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    2008EnvironmentalStatement

    BPWestJavaLtd. Bravo,CentralPlant,MikeMike,EchoFlowStation

    Muarakarang&TanjungPriokOnshoreReceivingFacilities

    JavaShorebase

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    Foreword

    IampleasedtoannouncethatBPWestJavaLtdMuarakarang

    and Tanjung Priok Onshore receiving facilities/ORF has

    achieved the ISO 14001 certification in October 2008. This is

    achievementfollowingpreviouscertificationof5flowstations&Shorebase.I alsoproudlyannouncethatBPWestJavahas

    proven its commitment to the environment by attaining a

    GreenPROPER1statusfromtheIndonesiaStateMinistryof

    theEnvironment(MENLH)in2008.

    Mostoftheenvironmentalmanagementprogramssetbythosecertifiedstations

    have met their objectives and targets, i.e., improving produced water quality,

    maintaining gas flaring level, and maintaining waste segregation practices,

    including meeting the Indonesian applicable environmental laws, regulations

    andrequirements.

    The environmental targets set for 20072008 show a continuing reduction in

    emissionsandfurtherimprovementinenvironmentalperformance. BPsgoalto

    become a leading company in pursuit of Best Practice in environmental

    performancecontinues. TothisendourgoalsaresimplystatedasNoAccident,

    NoHarmtoPeople,andNoDamagetotheEnvironment.

    In 2008, our objectives remain to reduce our atmospheric emissions, waste

    generated and good housekeeping, improve our oil spill preparedness, and

    maintain compliance with Indonesian applicable environmental laws &

    regulations. Next year we will improve integration of hazardous wastemanagementamongstationsandJavaShorebase,integratethemanagementof

    issuesofoilspill,Halonphaseout,andregulationcompliance.Wewillcontinue

    to identify and implement options that reduce the potential impact of our

    operations.

    I am delighted to present the Environmental Performance Report for 2008

    covering the Bravo, Central Plant, MikeMike, Echo flow stations; Java

    Shorebase;andMuarakarangandTanjungPriokORF.

    IgnatiusTennyWibowo

    ExecutiveVicePresidentJava

    2

    1PROPER (Company Environmental Performance Rating Evaluation Program) represents the Indonesia Governments annualassessments on company waste-management (including & particular toxic waste), environmental impact control, environmental

    impact assessment reporting, environmental management system, and community development operations.

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    Introduction

    InlinewiththecorporategoalofNoDamagetotheEnvironment,BPWestJava

    Ltd. Bravo, Central Plant, MikeMike, and Echo flow stations,Java Shorebase,

    Muarakarangand

    Tanjung

    Priok

    ORF

    recognize

    their

    responsibility

    to

    protect

    the

    environment while conducting their operations. In this regard, every operational

    activitythatcausessignificantenvironmentalimpactsareidentifiedandmanagedin

    ordertoreduceand/oreliminatethepotentialimpactstoenvironment.

    After successful implementation of environmental management, BP WestJava is

    committedtoimplementingitsenvironmentalmanagementundertheframeworkof

    the ISO 14001:2004 Standard on Environmental Management System/EMS at all

    platforms inWestJava. Severalsiteshavebeencertified, i.e.,Bravo,CentralPlant

    Complex,andJavaShorebasesinceNovember2002,thenexpandingthesystemto

    theMikeMikeFlowStationinDecember,2003,andEchoFlowStationinJuly2007.Afterthisachievement,duringthisyear2008,theMuarakarangandTanjungPriok

    OnshoreReceivingFacilities(ORF)toobtainISO14001certification.

    The EMS shall be part of our business processes to minimize impacts on the

    environment. ByhavingthisEMS,italsosatisfiesBPsGettingHSERight(gHSEr),

    and 2006 ERNP, Environmental Performance Requirements (EPR 7) Flaring and

    Ventingand(EPR9)OzoneDepletingSubstances.

    BelowistheISO14001:2004EMSframework.

    Figure1.TheEnvironmentalManagementSystemCycle

    3

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    The ISO 14001 standard requires that the environmental management systembe

    basedonthethreefundamentalcommitments,i.e.Compliancewithregulationsand

    other environmental requirements, pollution prevention, and continual

    improvement. Theserequirementsarerealreflectionsofourenvironmentalgoals,

    NoDamagetotheEnvironment.

    The current Environmental Policy was signed on 1st May 2008by the WestJava

    OperationDirectorastopmanagementforBravo&CentralPlant,MikeMike,and

    Echoflowstations,JavaShorebase,MuarakarangandTanjungPriokORF.

    NosignificantchangeshaveoccurredwithrespecttotheEnvironmentalPolicy,and

    we are still focusing on managing solid waste, produced water discharges, GHG

    emissionsmanagement,andnaturalresourcesusage.

    As a result of corporate reorganization, the management has rearranged and

    appointed the Operation Managers as the Environmental Management

    Representatives (EMR) in order to increase the EMS effectiveness. The EMR has

    responsibilitytoensurethatISO14001requirementsareestablished,implemented,

    and maintained, as well as reporting on the performance of the EMS to BP top

    management.

    SeeFigure9fortheOrganizationalStructureDiagram.

    Currently, the scope of certification for the ONWJ field isBPWest JavaLtd.,

    Bravo,CentralPlant,MikeMike,andEchoOffshoreOilandGasProcessing

    Facilitiesand

    Operation

    Facilities;

    Java

    Shorebase,

    Muarakarang

    and

    Tanjung

    PriokOnshoreReceivingFacilities.

    UsingtheEMSISO14001schemeallowsustoimproveoursystemcontinually.By

    consistent implementation, we achieved a Green PROPER11 status from the

    IndonesiaStateMinistryofEnvironment(MENLH)in2008.

    This 2008 Environmental Statement formally reports the environmental

    performanceofBravo&CentralPlant,MikeMike,andEchoflowstations,and

    Java

    Shorebase,

    Muarakarang

    and

    Tanjung

    Priok

    ORF

    for

    the

    period

    of

    2007

    2008. It alsoexplainstheEMSframeworktomanagetheenvironment.

    4

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    55

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    Descriptionofouroperations

    BP

    WestJava,

    Ltd.,

    operating

    the

    ONWJ

    contract

    area,

    is

    located

    offshore

    of

    NorthWestJavaisland. ItstretchesfromnorthofCireboncitytotheThousand

    Islands Kepulauan Seribu, at a distance of 50 miles from the shoreline. The

    production facilities comprise 468 producing strings, 171 producing platforms,

    and40processingandservicefacilities. Morethan1000milesofpipelineinter

    connect the production facilities. It is also facilitatedby a central processing

    plantandacrudeoilstoragefacility.

    TheBPWestJavaLtdareaisformallydefinedat(420550Southand10550

    0700East,500608Southand10630 10825 Eastapproximately.

    Figure2. BPWestJavaLtd.OffshoreOperationsMap

    6

    Main production of all ONWJ operations is crude oil and gas with total

    production figures from all platforms at 24,000 BOPD and 260 BBTUD of gas.

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    TheultimatewastedisposalpointistheJavashorebase,andthenthehazardous

    wasteisforwardedtoathirdpartycompanywhoislicensedandapprovedfor

    hazardouswaste disposal. In addition, the shorebasehas achieved ISO 14001

    certificationandtheircurrentcertificateisvaliduntilJune,2011.

    BP WestJava Ltd has eleven manned platforms & one crude terminal located

    offshore,threeonshorereceivingfacilities(ORF,)andashorebaseasthelogistics

    base.

    The coordinates of the MikeMike, Bravo complex, Central Plant complex, and

    EchoFlowStation,andMuarakarangandTanjungPriokORFareasfollows:

    MikeMike 055220S 1071754E

    Bravo 055451S 1074345E

    CentralPlant 055450S 1074400E

    Echo 055220S 1071754E. MuarakarangORF060625.66 S,10646 45.46 E

    TanjungpriokORF0606 38.29 South,10651 46.89 East

    The four platform complexes are offshore facilities surroundedby the sea and

    recognizedastraditionalfishingwatersbytheindigenouslocalfishermen.

    LogisticalsupportforBravo,CentralPlant,MikeMike,andEchoisprovidedby

    various marineboats / vessels. There is no regular helicopter transportation

    exceptforemergencysituations.

    CentralProcessingPlant

    The Central Plant consists of five platforms that are interconnectedbybridges

    namelyPlatformAforcrudestabilization,PlatformBforgasgathering,Platform

    Cforthedewateringunit,Junction,andQuarters..

    The Central Processing Plant receives produced liquid ( 94,000 BFPD) from

    mostoftheplatformsintheONWJfieldtobefurtherseparatedintheseparator.

    TheCentralPlantseparator isa3rdstageseparator that functionstosplitcrude

    oil, associated gas, and produced water. Maximum water content from this

    separationprocessis1%weightandisfurthertransportedtothecrudeterminal,

    FSOArcoArdjuna. Recoveredgasistransferredtoaboostercompressorforgas

    sales. Lowpressuregasthatcannotbeutilizedanymoreisflared.

    7

    Producedwateristhenfurthertransferredtotheproducedwaterprocessingunit

    (DewateringUnitWemcoDepurator)withatotalcapacityof260,000barrelsof

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    water per day. Total produced water at current production is 70,000 80,000

    BWPD. Themaximumoilcontent inproducedwaterdischarges ismaintained

    accordingtoregulations,i.e.,below50ppm. Awastewaterdischargepermitno

    413/2007 hasbeen obtained from the Minister of the Environment this year as

    compliance to Government Regulation No. 19/1999 pertaining to sea pollution

    prevention.

    ThemaximumpersonnelonboardCentralPlantareapproximately30atanyone

    time, of which 15 are BP personnel (including 2 offshore installation manager

    workingbacktoback). Others(15personnel)arecontractorssuchascatering

    crews,maintenanceoutsourcingcrews,andfieldsupportteampersonnel,doctor,

    etc.).

    Asinnormaloilandgasproducingandprocessingfacilities,CentralPlantuses

    various

    chemicals,

    gas

    and

    liquid

    fuel,

    and

    emits

    flue

    gas

    which

    is

    flared

    as

    unprocessedgas. Thefacilityalsogeneratesvarioussolidandliquidwastessuch

    asmetal,wood,paper,food,grease,chemicalwaste,etc.

    Figure3. CentralProcessingPlant

    BravoComplex

    Bravohassix(6)platformcomplexesthatareinterconnectedbybridgesand20

    remote platforms. The six platforms are the B2C Compression Platform, B1C

    Compression

    Platform,

    BService

    Platform,

    B

    Process

    Platform,

    BB

    Well

    Platform,andBCSLivingQuartersplatform.

    The Bravo complex currently produces approximately 7500 BPD of wet crude

    and25MMSCFDofgas.

    8

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    Themaximumpersonnelonboard theBravoComplexareapproximately55at

    any one time, of which 26 are BP personnel (including 2 offshore installation

    manager working back to back). Others ( 29 personnel) are contractors

    (cateringcrew,maintenanceoutsourcingcrew,andfieldsupportteampersonnel,

    etc.).

    Figure4. BravoComplex

    MikeMikeComplex

    MikeMike has four (4) platform complexes that are interconnectedbybridges

    and3activeremoteplatforms(APNA/B/D). ThefourplatformsareMikeMike

    Compression (MMC), MikeMike Flow Station (MMF), MikeMike Service

    Platform(MMS),andMikeMikeJunctionPlatform. Aproductionseparatorwas

    not operated because all wet crude is sent to the Central Plant by sub sea

    pipeline. TheMikeMikeproducingcomplexcurrentlyprocessesapproximately

    1,500BPDofwetcrudeand120MMSCFDofgas.

    ThetotalnumberofemployeesattheMikeMikeComplexisapproximately33at

    any one time, of which 22 are BP personnel (including 2 offshore installation

    manager working back to back). Others ( 13 personnel) are contractors

    (catering

    crew,

    maintenance

    outsourcing

    crew,

    and

    field

    support

    team

    personnel,

    doctor,etc,).

    9

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    Figure5.MikeMikeFlowStation

    EchoComplex

    The

    Echo

    Complex

    has

    four

    (4)

    platform

    complexes

    that

    are

    interconnected

    by

    bridges namely the Echo Service Platform, EA Well Platform, Echo Process

    Platform, and Echo Compression Platform. There are currently 17 operated

    remoteplatforms(unmanned)withaproductionrateof11,000BPDofwetcrude

    and 18 MMSCFD of gas. The Echo Complex consists of some of the oldest

    platforms,builtin1972andlocatedintheeasternpartoftheONWJfield.

    The Echo complex also has installed a Vapor Recovery Unit (VRU) that can

    recover2.5MMSCFDofgas. Thisrecoverygasisusedforgasliftandadditional

    gassales.

    Themaximumpersonnelonboardisaround33peoplewhoworkbacktobackin

    a12dayshiftsystemandstaysintheplatformlivingquartersduringtheirduty.

    Figure6. EchoFlowStation

    10

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    JavaShorebase

    TheBPWestJavaLtd Shorebase,whichoperatesasaconsolidatedShorebasein

    KawasanBerikatNusantara (KBN)Marunda, isapartof theJavaPerformance

    Unit.ItislocatedinNorthJakartaattheMarundacoastneartheBlencongRiver.

    The total area used is about 3.5 hectares, complete with facilities such as

    shelteredstorage,piperackstorage,offices,coolrooms,andjetty.Theecologyof

    Shorebase is surrounded by seawater, with low biodiversity and local

    communitywithfishermenandindustriallaborers.

    AllactivitiesatShorebasearedesignatedasmainsupplychainsinsupportingoil

    and gas exploration and production activities of BP WestJava Ltd. ; including

    Hazardouswastetemporarystoragefromoffshoreandonshoreoperations,tobe

    disposedoftocertifiedexternalparties.

    MuarakarangORF

    The Muara Karang ORF is the main gas receiver from the NorthWestJava

    Offshore whereby the gas is distributed to PLN (State Owned Electricity

    Company),namelythePT.IndonesiaPower/IPUBPPriok(throughtheTanjungPriok OnShore Receiving Facilities) and PT.PJB UP Muara Karang and PGN.

    This facility is guarded and monitored continually for 24 hours and the

    monitoringsystemoftheGasflowofONWJisdoneusingtheSCADASystem.

    11

    The Gas which is distributed from ONJW to the Customers have an average

    BBTUDofaround252atanaveragepressureof350PSIG.TheuseofgasbyPLN

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    is for the power plant fuel, and PGN. Gas would be distributed back to

    industries,suchasceramic,plastic,powerplant,theTransJakartabusfuel,andit

    wouldbedistributeddirectlytohousehold.

    Tanjungpriok

    ORF

    The Tanjung Priok ORF is the main ONWJ gas receiver that is distributed

    throughtheMKORFtosupplytheneedsoffuelatPLNPTIPUBPPriok.From

    thispointitrequiresanaverageconsumptionof35BBTUDofgasforeachofits

    ElectricityGenerator/PLTGU,wherebyPTIPUBPPriokhas6unitsofPLTGU.

    Figure7. MuarakarangORF

    Figure8. TanjungPriokORF

    12

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    Figure9.OrganizationalStructureDiagramofJavaFieldOperationsOrganization

    Howweidentifyandmanagepotentialimportant

    environmentalimpacts

    TheheartofdevelopinganEMSisenvironmentalaspectsandimpactsidentification.

    An environmental aspect is an element of an organizations activities, products,

    and/or services that can interact with the environment. Thebasic process of our

    environmentalaspectidentificationcanbeseeninthefollowingdiagram.

    Figure8. IdentificationofEnvironmentalAspectsandImpacts

    13

    Input OutputPROCESS/ACTIVITY/OPERATION

    Natural

    resources

    Consumption

    Dischargeto

    Water

    Potential

    Leakage / Spill

    WasteDisposal

    Emissions/DischargestoAir

    West Java OperationsDirector

    Deputy JFOManager

    West OperationsManager

    East OperationsManager

    MarinePerformance

    Manager

    OperationsHSE Coordinator

    Operations

    Support & IFPManager

    Team Assistant

    offshore office

    7 OIM position(1:1)

    West Operations

    Coordination Manager

    East Operations

    Coordination Manager

    6 OIM position(1:1)

    7 OIMPosition (1:1)

    6 OIM

    Position (1:1)

    West Java OperationsDirector

    Deputy JFOManager

    Deputy JFOManager

    West OperationsManager

    East OperationsManager

    MarinePerformance

    Manager

    OperationsHSE Coordinator

    Operations

    Support & IFPManager

    Team Assistant

    offshore officeoffshore office

    7 OIM position(1:1)

    7 OIM position(1:1)

    West Operations

    Coordination Manager

    West Operations

    Coordination Manager

    East Operations

    Coordination Manager

    East Operations

    Coordination Manager

    6 OIM position(1:1)

    6 OIM position(1:1)

    7 OIMPosition (1:1)

    6 OIM

    Position (1:1)

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    Fromthediagram,itcanbeseenthatoneprocess/activity/operationcanhavemore

    thanoneenvironmentalaspect(displayedinbluecolor). Thisisthereasonwhythe

    identification process needs high involvement from operations personnel for each

    specificprocess,toavoidanymisidentificationofenvironmentalaspects.

    BPWestJavaLtd.Bravo,CentralPlant,MikeMike,andEchoflowstations,Java

    Shorebase,andMuarakarangandTanjungPriokORFhaveidentifiedandevaluated

    theirenvironmental aspectsand impacts. Theassessmentwasdonebasedon the

    followingconsiderations:

    1. Legalandotherrequirements

    2. Frequencyofoccurrence

    3. Scaleofimpact

    4. Geographicalimpactdistribution5. Impactrecoverycost

    6. Effectonexternalissues

    7. Recoverytimeoftheimpact.

    A scoring system (weighted average method) is used to determine the

    significanceofimpacts. Inaddition,ifthereareanylegalandotherrequirements

    relatedtotheaspect/impact,thesaidaspect/impactisautomaticallyconsidered

    significant.

    These (negative)significantaspectsaresummarized, listed,andregisteredasa

    basisfordevelopmentoftheEMS.

    Theimpactsaremanagedinanumberofways:

    1. Operational Control by developing Environmental Procedures or

    WorkingInstructionsorusingrelatedStandardOperatingProcedures

    2. EstablishingObjectivesandTargets

    14

    3. Performingfurtherinvestigationforuncertainimpacts.

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    Ourimpactsandperformance

    The following is a description of the significant environmental impacts of the

    operations and the Objectives & Targets for BP West Java Ltd. Some

    management

    programs

    at

    Bravo

    &

    Central

    Plants,

    MikeMike,

    and

    Echo

    flow

    stationsandMuarakarangandTanjungPriokORFhavebeenaccomplishedand

    updatedasfollows:

    15

    Issue: Flaring&Venting

    BP has publicly stated its position on climate change and its commitment to

    reduce the production of greenhouse gases that contribute to global warming.

    Elimination or minimization of flaring and venting supports the intent of these

    commitments. ExcellenceinflaringandventingperformancedemonstratesBPs

    responsible custodianship of hydrocarbon resources, and improved gas

    utilizationmaypresentfiscalopportunitiesderivedfromrecoveredproduct.

    Flaringand/orventingofgascanberequiredinoilandgasoperationstoensure

    safe facility operation or to dispose of oilproductionrelated gas which, for

    commercialortechnicalreasons,cannotbemarketedorutilized. Gasdisposalis

    typicallyachievedbydirectventing,bycontrolledburning(flaring).

    Impact

    Flares and vents release greenhouses gases and other pollutants to the

    atmosphere, either as components of gas or as combustion products, and are

    considered tobe a contributing factor to climate change. Specifically, carbon

    dioxide (the principle combustion product) and vented methane contribute to

    global warming, however, vented methane is typically perceived as more

    environmentallyharmful. Forexample,methanehasaglobalwarmingpotential

    21 times higher than an equal mass of carbon dioxide. In addition, flares and

    ventscan impactregionaland localairquality,andmaycauseadisturbance to

    thecommunity.

    ThemainsourcesofcarbondioxideatBPWestJavaBravo,CentralPlant,Mike

    Mike,andEchoare fromflaring,combustionengines (i.e., fuelburning forprocess

    heatingandturbineemissionsduringpowergeneration).Whilethesourceofcarbon

    dioxide at Muarakarang and Tanjung Priok ORF is from atmospheric elevated

    Vents/Cold Vents. All figures for atmospheric emissions and energy usage are

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    16

    calculatedbasedonfueluse,gasflared,andestimationofventing.

    Management

    BP WestJava Bravo, Central Plant, MikeMike, and Echo flow stations and

    Muarakarangand

    Tanjung

    Priok

    ORF

    have

    established

    acomprehensive

    program

    to reduce the GHG emissions, i.e., implementing preventive maintenance thru

    MAXIMO themaintenancemanagementsystemsoftware forallcombustion

    engines, conducting regular calibrations for all critical metering instruments,

    developing a GHG emission reporting procedure, and updating GHG emission

    performancequarterlytomanagement.Aftersuccessfulachievementin2003,this

    programisstillcontinuingasaregularprogram.

    For Muarakarang& TanjungPriok ORFhas also conductedregular monitoring

    and evaluation of Hydrocarbon that goes to the Cold vent. In year 2008, the

    management has developed an assessment program to look for potential

    reductionforGHGemission,startingwithcalibrationandmanualgassampling.

    In year 20072008, the GHG reduction programs at Echo flow station are still

    focusedongasflaring. Theseareaccomplishedbyimprovingtheflaringstrategy

    andimprovingthemeteringsystem/recording.

    Objectives&Targets:

    o Muarakarang&TanjungPriokORFhavesettargettomaintainCO2toColdventatmaximumthe2007figure(0.003MMSCFD);andtocomplywiththe

    nationalandlocalemissionstandardsfortotalhydrocarbontovents.

    o Bravo,Quarters,andMikeMikearecontinuingregularprogramtomaintain

    CO2emissionstoatmosphere.

    o EchohassettargettoreduceCO2emissiontoatmosphere10%fromthe2007

    figurebyQ42008.

    Performance

    o Muarakarang&

    Tanjung

    Priok

    ORF

    :Based

    on

    monthly

    GHG

    reporting

    up

    to

    June08, the CO2 emission hasbeen maintained at maximum level of 0,003

    MMSCF.Forhydrocarbontotalemittedtothecoldventhascompliedwiththe

    nationalandlocalemissionstandards.

    o GasflaringatBravohasbeenmaintainedatmaximum2007figure.Resultsup

    toNov2008,totalgasflaringhaveachieved30%reductionforLPFlare,and

    78%reductionforHPFlare.

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    17

    o IntheCentralplantcomplex,totalresidualflaringwasincreasedsignificantly

    duetotheB1Cshutdown inApril2008.Soonafterthatmonth,gasflaring

    achievedasteadyconditionoratnormalflaring.STEPRegenerationgascycle

    fordehydrator

    can

    not

    stop

    while

    B1C

    s/d,

    so

    gas

    outlet

    from

    Dehydrator

    that

    shouldgotosuctionB1Cwasdivertedtoflare.

    o InMikeMike,gasflaringfromHPFlareisincreasedinearly2008compareto

    2007.But,totallyfigureuptoOct2008hasachieved33%reductionfromthe

    total2007figure.During20072008.thereisnogasflaringformLPFlare.

    o ThegasflaringreductionprogramforEchoisstill inprogress.Achievement

    uptoOct2008isstillslightlyabovetargetofmaximum2007figure.Total2007

    gasflaringis83.87MMSCF,andTotaluptoOct2008=84.40MMSCF.Dueto

    intelligentpig20MGLECOMtoNGLBandblackoutduetoair intakegas

    generator081AGD04.

    Thefollowinggraphsshowtheperformanceofflaringprograms.

    Bravo LP Flare 2007 vs 2008

    0

    2

    4

    6

    8

    10

    12

    Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

    MMSCF

    2007

    2008

    Total 2007= 78.14 MMSCF

    Total up to Nov 2008= 54.18

    MMSCF

    Bravo HP Flare 2007 vs 2008

    0

    10

    20

    30

    4050

    60

    70

    80

    90

    Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

    MMS

    CF

    2007

    2008

    Total 2007= 240,055 MMSCF

    Total up to Nov 2008= 50,874

    MMSCF

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    MM HP Flare 2007 vs 2008

    0

    5

    10

    15

    20

    2530

    35

    40

    Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

    MMSCF

    2007

    2008

    Total 2007= 100.64 MMSCF

    Total up to Oct 2008= 67.50 MMSCF

    ECHO- Flare 2007 vs 2008

    0

    5

    10

    15

    20

    25

    30

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

    MMSCF

    2007

    2008

    Total 2007 = 83.87 MMSCF

    Total up to Oct 2008 = 84.40 MMSCF

    FuturePlans

    As the gap analysis of the BP Group Environmental Performance Requirement

    (EPR 7. Flaring & Venting) has been completed gaps on mandatory &

    recommendedrequirementsfortheexistingoperationarebeing closedthrough

    environmental management programs & objectives, and monitored through

    managementreviewsandestablishedaudits.

    18

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    19

    Issue:WaterManagement

    Water is abasic need for all life. Many types of natural water resources are

    integraltoecosystemmaintenanceandsocietalwellbeing. Theseincludemarine

    systemssuchascoastalwater,seas,andoceans. Marinewaterresourcesarealsoimportantbutfrequentlyundervalued.

    One of the primary BP concerns is with wastewater discharges. The guiding

    principleisthatBPsdischargesofwastewaterwillnotdiminishthevalueofthe

    receiving watercourse and that a precautionary approach will be taken to

    managingtheimpacts.

    AllproducedwaterraisedfromallflowstationsatBPWestJavaistreatedatthe

    CentralProcessingPlant. Besidesproducedwater,domesticwastewatercoming

    fromkitchens,laundry,&sanitaryactivitiesarealsodischargedtothesea.

    Impact

    Directdischargeofwastewatercanpotentiallygivesignificantimpactstolowersea

    waterquality. Incontrastwithlandecosystems,inawaterenvironmentpollutants

    quicklyspreadoverlargedistancesfromthesourcesofpollution.

    BP WestJava continuously discharges treated produced water at a flow rate of

    around60,000to80,000barrelsofwaterperday. Sincethedischargeisconcurrent

    withtheproductioncycle,impacttotheseaecologyisoneofourmainfocuses. Thepotentialsecondaryimpactofsuchdischargesmaygivedirectimpacttotheincomes

    oflocal,traditionalfishermen.

    Management

    Prior to discharge, produced water is treated in a dewatering unit called a

    WEMCODepurator. Inyear2008,improvementprogramforproducedwater

    dischargeiscontinuinginordertopreventspill/leaksandmaintainproduced

    waterquality.

    Themaximumoilcontentaccordingtoapplicablelegislationisbelow50ppm.

    Produced water discharged are monitored using both of continuous and

    manual sampling methods. In year 2008, a continuous oil monitoring

    equipmentisinstalled,sothatrealtimeoftheoilcontentofproducedwater

    canbe monitored. In addition the regular sampling (twice a day) is also

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    conductedtoensurethatthequalityofdischargescomplywiththeregulation.

    A 5year validity waste water discharge permit no 413/2007 has alsobeen

    obtainedfromtheMinisteroftheEnvironmentin2007.

    Establishedproductionduringabnormaloperation.

    RegularreportingtotheGovernmentmonthly.

    Performance

    Since2005,producedwaterdischargesareconsistentlybelow50ppm.The

    figure below illustrates this performance to date during 2008. Produced

    waterdischargedhascompliedtothestandard.

    2008- Produced Water Discharge

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

    Oil Content

    FuturePlans

    BP West Java is continuing to focus on achieving compliance to the new

    government regulation No 4/2007, particularly for quality of sanitary waste

    discharges.

    20

    Standard: 50

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    21

    Issue:WasteManagement

    Ourproductionactivitiesconsumenaturalresourcesandothermaterials. These

    activities result in the generation of solid and liquid waste of variable

    characteristics.

    Waste

    management

    is

    recognizedby

    BP

    as

    a

    significant

    global

    environmentalissue. Thecleanupofstorage,handling,treatment,anddisposal

    facilitiesmayrepresentsasignificant longterm financial liability forBP if these

    aspectsareeitherpoorlymanagedorwhere legislationchangesover time. The

    effective management of waste is therefore a fundamental part of our

    EnvironmentalManagementSystem.

    Impact

    Being offshore locations, it is very important to manage waste, especially toxic

    and

    hazardous

    wastes.

    Improper

    waste

    management

    could

    lead

    to

    sea

    water

    pollution. Moreover, the local vicinity is a fishing ground where sea water

    qualityisofutmostsignificance.

    Management

    ProcedurestomanageToxicandHazardousWaste andNontoxicWaste

    has been established, communicated, and implemented to all parties,

    especiallycontractors.

    Waste segregation is implemented by color code: red for toxic and

    hazardouswaste,greenfororganicwaste,andyellowforinorganicwaste.

    InorganicwastesthatareallnonbiodegradablearesenttotheJavashore

    baseandwillbedisposedofatanapprovedpubliclandfill. Wastepaper/

    and PET plastic / drinking water bottles are collected for recycling

    (throughagarbagesubcontractor).

    ForBravo,CentralPlant,MikeMike,andJavaShorebase,improvementfor

    B3andnonB3wastedisposalmanagementsystemshasbeenestablished

    since 2003, while Echo flow station since 2007, and Muarakarang and

    TanjungpriokORFsince2008.Therefore,thetargetsforyear20072008are

    to maintain consistent implementation of relevant procedures and work

    instructions.

    Thisincludes

    management

    of

    waste

    generated

    from

    standby

    boats.

    In year 2008, a good housekeeping program hasbeen launched for all

    stations as part of waste management programs. This program is

    facilitatedbytheJavashorebase,throughintensivecommunicationamong

    offshore onshorestations,andwithsuppliers.

    JavaShorebasehasinitiatedimprovementprogramsinitswastehandling

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    22

    using steelbasket designed according to the type and characteristic of

    waste tobe transported,andreducing thenumberof woodenpalletasa

    naturalresource.

    Performance

    AllB3wastepermitshavebeenobtainedasperapplicableregulations,

    i.e.,forvesselsandtheJavashorebaseastheB3temporarywaste

    storagefacility. ThefinalB3wastelandfill /destinationisalso

    approvedbytheGovernment.

    B3wastereductionperformanceisasfollows:the2008figuretendsto

    increase slightly due to the housekeeping program in all stations.

    SignificantincreaseofhazardouswasteisinBravoFlowstation.

    Thereisasignificantreductionintheuseofwoodenpalletformaterials

    andwastehandling,startingonSeptember2008.

    Hazardus Waste 2006-2008

    0

    5

    10

    15

    20

    25

    30

    35

    40

    Bravo F/s Quarters Echo F/s Mike-MikeStation

    Ton

    2006 2007 up to Oct 2008

    Futureplans

    Keep maintaining current practice and compliance levels to all applicable waste

    managementlegislation,andimproveimplementationthroughanintegratedwaste

    managementprogramconsistently.

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    23

    Issue:OZONEDEPLETINGSUBTANCES

    Ozoneintheearthsstratosphereabsorbsmostoftheultravioletwavelengthsolar

    radiation

    (UV

    B)

    and

    so

    prevents

    it

    from

    reaching

    the

    earths

    surface,

    where

    it

    can

    bebiologically harmful. Halons, chlorofluorocarbons, and other chlorine and

    bromine containing compounds, known collectively as Ozone Depleting

    Substances(ODS),candestroystratosphericozoneandsoallowhigher levelsof

    UVBtoreachtheground

    OneofthemainconcernsatBPareHalons,primarilyHalon1301,typicallyused

    as explosion and fire suppressants in predominately BP E&P operations. This

    requirement excludes air conditioners fitted to vehicles, hermetically sealed

    domestictype appliances (e.g. refrigerators, chilling units, and portable air

    conditioners) with an inventory less than 3 kg and also the use of Halons incompanyaircraftandhelicopters.

    Impact

    InlinewiththeODSrequirement,BPWestJavashallnotuseHalonbasedfixedand

    portable fire suppression systems. Halocarbon inventories and losses shall be

    recordedonanannualbasis.

    Management

    Manage theHalon inventoryandreport toGroupHSSEannuallyand to

    theIndonesiangovernment. AllHalonsreleasedarereportedandloggedinTraction.

    Developed procedures to prevent Freon releases to the atmosphere during

    maintenanceofequipment.

    DevelopaHalonphaseoutplanforJavaPUtobeeliminatedby2010asper

    Indonesialegislativerequirements.

    Performance

    Halocarbon inventory hasbeen identified, recorded, and submitted to the

    relevantgovernment

    of

    Indonesia

    agency.

    Halon alternative substances are still under review and the result willbe

    submittedtoBPMIGASforapproval.

    Dispensation tovary fromGroupEPR9hasbeenobtained from theGroup

    EnvironmentalDirectorandBPWestJavaiscommittedtoeliminatingHalons

    usageby2010.

    MuarakarangORFhasachievedthetargetforFreonreduction. R12/Freonuse

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    in2008havebeenreplacedin2008withHFC134a.

    HalonPhaseoutprojecthasbeenstartedatMMf/sinthisyear(byinstalling

    CO2 snuffing at TGS AB) and at Quarters (currently under engineering

    design).

    Futureplans

    Wewillcontinue tomakeeveryeffort toeliminate theuseofODSs inaccordance

    withapplicablelaws&regulations.Themanagement integratedtheissueofHalon

    phaseoutprojectamongthestations.

    24

    Issue:OilandChemicalSpills

    E&Pactivitieshavethepotentialtogeneratepollutiontotheenvironment,oiland

    chemicalspills.

    It

    may

    happen

    to

    various

    environmental

    media

    such

    as

    water,

    caused by subsea pipeline leakage or overflows from process vessels during

    loading, unloading, or handling operations. If existing protection is not good,

    suchspillswillgotothesea.

    Impact

    All BP West Java production facilities are located offshore and some remote

    platforms are close to the shoreline. The sea surrounding platforms is a

    traditionalfishingarea. Spillsofoiltoseacandamagetheseaecologymayhave

    negativelong

    term

    consequences

    for

    the

    environment,

    neighboring

    communities,

    peoples livelihoods and their health. Additionally, if the oil spill spreads to

    shore, itcan impactsensitiveenvironmentssuchasmangrove forestsor fishing

    platforms. Cleanup, claims, and compensation then should be managed

    correctly.

    Finally, this can also impact company reputation if oil spill preparedness and

    timelyresponseisnotmanagedproperly.

    Management

    OperationalControl

    All hydrocarbon releases are reported in Traction, investigated, and

    monitoredforfollowupactions.

    An Integrity Management Plan hasbeen implemented to minimize the

    risksofspillsandleaks.

    Identificationofthespillrisksandinstallationofsecondarycontainmentto

    preventspillstoseaatEchoflowstation.

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    25

    OilSpillResponseandPreparedness

    PeriodicoilspilldrillforWestandEastOperationarea

    Ensurereadinessof theoilspillequipment (currentlykeptatBravoand

    Quarters)using

    MAXIMO

    system

    Upgrade the existing oil spill equipment by purchasing new oil spill

    equipmentasbackup/replacetheexistingone.

    EnhancetheTier2OilSpillResponsecooperationwithotheroilcompanies

    that are located inJakarta and WestJava province under BPMIGAS (the

    Oil&GasImplementingBody)coordination.

    Performance

    In2008, there2casesofhydrocarbonspill toseamore than1barrel. All

    spillsare

    internally

    reported

    in

    Traction

    and

    externally

    to

    the

    government.

    Operations took corrective and preventive action for any hydrocarbon

    releaseandmonitoredtheactioncloseouts.

    CompletedoilspilldrillforWestandEastarea.

    Completed maintained the oil spill equipment (oilboom, oil skimmer,

    powerpack,andupgradethemaintenancesystem).

    Return the oil spill equipment from Marunda to Papa f/s to cover West

    area.

    Futureplans

    Maintain

    the

    expectation

    of

    no

    spills

    to

    water

    by

    regularly

    holding

    oil

    spill

    responsedrills,upgradeandmaintainoilspillequipmentreadiness,review

    regularlyandupdate(asnecessary)theTier1OilSpillContingencyPlan,and

    workcloselywithotheroilcompanies,keystakeholders(bothatthenationaland

    regionallevel)tofinalizetheTier2OilSpillResponseProcedure.

    OilSpillDrill

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    OtherObjectivesandTargets

    Objective Target Status

    Allauditfindings

    relatedtoenvironment,

    bothinternaland

    external,corrective

    actionrequestsare

    closedoutonschedule.

    Nooverdue

    issueson

    correctiveand

    prevention

    actions.

    Allactionswereproperly

    monitoredandtheresponsible

    personreportsmonthlyabouttheir

    actiontakentoDocumentControl.

    Allopenactionswerecloseouton

    schedule.

    Maintainhighlevelof

    environmental

    awarenessofthe

    employeesandthe

    contractors.

    Increasethe

    environmental

    awareness.

    Implementedregularinhouse

    training,i.e.,

    ISO

    14001

    awareness,

    B3wastehandling,andregulation

    awareness.

    FurtherInformation

    References:

    1. Environmental Management System, Specification with Guidance for Use,

    ISO14001:2004.

    2. EMS ISO 14001 Manual BP WestJava Ltd. Bravo, Central Plant, Mike

    Mike, Echo,ORFMKTPandJavaShorebase.

    3. Related Environmental Procedures and Working Instructions of BP West

    Java Ltd. Bravo, Central Plant, MikeMike, Echo, ORF MKTP andJava

    Shorebase.

    4. ProgressReport of Environmental Management Program of BP WestJava

    Ltd. Bravo, Central Plant, MikeMike, Echo, ORF MKTP and Java

    Shorebase.

    26

    5. EnvironmentalPerformanceRequirement(EPR)GroupPractice

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    Glossary

    27

    ContinualImprovement

    Processof

    enhancing

    the

    environmental

    management

    system

    to

    achieve improvement in overall environmental performance in

    linewiththeorganizationsenvironmentalpolicy.

    Note The process need not take place in all areas of activity

    simultaneously.

    Environment Surrounding in which an organization operates, including air,

    water, land natural resources, flora, fauna, humans, and their

    interrelation.

    NoteSurroundinginthiscontextextendfromwithinan

    organizationtotheglobalsystem.

    Environmental

    aspect

    Elementofanorganizationsactivities,products,orservicesthat

    caninteractwiththeenvironment.

    Note A significant environmental aspect is an environmental

    aspectthathasorcanhaveasignificantenvironmentalimpact.

    Environmental

    impactAnychangetotheenvironment,whetheradverseorbeneficial,whollyorpartiallyresulting formanorganizationsactivities,

    products,orservices.

    Environmental

    management

    system

    The part of the overall management system that includes

    organizational structure, planning activities, responsibilities,

    practices, procedures, processes, and resources for developing,

    implementing, achieving, reviewing, and maintaining the

    environmentalpolicy.

    Environmental

    objective

    Overall environmental goal, arising from the environmental

    policy,thatanorganizationsetsitselftoachieve,andwhichis

    quantifiedwherepracticable.

    Environmental

    performance

    Measurableresultsoftheenvironmentalmanagementsystem,

    related to an organizations control of its environmental

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    aspects, based on its environmental policy, objectives, and

    targets.

    Environmental

    policy

    Statementby theorganization of its intentions andprinciples

    in relation to its overall environmental performance which

    provides a framework for action and for the setting itsenvironmentalobjectivesandtargets.

    Environmental

    target

    Detailed performance requirement, quantified where

    practicable,applicabletotheorganizationorpartsthereof,that

    arisesfromtheenvironmentalobjectivesandthatneedstobe

    setandmetinordertoachievethoseobjectives.

    HSE Health,Safety,andEnvironment.

    GHG Green House Gas: gases from which their concentration can

    increase earths temperature. For upstream operations, the

    focusisonCO2andCH4gases.

    EPR EnvironmentalPerformanceRequirementGroupPractice

    Feedback

    Telluswhatyouthink. Areourstatementseasytounderstand,notdetailedenough,

    orperhapstoocomplicated?

    Isthereanyfurtherinformationinwhichyouareinterested? Letusknowwhatyou

    think so we can improve our environmental reporting. If you have any queries

    aboutthisreportorgeneraloperations,pleasewriteortelephoneusandwewillbe

    happytoassist.

    PerformanceUnitLeader

    BPWestJavaLtd.

    Jl.TBSimatupangKav.88

    Jakarta12520

    Indonesia

    Tel. 622178548848

    Fax. 622178549060

    28

    The next Verified Environmental Statement (VES) willbe issuedby the end of

    December2011andwillcovertheperiod20092011.

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    VerificationStatement

    Wehave independentlyreviewed theBPWest JavaLtd.,Bravo,CentralPlant,

    MikeMike,andEchoFlowStationOffshoreOilandGasProcessingFacilities

    andOperationFacilities, MuarakarangandTanjungpriokOnshoreReceiving

    FacilitiesandJavaShorebaseEnvironmentalStatementandconcludeitrepresents

    a true and fair reflection of the environmental program and performance within

    20072008. Wehavefoundnostatementsinthisreportwhichwehavebeenunable

    to substantiate and verify through observations, visits, and a review of the

    appropriatesystems.

    29

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