Cyprus Energy Port

Yiannos LakkotrypisDeputy Larnaca Port Manager

Young Ship Cyprus Seminar26112015

Contents

1 The History

2 The Operations

3 Cyprus Energy Ports

4 Other Considerations

5 Questions Discussion

3

The History

bull In 2012 a work group has been established to examine possible port space and facilities to satisfy short ndash mid ndash long term needs with regards to the research operations and exploitation of hydrocarbons in Cyprusrsquo Exclusive Economic Zone

bull The group was comprised by representatives from CPA Energy Department Department of Urbanism and Housing and the Shipping agents

bull 3 prospective areas have been identifiedbull The area East of Larnaca Portbull Available space at Vasiliko Portbull The area South Limassol Port (Merras Zakaki)

bull The selected scenario was the area South of Limassol Port because of its long area and because it is adjacent to the port The other two scenarios have been rejected because Larnaca was destined as a cruise port and Vasiliko area was destined for the LNG plan

4

The History cont

bull Cyprus characteristics as an EU member state having a developed business system as well as the infrastructure and services provided render the conditions for the implementation of investments for the exploitation of hydrocarbons attractive

bull Beyond the satisfaction of inland needs (research and exploitation in Cyprus EEZ) Cyprus is expected to cover similar needs from the extended market of the South Eastern Mediterranean

bull Estimations indicate the existence of 122

TCF of Natural Gas while the stocks in Petroleum are estimated to 168 million barrels

bull For the Nile Delta Basin estimations talk for the existence of 233 TCF Natural Gas and 176 billion barrels of petrol

5

The History cont

bull In 2008 within the scope of the 1st round of permits for the exploitation in Cyprus EEZ the republic of Cyprus has allowed lsquoNoble Energy International Ltdrsquo to perform research in plot 12

bull The company has performed in 2011 its drilling research using through the company EDT Agency Services Ltd Limassol Port as a base for support supply and service of the platform in general

bull With the completion of the drilling operations the company has discovered the amount of approximately 35 TCF

bull Apart from Noblersquos energy operations in plot 12 the Republic has issued in 2012 a second round of permits

bull Plot 2 and 3 ENI (Italy) and KOGAS (S Korea)

bull Plot 9 TOTAL (France) and Novatec (Russia)

bull Plot 11 TOTAL (France)

6

The energy prospects

The discovery of significant hydrocarbons reserves provides for Cyprus a unique opportunity to become a regional energy centre

7

The operations

8

The operations

bull The importance of Ports in research and drilling operations for Hydrocarbons

bull The existence of adequate port area is crucial in the development operations of hydrocarbon exploitation

bull For each platform the supply of adequate supporting services is required These services are needed 24 7 from urban port area

bull Some of the operations required by the platforms from supporting companies based in Ports include

bull Supplies with the use of Tugs Helicopters

bull Change of workforce and movement of employees (every 28 days approx)

bull Storage and supply of mud bull Storage and supply of cementing bull Storage supply maintenance and fixing

of casing equipment for the drillingbull Supply of fuel for the platform operationbull Berthing (quay facility) for the tugs

boats that support and supply the platform

bull Waste treatment from drilling operations and exploitations

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

Contents

1 The History

2 The Operations

3 Cyprus Energy Ports

4 Other Considerations

5 Questions Discussion

3

The History

bull In 2012 a work group has been established to examine possible port space and facilities to satisfy short ndash mid ndash long term needs with regards to the research operations and exploitation of hydrocarbons in Cyprusrsquo Exclusive Economic Zone

bull The group was comprised by representatives from CPA Energy Department Department of Urbanism and Housing and the Shipping agents

bull 3 prospective areas have been identifiedbull The area East of Larnaca Portbull Available space at Vasiliko Portbull The area South Limassol Port (Merras Zakaki)

bull The selected scenario was the area South of Limassol Port because of its long area and because it is adjacent to the port The other two scenarios have been rejected because Larnaca was destined as a cruise port and Vasiliko area was destined for the LNG plan

4

The History cont

bull Cyprus characteristics as an EU member state having a developed business system as well as the infrastructure and services provided render the conditions for the implementation of investments for the exploitation of hydrocarbons attractive

bull Beyond the satisfaction of inland needs (research and exploitation in Cyprus EEZ) Cyprus is expected to cover similar needs from the extended market of the South Eastern Mediterranean

bull Estimations indicate the existence of 122

TCF of Natural Gas while the stocks in Petroleum are estimated to 168 million barrels

bull For the Nile Delta Basin estimations talk for the existence of 233 TCF Natural Gas and 176 billion barrels of petrol

5

The History cont

bull In 2008 within the scope of the 1st round of permits for the exploitation in Cyprus EEZ the republic of Cyprus has allowed lsquoNoble Energy International Ltdrsquo to perform research in plot 12

bull The company has performed in 2011 its drilling research using through the company EDT Agency Services Ltd Limassol Port as a base for support supply and service of the platform in general

bull With the completion of the drilling operations the company has discovered the amount of approximately 35 TCF

bull Apart from Noblersquos energy operations in plot 12 the Republic has issued in 2012 a second round of permits

bull Plot 2 and 3 ENI (Italy) and KOGAS (S Korea)

bull Plot 9 TOTAL (France) and Novatec (Russia)

bull Plot 11 TOTAL (France)

6

The energy prospects

The discovery of significant hydrocarbons reserves provides for Cyprus a unique opportunity to become a regional energy centre

7

The operations

8

The operations

bull The importance of Ports in research and drilling operations for Hydrocarbons

bull The existence of adequate port area is crucial in the development operations of hydrocarbon exploitation

bull For each platform the supply of adequate supporting services is required These services are needed 24 7 from urban port area

bull Some of the operations required by the platforms from supporting companies based in Ports include

bull Supplies with the use of Tugs Helicopters

bull Change of workforce and movement of employees (every 28 days approx)

bull Storage and supply of mud bull Storage and supply of cementing bull Storage supply maintenance and fixing

of casing equipment for the drillingbull Supply of fuel for the platform operationbull Berthing (quay facility) for the tugs

boats that support and supply the platform

bull Waste treatment from drilling operations and exploitations

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

3

The History

bull In 2012 a work group has been established to examine possible port space and facilities to satisfy short ndash mid ndash long term needs with regards to the research operations and exploitation of hydrocarbons in Cyprusrsquo Exclusive Economic Zone

bull The group was comprised by representatives from CPA Energy Department Department of Urbanism and Housing and the Shipping agents

bull 3 prospective areas have been identifiedbull The area East of Larnaca Portbull Available space at Vasiliko Portbull The area South Limassol Port (Merras Zakaki)

bull The selected scenario was the area South of Limassol Port because of its long area and because it is adjacent to the port The other two scenarios have been rejected because Larnaca was destined as a cruise port and Vasiliko area was destined for the LNG plan

4

The History cont

bull Cyprus characteristics as an EU member state having a developed business system as well as the infrastructure and services provided render the conditions for the implementation of investments for the exploitation of hydrocarbons attractive

bull Beyond the satisfaction of inland needs (research and exploitation in Cyprus EEZ) Cyprus is expected to cover similar needs from the extended market of the South Eastern Mediterranean

bull Estimations indicate the existence of 122

TCF of Natural Gas while the stocks in Petroleum are estimated to 168 million barrels

bull For the Nile Delta Basin estimations talk for the existence of 233 TCF Natural Gas and 176 billion barrels of petrol

5

The History cont

bull In 2008 within the scope of the 1st round of permits for the exploitation in Cyprus EEZ the republic of Cyprus has allowed lsquoNoble Energy International Ltdrsquo to perform research in plot 12

bull The company has performed in 2011 its drilling research using through the company EDT Agency Services Ltd Limassol Port as a base for support supply and service of the platform in general

bull With the completion of the drilling operations the company has discovered the amount of approximately 35 TCF

bull Apart from Noblersquos energy operations in plot 12 the Republic has issued in 2012 a second round of permits

bull Plot 2 and 3 ENI (Italy) and KOGAS (S Korea)

bull Plot 9 TOTAL (France) and Novatec (Russia)

bull Plot 11 TOTAL (France)

6

The energy prospects

The discovery of significant hydrocarbons reserves provides for Cyprus a unique opportunity to become a regional energy centre

7

The operations

8

The operations

bull The importance of Ports in research and drilling operations for Hydrocarbons

bull The existence of adequate port area is crucial in the development operations of hydrocarbon exploitation

bull For each platform the supply of adequate supporting services is required These services are needed 24 7 from urban port area

bull Some of the operations required by the platforms from supporting companies based in Ports include

bull Supplies with the use of Tugs Helicopters

bull Change of workforce and movement of employees (every 28 days approx)

bull Storage and supply of mud bull Storage and supply of cementing bull Storage supply maintenance and fixing

of casing equipment for the drillingbull Supply of fuel for the platform operationbull Berthing (quay facility) for the tugs

boats that support and supply the platform

bull Waste treatment from drilling operations and exploitations

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

4

The History cont

bull Cyprus characteristics as an EU member state having a developed business system as well as the infrastructure and services provided render the conditions for the implementation of investments for the exploitation of hydrocarbons attractive

bull Beyond the satisfaction of inland needs (research and exploitation in Cyprus EEZ) Cyprus is expected to cover similar needs from the extended market of the South Eastern Mediterranean

bull Estimations indicate the existence of 122

TCF of Natural Gas while the stocks in Petroleum are estimated to 168 million barrels

bull For the Nile Delta Basin estimations talk for the existence of 233 TCF Natural Gas and 176 billion barrels of petrol

5

The History cont

bull In 2008 within the scope of the 1st round of permits for the exploitation in Cyprus EEZ the republic of Cyprus has allowed lsquoNoble Energy International Ltdrsquo to perform research in plot 12

bull The company has performed in 2011 its drilling research using through the company EDT Agency Services Ltd Limassol Port as a base for support supply and service of the platform in general

bull With the completion of the drilling operations the company has discovered the amount of approximately 35 TCF

bull Apart from Noblersquos energy operations in plot 12 the Republic has issued in 2012 a second round of permits

bull Plot 2 and 3 ENI (Italy) and KOGAS (S Korea)

bull Plot 9 TOTAL (France) and Novatec (Russia)

bull Plot 11 TOTAL (France)

6

The energy prospects

The discovery of significant hydrocarbons reserves provides for Cyprus a unique opportunity to become a regional energy centre

7

The operations

8

The operations

bull The importance of Ports in research and drilling operations for Hydrocarbons

bull The existence of adequate port area is crucial in the development operations of hydrocarbon exploitation

bull For each platform the supply of adequate supporting services is required These services are needed 24 7 from urban port area

bull Some of the operations required by the platforms from supporting companies based in Ports include

bull Supplies with the use of Tugs Helicopters

bull Change of workforce and movement of employees (every 28 days approx)

bull Storage and supply of mud bull Storage and supply of cementing bull Storage supply maintenance and fixing

of casing equipment for the drillingbull Supply of fuel for the platform operationbull Berthing (quay facility) for the tugs

boats that support and supply the platform

bull Waste treatment from drilling operations and exploitations

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

5

The History cont

bull In 2008 within the scope of the 1st round of permits for the exploitation in Cyprus EEZ the republic of Cyprus has allowed lsquoNoble Energy International Ltdrsquo to perform research in plot 12

bull The company has performed in 2011 its drilling research using through the company EDT Agency Services Ltd Limassol Port as a base for support supply and service of the platform in general

bull With the completion of the drilling operations the company has discovered the amount of approximately 35 TCF

bull Apart from Noblersquos energy operations in plot 12 the Republic has issued in 2012 a second round of permits

bull Plot 2 and 3 ENI (Italy) and KOGAS (S Korea)

bull Plot 9 TOTAL (France) and Novatec (Russia)

bull Plot 11 TOTAL (France)

6

The energy prospects

The discovery of significant hydrocarbons reserves provides for Cyprus a unique opportunity to become a regional energy centre

7

The operations

8

The operations

bull The importance of Ports in research and drilling operations for Hydrocarbons

bull The existence of adequate port area is crucial in the development operations of hydrocarbon exploitation

bull For each platform the supply of adequate supporting services is required These services are needed 24 7 from urban port area

bull Some of the operations required by the platforms from supporting companies based in Ports include

bull Supplies with the use of Tugs Helicopters

bull Change of workforce and movement of employees (every 28 days approx)

bull Storage and supply of mud bull Storage and supply of cementing bull Storage supply maintenance and fixing

of casing equipment for the drillingbull Supply of fuel for the platform operationbull Berthing (quay facility) for the tugs

boats that support and supply the platform

bull Waste treatment from drilling operations and exploitations

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

6

The energy prospects

The discovery of significant hydrocarbons reserves provides for Cyprus a unique opportunity to become a regional energy centre

7

The operations

8

The operations

bull The importance of Ports in research and drilling operations for Hydrocarbons

bull The existence of adequate port area is crucial in the development operations of hydrocarbon exploitation

bull For each platform the supply of adequate supporting services is required These services are needed 24 7 from urban port area

bull Some of the operations required by the platforms from supporting companies based in Ports include

bull Supplies with the use of Tugs Helicopters

bull Change of workforce and movement of employees (every 28 days approx)

bull Storage and supply of mud bull Storage and supply of cementing bull Storage supply maintenance and fixing

of casing equipment for the drillingbull Supply of fuel for the platform operationbull Berthing (quay facility) for the tugs

boats that support and supply the platform

bull Waste treatment from drilling operations and exploitations

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

7

The operations

8

The operations

bull The importance of Ports in research and drilling operations for Hydrocarbons

bull The existence of adequate port area is crucial in the development operations of hydrocarbon exploitation

bull For each platform the supply of adequate supporting services is required These services are needed 24 7 from urban port area

bull Some of the operations required by the platforms from supporting companies based in Ports include

bull Supplies with the use of Tugs Helicopters

bull Change of workforce and movement of employees (every 28 days approx)

bull Storage and supply of mud bull Storage and supply of cementing bull Storage supply maintenance and fixing

of casing equipment for the drillingbull Supply of fuel for the platform operationbull Berthing (quay facility) for the tugs

boats that support and supply the platform

bull Waste treatment from drilling operations and exploitations

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

8

The operations

bull The importance of Ports in research and drilling operations for Hydrocarbons

bull The existence of adequate port area is crucial in the development operations of hydrocarbon exploitation

bull For each platform the supply of adequate supporting services is required These services are needed 24 7 from urban port area

bull Some of the operations required by the platforms from supporting companies based in Ports include

bull Supplies with the use of Tugs Helicopters

bull Change of workforce and movement of employees (every 28 days approx)

bull Storage and supply of mud bull Storage and supply of cementing bull Storage supply maintenance and fixing

of casing equipment for the drillingbull Supply of fuel for the platform operationbull Berthing (quay facility) for the tugs

boats that support and supply the platform

bull Waste treatment from drilling operations and exploitations

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

9

Upstream Oil amp Gas Logistics

Upstream oil and gas logistics segments into three core activities ndash offshore field logistics onshore field logistics and international freight movement

INTERNATIONAL FREIGHT MOVEMENT

ONSHORE OILFIELD LOGISTICS

$10 $10 $40

$40

OFFSHORE OILFIELD LOGISTICS

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

10

Typical requirements of a multi-user base

High Bay fabrication facility yard and rail to

quayside

Warehousing Machine shops etc

Open storage

Pipe inspection

Car park Gas oil storage in concrete bund

Potable Water

Spill Response Equipment

Bulks water and marine gas oil ducted to quayside delivery

points

Bulk silos and mud

plant

Minimum 45m clear to

quayside

Storage area for Anchors and Chains

Heavy lift pad

Offices

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

11

Supply Base Management typical requirements

Quayside Operations Transport Management Port Management

Materials ManagementCritical Spares

Materials and Systems

Bulk Management

Marine Fuel amp Lubes

Offshore Operations

Client IntegrationIT Systems

Manifesting

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

12

Core Services in an Integrated Logistics Base

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

13

Core Logistics Requirements

Drilling Fluids Mixing

Bulk Chemical Handling

API Pipe handling amp Inspection

Warehouse management

Quayside Logistics Operations

CCU Rentals

bull Open Storage spacebull Warehousingbull Inventory managementbull Quayside load and dischargebull Lifting amp Transportbull Rental of Offshore Containers (CCUrsquos)bull Vessel agency servicesbull Heavy Liftbull Rigging and shackles supplybull Shore base manpowerbull Project Management servicesbull Freight management bull Freight forwarding

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

14

Bulk Storage and Drilling Fluids Manufacture

Typical CapacitiesMud Plant ndash 350 m2Mud storage ndash 360 m2Brine Plant ndash 220 m2Oil Base Mud ndash 600 m2

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

15

Environmental and Waste Management Services

OFFSHORE WASTE MANAGEMENT

TRANSPORTRETURNS ASHORE

ONSHORESERVICES

SEGREGATION OFFSHORE

OFFSHORE TRAINING

24 7 HELP - LINE

STATISTICS

COMPLIANCE MONITORING amp SUPPORT

WASTE CONTAINMENT

BULK REMOVALS

LEGAL COMPLIANCE

TANK CLEANING

CUTTINGS PROCESSING

TANKER SERVICES

HAZARDOUS WASTE TREATMENT

DISPOSAL

PRODUCT RECOVERY

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

16

Waste Management

Collection sorting and transport for disposalndash Hazardous wastendash Non-hazardousndash Domestic wastendash Scrap metalndash Oily water ndash Drilling muds and chemicals

Provision ofndash Licensesndash Waste sorting stationndash Sortation Processndash CCU Fleetndash Specialised Collection vehicles and containers

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

17

Supply Base Examples

Galeota TrinidadGuiria Larnaca VenezuelaSt Johns NewfoundlandSnake Island LagosTakoradi GhanaBautino KazakhstanMtwara TanzaniaSandnessjohn NorwaySohar amp Duqm OmanDarwin AustraliaKorsakov Sakhalin

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

18

The Cyprus Ports in the Oil and Gas Industry

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

19

Larnaca Port

bull Larnaca Port has been servicing the Oil amp Gas industry since 2013

bull Due to the fact that at the time Larnaca was to become a cruise Port temporary licenses have been given to the companies to operate until august 2016

bull After long periods of protests from the people of Larnaca the council of ministers has decided to relocate the companies to areas that CPA will point out

bull In Larnaca Noble energy is effectively utilising 6640 m2 of Paved area 3010 m2 of store area and 200 m2 of office area

bull Medserve is effectively utilising 20000 m2 of non paved area 10000 of paved area 3870 m2 of store area and 2113 m2 outside of store area

bull Multimarine is effectively utilising 12500 m2 of non paved area (see diagram)

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

20

Larnaca Port cont

The ENI Logistics Base inside the Larnaca Port is organized into the following main logistics areas(ENI Cyprus Ltd 2014c and ENI EampP Div LOGIS 2014)

bull office accommodation and office equipmentbull berthing and quay facilitiesbull liquid mud plant and bulk storage facilitiesbull open yard area including a covered pipe inspection facility with cleaning baybull existing covered warehousebull chemical storagebull covered waste storage areabull equipment marshalling area andbull Cargo Container Unit (CCU)

All installations are situated in the main quay except for the chemical storage and the coveredwarehouse which are situated in the south quay The surface covered by the base including allinstallations is estimated to 36211 m2

Operations within the base can be divided into two main categories Firstly logistics operationsentailing the storage and handling of all equipment materials intended for use onboard thedrilling platforms or ships and secondly liquid mud production

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

21

Larnaca Port Logistics Operations

1 Storage and handling of Chemical substancesThe chemical storage is composed of two different facilities

bull an area of about 1000 m2 within the existing warehouse for the storage and handling of dry chemical products in big bags

bull a new shed of about 350 m2 to be located close to the existing warehouse for the storage and handling

of wet chemical products in drums tank containers and metal barrels

bull The existing warehouse is located in the southern side of Larnaca Port along the breakwater quay

bull The area of the warehouse which is assigned for the storage of dry chemical products is approximately 1000 m2

bull Suitable chemical protected shed located in proximity (southward) of the existing warehouse is used for the storage and handling of chemical products in drums tank containers and metal barrels

bull The shed dimensions are approximately 27 m x 13 m (about 350 m2) with a minimum clearance of 5 m and a roof slope 15 for rain water It is a metallic structure provided with an impermeable concrete basement and a corrugated covering sheet open on all sides in order to guarantee the proper ventilation

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

22

Larnaca Port Logistics Operations

2 Storage and handling of consumables casings drill pipe pipes and materials associated with drilling operations

Such operations will comprisebull loading and unloading of drill collar tools and other drilling equipment as requiredbull carriage of typical oilfield goods and materialsbull loading of fuel oil water for supporting drilling activities and potable waterbull transfer of liquid mud palletized mud materials bulk mud materials bulk cement andbull other bulk materialA small water channel is found next to the steel casings cleaning area Provision has been madein terms of bunds to avoid drainage of the shed escaping in the channel

3 Handling of explosivesDrilling operations require the use of small quantities of explosives These are to be transferred from storage locations outside the port area directly for loading on the offshore support vessel with minimal time of stay within port limits According to the Cypriot authorities each transfer of explosives will have to be approved in advance and will be undertaken under the provisions of Cypriot law and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)The explosives mentioned above will not come back to the Logistics Base This together with the strict context for safe and secure transportation to the Base minimise the risk of accident and exposureAccording to a first estimation the quantities of explosives to be used in the envisaged exploration drillings campaign of ENI Cyprus Ltd is less than 200kg More specifically the estimated amount of explosives required is equal to 25 kgr per well at any one time and only for the case of emergency and they will be transported by one truck at the beginning of operationsOver the the full campaign it will remain on the rig On the basis of this figure the envisagedexplosives volume for 10-12 drillings would not exceed 300 kgr and this quantity would transitthe port during a three year period1048579 Each transportation of the explosives is scheduled to beespecially approved and convoyed by the police at all times and the trucks will be driven byspecially authorized personnel (licensed ADR drivers)

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

23

Larnaca Port Logistics Operations

3 Handling of radioactive materials

Radioactive sources are to be used for radiography in drilling operations Such materials will be transported directly from designated storage to the offshore supply vessel for onward transportation to the drilling ship and are not to be stored within the Larnaca port limits It is anticipated that such sources will remain encapsulated and contained in appropriately shielded containers during the whole transportation processRadioactive materials are very commonly used in various sectors The quantity and strength of such materials used in the current project are similarly of low risk

4 Handling of wastes associated with drilling operations

At the Logistics Base an exclusive space of about 200 m2 segregated by a fence is assigned in the pipe yard area to temporary accommodate the produced waste The is paved with concrete in order to avoid any kind of possible contamination to the soil equipped with containment wall and dedicated drainage system with collection pit This space is intended for waste produced in the onshore base and only for their temporary storage The waste produced in the Logistic base will be collected in appropriate containers andin reasonable quantities Wastes will be immediately delivered to authorized operator accordingto the Waste Law (L185 (1)2011

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

24

Larnaca Port Liquid mud production

The Liquid Mud Plant (LMP) (1530 msup2) is designed to provide the offshore drilling unit with the following fluids typically used for drilling operation (ldquodrilling mudrdquo)bull brine (salty water) typically composed of water

and salt (sodium chloride andor potassium chloride andor calcium chloride) used for the initial riser less section of the offshore wells or as completion fluid after the drilling operations

bull Water Based Muds4 (WBMs) typically composed of fresh water salt andor bentonitebarite and additives

bull Low Toxicity Oil Based Mud5 (LTOBM) typically composed of low-toxic and low-aromatic base oil barite and additives

The process carried out in the LMP includesbull storage of base oil mud and bulk (powder)bull mud premixing (brine WBM and LTOBM) andbull mud regeneration (LTOBM) (if needed)

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

25

Larnaca Port Liquid mud production

Bulk (Powder) Storage FacilitiesThe barite and bentonite for mud preparation is provided by Bulk Powder Facility capable to store bulk material needed for the operations in particular barite and bentonite Barite and bentonite will be provided by trucks in big bags (1-15 t) and will be stored in the existing warehouse (dry chemicals storage area) near the LMP and transferred to the LMPBulk facility as needed in the plant the big bags will be cut through hoppers and stored in the silos It is anticipated that any cutting of the bags will be undertaken in semi enclosed box leaving only one side exposed andwill be fitted with vacuum pump to minimise dispersal of dust in the atmosphereEmpty big bags will be sent for disposal in accordance to local regulations The bulk facility has acapacity of approximately 640 t of bulk materials and is equipped with lines and fittings to loadsupply vessels and receive bulk material from supply vessels as well The bulk facilities include the following equipment

The LMP is also provided with transfer lines consisting of flexible hoses aimed at pumping the mud and bulk materials to the PSV without interference with LMP operations The distance from the mud plant to the PSVs berthing area is approximately 100 meters

According to the operatorrsquos procedures the piping shall be regularly inspected and loadingoffloading operation of the supply vessels manned in order to avoid undetected spill Dedicated equipment will be available at the Logistic base for a prompt response in case of any release to the marine environment and the Base personnel trained to its use

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

26

Limassol Port

bull Limassol Port has been the first port to accommodate oil amp gas companies in 2011

bull It has mainly served Noble energy in its first drilling

bull The companies have chosen to relocate in Larnaca mainly due to the fact that Limassol has been too congested and busy compare to Larnaca

bull CPA has provided the companies with Long ndash mid ndash short term option with regards to their relocation at Limassol port (see diagram)

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

27

Vasiliko Port

bull Although Vasiliko has always been the Industrial Port of Cyprus it is not deemed adequate to support drilling operations mainly due to the presence of heavy industrial activity and lack of available space

bull The ministry of Energy is planning to implement the LNG Pant project in the area

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

28

Vasiliko Energy Centre

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

29

Other Considerations

bull Preparation of a High Level Master Plan regarding the Impact from Hydrocarbon Development at the port of Larnaca

bull Compiled by Lloydrsquos register on behalf of Larnaca Municipality on October 2014

bull Recommendations include bull The specification of control mechanismsbull Common operation of all companies for the management of

NORM and TENORM materialsbull Awareness and communication of local community for

operationsbull Communication campaignbull In case of maximization of operations relocation to an

industrial area should be preferred bull Complains suggestion collection mechanism bull Training sessions for the publicbull Cooperation between cruise companies oil companies and CPAbull Optimization of mud plant through synergies between all

companies

30

31

Questions

• Slide 1
• Contents
• The History
• The History cont
• The History cont (2)
• The energy prospects
• The operations
• The operations (2)
• Upstream Oil amp Gas Logistics
• Typical requirements of a multi-user base
• Supply Base Management typical requirements
• Core Services in an Integrated Logistics Base
• Core Logistics Requirements
• Bulk Storage and Drilling Fluids Manufacture
• Environmental and Waste Management Services
• Waste Management
• Supply Base Examples
• The Cyprus Ports in the Oil and Gas Industry
• Larnaca Port
• Larnaca Port cont
• Larnaca Port Logistics Operations
• Larnaca Port Logistics Operations (2)
• Larnaca Port Logistics Operations (3)
• Larnaca Port Liquid mud production
• Larnaca Port Liquid mud production (2)
• Limassol Port
• Vasiliko Port
• Vasiliko Energy Centre
• Other Considerations
• Slide 30
• Slide 31
• Questions

31

Questions

• Slide 1
• Contents
• The History
• The History cont
• The History cont (2)
• The energy prospects
• The operations
• The operations (2)
• Upstream Oil amp Gas Logistics
• Typical requirements of a multi-user base
• Supply Base Management typical requirements
• Core Services in an Integrated Logistics Base
• Core Logistics Requirements
• Bulk Storage and Drilling Fluids Manufacture
• Environmental and Waste Management Services
• Waste Management
• Supply Base Examples
• The Cyprus Ports in the Oil and Gas Industry
• Larnaca Port
• Larnaca Port cont
• Larnaca Port Logistics Operations
• Larnaca Port Logistics Operations (2)
• Larnaca Port Logistics Operations (3)
• Larnaca Port Liquid mud production
• Larnaca Port Liquid mud production (2)
• Limassol Port
• Vasiliko Port
• Vasiliko Energy Centre
• Other Considerations
• Slide 30
• Slide 31
• Questions

Questions

• Slide 1
• Contents
• The History
• The History cont
• The History cont (2)
• The energy prospects
• The operations
• The operations (2)
• Upstream Oil amp Gas Logistics
• Typical requirements of a multi-user base
• Supply Base Management typical requirements
• Core Services in an Integrated Logistics Base
• Core Logistics Requirements
• Bulk Storage and Drilling Fluids Manufacture
• Environmental and Waste Management Services
• Waste Management
• Supply Base Examples
• The Cyprus Ports in the Oil and Gas Industry
• Larnaca Port
• Larnaca Port cont
• Larnaca Port Logistics Operations
• Larnaca Port Logistics Operations (2)
• Larnaca Port Logistics Operations (3)
• Larnaca Port Liquid mud production
• Larnaca Port Liquid mud production (2)
• Limassol Port
• Vasiliko Port
• Vasiliko Energy Centre
• Other Considerations
• Slide 30
• Slide 31
• Questions