ENVIRONMENTAL ASSESSMENT

Environmental Assessment

Environmental Assessment

The speed of construction work at Seaside's R' Us Ltd stands in marked contrast to the substantial delays of measures intended to ensure the welfare of local people and protection of the environment, some of which may never see the light of day. Tasks such as training plans and surveys of areas at risk still remain to be implemented although the construction phase is almost complete.

Concerning water management and accidental oil spills, it is again the primary tasks of the governments to monitor the Oil Consortium and to ensure that a legal and financial apparatus is set up to provide compensation in case of pollution. Yet, the capacity for this has not been put in place. The Inspection Panel report warns that the failure to build national capacity threatens to compromise the delivery of poverty reduction in the later stages of construction and early stages of operation of the pipeline. Drilling fluids or “muds” serve to lubricate and cool the drill bit, carry the rock cuttings generated during drilling back to the surface and maintain pressure within the well. Muds essentially consist of clay suspended in a liquid phase to which a weighting agent (barite) together with a variety of other chemical additives has been added. In water based muds (WBM) the liquid phase is often seawater or an aqueous gel, in oil based muds (OBM) the liquid phase is oil or an oil derivative. Oil based mud can provide better performance in certain drilling situations.

During drilling the rock cuttings and mud are mixed and carried back up to the drilling rig together. On the rig the cuttings are separated from the mud; the mud is recycled to be used again and the cuttings are either: discharged to the seabed, re-injected into a well or taken ashore for treatment and disposal. Cuttings contaminated with OBM must be “skipped and shipped” for treatment and disposal onshore; re-injection is usually only an option during development drilling in a producing field; for single exploration wells, cuttings are typically discharged to sea. OBM are not commonly used during exploration drilling. Seaside's R' Us, like every other publicly owned company, must protect shareholders' investment and provide an acceptable return. It must continue to win and maintain customers but, of course, it has responsibilities to other stakeholders too.

Seaside's R' Us must also ensure that its businesses are run in an ethically acceptable manner and in accordance with specific environmental responsibilities. Seaside's R' Us is proud of its formal Statement of business principles and its formal Commitment to the management of health, safety and the environment. These ensure a consistent approach in its entire Group of companies to these worldwide responsibilities. In spite of the considerable scientific uncertainties which remain about the nature, process and impact of climate change, Seaside's R' Us believes there is sufficient evidence to support prudent precautionary action. Prudence does not mean delay but equally it does not mean precipitous ...