Positive and Negative Impacts

Impact of Issues over Time 

Objectives/ Targets

PTT is dedicated to conducting business with a deep sense of awareness and responsibility toward society and the environment. This commitment is reflected in its adherence to the Quality, Safety, Security, Occupational Health, and Environment (QSHE) policy, which emphasizes the protection and reduction of environmental impacts. Specifically, PTT has set a goal to prevent oil and chemical spills of from 1 barrel to up to 100 barrels, while any significant spills—defined as those exceeding 100 barrels or occurring in sensitive environmental areas—are targeted to be reduced to zero. This goal is a key performance indicator for SSHE on an annual basis. 

Management Approach

PTT proactively manages the risks of oil and chemical spills within its SSHE Management, ensuring that policies and goals both long-term and annual are clearly defined. The management process encompasses the following steps: 

• Conduct thorough analysis of operational processes and risks related to oil and chemical spills across all PTT operations. 

• Establish clear operational procedures, work practices, and preventive measures that must be adhered to rigorously. For instance, oil containment booms will be installed at all operational sites during every oil loading process to prevent oil from spilling outside the containment area in the event of a leak. Continuous monitoring will be conducted throughout operations, and regular assessments will be carried out. 

• Develop and implement comprehensive emergency response plans for oil and chemical spills, aligned with the PTT Group Oil Spill Response Guideline, to ensure swift and effective actions in the event of a spill. 

• Conduct analysis, preparation, and installation of adequate detection equipment, along with appropriate oil spill prevention and response tools. This includes gas leak detection systems and the implementation of satellite-controlled valve shutdown mechanisms in natural gas transportation systems. 

• Provide specialized training on oil spill prevention and response to all personnel across operational areas and support units. 

• Conduct annual emergency response drills, simulating both land and water oil and chemical spills across all operational areas. These drills are carried out in collaboration with governmental agencies at the local, regional, and national levels, as well as with PTT's partner networks. 

For the scope of PTT Group’s operations, they involve a diverse range of activities and a complex value chain, presenting potential risks for oil and chemical spills that could impact the environment. Therefore, PTT is committed to proactively controlling, preventing, and minimizing oil and chemical spills at their source. This commitment begins with the design of operational areas and production processes, which are equipped with leak detection systems connected to control rooms. These areas also feature containment measures to prevent spills from affecting the external environment. In addition, PTT applies a Process Safety Management System that adheres to both legal requirements and international standards. In the event of a spill, PTT has established a comprehensive response plan to effectively manage emergency situations involving oil and chemical contamination. This includes preparedness protocols, prevention and risk reduction strategies, and a detailed spill response plan. The Company has also defined an organizational structure to ensure effective management of spill incidents, along with the necessary documentation, equipment, and resources to ensure a swift and efficient response. This structured approach guarantees that PTT is always ready to act quickly and effectively in the face of an emergency. 

Emergency and Crisis Management Processes

Pre-Incident Process (Preparedness)

Under normal operations, PTT adheres to the Process Safety Management System and Security Management protocols to prevent potential oil and chemical spills. While these preventive measures are highly effective, it is not possible to guarantee 100% prevention of incidents. Therefore, when an incident does occur, it is crucial to be well-prepared for a swift and efficient response. PTT has implemented the following preparedness measures:

• Establishing emergency levels for spill incidents to ensure effective response strategies, PTT has classified spill incidents into three distinct levels of severity, as follows: 
  
  
• Preparation of tools, equipment, and machinery for emergency response. This includes essential tools such as booms, oil skimmers, sprayers for dispersants, and the dispersants themselves. These resources are crucial to ensure prompt and effective action in the event of an emergency.
• Training and communication to ensure that all employees and relevant stakeholders are well-equipped with the necessary knowledge, skills, and understanding to respond effectively during an incident. 
• Emergency response plan for spill incidents to guide the response to spill incidents, ensuring an efficient approach to mitigate the impact. 
• Testing and drills for spill management to familiarize personnel with emergency procedures, enhancing their responsiveness and agility. 

Emergency Response Process

In the event of an emergency or crisis of spill or leak, PTT will undertake the following actions: 

•  Declaration of emergency and crisis situation to officially declare the occurrence of an emergency or crisis, thereby establishing a clear command structure for incident management and response.
•  Emergency and crisis management (Incident/Emergency Command System) will be divided into two main aspects: managing the on-site response to contain the incident and overseeing the overall incident management to determine the direction and strategies for handling the entire situation.
•  Notification and reporting of emergency and crisis to ensure all relevant parties involved in the emergency or crisis management are promptly informed, enabling them to take the necessary steps to manage the incident.
•  Communication in emergency and crisis situations to ensure efficient communication both internally and externally during emergency and crisis situations, in line with the established communication plans.
•  In the event that the emergency or crisis threatens the organization’s ability to maintain operations, the Business Continuity Management (BCM) plan will be activated to ensure that critical business functions can continue uninterrupted during the emergency or crisis situation.

Post-Emergency Process (Recovery)

Once an emergency or crisis situation is under control, PTT will implement the following processes: 

•  Cancellation of emergency and crisis declaration when the emergency or crisis is resolved. A thorough assessment will be conducted to ensure that no further incidents are anticipated. A damage assessment will follow, along with the development of a relief and recovery plan to restore normal operations as swiftly as possible. Only after these steps will the emergency or crisis declaration be officially rescinded.
•  Relief and recovery initiatives after the emergency or crisis has stabilized. The Emergency/Crisis Operations Center will formulate a comprehensive relief and recovery plan addressing the damages sustained by PTT and all stakeholders. This initiative aims to restore business operations to normalcy promptly while mitigating any negative impact on the organization’s reputation. Progress will be continuously monitored, with regular updates provided to senior management until the recovery process is fully completed.

Engagement in External Support Networks

To enhance the effectiveness of spill or leak incident management in all potential scenarios and to minimize impacts on the environment, public health, and community well-being, PTT has joined various organizations that provide essential resources, expertise, and knowledge. These partnerships ensure timely and effective support during emergencies, significantly reducing potential risks to the organization. 

The Oil Industry Environmental Safety Group Association (IESG) possesses the capacity to support oil spill response at the national level, or Tier 2. PTT has appointed representatives to serve on the Board of Trustees and the Management Committee to support and further develop the IESG. 

•  Oil Spill Response Limited (OSRL) is an international organization with the ability to support global oil spill response efforts, or Tier 3. It provides comprehensive assistance in managing oil spill incidents across all of PTT's global operations. PTT has participated in OSRL's Annual General Meeting and Extraordinary General Meeting to stay informed about the latest developments, processes, and technologies related to oil spill management on an international scale.
•   International Oil Pollution Compensation Fund (IOPC Fund), PTT is a member of the IOPC Fund, which serves as a reserve for compensating those affected by oil pollution. This ensures that PTT can effectively address oil spill incidents and provide full compensation to those impacted.

In addition, PTT has established clear procedures for requesting support from IESG and OSRL. The response teams from both organizations will be integrated into the Emergency Operations Center as oil spill response experts, offering guidance to the incident commander both at the command center and on-site during the emergency response. 

Key Initiatives/Profects

Guidelines and Goals for Managing Firefighting Foam Containing Persistent Organic Pollutants (POPs)

PTT prioritizes the management of persistent organic pollutants (POPs), which are chemicals that degrade slowly in the environment and are commonly used across various industries. To address this issue, PTT has established comprehensive guidelines and set a target to phase out the use of firefighting foam containing POPs (PTT Group Zero POPs) by 2040.

Environmental Remediation Guidelines for Oil Spills

PTT is deeply committed to managing the environmental impacts of oil spills to prevent and mitigate harm. The Company has developed the PTT Group Oil Spill Remediation Guideline in collaboration with experts from the Water and Environmental Technology Office, Department of Industrial Works, the Ministry of Industry, and the Department of Environmental Technology and Management at Kasetsart University. This guideline outlines procedures for assessing the environmental impact of oil spills and establishes measures for effectively mitigating and controlling these impacts across all environmental dimensions. It also includes systematic monitoring of environmental quality. Furthermore, PTT has expanded its study of environmental remediation by developing guidelines for the treatment and restoration of soil contaminated with heavy metals.

Project on the Development of Data and Impact Assessment Visualization for Coastal Environmental Management in Rayong Province

PTT, in collaboration with the Geo-Informatics and Space Technology Development Agency (Public Organization) (GISTDA), has developed a spatial impact analysis tool for managing coastal environmental issues in Rayong province. This tool is designed to provide immediate responses in the event of an oil spill, enabling predictions of the oil's movement and displaying maps of sensitive natural resources in Rayong's coastal areas. It covers both land and marine environments and aligns with international standards. The tool serves as a valuable resource for oil spill response planning, allowing for the prioritization of marine and coastal resources that require protection or restoration. It aids in planning for efficient coastal area management and ensuring the quick recovery of ecosystems and biodiversity. Since 2022, this system has been used to predict oil spill movement trends in areas where PTT operates, such as deep-water single-buoy moorings and offshore oil transfer points located in the Map Ta Phut Industrial Estate, Rayong. It helps identify potential spill sources and forecast oil dispersion patterns, enabling PTT to prepare for and respond to potential environmental incidents from its operations. Moving forward, PTT plans to expand this tool to other coastal regions beyond Rayong, as well as develop strategies for restoring marine ecosystems, including coastal and mangrove forest resources. Additionally, PTT will conduct further impact studies on wildlife in the event of an oil spill.

Guidelines for Environmental Remediation from Oil Spills into Soil

For oil spills into soil, PTT has expanded its environmental remediation efforts by developing guidelines for the treatment and restoration of soil contaminated by heavy metals and chemicals. Additionally, to control, prevent, and minimize the risks associated with the transportation of oil and chemicals by road and sea, carried out by third-party contractors, PTT has implemented systematic control and oversight measures. These procedures are further detailed under the section on Safety Management in Transportation

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

Following the Montara incident in 2009, the PTT Group took significant steps to elevate its management of potential oil spills throughout the entire process of petroleum exploration and production. The goal was to ensure that spills from each activity are properly identified, assessed, and mitigated in full compliance with legal requirements. The PTT Group regularly conducts emergency response drills both at the Company-wide level and on specific project sites to assess readiness and capabilities in managing oil spills. These exercises also serve to identify areas for continuous improvement. Additionally, lessons learned from the Montara incident have been documented to enhance the organization’s preparedness and refine its response strategies. 

The Board of Directors and the Executive Committee of the PTT Group’s Upstream Petroleum and Natural Gas Business Division have maintained close oversight and monitoring of operations. In 2022, PTTEP was notified that PTTEP AAA had entered into settlement negotiations under class action litigation related to the Montara incident, with a group of seaweed farmers in Indonesia, as required by the Federal Court of Australia. This is a standard legal procedure under Australian law.  

Indicators and Key Performance 

Hydrocarbon compound leakage of the PTT Group 

PTT Performance Data: Environment