March 2014

Sasol Petroleum Mozambique Limitada &

Sasol Petroleum Temane Limitada

PSA DEVELOPMENT AND LPG PROJECT

ENVIRONMENTAL SCOPE
DEFINITION REPORT & TERMS OF
REFERENCE
Non-Technical Summary
REPORT

For public comment until Tuesday 8 April 2014

Prepared on behalf of : Sasol Petroleum Mozambique Limitada and

Sasol Petroleum Temane Limitada

Av. 25 Setembro 420, 2 andar, Predio, JAT I

Maputo
Mozambique

Report Number:
1302793-12654-1 (Eng)
Table of Contents

1.0 INTRODUCTION ........................................................................................................................................................ 1

1.1 Project Overview........................................................................................................................................... 1

1.2 The Applicant and Legal Justification for the Project .................................................................................... 3

1.2.1 The Applicant .......................................................................................................................................... 3

1.2.2 Legal Justification for the Project ............................................................................................................ 3

1.3 Purpose of this Document ............................................................................................................................ 4

1.4 The EIA Consultants ..................................................................................................................................... 4

1.5 The EIA Process and how Stakeholders can contribute ............................................................................... 5

2.0 DESCRIPTION OF THE PROJECT ........................................................................................................................... 6

2.1 The Wells ...................................................................................................................................................... 6

2.2 The Flow Lines ............................................................................................................................................. 6

2.3 The 5th Gas Train (PSA Gas Project)............................................................................................................ 6

2.4 The PSA Liquids and LPG Plant ................................................................................................................... 8

2.5 Construction Phase - General .................................................................................................................... 10

2.5.1 Compensation for Damages and Land Loss ......................................................................................... 10

2.5.2 Employment .......................................................................................................................................... 10

2.5.3 Accommodation of Construction Personnel .......................................................................................... 11

2.5.4 Scheduling ............................................................................................................................................ 11

2.5.5 Equipment Transport and Laydown Areas at the New Plant ................................................................. 11

2.5.6 Construction Wastes ............................................................................................................................. 11

2.6 Construction Phase - Drilling ...................................................................................................................... 11

3.0 KEY ISSUES AND FATAL FLAWS ........................................................................................................................ 12

4.0 EIA TERMS OF REFERENCE................................................................................................................................. 14

TABLES
Table 3-1: Impacts that require investigation in the EIA .................................................................................................... 12

FIGURES
Figure 1-1: Elements of the Proposed PSA Development and LPG Project ....................................................................... 2

Figure 1-2: The proposed project in relation to existing facilities ......................................................................................... 3

Figure 2-1: Proposed Phase 1 PSA Gas Development ....................................................................................................... 7

Report No. 1302793-12654-1 (Eng) i

Figure 2-2: Location and conceptual layout of the proposed Integrated PSA Liquids and LPG Plant ................................. 9

Figure 2-3: Conceptual diagram showing horizontal drilling .............................................................................................. 11

PHOTOGRAPHS
Photograph 2-1: Temane 9 a typical production well, which is similar to the wells that will be constructed for the
project ................................................................................................................................................................ 6

Photograph 2-2: Existing access road to a Sasol exploration well (I-4) in the Inhassoro District. This road would be
upgraded slightly to ensure that it provides all weather access and the flow line would be situated
immediately adjacent to it. .................................................................................................................................. 6

Photograph 2-3: Existing solid waste and wastewater infrastructure at the CPF. No upgrades to this or other
waste management infrastructure will be required for the Phase 1 PSA Gas Production Project ...................... 8

Photograph 2-4: Drill site. A drilling site showing the drill rig and associated infrastructure. The entire site is
typically contained within an area of 100 m x 100m. ........................................................................................ 12

Photograph 2-5: A well head, also called a Christmas tree. The well head regulates the flow of fluids from the well. ...... 12

Report No. 1302793-12654-1 (Eng) ii

1.0 INTRODUCTION
1.1 Project Overview
Sasols gas processing plant, known as the Central Processing Facility (CPF), is situated 40 km north-
west of Vilanculos. Currently, all of Sasols production is exported from the CPF as either pipeline gas,
which is largely destined for use in South Africa, or as condensate which is trucked to Beira for onward
shipment. An increasing proportion of the gas is being used in Mozambique, for both industrial purposes
and power generation. In Inhambane Province, the gas is supplied to the EDM gas-fired power station,
which generates the electricity supplying Inhassoro, Vilanculos and surrounding areas.
Sasol has expanded the CPF since the project was first established in 2002, and has brought further
gas wells on stream in the Temane and Pande gas
fields. At present, the CPF consists of four gas What is the Production Sharing
processing trains, supplied by twenty four onshore Agreement (PSA)?
production wells, twelve of which are in the Temane
field and twelve of which are in the Pande field. Sasol Petroleum Mozambique (SPM) has a
Production Sharing Agreement (PSA) with the
The PSA Development and LPG Project (hereafter Government of Mozambique and ENH
referred to as the project) involves the expansion of (Empresa Nacional de Hidrocarbonetos). In
the CPF to process additional gas, condensate and turn, a Petroleum Production Agreement (PPA)
light oil from the area defined in the Production has been entered into between Sasol
Sharing Agreement (PSA) with the Mozambique Petroleum Temane (SPT) and its partners
Government. The light oil is very similar in (Companhia Moambicana de Hidrocarbonetos
composition to the existing condensate, both of which (CMH) and IFC) and the Government of
are straw-coloured liquids with a consistency similar Mozambique which covers the currently-
to paraffin. The project will significantly increase producing assets of the Temane and Pande
Sasols capability to process gas and liquids, and fields.
may include the facility to produce Liquified
Petroleum Gas (LPG), which would substitute much The PPA and PSA licences overlap each other
of the 15,000 to 20,000 tonnes/annum that is to a large extent in both the Pande and Temane
currently imported at significant cost to Mozambique. areas. The PPA licence applies to specific
hydrocarbon bearing formations within these
The Project consists of 2 main components, which areas.
may be implemented at the same time or in a
sequential fashion: The PSA licence covers all other formations in
the Temane and Pande geographical areas that
The Phase 1 PSA Gas Development (the gas are currently being considered for development,
project), involving six production wells in the and also includes other fields and prospects
Temane Field and an additional (5th) gas train at where exploration and appraisal wells have
the CPF, designed to process the additional gas been drilled but have not as yet been declared
and condensate from the wells and situated commercial.
within the existing plant boundaries;

The Phase 1 PSA Liquids Development (the liquids project), involving nine production wells and
one data gathering well in the Inhassoro field, and a new Liquids Processing plant and Liquid
Petroleum Gas (LPG) plant, situated adjacent to the CPF.
All of the gas and oil wells will be connected to the CPF by buried pipelines known as flow lines, similar
in design to those which currently supply the plant with gas. The new flow lines are intended to follow
existing lines of access as far as possible, and in the section across the Govuro River, will be connected
to existing pipes laid across the channel during the 2002 construction project, so as to avoid the
disturbance caused by further crossings.
Figure 1-1 shows all of the elements of the proposed PSA Project, including the new gas and oil
wells, flow lines and production facilities. Figure 1-2 provides a conceptual overview of the project in
relation to the existing facilities.

1
Figure 1-1: Elements of the Proposed PSA Development and LPG Project

2
Figure 1-2: The proposed project in relation to existing facilities

1.2 The Applicant and Legal Justification for the Project

1.2.1 The Applicant
The project applicant is:

Sasol Petroleum Mozambique Limitada; and

Sasol Petroleum Temane Limitada

Av. 25 Setembro 420, 2 andar, Prdio JAT I

Maputo
Mozambique
Contact person: Mr Ailton Rego, Environmental Specialist (ailton.rego@sasol.com)

1.2.2 Legal Justification for the Project

The Production Sharing Agreement (PSA) for the Pande and Temane gas fields was entered into
between the Government of the Republic of Mozambique, represented by Instituto Nacional de
Petrleo (INP), Empresa Nacional de Hidrocarbonetos E.P. (ENH), and Sasol Petroleum
Mozambique Lda. (SPM) on 26 October 2000. Subsequent to the appraisal process, on 29 November
2012, SPM submitted an Appraisal Report of the Pande, Corvo, Temane and Inhassoro reservoirs
within the license area to INP and ENH. SPM has declared the following reservoirs commercial:

Temane G8 Non-associated Natural Gas

Temane G11, G11A, G12, G12A (Temane East Fields) Non-associated Natural Gas

Inhassoro G6 - Crude Oil

Inhassoro G10 - Crude Oil

SPM is currently progressing the Field Development Plan (FDP) for the PSA as per the requirements
of the Petroleum Operations Regulations. The PSA Development comprises a Liquids project and a
Gas project. SPM expects that a full FDP, including the relevant EIA, will be ready for submission in
early 2015. As part of the process, SPM has been investigating the viability of early production prior to
any development sanctioned in the 2015 FDP submission (which remains subject to INP approval).

3
The proposal for Inhassoro Early Oil (IEO) production was discussed with INP, ENH and MICOA at
the PSA Management Committee Meeting held in Maputo on 12 December 2013. Approval regarding
the necessary requirements for environmental assessment for the IEO project has been requested of
MICOA in a separate process.

1.3 Purpose of this Document

The proposed project is Category A in terms of Mozambiques environmental law, which requires a full
Environmental Impact Assessment (EIA) for consideration by the Ministry for the Coordination of
Environmental Affairs (MICOA), as the basis for environmental decision making. The EIA will be
undertaken in terms of Decree 56/2010, Environmental Regulations for Petroleum Operations, as well
as Decree 45/2004, the general Regulations on the Environmental Impact Assessment Process, and a
range of other legislation and guidelines, including the Performance Standards of the International
Finance Corporation (IFC).
The first phase of an EIA is to define the scope of the investigation and to set the terms of reference for
the specialist studies. The Mozambique EIA regulations require that this is documented in a Scope
Definition Report (EPDA) and EIA Terms of Reference, prepared in consultation with relevant
stakeholders. This document provides a Non-Technical Summary of the EPDA and ToR for the EIA. It
is presently in Draft, to be finalised following consultation with stakeholders.

1.4 The EIA Consultants

The EIA is being prepared by Golder Associados Moambique Lda, coordinated by Mark Wood of Mark
Wood Consultants and Gisela Boavida of Golder.

Socio-economic and health, Hlder Nhamaze, Kula, and Gisela Boavida, Golder Mozambique

Archaeology and cultural, Raja Mussa, Ancient, Mozambique

Terrestrial flora, biodiversity, Tony de Castro, De Castro and Brits and Simplicio Chivambo,
Golder Mozambique

Wetlands, Retief Grobler, Imperata and Simplicio Chivambo, Golder Mozambique

Terrestrial and aquatic fauna, Andrew Deacon and Simplicio Chivambo, Golder Mozambique

Surface Water, Amanda Cassa , Golder Africa, and Francisco Nato, Golder Mozambique

Groundwater, Jennifer Pretorius, Golder Africa and Francisco Nato, Golder Mozambique

Soils, Jan Schoeman, Golder Africa

Air quality, Lucian Burger, Airshed, and Adam Bennett, Golder Africa

Noise, Francois Malherbe, FMC

Tourism, Peter Massyn, OT&S,

Wastewater and Solid Waste, David Marioni, Golder Africa

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1.5 The EIA Process and how Stakeholders can contribute
The EIA commenced in January 2014, and will continue until the end of July 2014. The EIA will meet the
requirements of the following key legislation:

Environmental Regulations for Petroleum Operations (Decree n 56/2010, 22 November)

Regulation on the Environmental Impact Assessment Process, Decree n 45/2004, 29

September, amended by Decree n 42/2008, 4 November

General Directive for Environmental Impact Assessments, approved by Ministerial Diploma

n129/2006, 19 July

General Directive for Public Participation, approved by Ministerial Diploma n 130/2006, dated 19
July.
Other important legislation that the specialist studies will take in account is included in the main EPDA
report.

Your comment is important

If you would like to participate in the determination of the scope of the EIA, please
comment on this document by Tuesday 8 April 2014 to

Brenda Mkakangoma or Gisela Boavida

Golder Associados Mocambique Lda

Avenida Patrice Lumumba 577, Maputo
Tel: 21 301 292 or 21 360 750; Fax: 21 301 289

Email: BMkakangoma@golder.com

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2.0 DESCRIPTION OF THE PROJECT
2.1 The Wells
The location of the proposed gas and oil wells is shown in Figure 1-1. They will be similar to the pre-existing
Temane and Pande wells, with the surface infrastructure consisting of a well head (or Christmas Tree) centred
in a secured and cleared area of approximately 100 m x 100 m. There will be no release of fluids or gas into
the atmosphere (venting) at the well heads during normal operations - all of the extracted fluids will be
transferred via the flow lines to the CPF for processing.
The well positions have been determined on the basis of preliminary engineering studies and may be subject
to some changes during the detailed design investigations.
Photograph 2-1: Temane 9 a typical production well, Photograph 2-2: Existing access road to a Sasol exploration
which is similar to the wells that will be constructed for well (I-4) in the Inhassoro District. This road would be upgraded
the project slightly to ensure that it provides all weather access and the flow
line would be situated immediately adjacent to it.

2.2 The Flow Lines

Fluids from the wells will be delivered to the CPF by new flow lines, buried approximately 1 m underground,
and mostly following existing cut lines, roads and other flow lines (Figure 1-1). A permanent all weather
gravel access road will be constructed for maintenance access along flow lines in the few places where road
access does not already exist. Figure 1-1 highlights where the lines will cross the Govuro River, tying into
existing sections of spare pipe that were laid under the Govuro River in 2002, in order to avoid repeated
construction works across the river channel. For the gas project, one well (T-19A) lies east of the Govuro
River and will use a spare flow line across the river. For the liquids project, all of the oil wells lie east of the
Govuro River. These will be combined at the Inhassoro Manifold Station, from which a single pipeline will
transport the fluids, tying into another existing spare pipeline across the Govuro River, and then routing
onward to the new plant adjacent to the CPF.

2.3 The 5th Gas Train (PSA Gas Project)

All additional equipment required to process the gas and condensate will be situated within the boundaries of
the existing CPF, as shown in Figure 2-1. The 5th gas train will be situated adjacent to the four existing gas
trains, providing a 4+1 capability (4 operating, 1 on standby).

6
Figure 2-1: Proposed Phase 1 PSA Gas Development

The CPF's existing gas/liquid separation provision and four gas processing trains will be supplemented by
additional equipment added in parallel and tied into the same manifolding arrangements. One new
production separator and one new liquid separator will be added, identical to the existing units. One new
gas processing train will be added, this train will be the same capacity as the existing trains and very similar
equipment will be provided.
All stabilised condensate will be sent to the storage tanks at the CPF. No additional tanks are provided. The
condensate will be exported by road tanker. The CPF's LP and HP compression will be expanded with the
addition of one new unit of each. The compression units and ancillaries will be identical to the existing units.
The increased water production at the CPF resulting from the PSA Gas development will be treated and
disposed of by the existing systems at the CPF. Other utility systems, such as water, air and nitrogen, will be
supplemented so that the new gas plant is not constrained by utility supply. No new power generation
systems are required to support the PSA Gas plant. No new flare systems will be added
Apart from produced water, there will be a small increase in waste water and solid waste. This will all be
handled by the existing waste water and solid waste management systems at the CPF, which comply with
the plants operational Environmental Management Plan (oEMP). A high degree of control over waste
management has been achieved over the years, with much of the waste being recycled. Regular internal and
external audits are undertaken to ensure that the systems continue to function efficiently and meet the
requirements of the oEMP.
Due to the fact that more gas will be produced a corresponding increase in air emissions is expected.
Additional emissions from the plant will be the combustion products that result from the fired heaters driving

7
the various processes in the plant, emissions from the flare, gas turbines generating electricity for the plant
and other small sources.
Photograph 2-3: Existing solid waste and wastewater infrastructure at the CPF. No upgrades to this or other waste
management infrastructure will be required for the Phase 1 PSA Gas Production Project

The hazardous landfill site, where The temporary hazardous waste
incinerator ash is disposed of storage area for material destined
either to the incinerator or to the
MAVOCA hazardous waste disposal
site in Maputo
Temporary storage of wastewater
prior to treatment in the Industrial
Efffluent Treatment Plant (IETP)

2.4 The PSA Liquids and LPG Plant

The Integrated PSA Liquids Development will consist of a new Liquids and LPG Plant, adjacent to the CPF,
supplied with well fluids from new and existing wells in the Inhassoro field. The plant is designed to process
5,000 barrels of oil per day (approximately 790 cubic meters). Figure 2-2 shows the plants location and
conceptual layout. The Liquids and LPG parts of the plant may be constructed simultaneously or the LPG plant
may be constructed first and, initially, operate with only the condensate as feedstock.
The integrated Liquids and LPG plant will separate the well fluids into oil, gas and water, and will stabilise the
oil. While this product is technically referred to as oil, it is, in fact, very similar to the condensate which is
currently extracted from the gas wells (refer to Figure 2-2). From a laymans point of view, and for the
purposes of the EIA, there is very little difference between the condensate produced in the Temane gas
wells and the oil produced in the Inhassoro oil wells. The main difference is in the quantity of liquid
(condensate / oil) produced by the well. The Temane condensate that is produced at present is at the light
end of the colour spectrum shown above - the Inhassoro oil may be a shade darker.

8
Figure 2-2: Location and conceptual layout of the proposed Integrated PSA Liquids and LPG Plant

9
Incoming fluids will pass through a slug catcher/liquid separator which is designed to remove major liquid
slugs from the stream. The separated liquid stream them passes through an oil/water separator. Oil from the
separator is comingled with unstabilised condensate from the CPF which then passes on to the LPG
production process. This process produces three streams: LPG, condensate/oil and off gas, a part of which
is used as fuel gas to operate the various low pressure gas users on site and the balance of which is routed
back to the CPFs inlet manifold at the TEG dehydration units for removal of water and export as natural gas.
Three additional storage tanks and new road tanker loading bays will be built at the Liquids plant for the
increased oil/condensate export volumes. LPG will be stored aboveground in three or four bunded (earth
wall-protected) storage bullets. Two LPG road tanker bays will be constructed for transport of the product,
which is estimated to be around 15,000 tonnes per annum.
The liquids plant will have its own flaring system, although this will only operate during start-up, shutdown
and upset conditions at the plant. It is noted that the present flaring of excess LP fuel gas at the CPF will be
eliminated by the installation of the new LP gas compressors.
The generation of additional solid waste at the Integrated PSA Liquids and LPG Plant during operations is
expected to be limited and will be handled by the CPFs existing waste management services. Sewage from
the small number of additional personnel on site (estimated to be 10-15) will be treated by the existing plant
at the CPF. Waste water, produced mainly as a result of collection of potentially contaminated water in and
around the plant, will be treated in a new industrial effluent treatment plant similar to the existing plant at the
CPF. Treated effluent will meet the specification for final effluent for the existing CPF waste water, and will
be irrigated onto the lawns and gardens of the CPF or onto an additional landscaped area.
Produced water (water removed from the gas/condensate stream that typically contains oily residues) will be
sent by dedicated pipeline to a new produced water disposal well near the CPF. The exact location of this
well is still to be determined.
Additional air emissions will result from the new processes. There will be small continuous release of
combustion gasses to atmosphere from the de-ethaniser and debutaniser fired heaters. Increased usage of
gas turbines to drive the processes at the integrated plant will also be necessary, which will result in
increased emissions. Conversely, it is expected that the PSA project, combined with the CPF Upgrades
Project (already approved), will involve the replacement of two of the old HP Compressors with new ones,
which will be fitted with low NOx burners, and this is likely to significantly reduce emissions from these
sources.

2.5 Construction Phase - General

2.5.1 Compensation for Damages and Land Loss
The project has been designed to minimise impacts on surrounding communities. The Integrated Liquids and
LPG Plant will be situated within the Partial Protection Zone around the CPF, where no settlement or
agricultural land use exists. The planned location of the flow lines uses existing access roads wherever
possible, and little resettlement of households is expected to be necessary, although there are likely to be
impacts on agricultural lands in places.

In 2001, Sasol and the Government of Mozambique reached an agreement about a framework for the fair
treatment of all people affected by the Natural Gas Project. Based on recommendations made by the World
Bank, this framework was further developed to ensure compliance with all of the Banks requirements. The
resulting programme, known as the Resettlement Planning and Implementation Programme (RPIP), has
provided the basis for the compensation of all people who have experienced losses as a result of Sasols
activities and will be used to guide compensation for the PSA Development Project and LPG Project.

2.5.2 Employment
Roughly 1,000 jobs will be created during peak construction. All unskilled jobs will be filled by Mozambicans,
and wherever possible by people from project affected communities. Sasol will strongly encourage its
contractors to award available semi-skilled and skilled jobs and sub-contracts to Mozambican people and
organisations who can demonstrate the appropriate capability and track record.

10
2.5.3 Accommodation of Construction Personnel
Construction contractors building the 5th gas train, the PSA Liquids and LPG Plant and the gas and oil flow
lines will be accommodated at the existing construction camp at the CPF, which is fully serviced. The drilling
crews, responsible for drilling the wells, may be housed at the CPF or possibly at the Temane Base Camp. A
few senior drilling staff will be accommodated on well pads since drilling will be a 24hour operation. The
workforce will be approximately 2 local: 1 non local (meaning not from the project-affected area), and assuming
peak construction employment of around 1,000 people, this means that accommodation for around 350 people
will be necessary.
2.5.4 Scheduling
The front end engineering studies (FEED) for the project have commenced. Final design and contract awards
will take place in 2015. Should EIA approval be obtained, construction is likely to start in early 2016. The IPF
will take approximately two years to build while the flow lines and wells would be built within the same
timeframes. Production is expected to start towards the end of 2018.

2.5.5 Equipment Transport and Laydown Areas at the New Plant

Materials and equipment will be transported by road. Temporary access roads may be required for transport
of construction workers, equipment and materials to some construction areas along the flow lines and wells.
Equipment laydown for the Liquids and LPG plant will be in the areas allocated for previous construction
laydown at the CPF and possibly on the new plant site as well. Construction will require equipment for civil
works, electrical works, pipelaying, welding and testing.

2.5.6 Construction Wastes

Wastes produced during construction of the Liquids and LPG plants will be sorted, recycled (where possible)
and disposed of according to the same procedures that are followed by the CPF. It is anticipated that
construction waste that cannot be recycled, and which is suitable for incineration, will be delivered to the CPF
incinerator. The CPF sewage plant is expected to have sufficient capacity to treat the additional sewage
demands resulting from the accommodation of construction personnel.
Along the flow lines, pressure testing (hydrotesting) may require disposal of water which contains additives,
such as biocides and corrosion inhibitors.

2.6 Construction Phase - Drilling

The drilling of the oil and gas wells is undertaken Figure 2-3: Conceptual diagram showing horizontal drilling
by specialised drilling teams. The depth of the
wells will vary but will be around 1,200 m to
2,000 m below surface. Some wells will be
vertical but most will be horizontal, the well bore
for which typically consists of an initial vertical
section, followed by a horizontal section within
the reservoir itself.

Drilling a typical well takes one to two months

from the time when the site has been cleared and
the equipment is brought in, to the time when the
well is tested.
Drilling of oil and gas wells involves the use of
potentially hazardous chemicals and muds that
must be safely managed and disposed of once
drilling is completed. Safety is a major
consideration at a drilling site and the
management of the process is designed to
minimise the risk of accidents.

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 Photograph 2-4: Drill site. A drilling site showing the drill rig Photograph 2-5: A well head, also called a Christmas
and associated infrastructure. The entire site is typically tree. The well head regulates the flow of fluids from the
contained within an area of 100 m x 100m. well.

Photo credit: CNOOC

3.0 KEY ISSUES AND FATAL FLAWS

A wide range of issues have been identified which will be considered in the EIA. These include both
construction and operational phase impacts, direct and indirect impacts associated with all aspects of the
project, including the wells, flow lines, 5th gas train and PSA Liquids and LPG plant, as described in
Table 3-1 below.
Table 3-1: Impacts that require investigation in the EIA

PSA Liquids and

Wells Flow Lines 5th Gas Train
LPG Plant
Construction

Construction

Construction

Construction

Impact
Operation

Operation

Operation

Operation

Biophysical Impacts

Air Quality 9 9 9 9 9 9
Noise 9 9 9 9 9 9
Soils 9 9 9 9 9
Surface Water 9 9 9 9 9 9 9
Groundwater 9 9 9 9 9 9 9
Wetlands 9 9 9 9
Terrestrial Ecology
and Biodiversity
9 9 9 9 9 9 9

Terrestrial Fauna 9 9 9 9 9 9 9

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 PSA Liquids and
Wells Flow Lines 5th Gas Train
LPG Plant

Construction

Construction

Construction

Construction
Impact

Operation

Operation

Operation

Operation
Aquatic Fauna and
Flora
9 9 9 9 9 9

Socio-Economic
Impacts

Employment 9 9 9 9 9 9
Health 9 9 9 9 9 9
Tourism 9
Social Investment 9 9 9 9
Socio-Cultural
Impacts

Cultural Heritage 9 9 9

The study team finds no fatal flaws affecting the proposed project. While most of the well sites are in new
positions, they are all situated within the general area of exploration and other activities that Sasol has
undertaken over the past 10 years. The majority of flow lines follow existing access roads to exploration
wells or seismic lines opened by Sasol during exploration campaigns. The PSA 5th Gas Train and the PSA
Liquids and LNG Plant are extensions of the CPF and are therefore essentially part of an existing
brownfields development, the impacts of which are well known and extensively monitored.
The risks of greatest potential consequence, identified during the scoping, are as follows:

The potential impacts of an oil spill from the oil pipeline crossing the Govuro River system or from the
drilling of one of the wells near the coast or adjacent to the short coastal drainage lines. While the
probability of these risks may be low, they have not been quantified, and the consequences of a spill
could be severe. Developing a better understanding of the probability and potential spatial extent of
these impacts is an essential component of the Terms of Reference of the EIA.

The interface between Sasols oil wells east of the Inhassoro - Vilanculos gravel road and future coastal
tourism development. The extent to which this could cause land use conflict is presently unknown.

The indirect ecological effects of improved access in some areas where access is presently poor,
particularly for the gas flow lines south west of the CPF. Some of these areas are still very remote, and
there is evidence that improved access has significant indirect impacts, particularly as a result of
increased settlement in the area.

The social pathologies associated with large construction projects in small communities. These impacts
have already occurred as a result of the construction of the CPF and there is, as a result, an opportunity
to learn from the current situation so as to reduce the negative impacts of the new project. From a
positive perspective, Sasols social investment in local communities over the past 10 years can also be
reviewed in order to determine its effectiveness and the nature of any changes that could be made to
improve the contribution that it makes to sustainable development.

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None of the negative impacts is presently considered to be a fatal flaw, but all require careful consideration
in the EIA.

4.0 EIA TERMS OF REFERENCE

The specialist studies that are proposed for the EIA are listed in the table below.

PSA 5th Gas Train and Liquids and LPG Plant (the new plant)

Gas wells, Oil Wells and Flow lines

Environmental
Key Objective
Component

To determine the impact of the construction and operation of the new plant on groundwater.
Geohydrology To determine the impact of the construction and operation of the wells and flow lines on
(Groundwater) groundwater (focusing on risks and consequences of major spillages in the Govuro River, the
barrier lakes and the coastal drainage lines).
To determine the potential loss of agricultural potential as a result of the new plant and the
cumulative effect of the plant on soils as a result of aerial deposition of contaminants from the
Soils plant
To determine the impact of the construction and operation of the wells and flow lines on
productive soils
To determine the impact of the construction and operation of the new plant on surface water
(with input from the Waste Management Study)
Surface To determine the impact of the construction and operation of the wells and flow lines on surface
Hydrology water (emphasis on risks and consequences of a major oil spill in the Govuro River).
Note: no construction required across the Govuro River due to use of existing pipes laid in the
river bed.
To critically review Sasols current and proposed waste water and solid waste management
practices at the CPF (as a partial basis for the assessment of groundwater and surface water
impacts).
Waste
To critically review Sasols current and proposed waste water and solid waste management
Management
practices during the construction drilling and construction of the proposed gas and oil wells (as a
partial basis for the assessment of groundwater and surface water impacts).

To determine the likely impact of the construction and operation of the new plant on air quality.
Air Quality To determine the likely air quality impact of the construction of the wells and flow lines on
surrounding communities (no significant impact expected in the operational phase of the project).
To determine the likely impact of the construction and operation of the new plant on noise in
surrounding communities, particularly at night.
Noise To determine the likely impact of the construction of the wells and flow lines on noise in
surrounding communities, particularly during night drilling (no significant impact expected in the
operation al phase of the project).
To verify that no sensitive plant communities or Red Data species will be lost as a result of the
Biodiversity clearing of the new plant site.
and To determine the likely impact of the construction and operation of the wells and flow lines on
Vegetation terrestrial ecology and botanical biodiversity (taking into account the indirect impact of improved
access on increased settlement and resource use)
Wetlands No study required for the new plant site

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Environmental
Key Objective
Component

To determine the likely impact off the construction and operation of the wells and flow lines on
wetlands (with particular emphasis on the Govuro River wetlands and the short coastal drainage
lines).
Note that the wetland study will be combined with the Biodiversity and Vegetation Study
To determine the likely impact of the construction and operation of the new plant on terrestrial
fauna.
Terrestrial
Fauna To determine the likely impact of the construction and operation of the wells and flow lines on
terrestrial fauna (taking into account the indirect impact of improved access on settlement and
resource use).
No study required for the new plant site.
To determine the likely impact of the construction and operation of the wells and flow lines on
Aquatic Fauna aquatic flora and fauna (with particular emphasis (with particular emphasis on the Govuro River
and Flora wetlands and the short coastal drainage lines).
Note that the Govuro River will be crossed using an existing spare pipeline no other perennial
drainage lines will be crossed.
To determine the likely socio-economic costs and benefits of the construction and operation of
the new plant, with particular emphasis on job creation and social investment in local
Socio- communities.
Economics To determine the likely socio-economic costs and benefits of the construction and operation of
the wells and flow lines with particular emphasis on job creation and social investment in local
communities.
To determine the likely impact of the construction and operation of the new plant on community
health and welfare, with particular emphasis on social pathologies during construction and on the
Health / Social benefits of Sasols social investment in local community health.
Pathologies To determine the likely impact of the construction and operation of the wells and flow lines on
community health, with particular emphasis on social pathologies during construction and on the
benefits of Sasols social investment in local community health.
To determine the likely impact of the clearing for the new plant on cultural heritage.
Cultural
Heritage To determine the likely impact of the clearing of the clearing for the construction of the wells and
flow lines on cultural heritage.
No study required for the 5th gas train and the PSA Liquids and LPG plant at the CPF

Tourism To determine the likely impact of the construction and operation of the wells and flow lines on
tourism along the coast between Inhassoro and Vilanculos, with particular reference on conflicts
of interest along the coastal strip and immediate hinterland.

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Tisha Greyling

Country Manager

GOLDER ASSOCIADOS MOAMBIQUE

Reg. No. 2002/007104/07

Directors: SAP Brown, L Greyling, RGM Heath

Golder, Golder Associates and the GA globe design are trademarks of Golder Associates Corporation.

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Golder Associados Moambique Limitada
C.P 1507
Avenida Patrice Lumumba N 557
Maputo
Moambique
T: [+258] (21) 301 292