SETONIX OIL COMPANY

Environmental Summary
Setonix Oil Company Perth Canyon Development

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19 Aug 2010
SETONIX OIL COMPANY
ENVIRONMENTAL SUMMARY
SETONIX OIL COMPANY PERTH CANYON DEVELOPMENT

Disclaimer

This report has been prepared on behalf of and for the exclusive use of Setonix Oil Company, and
is subject to and issued in accordance with the agreement between Setonix Oil Company and
Team 4. Team 4 accepts no liability or responsibility whatsoever for it in respect of any use of or
reliance upon this report by any third party.

Copying this report without the permission of Setonix Oil Company or Team 4 is not permitted.

PROJECT 000/00000/0 - ENVIRONMENTAL SUMMARY

REV DESCRIPTION ORIG REVIEW WORLEY- DATE CLIENT DATE
PARSONS APPROVAL
APPROVAL

A N/A
Joel Beaty

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SETONIX OIL COMPANY
ENVIRONMENTAL SUMMARY
SETONIX OIL COMPANY PERTH CANYON DEVELOPMENT

CONTENTS
1 INTRODUCTION........................................................................................................................... 1

2 ECOLOGY..................................................................................................................................... 2

3 HUMAN ACTIVITY........................................................................................................................ 3

4 OPERATIONAL IMPACTS............................................................................................................ 4

Appendices

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1 INTRODUCTION

This document outlines the environmental responsibilities and challenges involved with developing
the Perth canyon subsea oil field off of the coast of Western Australia and also how to overcome
them.

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2 ECOLOGY

Perth canyon is a unique underwater environment within Australian waters, containing a rich variety
sea life. Part of our responsibility is to ensure that our operations do not have a negative impact on
the areas ecology.

The Perth canyon is inhabited at various times of the year by the following notable species:

− Blue Whale (Conservation status: Endangered Species, 5000 – 12000 worldwide)

− Pygmy Blue Whale (Conservation status: Data deficient, estimated 5000 – 10000
worldwide, native to the Indian and Pacific Ocean)

− Migrating Humpback Whales (Conservation status: Least concern, Whale

watching is a tourist attraction around Perth and Western Australia)

− Pink Snapper (Commercial Species, overfishing has caused stocks to decrease

over last 20 years)

− Bight redfish (commercial Species)

Image 1

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ENVIRONMENTAL SUMMARY
SETONIX OIL COMPANY PERTH CANYON DEVELOPMENT

3 HUMAN AC TIVITY

3.1 Commercial fishing

Major fishing is carried out above Perth canyon and it’s surrounding areas. This makes any
environmental disaster extremely damaging to the fishing industry.

Reasonable precautions will be made to ensure no fluids/chemicals/oil is released into the

environment thus damaging fish stocks.

3.2 Military use

Perth canyon is known to be a submarine training area for the Royal Australian Navy from the nearby
Garden Island HMAS Stirling Naval base.

Snagging /collisions on FPSO moorings, risers and other subsea equipment is a possibility; therefore
our design will ensure that this is not an issue. The relevant authorities will be made known of
locations of risers/moorings.

3.3 Submarine Communication Cables

An international optical communications cable runs north of Perth canyon by approximately 40
Kilometres. This poses restrictions on moorings, anchoring and dredging, however this shouldn’t
affect operations on the Perth canyon field due to the distance from planned development areas. See
Image 2 below, note the restriction zone around the cable and its course to the shore.

Image 2

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ENVIRONMENTAL SUMMARY
SETONIX OIL COMPANY PERTH CANYON DEVELOPMENT

4 OPER ATION AL IMPACTS

There are many ways in which an oil extraction project could impact on the environment; however
precautions can be taken to make these inconsequential to the environment. The following have been
identified.

4.1 Hydraulic fluid leaks

4.1.1 Problem
Whether from hydraulic system, shipping or subsea equipment, leaks of oil and chemicals are
dangerous to marine life.

4.1.2 Solution
Hydraulic systems are closed (No dumping of used fluid) and monitored regularly to ensure integrity
of connections and hydraulic lines.

4.2 Oil leaks

4.2.1 Problem
Crude oil is extremely toxic to most living organisms; an oil leak of any magnitude will be extremely
dangerous to the fauna of the Perth canyon. Notably endangered species such as the Blue Whale
and Pygmy Blue Whale could be threatened.

4.2.2 Solution
All precautions will be made when designing subsea equipment to ensure that catastrophic failure
does not occur, thus ensuring a mass oil leak into the environment. However in the extremely unlikely
event of an oil leak the provision of Oil Dispersants via aerial and nautical deployment will be
available for rapid deployment via air and nautical methods.

Large lengths of oil booms will be on available for quick deployment from local docks on the mainland
to quarantine and isolate the majority of the slick.

4.3 Excess Gas

4.3.1 Problem
Excess gas with no commercial value is extracted with the oil, this needs to be disposed of safely.
The classic flaring method is not environmentally sound and as such is not an option.

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SETONIX OIL COMPANY PERTH CANYON DEVELOPMENT

4.3.2 Solution
Reinject the gas via gas injection well into the oil reservoir in order to increase pressure and lift for oil
extraction. Or the 2nd and more likely option is to use the gas to produce electricity; this could in turn
be used to power SPU’s and other operational equipment.

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Appendix 1

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