Sustainability Auditing Simulation Report on Magurcherra Gas Field

This report, prepared as a consultancy firm's analysis, examines the environmental impact of the Magurcherra gas field explosion in Bangladesh. It employs meteorological, environmental, and socio-economic studies to provide recommendations for environmental protection and sustainability in the oil and gas sector. The report details the explosion's impact on air, water, and land, including pollution from CO2, dust, and oil leakage. It uses a checklist methodology with expert opinions to assess risks and hazards associated with the oil and gas value chain, such as coastal and marine ecology, climate change, and revenue transparency. The report also provides an overview of the Magurcherra gas field's baseline environmental conditions, the damage caused by the 1997 explosion, and the importance of regulations and best practices for environmental sustainability. The findings highlight the need for environmental impact assessments and mitigation plans in oil and gas projects, offering recommendations to minimize negative impacts and promote sustainable practices.

Sustainability Auditing Simulation report in the oil & gas
sector: As a consultancy firm a study on the environmental
impacts of Magurcherra Gas field explosion on its
environment to provide various advice level to clientele
MSc Oil & Gas Trade Management OGT702_Sustainability in the Oil & Gas
Sector
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Contents
Introductory summary.......................................................................................
Detailed overview of Magurcherra field.............................................................
Methodology used for collection of data by company.......................................
Results and recommendations for sustainability...............................................
Summary...........................................................................................................
References
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Introductory summary
The main focus of this report is to analyze the environmental impacts of
Magurcherra gas field explosion with the help of meteorological,
environmental and socio-economic studies to provide various advice level to
clientele as a consultancy firm. By conducting these studies varied outcomes
are achieved and accordingly recommendations are made by the experts in
respect to protecting environment. Major activities which can be considered
in this perspective are the seismicactivities such as exploration, drilling and
production.In the case of Magurcherra gas field, there are environmental
damages on air, water and land which are caused due to unplanned way of
working and explosion. These are the details which have been gathered after
the discussed with the focus group of people, surveys and the sample testing
of the areas and it was observed that there was pollution related to the noise
of the equipment was almost of low level but the pollution in the air was
occurred considerably. It was observed that polluted air consists of CO2, dust,
NOX, SPM and SOX in it which caused huge problems for the people. There
was the observation of contamination of water due to the leakage of the oil
and grease, paints, chemicals and etc. (Spence, 2011). Below is the image of
the areas which are taken under the consideration for this report:
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(Source: Silvestre and Gimenes, 2017)
Detailed overview of the case: Magurcherra
Magurcherra is located in Bangladesh which where gas plant has blown out.
Bangladesh has the river which is Brahmaputra and largest delta of India is make in that country
only (The Brahmaputra, 2017). Because of this, it has more water resources. From assessment, it
has been assessed that such country is filled up with natural resources such as gas to the
significant level. It has impacted the economic and environmental development
of nation. By having accomplishment of standards objectives specifically
environment sustainability can be attained by oil and gas companies
operated in Bangladesh to a great extent. Moreover, now higher and legal
authorities of every country including Bangladesh have introduced some
rules that company needs to follow for the purpose of environment
sustainability. Hence, companies which are performing their operations in
Bangladesh are obliged to follow specific rules for making environment
pollution free. It has been presumed by company that all of equipment was
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destroyed with the exception of some items that were positioned at an area
approximately one kilometer from the rig site (Muralidharan and
Senthilkumar, 2016).The main camp located away from the drilling location
escaped complete destruction, but two building were damaged. The ware-
house was completely destroyed which was within the fenced area of the
drill site.Sustainable development of the country like Bangladesh requires
key concern towards their environmental factors and issues which they are
facing.Moreover, in Bangladesh activities related to oil and gas increased
with the higher pace as compared to before years. This in turn indicates that
there is the higher requirement for taking strategic actions that contribute in
sustainable environment. Magurcherra gas field which caught fire during the
late 1990’s and the gas field was kept ablaze for the next three which
contributed in destruction of the vast tea plantation in the nearby areas and
also the betel nut plantations.Exact location of the Mangurcherra is Manubazar, South
Tripura, Bengal, India.In the petroleum sector generally there are major kind of
activities which are involved are the seismic activities, drilling work and the
exploration and production which give effects to the nearby areas of the
petroleum sector (Sengupta, 2016). The site is dependent on the kind of
geological formation and the drilling fluid from these areas in continuously
circulated through the drill pipe and the back of the surface of the equipment
to maintain the hydrostatic pressure of the underground surface. In such
kind of condition the drilling work is to be done on the surfaces which are
appropriate for drilling.
Drilling on the surface of the areas it requires mud and the water is huge
amount. The mud which is returned during the time of drilling have been
spilled in the pits and recycled. When the mud is got collected in the pits
then due to the natural process of evaporation cause water to get out of the
mud which let us with clay in large quantities. Estimated of around five
thousand cubic meter is stored at one time (Ashok, Mathew and Rejeesh,
2016). The drilling work requires huge amount of water and if the water is
contaminated with pathogens then it is required to be treated. Pathogens are
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one kind of Bactria which is contamination of water which helps to clean water resources up to
higher level. At the Bangladesh place, the government applies this method because it supports to
clean water.Large quantities of fluids are required to let on the ground or in to
the nearby streams.
The effluent which comes out during the process is disposed off and this is
quite dangerous to the environment and the neighboring areas. Particularly
in the areas which are off shores have higher effects because there is no
other alternative but to dispose those effluents in to the sea water. SoEIA1
has made to every implementer and planner of the petroleum project that
they should take care of the environmental issues and consequences of the
kind of work which is to be conducted under the project. For the EIA there
are six main components which are needed to be measured: identification of
the impact, basics, prediction and assessment of impacts, description of the
affected environment, documentation to be done according to the guidelines
given and selection of the action proposed and documentation of the data.
The major purpose to share this data is have keen over the issues which are
important in the matter of oil and gas related projects which include:
1) Assessment of the socio – economic effects of the project.
2) Assessment of the type of land which is used and the pattern of land
use.
3) Identification of the impacts of the environment of this project.
This documentation of all the above discussed points will help the EIA to find
out the effects of the projects. There is also a very important thing that is to
be considered is that is any kind of problem is present during the
assessment and identification time then there should be some mitigation
plan for all of the problems so that impacts of project could be reduced
(Silvestre and Gimenes, 2017).
1 Environmental Impact Assessment (EIA)
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Methodology used for collection of data
The method which has been used for this purpose is the checklist method in
which the questionnaires have been asked and the opinion has been taken
from different experts to clarify the answers. There are about 50 experts who
are considered for this report who are related to the oil and gas industry and
their answers are evaluated. Calculation of the fuel emission rate from the
power plant is done with the help of emission factor and fuel consumption
rate (Guldhe and et.al., 2017).
Theme 1: Stating the extent to which activities performed by oil &
gas companies may result into pollution in the air.
Particulars Views of
respondent
s
% of
respondents
To some
extent
10 20%
To the
moderate
extent
18 36%
To the
large extent
22 44%
Total 50 100%
To some extent To the moderate
extent To the large
extent
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
% of respondents
% of respondents
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Theme 2: From the following factors which one imposes risk and
hazard in terms of oil and gas value chain
Particula
rs
Views of
responde
nts
% of
responde
nts
Coastal
and
marine
ecology
20 40%
Change in
the climate
18 36%
Revenue
transparen
cy
12 24%
Total 50 100%
Coastal and
marine ecology Change in the
climate Revenue
transparency
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
% of respondents
% of respondents
Theme 3: Do you agree that by following rules and regulations oil & gas
companies can make contribution in environment sustainability
Particular
s
Views of
respondents
% of
respondents
Agree 12 24%
Strongly
agree
20 40%
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Neutral 10 20%
Disagree 5 10%
Strongly
disagree
3 6%
Total 50 100%
Agree Strongly
agree Neutral Disagree Strongly
disagree
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
% of respondents
% of respondents
Theme 4: From the following lists, which developmental resource is highly influenced from oil
& gas activities.
Particulars Views of
responde
nts
% of
responde
nts
Livestock 5 10%
Fisheries 7 14%
Local people
and the tea
garden
workers
10 20%
Livestock
feedings
10 20%
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Communicati
on and
transport
18 36%
Total 50 100%
0%
10%
20%
30%
40%
% of respondents
% of respondents
Magurcherra gas field baseline environmental condition
Magurcherra Gas field explosion
The fire was caught to the plant in 1997 and caused huge amount of
damages in terms of lives of the people and damage of the properties in the
nearby areas. Above 50 percent of the forest and around 250 hectares of
land of the nearby areas was damaged due to the destruction caused by the
explosion in the plant due to fire. Large part of the wild life area was
destroyed and the rest was displaced to the other places (Wan Ahmad, Brito
and Tavasszy, 2016). Around 30 hectares of land of tea plantation got
damaged which affected the lives of thousands of people working those
gardens (Yusuf and et.al., 2013). The damage which has been caused by this
destruction is given in the table below;
Type of
resources
damages
Components Preliminary assessment
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Natural
resources
-Natural forests
-Land (250 hectares )
-Wildlife
-Water logging and pollution
-Tea gardens
50 hectares totally damaged
90 hectares completely burnt
There is also the observation of partly
burnt areas.
Observation of the ashes and
condensates
Observation of the landslides and land
subsidence.
Observation of the displacement of the
wildlife animals to the other places.
About 30 hectares of tea gardens and
about 1 km of the rail lines got
damaged (Kingsley, 2016).
Development
al resources
-Infrastructure
-Livestock
-Fisheries
-Local people and the tea
garden workers
-Livestock feedings
-Communication and transport
About a km of medaled road and 2
culverts damaged
About 1 km of gas pipeline go
damaged
Around 3000 of people were affected
due to the loss of the jobs in tea
gardens
Transport and communication with the
people in those areas was totally
disrupted.
Human
interests
-Disruption of socio economic
factors
-Pollution in the air
-Population and the market
displacements
This was the total disaster of all the
socio economic factors in the area but
there was no air pollution observed and
there was no population and market
displacements is observed after the
process.
(Source: Kingsley, 2017)
Oil and gas value chain risks and hazards: The main purpose of this
section is to highlight the risks that are associated with value chain aspects
of oil and gas.
1) Coastal and marine ecology: Particularly in the arctic condition
there is problem in the coral and marine biodiversity and there are
problems in the cleaning up activities.
2) Change in the climate: This has huge impact over the global
warming.
3) Revenue transparency: particularly in the growing economies there
is a problem of corruption and bribery.
4) Health safety and environmental risk of major explosions, leaks or
spills.
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Regulations and best practices
1) For oil and gas operations permits, consents and licenses required
specifically which depend on jurisdiction framework in geographical
locations.
2) In the developing countries, best practice should be adhering to
international environmental and social impact assessment (ESIA) will
be required.
3) WHO guidelines to be used for drinking water quality.
4) EX- im environmental procedures and guidelines to be used.
By keeping in mind all such rules and regulation undesirable aspects
associated with oil and gas practices can be avoided to a great extent.
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