CIRCULAR

STIPULATING THE ENVIRONMENTAL PROTECTION IN THE PROCESS OF USING DRILLING FLUIDS; WASTE MANAGEMENT AND ENVIRONMENTAL MONITORING FOR OFFSHORE OIL AND GAS OPERATIONS

Pursuant to the Law on Environmental Protection adopted in 2014;

Pursuant to the Law on Petroleum adopted in 1993; the Law on Amendment and Supplementation to the Law on Petroleum adopted in 2000; the Law on Amendment and Supplementation to the Law on Petroleum adopted in 2008;

Pursuant to the Government’s Decree No. 21/2013/NĐ-CP dated March 4, 2013 on defining the functions, tasks, powers and organizational structure of the Ministry of Natural Resources and Environment;

After considering the request made by the Director of the General Department of Environment and the Director of the Department of Legal Affairs;

The Minister of Natural Resources and Environment hereby provides regulations on the environmental protection in the process of using drilling fluids; waste management and environmental monitoring for offshore oil and gas operations,

Article 1. Scope of application and applicable entities

1. This Circular provides regulations on the environmental protection in the process of using drilling fluids; waste management and environmental monitoring for offshore oil and gas operations.

2. This Circular shall apply to the environment administration agency, organization or individual engaged in gas and oil-related operations within territorial waters, exclusive economic zones and continental shelves of the Socialist Republic of Vietnam.

Article 2. Interpretation of terms

Terms used herein shall be construed as follows:

1. Offshore oil and gas operations refer to exploration, extraction, transportation, storage and processing of gas and oil as well as rendering of other technical services directly related to these operations which take place on the sea.

2. Petroleum organization refers to any individual or organization carrying out oil and gas operations on the sea in accordance with legal regulations.

3. Oil and gas facilities refer to a wide range of mobile or fixed drilling rigs, works, equipment and other structures used for offshore oil and gas operations.

4. Drilling fluid refers to circulated fluids used in the process of oil and gas exploration and extraction drilling in order to remove drill cuttings from drilled wells and control formation pressures, cool and lubricate drill bits, transmit hydraulic energy to drill bits, seal permeable formations and maintain well bores.   

5. Water - based drilling fluid – WBDF refers to the drilling mud containing water as the continuous phase and other additives.

6. Non – aqueous drilling fluid – NADF refers to the drilling mud containing the synthetic oil as the continuous phase and other additives.

7. Food waste refers to leftovers generated during daily activities that occur on drilling rigs and extraction rigs and aboard ships.

8. Environmentally sensitive area includes natural sanctuaries, national parks, museums, world heritage sites, biosphere reserves and scenic beauty sites which have been ranked.     

9. MARPOL convention or MARPOL 73/78 is short for the International Convention for the prevention of marine pollution from ships.

Article 3. Using non – aqueous drilling fluids

1. Non-aquerous drilling fluids are used as a replacement for water-based drilling fluids to aid the technically difficult drilling of boreholes, including one of the following circumstances: 

a) Drilling through geological layers which are complex and exposed to a lot of risks such as easy corrosion, drill suspension, drilling fluid loss and well blowout;

b) Dealing with problems that may arise during the drilling process;

c) Providing flow assurance.

2. Vietnam Environment Administration shall consider and permit non-aquerous drilling fluids to be used in specific situations.

3. Before using non-aquerous drilling fluids, the oil and gas organization shall file application for use of non-aquerous drilling fluids to the division for administrative receipt and result response affiliated to the Ministry of Natural Resources and Environment. This application includes the following documents:

a) Application for use of non-aquerous drilling fluids in which the reasons why they have to use these non-aquerous drilling fluids, plans to use or treat such fluids as well as controlling measures by completing the form given in the Appendix 1 hereof;

b) If non-aquerous drilling fluids are used for the first time in Vietnam, documentation submitted to apply for permission to use non-aquerous drilling fluids must include the original of the analysis result as prescribed in the national technical regulations on discharge of drilling fluids and drilling cuttings from offshore oil and gas facilities. Tests conducted in Vietnam’s environmental conditions in laboratory rooms of which the conformity to accepted standards for environmental monitoring service has been accredited by the Ministry of Natural Resources and Environment, or in those which achieve the quality standard; 

c) Other documents relating to non-aquerous drilling fluids (if available);

d) Within 03 (three) working days from the receipt of all necessary documents, Vietnam Environment Administration shall be responsible for advising organizations or individuals to improve their documentation if their submitted documents are insufficient or illegitimate in accordance with regulations;   

dd) Within 10 (ten) working days from the receipt of all sufficient and valid documents, Vietnam Environment Administration shall confer with the General Department of Vietnam’s Sea and Islands on applications for use of non-aquerous drilling fluids; review these applications, opinions from the General Department of Vietnam’s Sea and Islands and respond in writing to petroleum organizations with use of non-aquerous drilling fluids.   The written response must clearly state consent or refusal.

4. Vietnam Environment Administration shall compile, post and update the list of non-aquerous drilling fluids which have been approved for use on their website.

5. Petroleum organizations, when using non-aquerous drilling fluids, must stick to the plan approved by environmental administration agencies, and send a report on the process of using non-aquerous drilling fluids to Vietnam Environment Administration within a maximum of 30 days after each time such fluids are used.

Article 4. Waste management

1. Effluents discharged from offshore oil and gas extraction facilities shall be treated and disposed of in compliance with the national technical regulation on effluents discharged from offshore oil and gas extraction facilities.

2. Other sources of effluents coming from offshore oil and gas extraction facilities shall be collected, treated and disposed of in accordance with regulations given in the Table 1 hereof.

Table 1:

Requirements for collection, treatment and disposal of effluents discharged from offshore oil and gas extraction facilities

3. Classification, collection, storage and management of wastes without harm to offshore oil and gas extraction facilities:

a) Common domestic and industrial solid wastes are collected and classified into 03 groups, including food wastes, waste materials for reuse or recycling and the rest of normal wastes;   

b) Waste food before being dumped into the sea must be ground into objects with less than 25 mm in size;

c) Wastes being items made from wood, paper or cartons are burned to ash before being discharged into the sea;

d) Waste materials for reuse or recycling and the rest of normal wastes must be collected and carried ashore.

4. Classification, collection, storage of hazardous wastes within offshore oil and gas extraction facilities:

a) Hazardous wastes must be classified by the nature of hazard;

b) Hazardous wastes with the same nature of hazard, the same treatment method and without producing reactions, must be stored in the same sealed instrument;

c) Instruments containing hazardous wastes must have clear labels that help to distinguish which types of wastes have been collected.

5. Carriage of wastes to the mainland:

a) Hazardous and non-hazardous wastes, after being classified, stored in skips shall be separately transported or grouped into the same container to carry them to the mainland by service vessels;

b) Transportation of wastes by service vessels must conform to applicable laws on hazardous waste management.

Article 5. Environmental monitoring

1. Petroleum organizations are only allowed to use water-based drilling fluids in offshore oil and gas exploration drilling operations that do not require the environmental monitoring before and after completion of such exploration drilling.

2. As for oil and gas exploration drilling operations using non-aquerous drilling fluids in the waters which are 3 nautical miles away from the shore and environmentally sensitive area, the background environmental monitoring must be performed once before each exploration drilling and once within 01 year from completion of such exploration drilling.

3. Environmental monitoring for development stage drilling:

During the development stage drilling process, petroleum organizations must perform environmental monitoring as follows:

a) Environmental monitoring for a facility or a complex of facilities: the background environmental monitoring is performed once before the commencement of development and extraction drilling; once within 01 year from the time of gaining the first commercial oil or gas flow. Executing the environmental monitoring program on a triennial basis that begins on the time of commencing the first environmental monitoring program in the post-development drilling stage; 

b) Environmental monitoring for main oil or gas pipeline: performing once before installation; requiring none of periodic environmental monitoring, except when leakage, fire or explosion occurs. 

4. Monitoring area, position, time, frequency and parameter shall be governed by regulations laid down in the Appendix 2 hereof. 

5. Within one hundred twenty (120) days from the date on which one monitoring is completed, the petroleum organization shall provide the Ministry and the Department of Natural Resources and Environment where oil and gas operations occur with 01 printed report of one monitoring and 01 CD of monitoring result report.   

Article 6. Implementation and implementary provisions

1. This Circular shall come into force from July 20, 2015.

2. Vietnam Environment Administration shall be responsible for providing guidance on and inspecting implementation of this Circular.

3. In the course of implementation, if there is any difficulty that may arise, Ministries, departments and local authorities, organizations or individuals, should send timely feedbacks to the Ministry of Natural Resources and Environment for the purpose of compiling a general report for submission to the Minister for consideration and decision./.

APPENDIX 1

APPLICATION FORM FOR USE OF NON-AQUEROUS DRILLING FLUIDS

(Issued together with the Circular No. 22/2015/TT-BTNMT of the Minister of Natural Resources and Environment dated May 28, 2015)

Dear Vietnam Environment Administration,

1. General information:

Name of applicant:

ID card/Passport number (applicable to individual):

Office address:

Telephone:                                   Fax:

Scope of operations:

Contact person:

2. Brief description of project/ proposed activities using non-aquerous drilling fluids:

3. Information about non-aquerous drilling fluids to be registered for use:

3.1. List of fluids to be registered for use:

3.2. Characteristics and features of non-aquerous drilling fluids proposed for use

- Commercial name:

- Chemical formula name:

- Chemical classification:

- SICC code:

- Manufacturer:

- Chemical code:

- Physicochemical characteristics: (color, odor, viscosity, etc.)

- Chemical ingredients of non – aqueous drilling fluid

- Physical properties of non – aqueous drilling fluid

4. Plan to use non – aqueous drilling fluid:

- Location:

- Proposed time:

- Reasons for using non – aqueous drilling fluids

- Result of non-aquerous drilling fluid testing and analysis conducted in Vietnam; 

- Proposed use weight;

- Manners of use and methods for supervision and minimization of environmental impacts due to use of such fluid;

- Commitment to executing environmental control program for use of non-aquerous drilling fluids.

5. List of attached documents:

- Copy of manufacturer’s documentation containing information about non-aquerous drilling fluids;

- Original copy of the result of testing and analysis of non-aquerous drilling fluid conducted in Vietnam (applicable to those used in Vietnam for the first time).

I hereby undertake that the abovementioned information is true and accurate. I would like to ask for your kind consideration and permission to use such fluid.

APPENDIX 2:

LOCATION, TIME, FREQUENCY AND PARAMETERS OF ENVIRONMENTAL MONITORING FOR OFFSHORE OIL AND GAS OPERATIONS

 (Issued together with the Circular No. 22/2015/TT-BTNMT of the Minister of Natural Resources and Environment dated May 28, 2015)

1. Location, time, frequency and parameters environmental monitoring:

Table 1: Frequency, sample type and location (quantity) of environmental monitoring samples by specific operations

Picture 1. Diagram of network of sampling points for the environmental monitoring

Table 2. Network of sediment and seawater sampling

(0⁰ means the main current flowing from the radial symmetry center)

2. Environmental monitoring parameters

2.1. Bottom sediment monitoring

2.1.1. Characteristics of bottom sediments: Description of the uppermost layer of bottom sediment, living animals, color and odor (if any).

2.1.2. Total organic matter (TOM)

2.1.3. Particle density, temperature, humidity, pH, Eh or ORP

2.1.4. Hydrocarbon and non-aquerous drilling fluid

- Total hydrocarbons (THC)

- Content of 16 Polycyclic Aromatic Hydrocarbons (at Table 3) and its C1 - C3 alkyl homologs (NPD) are alanyzed at all points inside the circle of 250 m, one point inside the circle of 1,000m, reference points and points where THC content is greater than 50 dry mg/kg.

2.1.5. Heavy metal

- Analysis of metals such as As, Ba, Cd, Cr, Cu, Pb, Zn and Hg.

2.1.6. Benthic communities (stipulated at Table 4)

- A number of species on a sampling area of 0.5 m² (at each sampling point);

- Density (a number of individuals/an area unit) converted into an area of 1.0 m² (defined at each sampling station);

- Comprehensive list of species; or lowest possible taxonomy (genus, order, family, etc), in case it is impossible to define species in the nomenclature;      

- List of dominant species at each sampling point;

- Diversity shown by biodiversity index (Shannon Wiener index) - log₂ – based coefficient;

- Pielou’s evenness index (J);

- Hulbert index, when a number of individuals are greater than 100.

2.2. Monitoring of water environment quality

2.2.1. Parameters defined at the monitoring position

Temperature, pH, dissolved oxygen content and salinity.

2.2.2. Parameters defined inside the laboratory room

Total organic carbons (TOC), total hydrocarbons (THC), total suspended solids (TSS), Zn, Hg, Cd, total Cr, Cu, As, Pb and Ba.

Table 3. List of 16 Polycyclic Aromatic Hydrocarbons (PAH)

Table 4. Assessment of diversity of benthic communities