Positive and Negative Impacts

According to the United Nations' sustainable development goals outlined in section 6.6, which aim to safeguard and restore water-related ecosystems encompassing mountains, forests, wetlands, rivers, aquifers, and lakes, combined with national environmental status reports, it is evident that the water quality from surface sources and coastal areas in Thailand has significantly deteriorated. This degradation can be attributed to various factors, including household wastewater discharge, industrial operations, agricultural activities, oil spills resulting from drilling and transportation, maritime shipping, and the proliferation of planktonic organisms altering seawater color, among others. PTT, engaged in petroleum and petrochemical endeavors along with associated entities across the value chain, such as shipping firms, faces the risk of environmental contamination through oil or chemical leaks. Hence, systematic preventive measures, controls, and risk mitigation strategies, including emergency response plans for oil or chemical spills, are imperative.

Objectives/Goals

PTT is dedicated to conducting its operations with social and environmental consciousness, adhering to Quality, Safety, Health, and Environmental (QSHE) policies, which underscore the commitment to safeguarding and mitigating environmental impacts. Specific targets have been established to manage oil and chemical spills, ranging from 1 to 100 barrels for regular incidents and exceeding 100 barrels for significant spills, or any spillage in environmentally sensitive areas, with zero tolerance. This serves as a key indicator for the SSHE aspect annually.

Management Approach

Understanding the broad spectrum of activities undertaken by the PTT Group, encompassing diverse and intricate value chain processes carrying inherent risks of oil and chemical spills, PTT underscores the importance of controlling, preventing, and minimizing such incidents at their source. This entails integrating leak detection systems from pipeline connections to control rooms, designing containment facilities to avert environmental contamination, implementing process safety management systems compliant with legal requirements and international standards, and formulating comprehensive emergency response plans and provisions to effectively address spillage events. These measures are meticulously designed to ensure proactive readiness, risk mitigation, and swift emergency response, supported by well-defined organizational frameworks to effectively manage and address spill incidents, alongside the provision of requisite documentation, equipment, and resources for prompt and efficient handling of such occurrences.

PTT effectively manages the risk of oil and chemical spills within its SSHE framework by establishing clear policies, long-term objectives, and annual goals, employing the following management processes:

• Conducting comprehensive analyses of operational procedures and potential risks associated with oil and chemical spills across all PTT operational sites.
• Developing stringent operational procedures, work practices, and preventive measures, such as the installation of oil containment booms at each operational site. These booms are installed prior to oil loading to prevent any potential leakage. Continuous monitoring of practices and regular performance assessments are conducted to ensure compliance.
• Creating and implementing emergency preparedness and response plans tailored to address oil and chemical spills, aligning with the guidelines outlined in the PTT Group Oil Spill Response Guideline.
• Assessing, preparing, and installing appropriate leak detection systems and equipment for oil residue removal, including gas leak detection systems and satellite-controlled valve closure systems in natural gas transportation systems.
• Providing comprehensive training courses on oil spill prevention and cleanup to personnel working within operational areas and supporting agencies.
• Conducting annual emergency response drills for oil and chemical spills, both on land and in water, at all operational sites. These drills are conducted in collaboration with government agencies at local, regional, and national levels, as well as with partner networks of which PTT is a member.

Emergency and Crisis Management Processes

Preparedness Process

Under normal circumstances, PTT operates in accordance with the Process Safety Management system and security measures to prevent incidents, including potential oil and chemical spills. However, despite the effectiveness of these preventive measures, it is not possible to completely eliminate the risk of accidents. Therefore, in the event of an incident, readiness preparations to respond to an oil or chemical spill are crucial. PTT has undertaken the following preparedness measures:

• Establishment of emergency response levels in the event of an oil or chemical spill to efficiently guide response actions. Emergency responses for oil or chemical spills are categorized into three levels as follows:
  
  
• Preparing tools, machinery, and emergency response equipment such as booms, skimmers, sprayers, dispersants, etc., to effectively address emergency situations like oil or chemical spills.
• Providing training and communication to ensure that personnel and stakeholders possess the necessary knowledge, skills, and understanding to respond appropriately when incidents occur.
• Developing contingency plans specifically tailored for oil or chemical spills to ensure efficient management and response to such incidents.
• Conducting regular testing and drills of oil or chemical spill management plans to enhance familiarity and agility in responding to emergency situations.

Response Process

In the event of an emergency or crisis related to oil or chemical spills, PTT will undertake the following actions:

• Declaring emergencies or crises to promptly alert relevant parties and establish clear command structures to effectively manage the events.
• Implementing the Incident/Emergency Command System, dividing responsibilities for incident response and overall incident management to coordinate response efforts.
• Notifying and reporting emergencies and crises to inform relevant personnel involved in emergency management and prepare for incident management.
• Managing communication during emergency situations and crises to ensure efficient internal and external communication according to predefined plans.
• Employing Business Continuity Management (BCM) plans to sustain business operations if the emergency situation affects the organization's ability to continue its usual activities.

Recovery Process

Once the emergency or crisis is contained, PTT will proceed with the following processes:

• Concluding emergencies and crises when the situation is resolved, ensuring there is no recurrence. Conducting damage assessment and devising mitigation/restoration plans to swiftly return to normal operations.
• Executing mitigation and restoration efforts post-emergency or crisis. The Emergency Command Center will devise plans to mitigate and restore for all affected parties, aiming to expedite the return to normal operations and minimize reputational impact. Continuous monitoring and reporting of recovery progress will be provided to senior management until full recovery is achieved.

Engagement in External Support Networks

In order to effectively manage oil or chemical spills under any circumstance and to minimize their environmental and public health impacts, PTT actively participates in various organizations equipped with the necessary resources, expertise, and knowledge to offer timely and efficient assistance during emergencies. These collaborative efforts play a crucial role in mitigating potential impacts on the organization. Specifically:

• The Industrial Environmental Conservation Association (IESG) possesses the expertise to aid in oil spill containment at the national level, categorized as Tier 2.
• Oil Spill Response Limited (OSRL) is a global organization capable of providing support for oil spill containment at the international level, classified as Tier 3. OSRL extends its assistance to oil spill cleanup operations across all operational domains of the PTT Group on a global scale.
• The International Oil Pollution Compensation Funds (IOPC Fund) collaborates closely with PTT to ensure comprehensive containment and compensation for those affected by oil spills, thereby bolstering confidence in effective spill management.

PTT has established clear operational protocols for soliciting assistance from both IESG and OSRL. The response teams from these organizations are integrated into the Emergency Command Center as Oil Spill Response experts, offering guidance to emergency commanders for effective situational management at both the command center and incident sites.

Key Initiatives

Development of Environmental Remediation Guidelines for Oil Spill Incidents

PTT places considerable emphasis on post-oil spill environmental management to prevent and mitigate environmental impacts. This includes the formulation of the PTT Group Oil Spill Remediation Guideline in collaboration with experts from the Department of Industrial Works, Ministry of Industry; Department of Environmental Technology and Management, Faculty of Environment, Kasetsart University. The guideline aims to assess environmental impacts resulting from oil spill incidents and devise comprehensive measures to mitigate and control impacts across all environmental dimensions. Furthermore, PTT continuously monitors environmental quality and expands the scope of environmental remediation education by developing guidelines for soil remediation from heavy metal contamination as part of its ongoing efforts.

Development of Data and Spatial Impact Assessment Tools for Coastal Environmental Management in Rayong Province

PTT, in collaboration with the Geo-Informatics and Space Technology Development Agency (GISTDA), has been spearheading the development of data and spatial impact assessment tools tailored for coastal environmental management in Rayong Province. These cutting-edge tools serve as invaluable assets for swiftly responding to emergencies, particularly in the event of oil spills. They facilitate predictive modeling of oil movement patterns and generate maps highlighting environmentally sensitive areas prone to oil contamination across both land and sea, aligning with international standards. Leveraging this data, PTT can strategically plan oil spill cleanup operations, prioritize the safeguarding or rehabilitation of marine and coastal ecosystems, and ensure the restoration of biodiversity balance. In 2022, these tools were instrumental in forecasting oil spill trajectories, specifically in the middle sea mooring zones within the Map Ta Phut Industrial Estate, Rayong Province.

Moreover, PTT has ambitious plans to extend the reach of these tools beyond Rayong Province's coastlines. Additionally, comprehensive guidelines for marine environmental restoration, encompassing coastal and mangrove ecosystems, alongside impact assessments on marine life in oil spill scenarios, are currently in the pipeline for future implementation.

Guidelines for Environmental Remediation from Soil Contamination

In response to soil contamination incidents, PTT has significantly broadened its environmental remediation efforts by developing additional guidelines specifically targeting heavy metal contamination in soil. Furthermore, rigorous control measures and supervision protocols have been established to mitigate, prevent, and manage the risks associated with oil and chemical spills during road and maritime transportation of products by contracted transporters. Further insights into these measures can be found under the section titled Transportation Safety Management.

Management of Oil Spill Incidents at Montara, Australia, by the PTT Group

In the wake of the Montara incident in 2009, PTT has heightened its vigilance and expertise in managing oil spill incidents, ensuring a comprehensive approach encompassing identification, assessment, and the implementation of appropriate measures in compliance with regulatory mandates for every operation. Regular emergency response drills are conducted at both company and project levels to evaluate preparedness and capabilities in handling spills, with a focus on continuous improvement initiatives. Additionally, educational materials based on lessons learned from the Montara incident are being developed to further enhance organizational preparedness and response strategies.

The initial Petroleum and Natural Gas Business Group Committee and the PTT Management Committee diligently supervised and monitored operations throughout 2022. During the same period, PTTEP was notified of PTTEP AAA's involvement in negotiations as part of a collective settlement process regarding the Montara incident with a group of seaweed farmers in Indonesia. These negotiations were conducted in compliance with the directives of the Federal Court of Australia, following standard legal procedures.

Participation in supporting the remediation efforts for an unidentified oil incident in Songkhla  

The Singhanakhon District reported the discovery of oil stains to Songkhla Province on March 9, 2023, impacting the local community, marine ecosystems, and aquaculture. The Incident Command Center in Singhanakhon District promptly coordinated cleanup operations, mobilizing district-level agencies, provincial authorities, and private sector stakeholders. It is worth noting that while the incident may not have been linked to the operations of PTT or its subsidiaries, PTT remained committed to assisting in the cleanup efforts

Key Performance Indicators

PTT Sutainability Performance Data 2023