Data, documents, or records, that have been collected, and are in
existence prior to the beginning of the study, or published accessible data
from a variety of sources for research and other purposes, or data that
have already been collected for some purpose other than the current study
(Source: USEPA)
Environmental Element’s of an organization’s activities or products that can interact,
aspect and impact and cause (whether wholly or partially) change (whether adverse or
beneficial) to the environment.
(Source: ISO14000)
Biological World Bank: Appraisals of the likely impact to the biological
assessment environment that may include the terrestrial communities; aquatic,
estuarine or marine communities; rare or endangered species; sensitive
habitats, including parks or preserves, significant natural sites; species of
commercial importance, and species with potential to become nuisances,
vectors or dangerous, within the areas affected by the proposed project.
(Source: World Bank)

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Term Definition/description
Socio-economic Appraisals of the likely impact to the socio-economics of the affected
assessment community that may include present and projected population; present
land use; planned development activities; community structure; present
and projected employment by industrial category; distribution of income,
goods and services; recreation; public health; cultural properties; tribal
peoples; and customs, aspirations and attitudes.
(Source: World Bank)
Public review World Bank (modified): The process of soliciting reactions, views and
process suggestion from affected people or community whereby it involves
disclosure of relevant project information such as project description and
objectives, potential adverse impacts and mitigation plan, compensation
plan, in a form and language meaningful to the people or community being
consulted.
(Source: World Bank)
Environmental A structured management plan that outlines the mitigation,
Management Plan monitoring and management requirements arising from an environmental
impact assessment.
(Source: PTS 60.3002)
Environmental - Areas where special measures may be given to protect the natural
sensitive areas environment/habitats which present high level of vulnerability e.g. marine
park, mangrove, residential area, nesting area, coral reefs.
(Source: European Environment Agency )
Socio-sensitive Areas which present high level of vulnerability in the political and
areas social resources; culture, attitude and socio-psychological conditions;
relationship with biophysical environment; population characteristics;
minorities, the poor and the disabled.
(Source: US National Oceanic & Atmospheric Administration)
Scoping An early and open activity to identify the impacts that are most likely
to be significant and require investigation during the EIA work. Can also be
used to identify alternative project designs/sites to be assessed, obtain
local knowledge of site and surroundings; and prepare a plan for public
involvement. The results of scoping are frequently used to prepare a
Terms of Reference for the EIA.
(Source: PTS 60.3002)

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APPENDIX 2

DUE DILIGENCE

Business activities such as mergers and acquisitions (M&A), handovers,

divestitures and closures require complex evaluation processes due to the inherent
risks they posed. In avoiding unplanned corrective expenses as well as to
understand financial exposures of such transactions, it is important to uncover
critical financial, operation and strategic information to make an informed decision
on the way forward.

The assessment on the targeted business property or organization for the purpose
of evaluating it in connection with a proposed transaction is termed due diligence.
Basic areas such as financial, accounting and tax, legal, commercial, technical,
human resource and HSE are assessed in order to identify key items for deal
structuring; such as legal and capital structures, ownership level, management
control, exit mechanics, etc. The input from due diligence will determine the most
optimum financial scheme and amount of equity to be proposed, and the
transaction structure for PETRONAS to enter into the agreement.

With respect to HSE, there are serious business risks in purchasing business
property or organization with environmental, health and safety liabilities. Therefore,
the purpose of HSE due diligence is to identify objectively the HSE risks and
liabilities and to determine the business consequences as a result of past, current
and expected future activities, e.g.: site contamination, regulatory compliance
considerations and off-site contingent liabilities.

The HSE Guideline on Due Diligence provides a structured guidance on how to

identify and evaluate specific HSE issues, as well as the determination of business
consequences and liabilities associated with them. The guideline will be ready by
October 2007.

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APPENDIX 3

Greenhouse Gases (GHG)

Greenhouse gases are components of the atmosphere that contribute to the

Greenhouse effect. Greenhouse gases naturally blanket the earth and keep it
about 33 degrees Celsius warmer than it would be without these gases in the
atmosphere.

In common usage, "greenhouse effect" may refer either to the natural greenhouse
effect due to naturally occurring (water vapour, carbon dioxide, methane, nitrous
oxide, and ozone) or to the enhanced (anthropogenic) greenhouse effect which
results from gases emitted (carbon dioxide, methane, nitrous oxide and three
groups of fluorinated gasses (sulphur hexafluoride, HFCs, and PFCs)) as a result
of human activities, and the subject of the Kyoto Protocol, which entered into force
in 2005. Greenhouse gas emissions from industry, transportation and agriculture
are very likely the main cause of recently observed global warming. (A rise in the
earth temperature due to increase in trapped heat resulting from increase burning
of fossil fuels and presence of a blanket of green house gases which prevents heat
from escaping from the earth.)

Refer to PTS 60.3305 for GHG accounting and reporting.

GHG is calculated using “SANGEA” software in PETRONAS.

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APPENDIX 4

ACID GASES (SOX AND NOX)

Acid rain occurs when sulfur dioxide and nitrogen oxides are emitted into the
atmosphere, undergo chemical transformations and are absorbed by water droplets
in clouds. The droplets then fall to earth as rain, snow, mist, dry dust, hail, or sleet.
This increases the acidity of the soil, and affects the chemical balance of lakes and
streams. Acid rain accelerates weathering in carbonate rocks and accelerates
building weathering. It also contributes to acidification of rivers, streams, and forest
damage at high elevations. When the acid builds up in rivers and streams it creates
an acidic condition that kills fish.

The principal cause of acid rain is sulfuric and nitrogen compounds from human
sources, such as electricity generation, hydrocarbon processing plants and motor
vehicles.

SOX and NOX are monitored in tonne.

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APPENDIX 5

OPERATIONAL OIL LOADING IN EFFLUENT DISCHARGE

Most petroleum production, storage and processing facilities have produced water*
or wastewater treatment plant which produces effluent discharges. These
discharges are referred to as operational discharges. Oil is a common pollutant of
these discharges. The concentration of oil in water may be analyzed using
standard method. The oil loading is calculated using the formula below, assuming
an average concentration of oil for a regular period e.g. daily, weekly. monthly etc.

Load (metric tonnes)

= Volume of effluent discharge (m3) x concentration of oil (mg/L) x 10-6

* produced water is water from reservoir which is lifted up together with oil and gas
during production.

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APPENDIX 6

INCIDENTAL LIQUID HYDROCARBON (OIL & CONDENSATE) SPILL

Incidental oil spill refers to the release of crude oil, refined petroleum products
(such as gasoline or diesel fuel) or by-products, ships' bunkers, oily refuse or oil
mixed in waste into the environment (land, river, coastal waters or marine) as a
result of human activity.

Oil spill offshore or in the marine environment can caused marine pollution. As oil is
lighter than water, and does not quickly decompose, it can remain on the surface
for a long time. As it is also flammable, oil release can fuel fires. The consequences
of oil release can be serious when it reaches the coastal areas, where fishing,
tourism and other human activities abound.

Oil spill on land is easier to contain than offshore spill. However, there may be
potential land and groundwater contamination if spills are not cleaned up properly.

The effort on oil spill response was good but this cannot prevent or reduce spills
from happening. More proactive and preventive measures need to be implemented
in PETRONAS OPUs in order to prevent and reduce spills.

PETRONAS
Spill are monitored by number* and volume in liters

Refer to PTS 60.0505 Incident Classification and Reporting, and online reporting
requirements for more details

* Spill which is contained by non-impervious surface e.g. cracked concrete, clay and earth bund or
ground should be included.

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APPENDIX 7

HAZARDOUS WASTE

Hazardous waste is waste that poses substantial or potential threats to public

health or the environment and generally exhibits one or more of these
characteristics:

flammable

ignitable

oxidizing

corrosivity

toxic

Hazardous wastes can be liquids, solids, contained gases, or sludges.

To monitor hazardous waste efficiently and effectively requires proper

classification, storage, labelling, treatment and disposal. Inventory records of
wastes generated, disposed and kept on-site is to be maintained and kept updated.

The unit of measurement is tonnes.

In Malaysia, most hazardous wastes are regulated under the Environmental Quality
Act, Scheduled Waste Regulation 1989 and its amendments.

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APPENDIX 8

ENERGY EFFICIENCY

Energy Efficiency is directly related to conservation of natural resources. Energy for

homes, institutions and industries is generated from coal, fossil fuel, nuclear and
hydro-electric plants. As these natural resources are taken up, there will be a time
when these resources will deplete resulting in us not being able to generate
energy. Therefore it is important for us to conserve our energy usage in order to
preserve the environment as well as not depleting the natural resources.

Efficient use of energy generated from carbon sources or using alternative (non-
carbon) sources of energy means emitting less greenhouses gases into the
atmosphere.

The SI unit of energy is the joule (J) or newton-meter (N * m).

Refer to Energy Loss Management System (ELMS) Manual issued by Group

Research & Technology Division.

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APPENDIX 9

FRESHWATER

A freshwater body contains low concentrations of dissolved salts and other total
dissolved solids. It is an important renewable resource, necessary for the survival
of most terrestrial organisms, and required by humans for drinking and
agriculture, among many other uses. Freshwater can be defined as water with
less than 0.5 parts per thousand dissolved salts. Freshwater bodies include
lakes, rivers, and some bodies of underground water.

Water conservation refers to reducing use of fresh water, through technological

or social methods. The goals of water conservation efforts include:

• Sustainability - To ensure availability for future generations, the withdrawal

of fresh water from an ecosystem should not exceed its natural
replacement rate.

• Energy conservation - Water pumping, delivery and wastewater treatment

facilities consume a significant amount of energy. In some regions of the
[1]
world (for example, California ) over 15% of total electricity consumption
is devoted to water management.

• Habitat conservation - Minimizing human water use helps to preserve

fresh water habitats for local wildlife and migrating waterfowl, as well as
reducing the need to build new dams and other water diversion
infrastructure.

Water conservation can be defined as, 1) any beneficial reduction in water loss,
waste, or use; 2) a reduction in water use accomplished by implementation of
water conservation or water efficiency measures; or, 3) improved water
management practices that reduce or enhance the beneficial use or water. [8].

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A water conservation measure is an action, behavioral change, device,

technology, or improved design or process implemented to reduce water loss,
waste, or use. Water efficiency is a tool of water conservation that results in more
efficient water use and thus reduces water demand. The value and cost-
effectiveness of a water efficiency measure must be evaluated in relation to its
effects on the use and cost of other natural resources (e.g. energy or chemicals).
[9]

Total fresh water consumption is measured in m3.

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APPENDIX 10

GROUNDWATER

Groundwater is water located beneath the ground surface in soil pore spaces and
in the fractures of geologic formations. A formation of rock or soil is called an
aquifer when it can yield a usable quantity of water. The depth at which soil pore
spaces become fully saturated with water is called the water table. Groundwater
is recharged from, and eventually flows to, the surface naturally; natural
discharge often occurs at springs and seeps and can form oases or wetlands.
Groundwater is also often withdrawn for agricultural, municipal and industrial use
by constructing and operating extraction wells

Contaminated land, if not properly cleaned up, may pollute the groundwater
underneath. Protection of groundwater resources is important as many areas
depend on groundwater for freshwater supply.

Periodic sampling from groundwater monitoring boreholes installed at strategic

locations help to provide early detection of groundwater contamination, thereby
alerting the management to carry out appropriate actions to protect the
groundwater.

Refer to PTS 60.3303 – Soil and Groundwater Monitoring

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APPENDIX 11

BIODIVERSITY CONSERVATION PROJECTS

Biological diversity - or biodiversity - is the term given to the variety and

complexity and interactions of living organism on Earth. It includes diversity within
species (genetic diversity), between species and among ecosystem.

In the last 50 years we have lost 300,000 species. One in four mammal species
and one in eight bird species face a high risk of extinction in the near future and
the population of each species is expected to fall by at least a fifth in the next 10
years (UNEP/WMC, 2006). Biodiversity loss has negative effects on several
aspects of human wellbeing, such as food security, vulnerability to natural
disasters, energy security, and access to clean water and raw materials. It also
affects human health, social relations, and freedom of choice.

PETRONAS is committed to take proactive steps towards conservation of the

environment as stated in the PETRONAS Policy Statement on HSE. Our
commitment to the conservation of the biodiversity where we operates is also
manifested in the PETRONAS Corporate Sustainability Framework.

Some examples of biodiversity conservation projects sponsored by PETRONAS:

• Putrajaya Wetland Conservation Project
• The Sarawak Reef Ball Project
• Eco-care Kertih Mangrove Rehabilitation Project
• Ma’Daerah Turtle Sanctuary
• Bluff Nature Reserve Wetland Conservation, South Africa
• Nara Desert Wildlife Sanctuary Baseline Study, Pakistan

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APPENDIX 12

COMMUNITY PROJECTS

We recognise that our future achievements and success are very much linked to
how we address our potentials today, particularly in empowering individuals and
communities with the right knowledge and skills to take on the new challenges
ahead. It is this conviction that has been motivating us since our early
beginnings to focus on education and human capital development as the main
thrust of our social investments both in Malaysia and abroad. In our efforts to
meet the needs and expectations of the local community, we are also engaged in
other areas of societal needs at both the Group and OPU levels.

Some examples of community projects at Group level are:

• Universiti Teknology PETRONAS
• PETROSAINS
• GALERI PETRONAS
• KLCC Park
• Scholarships for secondary schools and institutions of higher learning.
• Sahabat PEMADAM Drug Prevention Program
• PETRONAS StreetSmart Programme

Some examples of community projects at OPU level are:

• Sekolah Angkat Programme

• Gotong Royong Programme
• Beach Cleaning Programme
• Motivational programme for school children/BAKTI Programme
• Construction of community facilities such as community hall, bus stop,
kindergarten, small recreation park.
• Sports programmes with the community

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• Early Childhood Care and Development (ECCD), Education Enhancement

Programme (EEP) and HIV-AIDS Awareness within the Yetagun Socio-
Economic Programme, Myanmar
• Mobile library in Khartoum, Sudan
• Health dispensary near the Shahbaz Camp in Sardargarh, Pakistan

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ACKNOWLEDGEMENT

The following have provided input to development of MEMS.

1. PETRONAS Environmental Group (PEG)

2. OPUs Health, Safety & Environment Committee (MTBE, PML, PCSB, PMU,
PPTSB, PASB)
3. PETRONAS Process/Plants Managers Panel

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