Repsol E&P T&T Ltd is one of the upstream Repsol YPF Group of companies currently operating in more than 20 countries around the world.

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1 1 INTRODUCTION 1.1 Background Repsol E&P T&T Ltd is one of the upstream Repsol YPF Group of companies currently operating in more than 20 countries around the world. Repsol E&P has become one of the major producers of oil and gas in Trinidad and Tobago with a current combined production stand in excess of 130,000 barrels of oil equivalent per day. In September 2005, the Teak, Samaan and Poui Fields (TSP Fields) and the wider licence block including South Galeota (TSP Block) (Figure 1-1) were purchased from bptt and operationally handed over in November of the same year. This acquisition has further strengthened Repsol E&P s position in the Trinidad and Tobago energy sector. It is Repsol E&P's intention to become one of the Caribbean s largest players in the oil and gas industry and as such wish to turn around falling production levels from the mature TSP Fields through a combination of exploration and development activities due to commence in Repsol E&P intends to drill 2 appraisal wells, Pinta 1 and Cascadoux (Figure 1-1) in the Repsol E&P TSP Block, offshore, south-eastern coast, Trinidad. This proposed Project is referred to as the Repsol E&P Pinta 1 and Cascadoux Exploration Drilling Project. The rationale for the Project is to explore and discover oil and/or natural gas in the TSP Block and assess the potential reserves that currently exist within the Block. 0-1

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3 Figure 1-1: Repsol's TSP Block showing the proposed Pinta 1 and Cascadoux well locations 0-3

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5 1.2 Application Process The development of the Repsol E&P Pinta 1 and Cascadoux Exploration Drilling Project first required a Certificate of Environmental Clearance (CEC) from the Environmental Management Authority (EMA) for the proposed drilling activities. As such, an application for a CEC (3775/2013) for the drilling of 2 appraisal wells for oil and/or gas within the TSP Block was submitted to the EMA on January 17 th, This application was made in accordance with the CEC Rules, 2001 and Activity 24 (the conduct of all works related to this activity: exploration for crude oil or natural gas) of the CEC (Designated Activities) Order (as amended) (Appendix A.1). The EMA determined that there could be significant environmental impacts arising from these activities and that the application required an Environmental Impact Assessment (EIA) in compliance with the Terms of Reference (ToR; Appendix A.2). Repsol E&P commissioned Environmental Sciences Limited (ESL) in January 2013 to prepare an independent EIA study for the proposed Project. The final ToR for the Project was issued on 15 th April, To determine the level of risk associated with the Project, a risk assessment was undertaken by Repsol E & P. Repsol E&P is committed to achieving and maintaining high environmental standards and adopted the ARPEL standards for conducting its EIA. This included ensuring they remain relevant to Trinidad and Tobago. World Bank standards for the preparation of EIAs have also been adhered to, given that the philosophy of the World Bank is more aligned with sustainable environmental management rather than simply adopting the more conventional pollution control approach, which is costly and poorly targeted. Moreover, it views the EIA as a process that should ensure mitigation and monitoring measures are properly implemented and continually updated. 1.3 Scope and Objective of EIA The objective of this study is to predict the potential impacts associated with the proposed drilling activities and to prepare and outline a management plan for implementation of the findings. The schematic diagram (Figure 1-2) below gives an overview of the process followed. 1

6 Consultation Scope of the EIA Describe the Baseline Identify & assess the Impacts Implement Findings Predict, Evaluate Design and Decision-making Figure 1-2: Overview of the EIA Process Repsol E&P is committed to health, safety and environment (HSE) related matters and continues to look at areas where their performance can be improved upon. This has been achieved through the following: Repsol E&P believes that to achieve a better understanding of the full life cycle of the activities being proposed, it is important to consider all environmental aspects and effects (positive and negative). This enables proper management and auditing under its HSE management systems Implementation of the Project will provide positive benefits to Trinidad and Tobago s economy, through taxes and royalties 1.4 Structure of the Document The remainder of this document is laid out as follows. Chapter 2 discusses the relevant policy, legislative and regulatory framework for environmental management, with specific emphasis on the CEC and EIA. Chapter 3 gives a detailed description of the proposed Project, in particular the drilling process; details on Project scheduling; and an estimation of the types and volumes of waste expected to be generated during all phases of the Project. Chapter 4 considers potential alternatives for achieving the objectives of the proposed development for the following Project-specific considerations: drilling unit, conductor pipe placement, drilling muds, cuttings disposal; power generation; sewage treatment; and well abandonment. The No-action alternative was also considered in Chapter 4. Chapter 5 delineates the area which may be potentially affected by the Project (baseline study area) and describes the various, relevant physical, 2

7 biological and socio-cultural components of the baseline study area which may potentially be affected by the Project (as a result of environmental scoping conducted in the context of Project activities). The description of the baseline environment is informed by primary and secondary data sources. Primary sources of data included field studies conducted in the marine and coastal (terrestrial) environments, including: marine surveys for bathymetry, water, sediment, benthic, and grain-size analysis; onshore surveys (for flora and fauna), socio-economic surveys; and public consultation meetings. Where applicable, descriptions are supplemented by secondary data. Chapter 6 details the impact assessment methodology and characterises the impacts identified, based on a combination of methodologies utilising interaction matrices and ecosystem network diagrams. Chapter 7 presents the mitigation measures for the elimination and/or reduction of potentially significant environmental impacts identified in Chapter 6; and provides recommendations for an environmental management and monitoring plan. Chapter 8 provides a summary of a screening level ecological risk assessment. Finally, a comprehensive listing of all documentation consulted during the preparation of this EIA report and cited in-text is presented at the end of the assessment. 3