Summary of PTTGC Oil Spill Incident and Execution

Transcription

1 Summary of PTTGC Oil Spill Incident and Execution Agenda 1. Sequence of Incident page 2 2. Refinery s Operation page 4 3. Execution Team page 5 4. Mitigation Plan page 5 5. Insurance Coverage page 6 For more information and update Website Contact Us address IR@pttgcgroup.com Telephone number Investor Relations team , , As of August 2, hrs Page 1

2 1. Sequence of Incident Saturday July 27, At 6.50 hrs., leakage in the flexible hose (16-inch diameter) was found at the Single Point Mooring (SPM) while discharging crude oil from a vessel to the Refinery, 20 kilometers Southeast of Map Ta Phut seaport. The leakage resulted in oil spill of approximately 50,000 liters or equivalent to 316 barrels. - PTTGC has mitigated the impact of the oil spill by immediately shutting the pipeline valve to prevent further leakage followed by the cleanup of the spill by collecting oil from the sea surface, and spraying oil-spill dispersants both by ships and by aircraft. Sunday July 28, Since the oil-spill occurred on Saturday morning, 5 ships of the Company and another 5 ships from the Royal Thai Navy, the Marine Department, and IRPC Plc., together with an aircraft from the Oil Spill Response Limited (world s largest oil spill professional dealing with global oil spill, based in Singapore) were on scene coordination in cleaning up. - The last existing oil slick moved closer toward Samed island. The Company immediately brought staff to monitor the situation. Until 10 pm, the last existing oil slick reached Prao bay, the northwest coast of Samed island staff immediately cleaned up the oil slick on shore. Monday July 29, Additional protective measures to prevent further spreading out at Prao bay was by strategically placing floating boom along the bay. - On-shore cleanup operation was done by using absorbent boom along the beach, collecting the oil slick in the sea and on the beach, placing the absorbent pad along the beach, and gathering the collected debris and the oil slick, and stocking them in the area of the Royal Forest Department, which then were transferred to the Refinery for further treating , As of August 2, hrs Page 2

3 Tuesday 30, July Continued to clean up Prao bay, day and night. - General of the Marine Department and PTTGC commanded the oil removing operation as follows: o Set operation teams responsible for 3 identified areas: Debris collection along the beach by 100 soldiers from the Royal Thai Navy; Oil residue collection along the beach using shovels putting the residue into the bulks by 100 soldiers from the Royal Thai Navy and 60 volunteers; Collected debris transfer into trucks by 80 PTTGC staff and 100 volunteers - In addition, booms were placed in another 3 locations as an extra protection measure Wednesday July 31, A team was sent to take care of the situation, and explained to communities on Samed island and beaches. A team of community relations staff from PTTGC and PTT group worked on communication about the PTTGC oil slick problem solving, and collected information of the impacts and concerns of the communities, community leaders, local entrepreneurs, and people in general. - PTTGC has also prepared short and long-term recovery plans by inviting experts of several related fields to provide advices. Thursday August 1, The oil slick on Prao bay has significantly reduced and PTTGC will continue the cleaning until the condition of the beach is back to normal. Friday August 2, Prao bay is almost back to normal condition. Staff continued to clean up the beach using vacuums and shovels. Large amount of trashes are being eradicated by a crane , As of August 2, hrs Page 3

4 2. Refinery s Operation The Refinery is currently running at its full capacity and we expect to have sufficient amount of inventory until next loading. In normal operation, two floating hoses are used in transferring crude oil from a vessel to SPM. The average duration of the hose is approximately 5-8 years, however, for safety; the Company normally replaces the hose every 2 years. The leaked hose was being used for over one year. Currently, the Company had replaced the leaked hose and for safety concern, the other hose will also be replaced and shall be ready within Monday August 5, Once complete, the Company will seek for authorization from the Marine Department to operate the SPM. In this regard, the Company has also prepared a backup plan in worst-case scenario to use ship to ship lightering from a 1-million-bbl size vessel to a 500,000-bbl-size vessel to load the crude at our Refinery jetty , As of August 2, hrs Page 4

5 3. Execution Team PTTGC set up committee and working team led by CEO, President, Heads of business unit on oil spill management as follows: 1. Cleanup team continue to clean up oil spill in all affected areas both on and off shore 2. Restoration team monitor and recover marine environment and damaged areas 3. Remedy team conduct public hearing and facilitate the community 4. Legal team work closely with insurance company and third party legal team to investigate root cause of the incident and the spread of crude oil 5. Communication team set up spokesperson, IR and PR work together to communicate accurate messages to public and private sectors 4. Mitigation Plan 1. Short-term measures - Eliminate oil stains - Clean up the ocean, beach and rocks - Set petition center 2. Medium-term measures - Work together with environmental experts to study the impact on the marine environment, such as marine life, coral, etc., to put together the rehabilitation plan and implement the plan. - Fact finding Investigation i. Investigate cause of the oil leak. ii. Investigate reason why oil spread was uncontrollable 3. Long-term measures. - Monitor the impact on the environment after the restoration is completed. Take action if found any impact. - Explore fact finding investigation result and improve operating procedures standard to build confidence to stakeholders , As of August 2, hrs Page 5

6 5. Insurance Coverage PTTGC has the operational insurance with Dhipaya Insurance PLC as fronting for Refinery business unit of which the coverage is as follows: 1. Property Damage/Machinery Breakdown & Business Interruption - Sum insured of property damage/machinery breakdown approximately USD 2,400 million (deductible USD 2.5 million any one occurrence). - PTTGC expect that parts and repair cost will be minimal and below the deductible. 2. Marine Cargo - Maximum limit per shipment USD 330 million for crude oil (deductible 0.5% in respect of claims for crude value in shipment. - PTTGC is currently investigating with the loss adjuster to appraise crude loss value 3. Third Party Liability - Limit of liability USD 50 million (deductible USD 10,000 any one occurrence). - Cleanup expense will fall under this section under Pollution Liability , As of August 2, hrs Page 6