T.E.N. EIA COMMUNITY CONSULTATION: POTENTIAL STAKEHOLDER QUESTIONS (QUESTIONS AND ANSWERS SHEET)

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1 T.E.N. EIA COMMUNITY CONSULTATION: POTENTIAL STAKEHOLDER QUESTIONS (QUESTIONS AND ANSWERS SHEET) Table 1 Potential Stakeholder Questions Theme Question/ Comment Response(s) 1. Project Related 1.1. How much oil is in T.E.N. fields? Base case estimates indicate a total oil recovery of approximately 216 million barrels (over 7,500 million gallons) by This is a best estimated based on current data. Actual oil recovery may be different What percentage of the oil consignment is owned by Tullow and Ghanaian government? 1.3. How will the increased oil and gas production affect the price of oil and gas in the country? Tullow has a 49.95% interest in the Deepwater Tano block. The Ghana National Petroleum Company together with Kosmos Energy LLC and Anadarko Petroleum Corporation, (GNPC) hold the remaining interest in the block. The project will not have a direct effect on the price of oil or gas in Ghana. The price of fuel in Ghana is regulated by the Ghana National Petroleum Authority in accordance with the prescribed pricing formula When is Tullow planning to start with this development? The first oil is provisionally expected in Will we be able to see the development from shore? The development will not be visible from shore. Even in good visibility a person will not be able to see further than 15 km out to sea and the project is located over 50 km from the coast How is this development different to the Jubilee development? 1.7. What is the lifespan of the development compared to Jubilee? 1.8. Does Tullow own any other oil blocks beside T.E.N and Jubilee? If yes, when will these be developed? 1.9. Will some of the oil /gas be pumped to shore for local consumption? If not, why? The developments are very similar; however, the T.E.N. field development will initially be smaller. TEN will have more gas compared to Jubilee The T.E.N. field life is likely to be 25 years from first oil. The field life of Phase 1 Jubilee development is 20 years. In Ghana, Tullow holds interest in the Deepwater Tano and West Cape Three Points blocks. There may be future developments in these blocks or extensions to existing developments. Export tankers will transport oil from the T.E.N. field to refineries across the world. Some tankers may transport their oil cargo to the Tema refinery in Ghana. ENVIRONMENTAL RESOURCES MANAGEMENT 1

2 1.10. Where will shuttle tankers take the oil? Export tankers will transport oil from the T.E.N. field to refineries across the world. 2. Benefits and Revenue 2.1 How many jobs are going to be created as part of this development? Approximately 300 additional jobs opportunities will be created for the T.E.N. development of which up to 270 will be for Ghanaian staff. Employment during drilling, installation and decommissioning will be temporary in nature and highly skilled. Production jobs will be permanent. The full breakdown of the skills level needed for these jobs have not been confirmed Will the majority of the people employed for this development be from the coastal villages? 2.3 Will Tullow give consideration to the gender balance, eg, employment of women? 2.4 Will Tullow be offering training to the local people as part of capacity building? Tullow will provide training and employment opportunities to national staff. The Project will require people with specific skills and experience and will employ Ghanaian s that are suitably qualified for the local content positions. Tullow will comply with the requirements for employment and training as detailed in the Petroleum Agreement for DWT. 2.5 Besides employment opportunities associated with the project, how will the local people benefit from the development (Corporate Social Responsibility)? 2.6 Will the details of the production sharing agreement with the Government of Ghana be made available to the public? People will benefit from Tullow s CSR programme. Examples of previous Tullow CSR initiatives include: Health checks for the fishing communities Malaria control and eradication programme NVQ2 Training schemes at local Polytechnics Provision of equipment for the Ghanaian National Fire Service Partnership for environmental/biodiversity conservation. The Deep Water Tano Petroleum Agreement is already available on the Tullow website ( 2.7 What percentage of revenue has Tullow/Government of Ghana committed to returning to the economy? 2.8 How will local Ghanaian government benefit from the development? With reference to the fiscal terms within the PA. We will likely pay a 5% royalty on revenues to the GoG which is deducted before costs and a further 35% in petroleum tax payable on profits. An incremental charge of up to 25% can be levied on profits in the form of Additional Oil Entitlement depending on the rate of return achieved on the project Royalties on the oil production and taxes on profit will be payable to the Government of Ghana. The Ghana National Petroleum Company will also benefit from shareholding in the project. ENVIRONMENTAL RESOURCES MANAGEMENT 2

3 2.9 How will the Districts benefit from the development? Coastal communities will benefit from Tullow s CSR programme which is based on the following broad objectives: Improved access to good health Improved access to education/capacity building Enterprise development Environmental protection 2.10 Where will the majority of goods and services related to the development be procured? The contracting and procurement of goods and services will be executed in accordance with the Petroleum Agreement for DWT. Most suppliers/ contractors will be in Accra or Takoradi What benefits will the Chiefs, government officials and community leaders receive? What about in the instance where we assist Tullow in arranging meetings and getting people to participate? Standard response related to the Project 3. Consultation process 3.1 Which other villages will be consulted as part of this development? 25 villages, refer to schedule for more information. 3.2 Why have you elected to consult only a limited number of villages, instead of all the coastal villages? For the purposes of this project we are meeting with some villages from the districts located along the coast. The purpose of our study is to gather a range of views about the project to ensure that the EIA assess the relevant issues and concerns; we are also collecting information about the area so that we can accurately describe the social and economic characteristics. Tullow will continue with consultation as part of their stakeholder engagement activities. Tullow has appointed a CLO for each district to ensure that the communities have a point of contact to raise issues and ask questions. 3.3 What government officials have you consulted/ are going to consult? EPA, all the affected District assembles, Ghana Ports and Harbours Authority, GLME, Ghana Navy, NFA, NCFA, GMA, Fisheries Commission and regional House of Chiefs, etc 3.4 Which NGOs are going to be consulted as part of the process? We have consulted with Friends of the Nations / Western Region Association of NGOs, the Coastal Resources Centre, Friends of the Earth and RC during scoping. ENVIRONMENTAL RESOURCES MANAGEMENT 3

4 3.5 Why are the materials being distributed not translated into the local language(s)? Due to the number of dialects used in the Region, it is difficult for us to get the reports and materials translated. In addition, there are some English words that do not exist in the Akan related dialects, which make it more difficult to translate. 4. Oil Spills and Compensation 4.1 What is the likelihood that an oil spill will occur? The primary aim is to minimise the likelihood of a spill through the design to minimise inventories and implementation of preventative measures. Should a spill occur, Tullow has put in place an Oil Spill Contingency Plan to protect people and the environment. The primary aim is to minimise the likelihood of a spill through preventative measures. Should a spill occur, Tullow has put in place an Oil Spill Contingency Plan to protect people and the environment. 4.2 How far from shore will any oil spillage get/ travel? Previous studies have shown that only very large crude oil spills may reach the Ghana coastline. Oil spill modelling will be undertaken as part of the EIA to predict the likely dispersion patterns under typical winds and currents. 4.3 How will Tullow manage/ deal with an oil spill? Tullow has an existing Oil Spill Contingency Plan for its current activities in Ghana; this will be updated to include additional response capability for T.E.N. Oil spill response resources established in country will also be reviewed. 4.4 Does Tullow have all the necessary equipment for oil spill cleaning? If so, how far is it located from the development area? Yes Tullow is prepared to respond to small, medium and large spills. Spill response equipment to cater for small to medium spill scenarios are at Tullow s onshore base in Takoradi and on offshore operational support vessels. For larger spills equipment is located in Accra or internationally and can be mobilised to Takoradi within a day. 4.5 How will the coastal vegetation and people be protected against any spillages? 4.6 How will an oil spill affect the fishing resources and spawning grounds? Tullow will deploy a range of spill response equipment to contain the spill, protect the shoreline and clean up the spill in accordance with the oil spill contingency plan. Small and medium spills will not affect fishing resources or spawning grounds. Of all wildlife, fish are the least likely to be harmed by oil spills. They are mobile and generally able to detect and avoid heavily contaminated areas or areas of low water quality. ENVIRONMENTAL RESOURCES MANAGEMENT 4

5 4.7 How will Tullow communicate its oil spill response plan with the local communities and related authorities? Tullow work with national response organisations and authorities in developing their capability to respond to oil and gas industry incidents. Tullow set up the Ghana Offshore Emergency Leadership Forum (GOELF) which consists of Ghanaian agencies that would be involved in the event of an incident. 4.8 Does Tullow have trained in-country personnel responsible for dealing with oil spills? Tullow has dedicated personnel responsible for the implementation of the oil spill contingency plan. They provide training on an on-going basis in the execution of their Oil Spill Contingency Plans and conduct regular incident management exercises in a range of scenario responses, which involve all relevant stakeholders. 5. Air Emissions 5.1 Will any flaring be undertaken? There shall be no flaring of the produced gas during normal operating. However, Flare tower shall be designed to allow prolonged flaring during commissioning and start-up 5.2 How will flaring impact on air quality? High efficiency flaring equipment will be used to minimise air quality impacts. An air dispersion study will be undertaken as part of the EIA to determine if flaring will have any an impact on air quality. 5.3 What other emissions will be generated by the project? A number of project activities will result in minor emissions to air for example engine emission from gas power generating turbines on the FPSO. However, there will be no significant process emissions from the development. 5.4 What will the cumulative impacts be on air quality of the two oil developments, eg, Jubilee and TEN? Cumulative impacts will be considered in the EIA and reported in the EIS. The air dispersion study will consider the cumulative impact of the two projects on air quality. However, due to the distance between the fields, no in-combination air quality impacts are expected. 5.5 How will Tullow address the impacts on air quality? Tullow will comply with relevant national and international air quality standards and Industry best practice. Combustion equipment will be selected to limit emissions and use Best Available Techniques reduce emissions to as low as reasonably practicable. 5.6 How will the changes in air quality impact human health? An air dispersion study will be undertaken as part of the EIA to predict the likely extent of air emissions dispersion. Based on experience with similar projects, the limited emission from the project will not reach the coast due to its remote location offshore and therefore no health impacts are expected. 6. Fishing and Fishermen 6.1 How will the introduction of an additional exclusion zone affect fishermen? The T.E.N. project will result in the additional exclusion of fishermen from a very small area (1 km radius) around the FPSO and offloading bouy. The two exclusion areas around the FPSO will be minuscule in relation to the extent of fishing grounds of the Western Region of Ghana. ENVIRONMENTAL RESOURCES MANAGEMENT 5

6 6.2 How will the additional offshore activities affect the water quality and fish resources? Tullow will comply with Ghanaian effluent discharge limits to protect water quality. Ballast water and produced water will be treated before it is discharged in accordance with EPA requirements. 6.3 How will the project activities impact on the quantity and quality of the fish? - Will fish be poisonous to eat? - Fish will shelter around the project vessels and people will not be able to reach them. The development will not result in the contamination of fish and neither result in negative impacts on fish stocks. The development may have a minor positive effect on fish stocks by providing a refuge for fish where they can breed and seek protection from fishermen. Fish will not remain around the FPSO but will leave the safety zone where they can be caught by fishermen elsewhere. 6.4 Will fishermen be compensated for any loss/ damage of equipment (vessels and fishing nets) due to the project activities? If a fisherman s gear is damaged by a support vessel, the fisherman can submit a claim to one of Tullow s CLOs or the Fisheries Liaison Officer. Each claim will be recorded through a grievance procedure and reviewed by Tullow and dealt with appropriately. 6.5 How will the fishermen be compensated for the loss of livelihoods due to the development? The decline in catches cannot be attributed to the oil and gas activities which only started around The development is not expected to result in the loss of livelihoods of fishermen; however, the EIA will include an assessment of the potential impacts on fisheries. 6.6 How will Tullow assist the affected fishermen in finding alternate livelihoods if the impacts make it impossible for people to survive? The offshore activities are not predicted to have any effect on fishermen s livelihoods. 6.7 Will there be a Fisheries Impact Assessment Impact on fish and fisheries will be included in the EIA 6.8 How is flaring going to affect the fish ecology? The light from flaring may attract some fish from the local area at night but it is not expected to have a significant effect on fish ecology. 7. Health and Safety (additional to topics addressed elsewhere) 6.9 How will Tullow avoid further interference with fishing activities? Tullow will appoint a fishing liaison officer to communicate with fishermen about Tullow s activities. 7.1 What is the risk of an explosion? Safety measures will reduce the risk of an explosion to very low. The FPSO will be designed according to international oil and gas safety standards and use Best Available Technique reduce risks to as low as reasonably practicable. 7.2 How will Tullow protect people if there is an explosion? Tullow is required to have an Emergency Response Plan in the event of an incident such as fire or explosion. ENVIRONMENTAL RESOURCES MANAGEMENT 6

7 7.3 If Tullow s activities cause injury to people, how will people be assisted? Tullow implement a robust emergency response plan. 7.4 What is the chance of the project vessels colliding with local fishing vessels? Tullow support vessels will follow defined routes and comply with navigation rules to minimise the likelihood of a collision. 8. Increased Pressure on Existing Infrastructure 8.1 How will this project affect road traffic in the affected Districts especially Takoradi? 8.2 Does the port in Takoradi have the capacity to deal with an increased number of oil vessels? The project will only result in additional traffic in Takoradi between Tulllow offices, the Air force base and Takoradi port. Tullow is working with the STMA to plan for adequate capacity of road infrastructure. The T.E.N. project will result in a small number of additional vessels per day. The Port of Takoradi does have capacity constraints, however, there are longer term plans by other developers to expand the port or create a dedicated oil services port outside Takoradi. 8.3 How will the development affect the port operations in Takoradi? TGL has dedicated berths for their vessels at Takoradi Port and works with the GPHA Harbour master to ensure safe and efficient navigation. 8.4 How much water is required to by the development? The development will not require a large volume of water. A desalination plant on the FPSO will produce potable water from sea water. 8.5 Where will Tullow get water and will the community benefit from this? A desalination plant on the FPSO will produce potable water from sea water. This water will be used on the FPSO only. 8.6 Do the current Regional water sources have enough water to support this development along with the constant industrial developments in the Region? The development will not require a large volume of water. A desalination plant on the FPSO will produce potable water from sea water. Incremental development in the Western Region in general will put additional pressure on regional water resources and this will need to be addressed in with the District Authorities at the planning stage. 8.7 The local communities need electricity, will Tullow provide electricity? Tullow does not generate electricity at any of the onshore bases. 8.8 Is Tullow planning to expand/upgrade the existing Takoradi airport? Will the local people benefit? Give a standard response relating to the Project ENVIRONMENTAL RESOURCES MANAGEMENT 7

8 9. Secondary Socio-economic effects 9.1 Is Tullow working with government in dealing with the indirect impacts of the development, such as population influx, increasing crime as people come to the Region in search of employment, increased cost of living and general increased pressure of infrastructure? 9.2 What onshore facilities will be required as part of the development and where will these be located? Tullow has the ability to mitigate impacts from their current and future activities. It has a more limited ability to manage or influence activities by others. The government, in collaboration with industry, will be required to manage these impacts that results from growing industrial development in the Western Region. The T.E.N. development will be supported from Tullow s existing onshore bases at the Takoradi Air force base and Takoradi port. 10. Waste Management 10.1 What type of waste will be generated by the development and its associated activities? Small quantities of general waste eg glass, kitchen waste, metal and packaging material will be generated on the FPSO, support vessels and at the onshore bases. Solid waste from the FPSO will be shipped back to Takoradi What types of hazardous materials/waste will be generated and how will it be disposed off? Hazardous waste will include small quantities of chemicals, medical/clinical waste, oil contaminated material, waste oil, tank bottom sludge, oily water, and filters, paints, solvents, cleaners and light bulbs. Hazardous waste will be managed according to Tullow s Waste Management Plan How will Tullow manage this waste? Tullow will review their current Waste Management Plan to incorporate T.E.N. waste volumes. All solid waste generated on board the drilling vessels, FPSO or support vessels will be shipped back to the port of Takoradi where it will be reused or recycled where possible or disposed of using EPA approved contractors. 11. Issues from Jubilee Process 11.1 Has Tullow implemented all the Jubilee EIA mitigation measures? Yes, TGL have completed ca. 95% of the agreed commitments laid out in the Jubilee EPA Permit schedule Has Tullow partnered with District management in terms of aligning its CSR with the relevant District(s) development plans? Standard response related to the Project ENVIRONMENTAL RESOURCES MANAGEMENT 8

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