equator principles report - oman refinery company · produced in the rfcc unit and new delayed...

Oman Oil Refineries and Petroleum Industries Co. Sohar Refinery, PO Box: 282 Falaj Al Qabail, PC: 322, Sohar Sultanate of Oman

HMR Environmental Engineering Consultants P.O. Box: 1295, CPO Seeb, Postal Code: 111 Sultanate of Oman Tel: (968) 24618800; Fax: (968) 24618811 Email: [email protected] www.hmrenv.com

Equator Principles Report

Liwa Plastic Industries Complex

2 September 2015

http://www.hmrenv.com/

Orpic, Sultanate of Oman Equator Principles Report (LPIC)

Issue and Revision

Rev. Document Description Date HMR Company

Prepared Checked Approved Approved

G

Equator

Principles

Report Draft

Fourth Draft for

Lender review 02/09/2015 HMR HMR HMR

F

Equator

Principles

Report Draft

Third Draft for

Lender review 18/08/2015 HMR HMR HMR

E

Equator

Principles

Report Draft

Third Draft for

Lender review 18/08/2015 HMR HMR HMR Orpic (Fahd)

D

Equator

Principles

Report Draft

Draft Review,

Issued for

Lender

Comments

25/06/2015 HMR Nashwa Nashwa and

Radhe

Noelia

Benzal

Martinez/

Fahd Sharaf

C

Equator

Principles

Report Draft

Draft Review,

Issued for

Lender

Comments

31/03/2015 Nashwa Nashwa Stuart

Noelia

Benzal

Martinez/

Fahd Sharaf

B

Equator

Principles

Report Draft

Draft review,

Issued for

CB&I and

Orpic comments

26/03/2015 Radhe Nashwa Stuart

Noelia

Benzal

Martinez/

Fahd Sharaf

A

Equator

Principles

Report Draft

Draft review,

Issued for

CB&I and

Orpic comments

26/03/2015 Radhe Nashwa Stuart

Noelia

Benzal

Martinez/

Fahd Sharaf

This document has been prepared for the above titled Project and it should not be relied upon or used for any other Project without the prior written authority of HMR Environmental Engineering Consultants. HMR Environmental Engineering Consultants accepts no responsib ility or liab ility for this document to any party other than the client for whom it was commissioned .


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Contents

Section 1. Introduction .................................................................................................................7

1.1. Report Boundaries ...............................................................................................................7

1.2. Assumptions and limitations .................................................................................................8

1.3. Project Description ..............................................................................................................8

1.4. Project location .................................................................................................................. 10

NGLE Plant .............................................................................................................................. 10

Pipeline Location ...................................................................................................................... 10

Petrochemical Complex in SIPA ................................................................................................ 11

1.5. Project contractual details ................................................................................................... 12

Section 2. Equator Principles ...................................................................................................... 14

2.1. EP1: Review and Categorization ......................................................................................... 14

2.2. EP2: Environmental and Social Assessment ........................................................................ 14

2.3. The Scope of EIA Document .............................................................................................. 15

Alternative Analysis .................................................................................................................. 16

Scope of Environmental and Social Management Plan ................................................................. 16

2.4. EP3: Applicable Environmental and Social Standards .......................................................... 17

2.5. EP4: Environmental and Social Management System and Equator Principles Action Plan ...... 17

2.6. EP5: Stakeholder Engagement ............................................................................................ 17

2.7. EP6: Grievance Mechanism................................................................................................ 17

2.8. EP7: Independent Review................................................................................................... 18

2.9. EP8: Covenants ................................................................................................................. 18

Host Country Environmental Regulatory Framework................................................................... 18

International Conventions Signed by Oman................................................................................. 21

2.10. EP9: Independent Monitoring and Reporting .................................................................... 22

2.11. EP10: Reporting and Transparency.................................................................................. 23


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Section 3. IFC Performance Standards ......................................................................................... 24

1. Assessment and Management of Environmental and Social Risks and Impacts .......................... 28

Indirect and Cumulative Impacts.................................................................................................... 31

Indirect Impacts ........................................................................................................................ 31

2. Labor and Working Conditions............................................................................................... 46

3. Resource Efficiency and Pollution Prevention ......................................................................... 47

4. Community Health, Safety and Security .................................................................................. 47

5. Land Acquisition and Involuntary Resettlement....................................................................... 47

6. Biodiversity Conservation & Sustainable Management of Living Natural Resources .................. 47

7. Indigenous Peoples ................................................................................................................ 48

8. Cultural Heritage ................................................................................................................... 48

Section 4. EHS Guidelines .......................................................................................................... 63

Applicable EHS Guidelines ........................................................................................................... 63

Noise ........................................................................................................................................... 63

Ambient Air quality ...................................................................................................................... 64

Treated Effluent Discharge ............................................................................................................ 65

In stack Concentrations ................................................................................................................. 66

References ....................................................................................................................................... 67


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List of Tables

Table 1 - EIA Contents ..................................................................................................................... 15

Table 2 - Omani Environmental Laws and Regulations ....................................................................... 19

Table 3: International Conventions signed by Oman applicable to the project ....................................... 21

Table 4: Impacts during the Construction & Operation Phase (Petrochemical Complex) ........................ 28

Table 5: Impacts during the Construction & Operation Phase (NGLE) ................................................. 29

Table 6: Impacts during the Construction & Operation Phase (Pipeline) ............................................... 30

Table 7: LPIC Stakeholder Engagement Matrix .................................................................................. 36

Table 8: IFC Performance Standards .................................................................................................. 49

Table 9: Noise Level - EHS Guideline vs Omani Standards ................................................................. 64

Table 10: Comparison between WHO standards as specified in IFC EHS Guidelines (Environmental,

Health, and Safety General Guidelines, April 30, 2007) and the Omani Ambient Air Quality Provisional

Standards ......................................................................................................................................... 64

Table 11: Comparison of effluent discharge standards in the EHS Guidelines for Large Volume

Petroleum-based Organic Chemicals Manufacturing (April 30, 2007) and the Omani Marine Discharge

Standard MD 159/2005 ..................................................................................................................... 65

Table 12: Comparison for in stack concentrations standards in the EHS Guidelines for Large Volume

Petroleum-based Organic Chemicals Manufacturing (April 30, 2007) and the Omani standard for Air

Emission from Stationary Sources, MD 118/2004 ............................................................................... 67


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List of Figures

Figure 1: LPIC Project Timeline ..........................................................................................................9

Figure 2: NGLE Plant Location ......................................................................................................... 10

Figure 3: Proposed Pipeline Route ..................................................................................................... 11

Figure 4: Proposed Petrochemical Complex ....................................................................................... 12

Figure 5: LPIC Value Creation .......................................................................................................... 37

Figure 6: LPIC Communication Plan ................................................................................................. 38

Figure 6: Villages within Study Area ................................................................................................. 39

Figure 7: Villages within the NGL Pipeline Route (100m Buffer) ........................................................ 44

Figure 8: NGLE Location and Project Boundary................................................................................. 46

List of Appendices

Appendix A – Environmental Impact Assessment (EIA)

Appendix B – Environmental Management Plan (EMP)

Appendix C – Rapid Risk Assessment (RRA)

Appendix D – Orpic Health, Safety and Environment (HSE) Manual

Appendix E – Orpic Human Resources (HR) Manual

Appendix F – Communications Plan

Appendix G – Key Stakeholders Engagement Matrix

Appendix H – Contractor Organization Charts

Appendix I – Traffic Management Plan

Appendix J – Security Plan

Appendix K – Community/Corporate Social Responsibility (CSR) activities

Appendix L – Orpic Emergency Response Plan

Appendix M – Orpic‟s Training Program (Corporate and HSE)

Appendix N- Initial Impact Assessment of Construction camps


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Section 1. Introduction

Oman Oil Refineries and Petroleum Industries Company (Orpic) is one of Oman s̀ largest companies and

a rapidly growing business in the Middle East s̀ oil industry. Orpic currently operates oil refineries (MAF

and Sohar Refinery), an aromatics plant and a polypropylene plant at its complex located within the port

of Sohar Oman. Placing safety and environment at the top of its core values, Orpic is committed to

protecting the environment and communities in which it operates. Identifying, managing and addressing

environmental and social impacts are key components of Orpic projects and operations, and integral to

ensuring the sustainable development of the nation.

The Liwa Plastics Industries Complex ((LPIC) (also known as Liwa Plastics Project (LPIC)) is a

transformational project aimed at improving Orpic‟s product mix and business model. The Project is

located on the existing Orpic facility in the Sohar Industrial Port Area (SIPA). Land within the zone has

already been allocated to allow for LPIC and the 2016-scheduled Sohar Refinery Improvement Project.

An Environmental Impact Assessment (EIA) and related environmental management plans (EMP) have

been prepared for the LPIC Project to baseline and manage the environmental and social impacts of the

Project.

This document serves to complement the EIA and outline how LPIC is assessing and managing

environmental and social risks of the project in accordance with the Equator Principles (EP), IFC

Performance Standards (PS) and the associated Environmental, Health and Safety (EHS) Guidelines. As

such, this report has been divided into three main sections:

1. Equator Principles

2. IFC Performance Standards

3. EHS Guidelines

1.1. Report Boundaries

This report encompasses the three components of LPIC Project, which include:

Natural Gas Liquid Extraction (NGLE) Plant in Fahud,

A 300km pipeline between the NGLE and Sohar Industrial Port Area (SIPA); and,

The Petrochemical Complex at SIPA

This report and corresponding appendices address the construction and operation phases of the Project.

The decommissioning phase will be after the plant life (expected to be about 30 years) and accordingly,


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no specific information is available at present. The impacts during the decommissioning are expected to

be similar to that of the construction phase.

1.2. Assumptions and limitations

The following assumptions and limitations should be considered throughout this report:

a) The Project adopts all policies, manuals and procedures of the parent company (Orpic) throughout the

lifecycle of all three segments of the Project.

b) Upon completion of FEED, the EPC Contractor for the Project will be selected through a competitive

bidding process. The selected EPC Contractor will undertake the detailed engineering, construction

and commissioning of the plant facilities. The EPC Contractor will typically engage subcontractors

for various construction activities, some of whom are expected to be local (Omani) companies. The

EPC Contractor and associated subcontractors will, at a minimum, adopt Orpic‟s standard operating

procedures and requirements during construction phase.

c) The NGLE and Pipeline will be operated by Oman Gas Company (OGC) and owned by Orpic. All

the investment required for the Project will be made by Orpic. It is assumed for the purposes of this

Report that OGC would adopt Orpic‟s policies, manuals and procedures for the operation of the

NGLE and Pipeline phase.

1.3. Project Description

The LPIC is Orpic‟s latest expansion, and will consist of the following core components:

• An NGL extraction plant in Fahud (NGLE Plant);

• 300 km NGL pipeline between Fahud and SIPA;

• The Petrochemical Complex (PC) consisting of the following

• An 863,000 t/y Steam Cracker Unit (SCU);

• HDPE Plant;

• LLDPE Plant;

• MTBE Plant;

• Polypropylene Plant; and

• Pygas Hydrotreater Unit (PGHYD)

The NGLE Plant at the Fahud Site is the most upstream component of LPIC Project. The NGLE Plant

will recover Ethane and heavier components from rich natural gas by a cryogenic process. Rich natural

gas which is the feed gas will be sourced from both Government Gas Plant (GGP) in Yibal and Central

Processing Plant (CPP) in Saih Rawl.


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NGL (C2+) extracted from proposed the NGLE Plant is to be located near the existing Fahud Compressor

Station (FCS) shall be transported to the PC Complex via a proposed 300 km pipeline in liquid phase. The

proposed pipeline is to be collated within the existing Oman Gas Company‟s (OGC) 32” natural gas

pipeline (right of way (ROW)) from Fahud to Sohar.

The PC proposed in the SIPA will include a nominal 863 kilo tons per annum ethylene cracking plant,

high density polyethylene (HDPE) plant, linear low density polyethylene plant (LLDPE), new

polypropylene plant, methyl tertiary butyl ether (MTBE) plant, Butene-1 plant and associated utility and

offsite facilities. The PC will be integrated with the existing Sohar Refinery, Aromatics Plant and

Polypropylene Plant. NGLs (C2+) extracted at the NGLE Plant forms one of the feedstock for the PC.

Other feed-stocks are mixed LPG produced in the Sohar Refinery and aromatics complex, dry gas

produced in the RFCC unit and new delayed coking unit that is included in the SRIP, and condensate

(light naphtha) imported from OLNG by marine tanker. Some of the materials produced in the PC,

including hydrogen, MTBE, pyrolysis fuel oil and hydro-treated pyrolysis gasoline will be returned to the

Sohar Refinery, Aromatics Plant and existing Polypropylene Plant.

The overall project timeline is summarized in the figure below.

Figure 1: LPIC Project Timeline


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1.4. Project location

The location of each of the three segments of the Project is detailed below.

NGLE Plant

The proposed NGLE is located on about 100 ha of land area within PDO‟s concession area near Block

Valve Station 2 (BVS2) of the Government‟s main gas pipeline. Proximity to the natural gas line is the

main consideration for the selection of this site. The site is located about 56 km east of GGP n Yibal and

about 100 km north of CPP) in Saih Rawl. The site location is shown in Figure 2.

Figure 2: NGLE Plant Location

Pipeline Location

The NGL pipeline begins at the battery limits of Fahud Site and ends at the boundary limits of Sohar Site

covering a total distance of about 300 km. The proposed NGL pipeline will be constructed in parallel to

the existing 32” OGC gas pipeline. An image of the site is shown in Figure 3.


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Figure 3: Proposed Pipeline Route

Petrochemical Complex in SIPA

The proposed project site for PC will be spread on two plots and located adjacent to SRIP in SIPA which

is a dedicated industrial area. The PC will be integrated with the Sohar Refinery, Aromatics complex and

Polypropylene Plant. SIPA is spread on an area of 132 km2 and located on Al Batinah coast about 20 km

north of Sohar and 220 km from Muscat. The site location is shown in Figure 4.

A part of the LPIC is located on the southern boundary of the SIPA while the other is located on the south

eastern end and covers an area of about 100 ha. Plot 1 of the PC will have an interface with the Aromatics

Complex on the eastern side, and the Polypropylene Facility on the northern side and proposed PET/PTA

complex on the western side. Plot 2 is located on the eastern side of the SRIP.


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Figure 4: Proposed Petrochemical Complex

1.5. Project contractual details

Orpic, through a competitive bidding process, awarded the project management company (PMC) contract

to New Delhi, India-based Engineers India Limited (EIL) and the front end engineering design (FEED)

contract to Chicago Bridge and Iron Co (CB&I) which operates out of The Hague, Netherlands.

Benefiting from parallel supply in gas from Fahud and in naphtha from the Sohar Refinery, Orpic and

CB&I have selected a mixed steam cracker to produce ethylene, propylene, by-products and derivatives.

With a capacity of 863 kTA ethylene, this mixed cracker will produce:

• 300,000 t/y of HDPE;

• 500,000 t/y of LLDPE;

• 215,000 t/y of polypropylene;

• 40,000 t/y of MTBE; and

• 45,000 t/y of Butane-1.


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CB&I commissioned HMR Environmental Engineering Consultants (HMR) to conduct the

Environmental Impact Assessment (EIA) study and obtain the preliminary environmental permit from

Ministry of Environment and Climate Affairs (MECA) in order to initiate construction activities. HMR

has also been commissioned to develop this Report outlining the project‟s compliance with the EP and in

particular the IFC PS and associated EHS guidelines as per lender requirements. Since the PC and

pipeline are located in SIPA, the LPIC has to obtain clearance from Sohar Environmental Unit (SEU)

which enforces organizations in SIPA to work in line with Omani laws and regulations. As such, the

Project and EIA development is in accordance with all applicable Omani laws and regulations. The

configuration (design) and operation of the LPIC will take into account the EP, IFC PS and associated

EHS guidelines, in order to address any and all significant environmental and social impacts on account

of the Project.


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Section 2. Equator Principles

Orpic recognizes the environmental and social impact of its operations and continues to take the

necessary measures to ensure protection of the environment and community in which it operates. The EP

serves as a platform for collaboration between Orpic and its project lender, to identify, assess, and

manage environmental and social risks and impacts in a structured format. Orpic believes that such

collaboration supports the triple bottom line approach of their business, and promotes sustainable

environmental and social performance. This section assesses the requirements of the ten EP for each

component of the Project (NGLE Plant, Pipeline and PC).

2.1. EP1: Review and Categorization

The lender‟s environmental and social due diligence is based on the categorization of the Project which in

turn is based on nature, scale and stage of the Project; level of environmental and social risks and impacts.

The Project is large scale with many potential environmental and social risks. Three EIAs have been

completed for each segment of the Project with corresponding social, health, safety and environment

management plans. Given the scale of the project, Category A level analysis has been conducted.

2.2. EP2: Environmental and Social Assessment

The three components of the Project are located at three different locations and hence three EIA studies

have been complemented for each component– EIA for NGLE Plant, EIA for Pipeline and an EIA for the

PC. Each EIA describe measures to minimize, mitigate and offset adverse impacts in a manner relevant

and appropriate to the nature and scale of the Project.


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2.3. The Scope of EIA Document

Table 1 summarizes the environmental and social aspects addressed in the EIA, along with a brief

description of each section.

Table 1 - EIA Contents

S. No Chapter Chapter Name Brief

1 - Glossary and Abbreviations Provides explanation of terms used in report and list of

acronyms and abbreviation used

2 Chapter 0 Executive Summary Provide the summary and a non-technical summary of

EIA report

3 Chapter 1 Introduction Provides introduction and background of the project

with brief methodology

4 Chapter 2 Environmental Regulatory

Framework

Presents the applicable environmental legislative and

institutional requirements

5 Chapter 3 Project Description

Describes the various process units, utilities, project

facilities and activities of the proposed plant. Further,

the construction methodology and resources required

during construction phase are described in this chapter

6 Chapter 4 Environmental Baseline

Describes the baseline environmental status at the

project site and along the pipeline route for pipeline

project

7 Chapter 5 Environmental Releases

Discusses the environmental releases from the plant

construction and operation phases. The handling,

treatment and disposal philosophies proposed for the

releases are also presented in this chapter

8 Chapter 6 Climate Affairs

Identified the type of ODS used in the project and

presents the estimate of emissions of GHG from the

project construction and operation. Further, the

chapter assesses the influence of LPIC on climate

change, and conversely, the vulnerability of the LPIC

plant to changes in climate

9 Chapter 7 Analysis of Alternatives

Analyses the alternatives for the critical processes,

BAT and approaches associated with the project

development, from the environmental view-point

10 Chapter 8 Environmental Impact

Assessment

Identifies and discusses potential impacts on the

environment due to the plant construction and

operation activities;

11 Chapter 9 Environmental Management

Plan

Presents the EMP including control measures for

mitigating significant impacts and an environmental

management system for effective implementation of

the plan


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S. No Chapter Chapter Name Brief

11 Chapter 10 Conclusions Presents the conclusions of the EIA study for the

respective plant

12 - References and Bibliography Provides list of the document and web publications

referred for carrying out EIA

13 - Appendix All data, calculations, basis of calculations and all

other additional information used for EIA studies

Alternative Analysis

The various components of the Project have the potential to emit Green House Gases (GHGs). As part of

MECA requirements, an estimate of GHG emissions during the construction and operation phases of the

Project is included in chapter 6 of each EIA. Based on the emission inventories, GHG quantification and

reporting mechanisms will be elaborated in the ESMP report. The quantification of GHG emissions will

consider both Scope 1 (direct GHG emissions from the facilities owned or controlled within the physical

Project boundary) and Scope 2 (indirect GHG emissions associated with the off-site production of energy

used by the project) emissions. As per the EP, given that the combined Scope 1 and Scope 2 emissions

from the Project is more than 100,000 tonnes of CO2 equivalent annually, an alternatives analysis was

conducted to evaluate less GHG intensive alternatives. The alternative analysis was undertaken and

included in the EIAs to evaluate the technical and financial feasibility and cost-effective options available

to reduce project-related GHG emissions during the design, construction and operation of the Project.

Alternatives for less GHG intensive operations will be undertaken by FEED along with the techno-

commercial feasibility of project technology selection during advanced FEED stage.

Scope of Environmental and Social Management Plan

The ESMP for the various components includes Orpics‟s commitments to address and mitigate risks and

impacts identified as part of the assessment, through avoidance, minimization, and compensation/offset.

The ESMP has been developed considering all the potential impacts identified in the EIA.

Typically, to address the social impacts of large projects, the project must consider rehabilitation and

resettlement (R&R), community development program (CDP), livelihood support plan (LSP) and public

consultation and disclosure plan (PCDP). However, since the Project is being developed within a

dedicated industrial area (SIPA) it will not disturb the livelihood of existing communities and

populations. Therefore for this Project, R&R and LSP are not applicable. The Project plans to positively

contribute to the Omani economy through engagement with local contractors and suppliers and by

providing both direct and indirect employment. Orpic will develop a methodology for stakeholder

consultation and stakeholder engagement program addressing PCDP and CDP.


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2.4. EP3: Applicable Environmental and Social Standards

Oman is a Non-Designated Country per the EP definition. As such, in addition to compliance with Omani

regulations, this report outlines compliance with applicable IFC Performance Standards in Section 2 and

the World Bank Group EHS Guidelines in Section 3.

Orpic has addressed the environmental and social issues for the Project in the EIAs and the ESMP. This

has been conducted in compliance with the most stringent standards of Omani, WB/IFC, and Integrated

Pollution Prevention and Control (IPPC) Best Available Technology (BAT) requirements according to

design philosophy of the Project. The Omani environmental regulations and relevant international

conventions are detailed in Table 2.

2.5. EP4: Environmental and Social Management System and Equator Principles

Action Plan

The EMP includes a section on social management and associated control measures. EMPs for various

components of the Project will provide a description of the ESMS as part of it. The specific issues raised

during the EIA process will be addressed in the reports through ESMP along with an action plan to meet

the compliance requirements of the applicable performance standards.

2.6. EP5: Stakeholder Engagement

Various local Government bodies and organizations have been consulted for stakeholder engagement as

an integral part of the EIA development process.

The main objective of Orpic‟s Corporate Social Responsibility (CSR) framework is to contribute and

support the local development initiatives (social and economic) by implementing sustainable projects that

will contribute to improve the quality of life and well-being of the people in the adjacent communities

where the Project will be operated. This includes engaging with a wide number of stakeholders on regular

basis and focusing on executing CSR projects that are in line with the Government‟s direction and the

society‟s needs and expectations.

Orpic will develop a summary of the EIA document, as required and directed by the Lender, available to

the local communities / person(s) in charge of local communities and other stakeholders in a local

language in a culturally acceptable manner.

2.7. EP6: Grievance Mechanism

Orpic has a grievance procedure included as part of its HSE Process Manual. An outline of these

procedures governing the submission and resolution of grievances will be addressed in the ESMP.

Specifically for the Project Orpic will, as part of ESMP, establish specific grievance redress procedures

for the projects construction and operation phases, which will be designed to receive and facilitate

resolution of concerns and grievances about the project‟s environmental and social performance.


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Emphasis will be given to resolve concerns promptly, using an understandable and transparent

consultative process that is culturally appropriate, readily accessible, at no cost and without retribution to

the party that originated the issue or concern. The mechanism would not impede access to judicial or

administrative remedies. Orpic will inform the local communities about the mechanism in the course of

the Stakeholder Engagement process. As the Project progresses, the methodology for the grievance

mechanism will be established and included and will be a part of ESMP.

2.8. EP7: Independent Review

Orpic has appointed HMR as an independent consultant for the Project to prepare environmental impact

assessment documentation which includes EIAs EMP, and an ERP. Depending on the nature of finance

and project categorization, the Lender will, at a later stage, carry out an independent review of the

assessment documentation including the EIAs, ESMPs, the ESMS, and the stakeholder engagement

process documentation in order to assist the Lender‟s due diligence, and assess compliance to EP.

2.9. EP8: Covenants

Orpic will covenant in its financing documentation as detailed below:

To comply with all relevant host country environmental and social laws, regulations and permits

in all material respects;

To comply with the ESMPs and Equator Principles Action Plan during the construction and

operation of the project in all material respects; and

To provide periodic reports in a format agreed with the EPFI (with the frequency of these reports

proportionate to the severity of impacts, or as required by law, but not less than annually),

prepared by in-house staff or third party experts.

Host Country Environmental Regulatory Framework

The Omani laws on environmental protection, control and management are covered under two basic laws,

viz., the “Law for the Conservation of the Environment and the Prevention of Pollution” promulgated in

November 2001 as RD 114/2001 (superseding RD 10/82 and its amendments) and the “Law on Protection

of Potable Water Sources from Pollution” promulgated as RD 115/2001. These laws provide the

framework for all other laws and regulations concerning environmental conservation and water resources

protection. The responsibility for the implementation of these laws rests with MECA, which issues

regulations, standards and guidelines through Ministerial Decisions (MD); and within MECA, the

authority responsible for environmental permitting, inspection and control is the Directorate General of

Climate Affairs (DGEA).

Sohar Environmental Unit (SEU) is a department that is part of MECA which ensures that all the tenants

of Sohar Port and Freezone are working in line with Omani regulation. Further SEU has issued guidance

notes providing specific requirements for a variety of environment topics during the project life cycle.


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As per SEU requirement, a separate report will document the ESMP for the Pipeline and PC, and

compliance with the provisions of ESMP and SEU/MECA requirements will be met by undertaking

monthly/quarterly environmental monitoring and reporting to SEU/MECA after award of the preliminary

environmental permit (PEP). Periodic reports in a format specified by EPFI will be finalized between

Orpic and the lender for reporting requirements.

The current Omani environmental laws, regulations and SEU guidance notes, applicable to the various

components of the LPIC, are listed in Table 2.

Table 2 - Omani Environmental Laws and Regulations

Reference No Description Applicability to Project Activity

Environmental Law

RD 6/80 Law of Protection of the National Heritage Protection and conservation of cultural or

heritage sites in the project area

RD 46/95 Law on handling and use of chemicals Use of hazardous chemicals during construction

and operation phases

RD 73/1998

Law approving the Ratification by Sultanate

of Oman to Vienna Convention for the

Protection of Ozone Layer and Montreal

Protocol concerning ODS

Guiding law for the protection of ozone layer and

control and management of Ozone Depleting

Substances (ODS)

RD 29/2000 Issuing the Law of Water Resources

Conservation Guiding law on sustainable use of water resource

RD 114/2001 Law for Conservation of the Environment

and Prevention of Pollution

Guiding law on pollution prevention and natural

resource conservation

RD 115/2001 Law on Protection of Sources of Potable

Water from Pollution

Guiding law on preventing pollution of ground

water resources

RD 6/2003 Law on Nature Reserves and Wildlife

Conservation

Guiding law on protecting wildlife and habitat in

the vicinity of the project site

Environmental Regulations

MD 20/90 Regulations on Coastal Setbacks Regulations on protection of Coastal areas

MD 79/94 Regulations for noise pollution in public

environment Public noise control

MD 80/94 Regulations for noise pollution in the

working environment Workplace noise control

MD 248/97 Issuing the regulation for registration of

hazardous chemical substances and the

relevant permits

Chemicals management during construction and

operation phases and registration of chemicals

used

MD 421/98 Regulations for Septic Tanks, Soak away

Pits and Holding Tanks

Regulates construction of holding tanks, septic

tanks and soak away pits

MD 169/2000 Regulations on cutting of trees Regulation on protection of trees within the

project influence area

MD 264/2000 Regulations for Water abstraction from bore

wells

Construction of bore well to abstract water for

commercial project purposes

MD 317/2001

Issuance of the regulations for packaging

and binding conditions/stipulations and

putting information and labels on the

hazardous chemical substances

Hazardous chemicals management during

construction and operational phases of the project

MD 187/2001 Issuing regulations for organizing obtaining

environmental approvals and final

Regulates the procedure for obtaining

environmental permits


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environmental permit

MD 55/2002 Regulations for wastewater re use and

discharge

Prohibits discharge of untreated wastewater to the

environment and regulates wastewater treatment

MD 56/2002 Regulations for the management of

hazardous wastes

Handling, storage and disposal of hazardous

wastes generated from the project activities

MD 57/2002 Regulations for the management of the solid

non-hazardous wastes

Handling, storage and disposal of non-hazardous

wastes from the project activities

MD 71/2002 Amending some provisions of MD

187/2001 Organize licenses and municipal fees

MD 101/2002 Prohibition of killing, hunting, or capturing

of wild animals and birds Regulation on protection of wildlife

MD 281/2003 Regulations for control and management of

radioactive substances Management of radioactive substances

MD 68/2004 Amending some provisions of MD

187/2001

Regulates the procedure for obtaining

environmental permits

MD 118/2004 Regulations on controlling Air Pollutants

emanating from Stationary Sources

Regulates installation and operation of stationary

combustion sources

MD 159/2005 Regulation for the discharge of liquid

effluents into the marine environment

Discharge of cooling water and other treated

effluents into common seawater outfall channel

MD 243/2005 Regulations for the control and management

of ODS Prohibits the use of ODS

MD 286/2008 Regulations for Occupational Health and

Industrial Safety Precautions Occupational health and safety of employees

MD 25/2009 Regulations for Organization of Handling

and Use of Chemicals Chemical management during project activities

MD 18/2012 Regulation for Management of Climate

Affairs

Regulation for obtaining climate affairs license

from DGCA for discharge of GHG emissions

OS 8/2012 Omani standard for drinking water (Issued

by the Directorate General of Specifications

and Measures, MoCI)

Potable groundwater quality standards

MD 25/2013 Regulation issued by Ministry of housing on

relocation of people in Liwa Project activities in SIPA

Omani (Provisional)

Ambient Air

Quality Standards

Provisional Omani standards for ambient air

quality Ambient air quality in the project area

Climate Affairs

Guidelines

Guidelines on estimation and reporting of

greenhouse gases (GHG) and ozone

depleting substances (ODS) from project

construction and operation phases, the

information to be provided towards

evaluation of the influence of project

activities on climate change, impacts of

climate change on projects and the climate

change adaptation and mitigation measures

implemented by projects

Estimation, reporting and control of GHG,

energy consumption, etc., during the proposed

plants construction and operation phases,

mitigation measures for reducing the project‟s

influence of climate change and minimizing

vulnerability of the project to consequences of

climate change

SEU Guidance Note

REP-123-10-DJ

October 2010 Waste management

Details the waste management at Sohar Industrial

Port and Sohar Free Zone

REP-114-10-DJ

November 2010

Non-hazardous industrial Waste Storage at

Sohar

Procedures of disposing non-hazardous, non-

dusty and non-recyclable industrial waste at

Sohar Site (at Sohar Municipality landfill).


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REP-083-10-DJ

April 2010 Hazardous waste storage at Liwa

Procedures of storing hazardous waste at Al

Batinah Temporary Hazardous

Waste Facility (Liwa Site).

REP-115-10-DJ

January 2011 Chemical Substances

Guidance note on import, export, using, handling

and storage at SIPA and SFZ

REP-159-11-RMO

February 2011 Industrial Safety

Guidance note for industrial safety for the Sohar

Industrial Port and Sohar Free Zone

RFP-147-11-DJ,

January 2011 Requirements for EIA

Details the requirements for EIA, ER, IPPC and

Seveso II

RFP-230-12-MJ,

Jan 2012 Onsite Storage of Industrial Waste

Guidance note for industries for on-site storage

industrial waste when there is no off-site solution

REP-225-11-DJ

April 2012 Water management

Note for efficient water management system at

Sohar Industrial Port and Sohar Free Zone

REP-211-11-DJ

September 2011 Flaring Guidance Note on regulation of flaring

REP-331-13-WP Incident Reporting to SEU Reporting procedure for planned & unplanned,

not-normal operational conditions (incidents,

accidents and near incidents) to SEU.

REP-123-10-DJ

October 2010 Waste management

Details the waste management at Sohar Industrial

Port and Sohar Free Zone

International Conventions Signed by Oman

Oman is a signatory of various international conventions related to environmental protection. In addition

to the host country environmental regulatory framework, Orpic will also consider the obligations under

the International Treaties signed by Oman which are described in Table 3.

Table 3: International Conventions signed by Oman applicable to the project

Convention Description

Protocol for the protection of the marine environment against pollution from land-based sources

To take all appropriate measures to prevent, abate and combat pollution by discharges from land reaching the sea area whether water-borne, air-borne, or directly from the coast including outfalls and pipelines

Basel convention on the control of trans boundary movements of hazardous wastes and their disposal

To reduce the movements of hazardous waste between nations and specifically to prevent transfer of hazardous waste from developed to less developed countries (LDCs).

United Nations Framework Convention on Climate Change (UNFCCC)

Concerned with controlling and stabilizing greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system

Convention on Biological Diversity Concerned with conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of benefits arising from genetic resources

United Nations convention to combat desertification in those countries experiencing serious drought and/or

Convention to combat desertification and mitigate the effects of drought through national action programs that incorporate long-term strategies supported by international


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Convention Description

desertification, particularly in Africa, 1994

cooperation and partnership arrangements

Vienna convention on the protection of the ozone layer, 1985

Acts as a framework for the international efforts to protect the ozone layer

Montreal protocol on substances that deplete the ozone layer, 1987.

Is a protocol to the Vienna Convention for the Protection of the ozone layer is an international treaty designed to protect the ozone layer by phasing out the production of numerous substances believed to be responsible for ozone depletion.

United Nations Framework Convention on Climate Change (UFCCC) (1992), including Kyoto Protocol (2005)

An international agreement on the reduction of greenhouse gas emissions and on mechanisms aimed at cutting the costs of reducing emissions, in order to address possible changes in the climate

Convention on the law of the non-navigational uses of international watercourses, 1997.

Adopted by the United Nations on May 21, 1997 pertaining to the uses and conservation of all waters that cross international boundaries, including both surface and groundwater

Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade

It is a multilateral treaty to promote shared responsibilities in relation to importation of hazardous chemicals. The convention promotes open exchange of information and calls on exporters of hazardous chemicals to use proper labeling, include directions on safe handling, and inform purchasers of any known restrictions or bans

International Labor Organization

It is specialized agency of the United Nations to promote rights at work, encourage decent employment opportunities, enhance social protection and strengthen dialogue on work-related issues

Orpic also refers to international environmental guidelines and standards for the Project, including:

IPPC Best Available Techniques Reference Documents (B-REF);

United States Environmental Protection Agency (USEPA) standards; and

Good International Industry Practice (GIIP).

2.10. EP9: Independent Monitoring and Reporting

Orpic has appointed a consultant to independently review this document and assess the Project

compliance with the Equator Principles. Orpic will appoint an Independent Environmental and Social

Consultant to ensure ongoing monitoring and reporting after financial close and over the life of the loan.

Furthermore, Orpic will retain qualified and experienced external experts to verify the monitoring

information to be shared with the Lender.


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2.11. EP10: Reporting and Transparency

Orpic will ensure that, at a minimum, a summary of the EIA and ESMP is accessible and available online

to maintain transparency of its operations to the community and other relevant stakeholders. As detailed

in Chapter 6 of the EIA, the total GHG emissions per annum exceed 100,000 tons of CO2 equivalents.

Therefore, Orpic will report GHG emission levels during the operational phase.


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Section 3. IFC Performance Standards

Orpic is committed to operating in a sustainable way and has therefore assessed compliance with the IFC

performance standards. This also ensures compliance with EP3 for non-designated countries. The

performance standards provide guidance on how to identify and help avoid, mitigate and manage

environmental and social risks and impacts. In addition to these standards, the Project ensures compliance

with host county (Omani) national law and associated international covenants (as summarized in 2.9).

Below is a summary of compliance with the eight standards. A detailed assessment of each performance

standard is included in Table 4 with the appropriate references found in appendices A to E applicable for

all three project phases and segments: NGLE Facility, NGL Pipeline and the Petrochemical Complex.

Orpic is committed to sustainability and has a corporate sustainability framework applied across all

projects and operations. Orpic‟s latest sustainability report was published in 2012 and has committed to

releasing reports every two years. The report has been developed in accordance with the international best

practice Global Reporting Initiative (GRI) guidelines. Orpic‟s sustainability framework is based on four

core principles, for which five key performance indicators (KPIs) have been selected to monitor corporate

progress. Significant time and effort has been invested to define these KPIs as they will provide the

blueprint of Orpic‟s future developments: serving as a powerful decision-making tool and support

mechanism to guide Orpic‟s performance across all areas of the business. These four core principles and

corresponding KPIs are summarized below and detailed in the sustainability report.


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Furthermore, Orpic commissioned a third party management consultant and strategy company to conduct

a socio-economic1 study analyzing the social and economic impacts of LPIC. The purpose of this study is

to highlight the role of Orpic and LPIC in meeting the current socio-economic priorities of Oman. More

specifically, the study aims at:

• Reviewing Oman‟s socio-economic profile and identifying key priorities

• Assessing the socio-economic impact of Orpic and LPIC

• Comparing LPIC‟s socio-economic contribution to alternative crude oil / gas investments

Overall, the LPIC project is expected to further enhance the socio-economic impact of Orpic from the

perspective of revenue growth, employment generation, and capability developmet (refer to chart

below).

1 Findings and charts from the report to Orpic from consultant: Strategy& (Draft Report May 2015)


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Orpic‟s integrated refining and petrochemical operations is critical to Oman‟s downstream development.

Furthermore, there are positive social contributions such as skills development through training,

employment generation, local business opportunities and other social investments. Contracts are required

to have 30% Omani workforce. The skill development programs are highlighted below.


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Orpic and the LPIC are undertaking other initiatives to address critical sustainability elements such as

Omanization, local supply base development, and environmental impact management. These initiatives

are summarized in the chart below.

The overarching socio-economic impact assessment for Orpic and the LPIC (below referred as LPIC

(Liwa Plastics Industries Complex) is summarized in the chart below.


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1. PS 1: Assessment and Management of Environmental and Social Risks and Impacts

The EIA report includes an environment and social management system (ESMS) as part of the

environment and social management plan (ESMP) which details the Project‟s approach to managing

environmental and social risks. A summary of the net impacts during construction and operation phase of

Petrochemical Complex, Pipeline and NGLE plant with their significance is presented in the tables below.

It is to be noted that there are no impacts that are rated as high which would have required alternatives to

be developed for activities leading to such impacts. Proposals for mitigating the impacts rated as

„Medium‟ are described in a separate respective EIA report (as included in appendix A).

Table 4: Impacts during the Construction & Operation Phase (Petrochemical Complex)

Issue Severity Duration Likelihood Impact Rating

Consumption of construction materials Minor Medium Term - Low

Impact on Natural Resources Minor Medium Term - Low

Impacts on topography and landscape Slight Long Term - Low

Ambient Air Quality Minor Medium Term - Low

Ambient Noise Minor Medium Term - Low

Workplace noise Moderate Medium Term - Medium

Impact on terrestrial ecology Slight Very Long Term - Low

Impacts on soil and groundwater from

normal waste management Moderate Short Term - Low

Impact on soil and groundwater due to

accidental releases Moderate - Unlikely Low

Local purchase of goods Positive Medium Term - +

Hiring of local people Positive Medium Term - +

Stress on infrastructure Slight Medium Term - Low

Impact on land use Slight Long Term - Low

Impact on settlements from construction

associated activities Slight Medium Term - Low

Impact on settlements from accidental

releases / abnormal operation Moderate - Unlikely Low

Traffic congestion / accidents Moderate - Likely Medium

Accidental Damage to sensitive sites Major - Very Unlikely Low

Operation Phase

Stress on power supply Slight Long Term - Low

Stress on fuel supply-demand Slight Long Term - Low

Stress on water supply-demand Moderate Long Term - Medium

Impact on topography and landscape Slight Long Term - Low

Air Quality Moderate Long term - Medium

Greenhouse gas emission Moderate Long-term

- Medium

Gaseous Pollutants Moderate Long-term

- Medium

Damage to flora and fauna Slight Long Term - Low

Loss of habitat Slight Long Term - Low

Accidental damage to ecology and

wildlife Moderate - Very Unlikely Low


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Impact on soil and groundwater from

normal wastewater and waste management

Moderate Long Term - Medium


improper handling and disposal of waste and wastewater

Moderate - Unlikely Low

Impact from loss of employment during

transition from construction to operation phase

Slight Long Term - Low

Impact on economy through generation of

business and operation phase employment opportunities

Positive Long Term - ++


Impact on health and safety of

settlements from accidental releases Major - Very Unlikely Low

Table 5: Impacts during the Construction & Operation Phase (NGLE)


Consumption of construction materials Minor Medium Term - Low

Impact on Natural Resources Minor Medium Term - Low

Impacts on topography and landscape Slight Long Term - Low

Ambient Air Quality Moderate Medium Term - Medium

Ambient Noise Minor Medium Term - Low

Workplace noise Moderate Medium Term - Medium

Impact on terrestrial ecology Slight Very Long Term - Low

Impacts on soil and groundwater from

normal waste management Moderate Short Term - Low

Impact on soil and groundwater due to

accidental releases Moderate - Likely Medium



Stress on infrastructure Slight Medium Term - Low


Impact on settlements from construction

associated activities Slight Medium Term - Low

Impact on settlements from accidental

releases / abnormal operation Moderate - Unlikely Low

Traffic congestion / accidents Moderate - Likely Medium

Impacts on archaeology and heritage Slight - Very Unlikely Low

Accidental Damage to sensitive sites Major - Very Unlikely Low


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Operation Phase

Stress on power supply Slight Long Term - Low

Stress on fuel supply-demand Slight Long Term - Low

Stress on water supply-demand Moderate Long Term - Medium

Impact on topography and landscape Slight Long Term - Low

Air Quality Moderate Long term - Medium

Greenhouse gas emission Moderate Long-term - Medium

Gaseous Pollutants Moderate Long-term - Medium

Noise Slight Long Term - Low

Damage to flora and fauna Slight Long Term - Low

Loss of habitat Slight Long Term - Low

Accidental damage to ecology and

wildlife Moderate - Very Unlikely Low


normal wastewater and waste

management

Moderate Long Term - Medium


improper handling and disposal of waste

and wastewater

Moderate - Unlikely Low

Impact from loss of employment during

transition from construction to operation

phase

Slight Long Term - Low

Impact on economy through generation of

business and operation phase employment

opportunities

Positive Long Term - ++


Table 6: Impacts during the Construction & Operation Phase (Pipeline)

Impact Severity Duration Likelihood Impact Rating

Fuel supply and demand Slight Medium Term - Low

Offsite groundwater supply Minor - Likely Low

Impacts on ambient air quality Moderate Medium Term - Medium

Impacts on noise level Moderate Medium Term - Medium

Impacts to soil and groundwater

due to normal management of

wastes

Minor Medium Term - Low

Impacts to soil and groundwater

due to accidental release Major - Unlikely Medium

Impact on the flora and fauna

along the pipeline route Moderate Medium Term - Medium


Impact on settlements due to Minor Medium Term - Low


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Impact Severity Duration Likelihood Impact Rating

construction activities

Impact on settlements due to

accidental releases Major - Unlikely Medium

Impact on existing traffic density

and safety Localised - Likely Medium

Stress on infrastructure Localised Medium Term - Medium



Accidental Damage to sensitive

sites Major - Very Unlikely Low

Cultural Conflict Localised - Unlikely Low

Operation Phase

The only activity during the operational phase of the pipeline network is transport of NGL fuel. The operation

of the pipeline will be unmanned. Periodic maintenance will be carried out by a team of 3-5 personnel. This

will be intermittent and for short duration, and is unlikely to result in generation of any significant amount of

waste or wastewater. Pigging activities will be carried out once in six months and is likely to generate

hazardous waste. The hazardous waste generated will be handled as per MD 18/93 and the collected waste

shall be disposed of in dedicated hazardous waste storage site. Operation of the pipeline will not require any

natural resource except for refined petroleum products to be used as fuel in the pumps/BVS and for the

inspection and maintenance vehicles. Hence the impact on natural resources is also minimal.

Indirect and Cumulative Impacts

IFC PS1 requires the identification of incremental impacts on areas or resources used or directly impacted

by the project, from other exiting, planned or reasonably defined development at the same time the risks

and impacts identification process is conducted. At present, only cumulative impacts of atmospheric

emissions have been assessed. Orpic plans to conduct a full cumulative impact assessment by Q1 2016

(March). The following types of impacts will be assessed for the project; subsequent section provides

brief definition of each type of Impact:

Indirect

Cumulative Impacts

Impact Interactions

Indirect Impacts

Impacts on the environment, which are not a direct result of the project, often produced away from or as a

result of a complex pathway. Sometimes it is referred to as second or third level impacts, or secondary

impacts.


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Cumulative Impacts

Cumulative impacts are those that result from the incremental impact of the project when added to other existing, planned and reasonably predictable future projects and developments within SIPA Area

Impact Interactions:

The reactions of impacts due to impacts caused by just one project or reaction of impacts between other

projects in the areas.

The environmental and social impact assessments provided in the EIA has broadly captured majority of

the EHS and Social impacts associated with the Project as well as associated components (based on

available information) during the construction, operation and decommissioning phases of the Project. It is

not practical to analyze the cumulative effects of an action on every environmental receptor, the list of

environmental effects must focus on those that are truly meaningful for cumulative effects analysis to

help the decision-maker and inform interested parties, it must be limited to effects that can be evaluated

meaningfully. Key impacts identified due to the Project are:


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a) Impact on air quality

b) Impact due to Noise

c) Traffic induced impacts

d) Impact on Marine Quality

e) Impact due to waste generation (including Hazardous and Non-Hazardous waste)

f) Impacts on wastewater generation

g) Social-economic impacts

For the industrial operations, as part of the permitting process, LPIC has developed an Environmental

Impact Assessment (EIA) study, which considers the impacts related to the planning, implementation and

operation of the project. However, the EIA did not identify the cumulative impacts from other existing,

planned or reasonably defined developments except atmospheric emissions (includes Air impacts and

Impacts from GHG emissions).

Furthermore, impacts due to off-site infrastructure (i.e. gas pipeline, NGLE plant, utilities) were also

assessed as part of the EIA study based on the available information of these components, as gas pipeline

and NGLE facility. The EIA document has provided an Environmental and Social Management and

Monitoring Plan (ESMMP) for the Project, covering pre-construction, construction, operation and

decommissioning phases of the Project.

Regarding the construction stage and operation phase of all three components of LPIC project, Orpic has

established a program to reduce fugitive emissions related to re-suspension of particulates resulting from

vehicles traffic and wind action. For operation phase of the project a robust EMP and mitigation measures

has been suggested. Simulation for air dispersion modeling has been carried out and predicted Ground

Level Concentration (GLC) was added to existing ambient air concentration to predict cumulative impact

on SIPA air shed.

It is to be noted that indirect and cumulative impact assessment for other environmental component

(Noise, Traffic, Marine, waste, wastewater and socio-economic) will be assessed and will be provided to

EPFI for review in March 2016, at EPC stage of the project.

Events which are beyond Orpic‟s control will also be mentioned as part of the ESMS. Orpic will engage

other stakeholders and the controlling authority (SEU/MECA – SEU for PC and Pipeline) to identify their

roles and responsibilities towards mitigating risks and to achieve compliance with this standard. The

elements of ESMS will be developed by Orpic and will follow the framework outlined in this

performance standard.


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Stakeholder Engagement

The below image summarizes the engagement with key stakeholder groups at Orpic corporate level.

Additional details are provided in the sustainability report. Furthermore, a specific community

engagement plan has been developed for LPIC and is described further in table 4 and supplemental

attachments (Appendix F: LPIC Communications Plan and Appendix G: Stakeholder Engagement

matrix).


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The snapshot of additional stakeholders engaged specifically for the LPIC project is summarized in table

7.

Table 7: LPIC Stakeholder Engagement Matrix

Stakeholder Message Channel Frequency

Orpic Board - Status update of Orpic performance and Projects progress - Briefings for required approvals

- Board meetings - Monthly MIS

- As required, at least monthly

OOC Board of

Directors

- Status update of Orpic performance and Projects progress

- Written status reports

- Quarterly

Ministry of Oil and

Gas

- Status update of Orpic performance and Projects progress - Briefings for required approvals

- One-on-one meetings with the minister - Written status reports


Ministry of Finance - Status update of Orpic performance and Projects progress - Briefings for required approvals

- One-on-one meetings with the undersecretary - Written status reports


Ministry of Manpower - Status with a focus on labor issues

- One-on-one meetings with HE and the undersecretary - Written status reports

- Based on announcements of major changes, roughly quarterly

Ministry of Environment and

Climate Affairs

- High-level status update of Orpic with a focus on environment issues - Progress in improving environmental protection

- One-on-one meetings - Status reports

- Based on announcements of major changes, roughly every 3 months or as required

Governor of North Al

Batinah

- Progress in improving environmental Protection - Update on new projects progress - Progress in community involvement - Employment opportunities - Prior to any Instance where may be perceived suspiciously by community i.e. heavy smoke, flaring.

- One-on-one meetings

- Based on announcements of major changes, quarterly or as required


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A dedicated communications plan for LPIC has been developed (Appendix F) to ensure continuous

engagement throughout all phases of the project with relevant stakeholder groups. The communication

plan assessed the current situation with the country and project location and summarized the expected

value creation of the project (Figure below).

Figure 5: LPIC Value Creation

The project‟s physical hub centers on the existing Orpic facility in the Sohar Industrial Port Area (SIPC).

Communities surrounding the project are summarized below and detailed within the subsequent sections

discussing each project segment.

Direct influence area (SIPC): There are 11 villages surrounding Sohar Industrial Port Area:

Majees, Falaj Al Qabail, Al Khuwariya, Gadfar, Alguzail, Al Had, Auqdat Al Mawain, Helat

Alshek, Mukailead, Helat Alhesan and Harmoon.

Direct (NGLE and Pipeline): Fahud, Ibri and Buraimi.

Indirect Impact: Wilayat of Shinas and Saham.

Walis of Sohar, Liwa

and Shinas

- Progress in improving environmental Protection - Update on new projects progress - Progress in community involvement - Employment opportunities - Prior to any Instance where may be perceived suspiciously by community i.e. heavy smoke, flaring.)

- One-on-one meetings

- Based on announcements of major changes, Every 2 months or as required


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The LPIC Communication Plan is summarized below.

Figure 6: LPIC Communication Plan

Social programs and aspects were discussed in the Environmental Impact Assessment reports for each

phase of the project. Furthermore, detailed Environmental Management Plans have been prepared for the

project, which includes social elements. A cumulative impact assessment of the project is planned for Q1

2016, wherein a fully detailed social impact assessment will be undertaken. Each segment of the project

(NGLE, Pipeline and Petrochemical Plant) is situated in designated industrial areas with other industries

previously operational. The Petrochemical Plant, although within the Sohar Industrial Area, has villages

within the 5KM buffer and therefore has the most social impact (as opposed to the pipeline and NGLE).

The social programs, impacts and plans are summarized for each segment of the project below.

Petrochemical Plant

The project site is located within SIPA, an area designated for industrial development. However, the

current socio-economic condition near the project influence area (about 5km radius from both the

polymer area and the steam cracker unit) has been established based on published documents and

previous studies conducted in the area. The project site falls under the North Al Batinah Governorate,

which lies between Khatmat Malahah in the North and Al Musanaah in the South and confined between

the Al Hajar Mountains to the West and the Gulf of Oman to the East. It is located within SIPA, which

comes under the Wilayat Liwa and characterized under industrial land use. There are 10 villages lying


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within a 5km radius of the project site. Out of these 10 villages, 7 come under the Wilayat of Liwa and 3

are part of Wilayat of Sohar. Analysis of all aspects of the socio-economic profile was carried out at the

micro level entailing these individual villages as well as the PIA as a whole.

With regards to connectivity, The Muscat - Batinah highway serves as the main linkage for the project

influence area. Running parallel to the main highway is the service road, which seizes the local traffic

spills, reduces pressure on the main highway and facilitates movement between villages. However,

connectivity at village level is by means of internal or primary roads which traverse and connect each

village. A coastal highway is also being constructed between SIPA and the existing Batinah highway

(figure below) which would increase connectivity between SIPA and other regions of Batinah and Muscat

Governorates. Other major transport infrastructure are under development including the rail link (which

would connect the United Arab Emirates (UAE) and Gulf Cooperation Council (GCC) countries

eventually), in the Batinah region.

Figure 7: Villages within Study Area

The social impacts of the project during construction and operation have been assessed and management

programs are planned to mitigate and manage these impacts. The plant is located in a designated


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industrial zone with access strictly limited and restricted to construction employees. The following

management elements will be enforced during construction:

Planning

Site HSE plans shall be prepared and followed;

Prepare a traffic management plan;

Proper signage to be installed. Information pertaining to construction activities shall be displayed;

Local population should be made aware of the construction works, as appropriate;

Fire extinguishers and fire safety measures should be made available throughout the work site;

Basic health and medical facilities shall be provided to the construction workers;

Training and awareness programs shall be given to the construction workers;

Emergency response plan to be prepared covering accidental releases, and fire and explosion

events; and

Appropriate PPE shall be given to the construction workers.

Control Measures

Importance shall be given on the usage of PPEs, hygienic conditions at construction sites and

camp accommodation;

First aid to be made available at project site;

Staff working at the site will be made aware of emergency response procedures;

The working hours are to be confined to daytime only. No night work will be carried out unless

an emergency warrants;

Approved transporters will be used for transportation of hazardous materials and heavy

equipment / goods;

Continuous noise emitting sources such as compressors and diesel generator units should be

installed in enclosed rooms; and

The vehicles will be properly serviced and maintained in order to ensure safe travel. Further, first

aid kits are to be provided in all the vehicles.

Monitoring

Periodic safety audits to be conducted to assess implementation of the control measures and

results of audits to be reviewed and corrective actions to be taken for deviations.

Vehicle logs to be maintained, monitoring the movement and distance travelled by the vehicles;

and

Journey management plan copies to be documented and monitored.

The social management practices (in addition to environment, health and safety management system) of

Orpic and the EPC contractors will include systems for scheduling, organizing and conducting periodic

audits/VMC of the implementation during the construction phase. The audits are to be scheduled in such a


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way as to cover all significant activities of the construction in order to assess the implementation of

control measures proposed in this EMP, including environmental monitoring programs and in turn to

assess compliance with applicable environmental regulations. The findings and recommendations of

periodic audits and related monitoring along with recommendations for corrective actions and

improvements are to be periodically reviewed by EPC contractor/Orpic. Adequate resources are to be

provided by Orpic/EPC contractor and sub-contractors for implementation of such recommendations and

corrective actions for improving the effectiveness of the social, heath, safety and environment

management system.

The detailed organizational structure will be developed prior to appointment of the EPC. The project

manager will be responsible for the implementation and effective management of the social, health, safety

and environment management system. The HSE manager will be responsible for the routine plant HSE

management and for coordination of HSE functions within the line functions. The community liason

officer will be responsible for all social aspects of the project including stakeholder engagement,

grievance management, and periodic updates of social programs. All line managers will be required to

implement and ensure compliance with HSE and social requirements within their functional areas. The

HSE manager, with assistance from an external consultant if required, will be responsible for developing

facility wide plans for monitoring and improving HSE and social performance.

After completion of construction activities and as the plant is ready for start-up and commissioning, the

relevant permits, documents and records will be transferred to Orpic‟s HSE team by the EPC contractor.

It will be the responsibility of Orpic‟s HSE department to take over the HSE requirements and incorporate

the same into the company‟s management system for the operation phase

The project will be required to comply with the applicable environmental laws and regulations applicable

to industrial projects in Oman. Orpic will be responsible for obtaining the requisite permits for the

operation phase of the facility from MECA and other relevant authorities (EPC contractor is responsible

to prepare all documents and forms of permit applications). These permits primarily include and are not

limited to the following:

Final Environmental Permit (FEP) for the operation of the PC plant and associated facilities

within SIPA;

Permit to operate stationary point sources within the plant;

Wastewater discharge permit, if any;

Hazardous waste permit; and

Chemicals permit.

Any planned changes from the normal operating conditions of the facility that may potentially lead to

significant increase in various environmental releases for a considerable duration is to be communicated

to the Ministry along with predicted quantification of changes.


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NGL Pipeline

The NGL pipeline is a 14” carbon steel line with 11 block valve stations (BVS) located 32km apart from

each other in remote areas and 16 to 7 km apart in more populated areas. NGL will be transported to the

Petrochemical Complex through the pipeline in liquid phase. The pipeline corridor follows the same route

as Oman Gas Company‟s (OGC) 32” natural gas pipeline from Fahud to Sohar. The NGL pipeline will

run from the NGLE Plant to Sohar Refinery with a total distance of 300km. The proposed NGL pipeline

route will be located within the existing OGC pipeline corridor.

Based on the terrain features, the entire area covered by both the pipeline routes are broadly classified into

four distrinc regions as identified by the International Union for the Conservation of Nature and Natural

Resources surveys of Oman: Central Plans, Northern Foothills and Plans, Northern Mountains, and Al

Batinah Region.

Central Plains

Fahud lies on the central plains of Oman, an area that is recorded as covering 57,658km2. The area in the

vicinity of the pipeline route is sub-classified as central sand and gravel plains (IUCN, 1986). The plains

are recorded as being extensively broad with occasional rocky ridges and shallow, flat internal drainage

depressions.

Human settlement within the central plains is limited to very few localities. In proximity to the southern

end of the Fahud to Sohar pipeline any settlement is likely to be temporary only and associated with

nomadic Bedouin livestock grazing camps. Human population, other than that associated with oil and gas

production, is recorded as being <0.2persons per km2, although this is considered not to be reflective of

the study area which is closer to zero. There are no areas of cultivation within the region of the central

plains across which the pipelines will cross. The temporary and permanent camps of PDO and their

contractors are the only significant centres of settlement, which for the purposes of this study due to their

wholly commercial interests, are not considered further.

Northern Foothills and Plains

Settlements across the northern plains are scattered. Along the alignment of the Fahud to Sohar pipeline

route, human settlements are near non-existent with only one seasonal settlement present and elsewhere

occasional temporary grazing camps. Across the plains, there are only very occasionally areas of

cultivation, and these are associated with more permanent settlements distant from the pipeline corridor

and in closer proximity to the main Buraimi to Nizwa highway. Other than the oil and gas production

areas, which include Fahud, Yibal, and Lekhwair, the main socio-economic activities of the northern

plains are extensive pastoralism.

Northern Mountains


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Human settlements along the alignment of the pipeline route in this section of the Hajar Mountains are

scattered and largely insignificant. More significant centres exist adjacent to Wadi Jizi, along which the

Buraimi-to-Sohar highway has been constructed. Settlements adjacent to the pipeline tend to consist of

single or small clusters of dwellings that do not exceed the carrying capacity of the land for date

plantations etc. i.e. single families only.

Al Batinah Region

The Batinah Coastal Plain is a low-lying alluvial plain extending approximately 270 km from Muscat to

border with U.A.E, North of Shinas, and extending approximately 30km inland from the coast. The area

is of critical importance to the agricultural economy of the Sultanate accounting for up to 60% of all the

agricultural products in the Sultanate (Al-Zidjali, 1995; Al Harthi, 2003). Before modern well drilling and

mechanical pumping equipment, agricultural areas were limited to a belt of few kilometers wide.

Agriculture has expanded on both sides of the Batinah Coastal Highway since the advent of the new

technology and continues to do so. Increased pumping of groundwater for irrigation has lowered the

groundwater levels and resulted in seawater intrusion with resulting deterioration of water quality. Present

conditions described in MRMEWR (formerly MWR) data indicates that freshwater discharge to the sea in

Al-Batinah is largely intercepted by pumping in the coastal zone, with the leading edge of the saltwater

wedge having moved several kilometres inland in some cases.

The pipeline corridor passes through 3 governorates, the Ad Dhahirah Governorate, Al Buraimi and the

North Al Batinah Governorate. The Muscat Governorate is the centre of government and major urban

centre in Oman. The Al Batinah Region occupies a vital geographical location on the coast of the Gulf of

Oman. It is confined to a coastal strip of 25 km between the Gulf of Oman and the foot of the Al Harj Al


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Gharbi Mountains. Its total population is approximately 565,000 inhabitants. The coastal Al Batinah Plain

is the key region for agriculture, industry and settlement.

Figure 8: Villages within the NGL Pipeline Route (100m Buffer)

The locations of construction labour camps and project offices for the project have not been finalized yet.

Since the pipeline route is passing through Wilayats that has well established infrastructure, it is expected

that permanent accommodation facilities, with established infrastructure and facilities, available in the

area will be utilised for the staffs of construction contracting companies. Only a few porta-cabins to serve

as project offices may be installed during the construction activities. The EPC Contractor will select the

location for the site offices and organize to establish it.

NGLE

The proposed NGLE is located on about 100 ha of land area within dedicated oil and gas concession area

of Petroleum Development Oman Company, and near the Government‟s main gas pipeline. Proximity to

the natural gas line is the main consideration for the selection of this site. The site is located about 56 km

east of GGP n Yibal and about 100 km north of CPP) in Saih Rawl. Given the location within a

designated concession area, there is established social infrastructure available. There are eight primary

and secondary schools in the Fahud area. PDO provides some financial and material assistance to the


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local schools. As per the Annual Health Report 2007 from the Ministry of Health (MoH), the Adh

Dhahirah have total of 14 Government health institutions with headquarter at Ibri. There are no

government health care facilities in Fahud area. Private health-care facilities (clinic and ambulance

services) are available within PDO's residential camps. These facilities are generally made available to the

surrounding communities.

The construction workers will be sub-contractors staff who will be engaged by the EPC Contractor for

executing the various civil, mechanical and electrical works. Porta cabins will be installed on-site for

accommodating the project office and to provide the on-site catering and sanitation facilities for the

project staff. The EPC Contractor will select the location for the labour camp and organise to establish it.

Since selection of the EPC Contractor for the Project is to be done after completion of the FEED, the

location and number of construction camps is not known.

The major sources of potential impacts on public safety and health during construction phase are storage

and transport of hazardous substances; disposal of hazardous wastes; increased road traffic; large-scale

employment of immigrant workers; and off-site (third party) quarrying.

Except for the fuel oils, none of the substances used during construction pose any significant threat to

public safety and health. Fuel oil will be transported in dedicated oil tankers driven by certified drivers.

The fuel oil storage tanks will be provided with the necessary safety and leak containment facilities to

minimize any fire risk.

No significant hazardous wastes will be generated during construction. Any such quantities generated will

be disposed in facilities that meet the local regulatory requirements and approved by MECA.

The increased road traffic for the transport of material and men to the site for this project can result in

traffic disruptions and possibly higher number of road accidents. This requires a good coordination for

traffic management with local authorities.

Deployment of large-scale immigrant workers can pose some health risk to local population due to

introduction of communicable diseases. The expatriate workers constitute a significant percentage of the

total construction work force. It is expected that majority of the expatriate construction workers will be

from the established local contracting companies, and therefore most of them are expected to be long-

term (a few years) residents of Oman. Further, as per the Omani labor law, all immigrant workers will be

medically screened for any infectious diseases. Therefore, the risk level will be very low.

Rocks and aggregates required for the construction work will be sourced from local quarries. The EPC

contractors will not directly undertake quarrying. Instead, they will select approved sub-contractors to

supply the rocks and aggregates. Blasting at quarry sites for supplying rocks and aggregates for


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construction work may pose public safety risk as well as can cause some air and noise pollution due to

dust and noise generation. However, to ensure that the public are not exposed to any unacceptable safety

or health risk, the EPC contractors will ensure that the quarry operators have the necessary environmental

permit to operate. Therefore it is expected that the risk level will be low.

Figure 9: NGLE Location and Project Boundary

2. Labor and Working Conditions

The Sultanate of Oman is an International Labor Organization (ILO) member country. Further, the

Ministry of Manpower is vested with the responsibility to ensure adherence to human rights laws and fair

treatment to all residents as per the provisions contained in the MD 35/2003 Oman Labor Law. Moreover,

as per MD 286/2008, the Project shall ensure safety and health, and general welfare of laborers (direct

and contracted) and guard them against any hazards caused in the work environment.

Orpic will undertake sustainable training and development programs which will bridge the gaps between

the labor market demand and available labor force skills thus enhancing the Omani youth‟s abilities for

employment opportunities. The Project will ensure equitable, fair treatment of all employees as well as


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providing equal opportunity to everyone in compliance with the above during the construction and

operation phases.

3. Resource Efficiency and Pollution Prevention

This standard refers to the concerns over the atmospheric concentration of pollutants, especially GHGs

and the need to implement sustainable use of resources during the lifetime of the Project. The energy

efficiency measures, GHG reduction efforts (including quantification and reporting) and other Good

International Industry Practice (GIIP) that will be employed by the Project will be described in the EIA

report. The more stringent of Omani and WB/IFC standards and IPPC BAT requirements will be

applicable to the Project. Chapter 6 (climate affairs) of the EIA reports provide an estimate of the project

GHG emissions during the construction and operation phases of the three components. Orpic is

committed to energy efficiency and will evaluate options for decreasing GHG emissions throughout the

lifecycle of the Project.

4. Community Health, Safety and Security

Risks and impacts to the affected communities (if any) due to project construction and operation and their

mitigation measures is described in the ESMP section of the EIA report for all components of the Project.

An emergency response plan (ERP) is also part of the EIA study and provides measures that Orpic will

take to avoid and/or minimize environmental risks including exposure to hazardous materials, equipment

and other process related hazards.

5. Land Acquisition and Involuntary Resettlement

The project site for the PC and NGLE Plant will be located in SIPA and PDO‟s concession area

respectively. SIPA, a dedicated industrial area, is spread over an area of 132 km2 and located on Al

Batinah coast about 20 km north of Sohar and 220 km from Muscat. The NGLE Plant location is within a

concession area with no significant human population within 5 km of the project site. There is no land

acquisition or involuntary resettlement issues involved during the construction and operation phases.

The Pipeline will be constructed in parallel to the existing 32” OGC gas pipeline, which is in a corridor of

25 m wide. Since it follows an existing pipeline there will be minimal land impacts and it will not require

any additional land take.

6. Biodiversity Conservation & Sustainable Management of Living Natural Resources

The Sultanate of Oman is a signatory to the Convention on Biological Diversity and has provisions in its

environmental laws and regulations that clearly spell out the need for protection of biological diversity in

the country (RD 114/2001 for instance).


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The PC and NGLE Plant will be located within the existing industrial area (SIPA) and concession area

respectively. The entire area of SIPA is earmarked for industrial development and is being used for

industrial activities. A number of mammals, birds, and reptiles are thought to inhabit the Fahud region

where the NGLE Plant will be located, though their populations are not considered to be significant.

The ESMP describes the measures Orpic will take towards biodiversity conservation and sustainable use

of natural resources. A review of the environmental laws and regulations in Oman is provided in the EIA

as part of the legal framework section.

7. Indigenous Peoples

Through the EIA process, adverse impacts to affected communities or loss of livelihood to any

community was assessed and documented. There are no indigenous people in the region who are likely to

be directly impacted by the Project in terms of losing property, access to the land area, loss of livelihood

etc. Orpic plans to implement an appropriate stakeholder engagement process and information disclosure

plans that will minimize the risk of escalating community grievances.

8. Cultural Heritage

Authorized personnel from the Ministry of Heritage and Culture will conduct a survey at the NGLE Plant

and PC and within the project influence area to identify and record any areas of cultural, religious and

archaeological importance. Such areas have been demarcated by Orpic and described in the EIA report.

Management of any environmental and social impacts to such areas will be a part of the ESMP.

Furthermore, since the Pipeline will follow an existing pipeline corridor, it is not expected to have any

impact on archaeology or cultural heritage.


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Table 8: IFC Performance Standards

Please note the following appendices are referenced to provide additional project information and context to the observations provided in Table 7:

Appendix A – Environmental Impact Assessment (EIA)

Appendix B – Environmental Management Plan (EMP)

Appendix C – Rapid Risk Assessment (RRA)

Appendix D – Orpic Health, Safety and Environment (HSE) Manual

Appendix E – Orpic Human Resources (HR) Manual

Appendix F – Communications Plan

Appendix G – Key Stakeholders Engagement Matrix

Appendix H – Contractor Organization Charts

Appendix I – Traffic Management Plan

Appendix J – Security Plan

Appendix K – Community/Corporate Social Responsibility (CSR) activities

Appendix L – Orpic Emergency Response Plan

Appendix M – Orpic‟s Training Program (Corporate and HSE)

Appendix N- Initial Impact Assessment of Construction camps

Key Requirements Observation References

Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts

1.1 Environmental and Social Assessment and

Management System

Orpic has prepared and completed an EIA and supporting environmental

management plans to address environmental and social aspects of the

Project.

Appendix A: EIA2 (reference Appendix F of the EIA for Social Baseline Assessment)

Appendix B: Environmental Management Plan (EMP).

1.2 Policy Orpic has a comprehensive environmental and social policy and is

communicated across the organization on an annual basis. Orpic has a

dedicated Environmental Manager responsible for communicating,

executing and ensuring compliance with Orpic‟s Environmental and Social

Policy. To ensure compliance with all policies and manuals, Orpic will

include a clause in the EPC tender requiring adherence to Orpic policy

requirements at a minimum. Orpic will perform quarterly audits on the EPC

to monitor and track compliance.

Appendix D (Orpic HSE Process Manual)

Appendix E (Orpic HR Manual)

1.3 Identification of Risks and Impacts A comprehensive environmental and social impact assessment to address all

risks through construction, operation and decommissioning phases of the

Project has been undertaken as part of the EIAs. The project influence area is

detailed in the EIA and includes all project related activities and

facilities/operations.

Appendix A (EIA, Sections 3 & 8)

2 Appendix A includes EIAs for all three project areas: NGLE facility, Pipeline and Petrochemical Complex.


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1.4 Management Programs Environmental management plans to address all environmental aspects (e.g.

waste, air, noise, etc.) include mitigation measures and controls for

construction and operational phases.

Appendix B3 (Environmental Management Plan (EMP)).

1.5 Organizational Capacity and Competency The EMP developed for the Project includes a detailed organizational

structure that clearly defines responsibilities and authorities.

Appendix B (EMP-Section 1.2)

1.6 Emergency Response and Preparedness A Rapid Risk Assessment (RRA) was completed for the Project which

includes an emergency response plan that addresses all international and

Omani regulations. This response plan will be updated to include LPIC in

accordance to SIPA and Civil Defense. Orpic implement clear and tiered

emergency planning, preparedness and response procedures across all plants.

Orpic‟s procedures have been developed to deal with different levels of

possible emergencies at the workplace, and regular drills are performed

throughout the year to ensure the readiness of and effectiveness of the

response. Orpic‟s firefighting department is capable of handling fire

incidents quickly and effectively. The three levels of protection include

operation first line crews, retained fire brigade and full-time firemen on 24-

hour duty. These teams are highly trained in firefighting and also participate

in annual emergency exercises.

Appendix C (RRA, Section 5).

1.7 Monitoring and Review The EMP includes a requirement that stipulates periodic review/monitoring

of the environmental management program. The EPC Contractor will be

responsible for periodic monitoring of the environmental management plan,

including documentation of the monitoring during the construction phase.

Orpic is responsible for periodic monitoring of the environmental

management plan, including documentation of the monitoring during the

operational phase.

Appendix B (EMP, Section 3)

1.8 Stakeholders Engagement Orpic have identified stakeholders for the Project and engages them through

their Communications and External Relations Team. This is in accordance

with Orpic‟s External Communications Policy-Media Relations. Orpic

Appendix D (Orpic HSE Process Manual, Section A, No. 7).

Appendix A (EIA, Section 8).

Appendix F (LPIC Communication Plan)

Appendix G (Key Stakeholders Engagement Matrix).

3 Appendix B includes EMPs for all three project areas: NGLE facility, Pipeline and Petrochemical Complex


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discloses project background and relevant information to stakeholders

through their website and newsletters. Newsletters are posted on the Orpic

website on a consistent and periodic basis. In order to get feedback from all

stakeholders, Orpic's Trade Union was involved in the preparation of the

code of conduct. The trade union provided valuable inputs and comments,

Through the LPIC Communications Plan, Orpic will engage with

government stakeholders to detail influences, impacts and actions taken in

the project area (see Appendix G for list of identified stakeholders for this

project).The three EIAs analyzed potential impacts on the surrounding

community including noise, air quality, water, and waste. This analysis

confirmed that the Project will not significantly impact the surrounding

community within the project influence area.

In addition, the main objective of Orpic‟s Corporate Social Responsibility

(CSR) framework is to contribute and support the local development

initiatives (social and economic), this includes engaging with a wide number

of stakeholders on regular basis and focusing on executing CSR projects that

are in line with the Government‟s direction and the society‟s needs and

expectations.

Appendix K (Community and CSR Activities)

Orpic 2012 Sustainability Report: http://orpic.om/uploadsall/publications/pdf/Orpic%202012%20Sustainability%20Report%20English.PDF

1.9 External Communication and Grievance

Mechanism

Orpic has developed a procedure for external communications, complaints

and grievances. In keeping with the HSE Policy Statement, Orpic‟s highest

priority is to provide for the safety and environment of the local

communities. It has a goal of “minimize the impact of our activities on

environment and society.”

The objective of the Environment and Community Complaints procedure at

Orpic is to understand perceived and actual impacts on the community and

stakeholders, correct the situation as appropriate, feedback on the correction

to the complainant, and through management review, develop strategies to

prevent the causes of the complaints. In responding to the complaints, a key

emphasis is a timely resolution of the immediate issue. The process, while

facilitated by the HSE Department, requires the integration and involvement

of a number of departments to resolve the complaints. For LPIC, external

Appendix D (Orpic HSE Process Manual, Section B).


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grievances can be reported in person at the Sohar community liaison office,

over the phone via a dedicated hotline number or at the corporate offices.

Management is involved in the development of longer term strategies, as

appropriate, to deal with the causes of the complaints.

Orpic established the new Orpic Visitor Centre at Sohar Refinery, which was

inaugurated in May 2012 under the patronage of H.E. Sheikh Hamad bin

Salam Al Aghbari, Wali of Liwa.

The centre, which is equipped with presentations and educational material in

both Arabic and English, aims to provide public visitors with an integrated

image of Orpic‟s growth and production journey. The centre also seeks to

inform the public about the environmental and social initiatives that Orpic is

dedicated to throughout our operations.

To provide visitors with a „real experience‟ of what Orpic stands for, visitors

can also take a tour of Orpic facilities in Sohar and can acquaint themselves

with samples of products. Orpic is committed to building strong

relationships with local communities that go beyond o routine business

activities. In December 2011, Orpic together with Sohar Aluminium and

Vale founded the non-profit organisation „Jusoor‟ as a catalyst for

implementing sustainable socio-economic development projects in the North

Al Batinah Governorate.

This partnership was developed with the following key objectives:

• To unify the corporate social responsibility (CSR) activities of the three

companies;

• To facilitate communication with civil society by selecting programmes

and projects that support sustainable

development; and

• To appoint a specialized CSR team that understands our local

communities‟ demographics and societal needs and is capable of interacting

effectively with stakeholders and the general public.

To support this partnership, Orpic and our neighbouring Jusoor founding

partners are committed to raising a total of US$ 20 million by 2017 to


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support Jusoor‟s continued success.

1.10 Ongoing Reporting to Affected

Communities

Orpic provides periodic project updates to affected communities through

their website and newsletters. In addition, information can be found at the

local offices and corporate headquarters. Town hall meetings are organized

on a periodic basis to discuss ongoing projects and address any community

concerns.

Refer to Orpic‟s website: http://www.orpic.om/media-center

Performance Standard 2: Labor and Working Conditions

2.1 Working Conditions and Management of

Workers Relationship – International

conventions and organizations (E.g. UN

Convention for Worker Protection and

International Labor Organization).

Orpic has a Human Resources Manual outlining policies and procedures

explaining employee rights as per the Omani Labor Law. Additionally,

Oman is a signatory of the International Labor Organization convention that

promotes rights at work, encourages decent employment opportunities,

enhances social protection and strengthens dialogue on work-related issues.

Worker accommodation: Orpic‟s accommodation will be self-managed, with

the current accommodation provided by PDO in Sohar. The EPC, once

appointed, will select, plan and manage their respective camps. Terms for

the EPC include pre-assessment to determine where the camps will be

located and impact of such camps on transportation, traffic, water

consumption, community facilities, etc. The terms for the EPC regarding

accommodation for the workers will reference the IFC EBRD (European

Bank for Reconstruction and Development) Worker Accommodation

Guidelines and Orpic will monitor the camps using the checklist provided in

the guidance document. There will be three construction camps with a peak

workforce of approximately 17,000 personnel in total for all three

components of the LPIC project. Approximately 15,000 personnel at peak

will be working for Petrochemical complex at Sohar and 1,000 for NGLE

and 1,000 for Pipeline project. The final layout and internal configurations

for all construction camps is unknown and will be developed by the EPC

post FEED in consultation with Orpic. An initial impact assessment of the

camps has been conducted to identify potential environmental releases and

Appendix H: Contractor Organization Charts


IFC EBRD Guidelines: http://www.ebrd.com/downloads/about/sustainability/Workers_accomodation.pdf

Appendix N: Construction Camps Initial Impact Assessment

http://www.ebrd.com/downloads/about/sustainability/Workers_accomodation.pdf


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impacts. It is the responsibility of the EPC to develop a construction

environmental management plan.

2.2 Protecting the Work Force Orpic has a dedicated Human Resource Policy which sets out working

conditions and terms of employment in accordance with the Omani Labor

Law. Employees express any concerns internally through the HR

department. In addition, in order to get feedback from all stakeholders,

Orpic's Trade Union was involved in the preparation of the code of conduct.

The trade union provided valuable inputs and comments. Such concerns can

be escalated to the Ministry of Manpower. All parties involved through the

stages and phases of the project will, at a minimum, be in compliance with

the Omani Labor Law (as per Opric HR policy).

Appendix A (EIA, section 2)

Appendix H: Contractor Organization Chart


2.2.1 Child Labor and Forced Labor The EPC Contractor will be in compliance with the Omani Labor Law

during construction phase of the Project. Omani Labor Laws prohibits child

labor and forced labor. Orpic will follow the same during the project

operational phase. The legal working age in Oman is 18 and above. This law

will be enforced by local regulators throughout the lifecycle of the project.


2.3 Occupational Health and Safety Orpic will ensure the implementation of a HSE Manual to address

occupational health and safety during all phases of the project. Orpic will

ensure health and safety trainings are conducted during all phases of the

project. This is as per the HSE Policy manual. Refer to Appendix M for

Orpic‟s Corporate and HSE training schedule.

Orpic follows MD 286/2008 Occupational Health and Safety which

identifies and ranks occupational hazards. Furthermore, Orpic has an

occupational health and hygiene procedure which outlines the methods for

controlling hazards and determining corrective actions/controls.

Orpic has developed and implemented an incident investigation procedure.

Appendix D (HSE Policy Manual, Section B)


Appendix M: Orpic‟s Corporate and HSE training programs


2.4 Workers Engaged by Third Parties Orpic contractual agreements mandate policies and procedures for third

parties. This includes Orpic‟s labor and working conditions requirements as

stipulated in Orpic‟s Human Resources Policy Manual 2012.

Appendix E (HR policy Manual 2012)


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2.5 Supply Chain There is no high risk of child labor or forced labor in the primary supply

chain.

A traffic management plan for the supply chain has been prepared for this

project to communicate the plan‟s requirements to the EPC contractors and

their subcontractors. During the construction phase of the LPIC it is

recognized there will be very extensive daily traffic movements of

personnel, plant equipment, deliveries etc. A provisional study indicates

there will be approaching 9,000 daily individual traffic movements during

the peak construction period. The traffic management plan for this project

identifies the type of movement, restrictions and logistics required to

alleviate congestion and to ensure safety issues are effectively managed.

The plan will be shared and enforced on all contractors throughout the

project lifecycle. The plan includes key definitions, responsibilities, EPC

Contractors Transportation Plan, general information and vehicle and

equipment instructions.

Appendix B (EMP of Petrochemical Complex)

Appendix I (LPIC Traffic Management Plan)

Performance Standard 3: Resource Efficiency and Pollution Prevention

3.1 Resource Efficiency Orpic has evaluated technology options through a BAT analysis to enhance

efficiency and optimize processes with the aim of reducing energy, water

and other resource consumption.

Orpic assessed compliance with Omani and IFC standards and adopted the

more stringent control measures.


Equator Principles Report Section 3 (EHS and MECA matrix).


3.1.1 Greenhouse Gases (GHG) GHG emissions for the Project were calculated and assessed in the EIA. The

Project is expected to produce more than 25,000 tons of CO2-equivalent

annually. Orpic has considered alternatives and implemented technically and

financially feasible options to reduce GHG emissions throughout the

lifecycle of the Project. Orpic completed a comprehensive air dispersion

modeling exercise for the Project. The resultant ground level concentrations

for all pollutants (except particulate matter (PM10)) are within the applicable

limit as specified in Omani Ambient Air Quality Standards.

Appendix A (EIA, Sections 6, 7 & 8).

Orpic 2012 Sustainability Report: http://orpic.om/uploadsall/publications/pdf/Orpic%202012%20Sustainability%20Report%20English.PDF: Orpic‟s Sustainability Framework report (2012)


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3.1.2 Water Consumption Orpic has evaluated technology options through a BAT analysis to reduce

water consumption where technically and financially feasible. The Project

has adopted the zero discharge requirements of the Sohar Environmental

Unit (SEU).


Orpic 2012 Sustainability Report:

http://orpic.om/uploadsall/publications/pdf/Orpic%202012%20Sustainability%20Report%20English.PDF

3.2 Pollution Prevention Orpic conducted a robust baseline environmental assessment to adequately

define the existing ambient conditions and consider relevant factors.

Additionally, a BAT analysis was conducted to assess options for reducing

pollution where technically and financially feasible. Orpic will consider

additional strategies and adopt measures that avoid of reduce negative

impacts where possible.

Appendix A (EIA, Section 4 and Section 6).



3.3 Wastes Orpic has developed a waste management plan (hazardous and non-

hazardous) outlining a hierarchical approach. In addition, Orpic has a well-

developed temporary facility to collect the generated hazardous waste.

Hazardous waste removal will be conducted by a Government approved

hazardous waste management contractor.

Appendix B (EMP, Section 2 and 3).



3.4 Hazardous Material Management Orpic has evaluated technology options through a BAT analysis to reduce

hazardous waste. Orpic has also developed a waste management plan for

hazardous and non-hazardous waste. Orpic has conducted an assessment of

chemicals and hazardous materials through the BAT assessment and are not

using chemicals or hazardous materials that are subject to international bans

or phase outs.

Appendix A (EIA, Section 6)

Appendix B (EMP, Section 2 and 3).


3.4.1 Pesticide Use and Management Not applicable for this project.

Performance Standard 4: Community Health, Safety and Security

4.1 Community Health and Safety Environmental management plans to address all environmental aspects (e.g.

waste, air, noise, etc.) include mitigation measures and controls for

construction and operational phases to avoid impacts from spreading outside

the project‟s boundaries. In addition, Orpic assessed compliance with Omani

and IFC standards and adopted the more stringent control measures.


Appendix B (Environmental Management Plan (EMP))

Section 6 of this report (EHS and MECA matrix).

Appendix K (Community and CSR Activities)

Orpic 2012 Sustainability Report: http://orpic.om/uploadsall/publications/pdf/Orpic%202012%20Sustainability%20Report%20English.P


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DF

4.1.2 Infrastructure and Equipment Design and

Safety

Orpic conducted an EIA and prepared environmental management plans for

all three project sites, taking into consideration health and safety risks to

third parties or affected communities. Structural elements of the Project have

been designed and will be constructed by competent and approved

contractors. Orpic contractual agreements mandate policies and procedure

for third parties which include safety requirements.


Appendix B (Environmental Management Plan (EMP))

Appendix D (HSE Policy Manual, Section B)


4.1.3 Hazardous Materials Management and

Safety

Orpic has evaluated technology options through a BAT analysis to reduce

the generation of hazardous waste, hence, reduce community exposure to

hazardous waste. Orpic has also developed a waste management plan for

hazardous and non-hazardous waste.


Appendix B (EMP, Section 1.1. and 1.2).

Orpic 2012 Sustainability Report: http://orpic.om/uploadsall/publications/pdf/Orpic%202012%20Sustainability%20Report%20English.PDF: Orpic‟s Sustainability Framework report (2012)

4.1.4 Ecosystem Services The Project spans over 3 locations. The Petrochemical Complex is located

within an existing industrial estate where direct impacts on priority

ecosystem services were conducted by the Government of Oman during

planning phase and specific mitigation measures were adopted prior to the

industrial development of the area. In addition, as part of baseline studies for

the Project, a rapid flora and fauna assessment was conducted at the project

site to verify and update findings from previous ecological studies conducted

in the area.

The site for NGLE Plant is in the midst of a desert where other than few

scrubs commonly found in arid ecosystem, no other environmentally

significant features exist.

The ecology and biodiversity of the pipeline will be minimally impacted.

The pipeline is located within the existing OGC pipeline corridor.

Appendix A (EIA, Section 4 and Appendix E)

4.1.5 Community Exposure to Disease Orpic completed an EIA for the Project and the associated activities assessed

do not result in water-borne, water based, water related or vector borne

diseases to the community. It is worthwhile to note that there are no

Appendix A (EIA)



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communities found in the NGLE project area and very limited numbers of

communities reside in the surrounding areas of the pipeline.

http://orpic.om/uploadsall/publications/pdf/Orpic%202012%20Sustainability%20Report%20English.PDF:

Orpic‟s Sustainability Framework report (2012)

4.1.6 Emergency Preparedness and Response A Rapid Risk Assessment (RRA) was completed for the PC which includes

an ERP that addresses all international and Omani regulations and

collaborates with government agencies. In addition, Risk assessments of

plants and operations are carried out routinely, and business processes are

regularly reviewed to ensure that hazards are identified and the associated

risks mitigated to a level which is as low as reasonably practicable

(ALARP). According to Orpic‟s Sustainability Framework report (2012),

risk management strategy includes:

1- Risk Studies: To understand and control the impact of operations on

health, safety and environment, health, safety, and environment

impact assessments (HSEIAs) are conducted during the planning

and development phases of Orpic‟s projects, in compliance with

local regulations.

2- Quality Control: Orpic is certified to ISO 9001 for Quality Control

has a documented supplier quality management system for the

procurement of materials and services. This includes policies and

procedures covering the entire procurement process, including

supplier pre-qualification and supplier performance evaluation

through reviews, audit, etc

3- Emergency Preparedness and Response: Orpic has a clear and 3

tiered emergency planning, preparedness and response procedures

across all plants. The three levels of protection include operation

first line crews, retained fire brigade and full-time firemen on 24-

hour duty.

4- Security: The security of Orpic‟s plants is maintained by the

Security & Safety Services LLC, an independent company that is

trained by the Royal Oman Police, which provide 24/7 coverage.

Furthermore, Orpic has an overarching Emergency Response Plan (ERP)

with the defined purpose “To optimize mitigation & recovery in the event of

emergency.” This plan shall be applicable for any emergency which occurs

at Orpic controlled premises at Sohar complex (Sohar Refinery, Aromatic

Appendix C (RRA, Section 5.5).

Appendix L: Orpic Emergency Response Plan




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Plant and Polypropylene Plant) MAF & Raysut. The owner of the ERP is the

Chief Operating Officer (COO) who is responsible for issuing the ERP

under signature & there after issuing the clear directives to the custodian on

how the ERP shall be maintained and implemented. The custodian of the

ERP manual is the Senior Manager-HSE. As a custodian he/she is

responsible for ensuring that ERP is maintained as per COO directives.

Based on industry experience and confirmed by Risk Assessment) the

following has emerged as potential scenarios addressed in the ERP:

• Various Fire Scenario‟s

• Release of Toxic Gas, Spillages and Radiation

• Medical Emergencies

• Natural Phenomena

• Security Related Issues

The ERP details emergency management, communication plans during

emergencies, duties and responsibilities of key ERP personnel, guidelines

for handling process related incidents, releases of toxic gas, spillages and

radiation, medical emergencies, security related issues, mock drills, and a set

of appendices for further references such as focal point details, organization

structure, and emergency contacts at each operational area.

4.2 Security Personnel The EPC contractor for this project shall develop a Site security plan (Site

Security Plan) to ensure that they and each Subcontractor comply with all of

Opric‟s security requirements (see Appendix J for Site Security

Requirements). The Site Security Plan shall be developed and operated in

conjunction with the HSSE Plan and in accordance with all applicable laws

and regulations. The security personnel on site will not be armed. The Royal

Oman Police are the trained armed force for front line defense against all

security breaches. In addition, every contractor at Orpic (consequently the

EPC in the case of LPIC) is required to implement to assess and mitigate the

losses associated with security issues. The Contractor is also required to

have a written policy and strategy for security, dated and signed by an

authorized representative of the Contractor. The Contractor shall develop a

security management plan for all areas where the Works are to be performed

Appendix J: Orpic‟s Site Security Requirements


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and for the transportation of all components between work areas. The

Security Management Plan shall make specific reference to each stage of the

Contract, and to the particular security requirements at the Site and each

work area. Written contingency plans and procedures, identifying instances

where security precautions should be taken, shall be included which cover

all stages of the Works. The Contractor will be responsible for

demonstrating to Orpic (LPIC management) that all security risks which fall

under Contractor‟s responsibility have been reduced to a level that is as low

as reasonably practicable. The Contractor shall have written security

procedures available that shall be made familiar to all Contractor‟s Personnel

and shall be available in the working language of such personnel and in

English. The Security Procedures shall define the Contractor‟s control and

implementation of all security aspects. The Owner will review the

Contractor‟s compliance with the Security Management Plan on a regular

basis and will carry out milestone reviews and close-out reviews in close

cooperation with the Contractor. Orpic will review the Contractor‟s

compliance with the Security Management Plan on a regular basis and will

carry out milestone reviews and close-out reviews in close cooperation with

the Contractor.

Orpic carries out security inspections of the work areas and the Site and

reserves the right to shut down the Contractor‟s Works if any significant

security breaches are found. The Contractor will not be permitted to resume

the Works until such practices or conditions are corrected. All costs and

schedule impact incurred for all such corrections shall be borne by the

Contractor. The Contractor shall implement all agreed recommendations

from such security inspections within a time mutually agreed between Orpic

and the Contractor. The Contractor shall include in Subcontracts the right of

access for Orpic as described above.

Orpic reserves the right to include Owner nominated security personnel, at

Orpic‟s cost, to work with the Contractor‟s security team at work areas and

the Site. The Contractor shall provide rights of access for the Owner

nominated security personnel.

The security of operational plants at Orpic is maintained by the Security &

Safety Services LLC, an independent company that is trained by the Royal


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Oman Police, which provide 24/7 coverage ensuring full protection of

Orpic‟s assets.

Performance Standard 5: Land Acquisition and Involuntary Resettlement

5.1 General The Project does not involve any land acquisition and involuntary settlement

since is the petrochemical complex is being established in an existing

industrial area. As for the NGLE facility, it is established in the middle of

the desert where no communities reside. As for the pipeline no additional

land acquisition is envisaged since the proposed pipeline will be constructed

within an existing OGC gas pipeline. The EIA assessed the impact of land

use and local communities which indicated that there will be insignificant or

no land use conflicts with local communities


Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

6.1 General The EIA detailed an analysis of the risks and impacts of the ecological

setting of the project site and its vicinity. This analysis considered related

impacts on biodiversity and ecosystem services. The ecological assessment

was carried out at the project sites and its vicinity to fulfill following

objectives:

To document and enlist flora and fauna;

To identify sensitive sites and habitats if any; and

To assess the impact of flora, fauna and associated habitats within study area

The project activities will not lead to significant destruction of habitat and

threat to the maintenance of biodiversity.

Appendix A (EIA, Appendix E)


http://orpic.om/uploadsall/publications/pdf/Orpic%202012%20Sustainability%20Report%20English.PDF:

Orpic‟s Sustainability Framework report (2012)

6.2 Protection and Conservation of

Biodiversity (Modified habitat, Natural

Habitat, Critical Habitat, Legally

protected and internally recognized areas,

Invasive alien species)

There are no ecological sensitivities at the project sites that will be lost

whilst implementation of the Project. Loss of vegetation can be compensated

by planting native tree species during landscaping work. Measures such as

creation of vegetation screen using native vegetation can be considered

during landscaping work. These aspects have been assessed to add to

biodiversity of the area.



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6.3 Management of Ecosystem Services The EIA detailed an analysis of the risks and impacts of the ecological

setting of the site and its vicinity. This assessment indicated that the Project

is unlikely to adversely impact ecosystem services.


6.4 Sustainable Management of Living

Natural Resources

Not applicable for this Project.

6.5 Supply Chain Not applicable for this Project.

Performance Standard 7: Indigenous Peoples

7.1 General The EIA assessed communities of Indigenous Peoples within the project area

of influence who may be affected by the Project. The social-economic

impact assessment identified the villages within the project influence area.

This analysis confirmed that the Project will not significantly impact the

surrounding community of Indigenous People.


7.2 Circumstances requiring Free, Prior and

Informed Consent


7.3 Mitigation and Development Benefits Not applicable for this Project.

7.4 Private Sector Responsibilities Where

Government is Responsible for Managing

Indigenous People Issues


Performance Standard 8: Cultural Heritage

8.1 Protection of Cultural Heritage in Project

Design and Execution

Based on the field study conducted during EIA, no cultural or archaeological

resources within the project site were found. Hence no impact is envisaged.


8.2 Project‟s Use of Cultural Heritage Not applicable for this Project.


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Section 4. EHS Guidelines

The LPIC Project compliance status with stringent national environmental and social laws is detailed

and demonstrated in the EIA (Refer Appendix A). The EHS Guidelines complement these standards

and provides a technical reference to the IFC Performance Standards. This section addresses the

application of the relevant EHS Guidelines to the LPIC Project. The tables presented in this section

summarize and highlight the criteria and limits for the different environmental aspects between the

EHS Guidelines and MECA requirements (Oman legislation and regulations). For the LPIC Project

OPRIC assessed the LPIC Project impacts as part of the EIAs against the Omani regulations and the

EHS Guidelines. In all instances OPRIC adopted the more stringent requirements and guidelines.

Applicable EHS Guidelines

The EHS Guidelines are a requirement under Equator Principle III and The EHS Guidelines address

environmental practice, occupational health and safety practice, community health and safety for

entire life cycle of the Project.

Applicable International Finance corporation (IFC) EHS guidelines for the LPIC Project are as

follows:

1. Environmental, Health, and Safety General Guidelines (April 30, 2007). This guideline

applies to facilities or projects that generate emissions to air at any stage of the project life-

cycle.; and

2. Environmental, Health and Safety Guidelines for Large Volume Petroleum-based Organic

Chemicals Manufacturing (April 30, 2007). It is applicable to the Project as the process

involves lower olefins from virgin naphtha, natural gas, and gas oil with special reference to

ethylene and propylene, and the main co-products [C4, C5 streams, pyrolysis gasoline (py-

gas)] as these are feedstock for organic chemicals manufacturing.

Noise

Table 9 presents a comparison of noise standards applicable in Oman against IFC EHS Guidelines

(Environmental, Health, and Safety General Guidelines, April 30, 2007).


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Table 9: Noise Level - EHS Guideline vs. Omani Standards

# Receptor EHS Guideline Omani Standards (MD 79/94)

Day time Night time Day time Night time

1 Residential;

institutional;

educational

55 45 50 40

2 Industrial;

commercial

70 70 70 70

The Omani standard (MD 79/94) is more stringent than the EHS Guideline for noise levels and as

such the Omani Standard was adopted for the LPIC Project.

Ambient Air quality

A comparison between WHO standards as specified in IFC EHS Guidelines (Environmental, Health,

and Safety General Guidelines, April 30, 2007) and the Omani Ambient Air Quality Provisional

Standards presented in Table 10.

Table 10: Comparison between WHO standards as specified in IFC EHS Guidelines

(Environmental, Health, and Safety General Guidelines, April 30, 2007) and the Omani Ambient

Air Quality Provisional Standards

# Parameter Averaging period EHS Guidelines(µg/m3) Omani Ambient Air

Quality Provisional

Standards (µg/m3)

1 NO2 24-hr 112

2 SO2 24-hr 125 125

3 CO 8-hr 6,000

4 H2S 24-hr 40

5 O3 8-hr 160 120

6 HCNM 3-hr 160

7 PM 10 150 125

The Omani Standard Ambient Air Quality Provisional Standard is more stringent than the EHS

Guideline for air quality and as such the Omani Standard was adopted for the Project.


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Treated Effluent Discharge

A comparison for effluent discharge was undertaken to assess the standards in the EHS Guidelines for

Large Volume Petroleum-based Organic Chemicals Manufacturing (April 30, 2007) against the

Omani Marine Discharge Standard MD 159/2005 and is presented in Table 11.

Table 11: Comparison of effluent discharge standards in the EHS Guidelines for Large Volume

Petroleum-based Organic Chemicals Manufacturing (April 30, 2007) and the Omani Marine

Discharge Standard MD 159/2005

# Parameters Units EHS Guidelines for

Large Volume

Petroleum-based

Organic Chemicals

Manufacturing (April

30, 2007)

Omani Marine

Discharge Standard

(MD 159/2005)

1 pH S.U. 6 – 9 6-9

2 Temperature Increase °C =3 NA

3 BOD5 mg/l 25 20

4 COD mg/l 150 200

5 Total Nitrogen mg/l 10 15

6 Total Phosphorous mg/l 2 2

7 Sulfide mg/l 1 0.1

8 Oil and Grease mg/l 10 10

9 TSS mg/l 30 30

10 Cadmium mg/l 0.1 0.01

11 Chromium (total) mg/l 0.5 0.05

12 Chromium (hexavalent) mg/l 0.1 NA

13 Copper mg/l 0.5 0.2

14 Zinc mg/l 2 1

15 Lead mg/l 0.5 0.08

16 Nickel mg/l 0.5 0.1

17 Mercury mg/l 0.01 0.001

18 Phenol mg/l 0.5 0.002

19 Benzene mg/l 0.05 Not Regulated

20 Adsorbable Organic

Halogens (AOX)

mg/l 1 < 0.001

21 Toxicity Case Basis


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The Omani Marine Discharge Standard MD 159/2005 is more stringent than the EHS Guideline Large

Volume Petroleum-based Organic Chemicals Manufacturing (April 30, 2007) and as such the Omani

Standard was adopted for the Project.

In stack Concentrations

A comparison for in stack concentrations was undertaken to assess the standards in the EHS

Guidelines for Large Volume Petroleum-based Organic Chemicals Manufacturing (April 30, 2007)

against the Omani standard for Air Emission from Stationary Sources, MD 118/2004 and is presented

in Table 12.


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Table 12: Comparison for in stack concentrations standards in the EHS Guidelines for Large

Volume Petroleum-based Organic Chemicals Manufacturing (April 30, 2007) and the Omani

standard for Air Emission from Stationary Sources, MD 118/2004

# Pollutant EHS Guidelines for Large

Volume Petroleum-based

Organic Chemicals

Manufacturing (April 30, 2007)

(mg/Nm3)

Oman Air Emission from

Stationary Sources, MD 118/2004

(mg/Nm3))

Environmental, Health and Safety Guidelines for Large Volume Petroleum-based Organic Chemicals Manufacturing, April 30 2007

Section 20, Petrochemical works

1 Particulate Matter (PM)

20 10

2 Nitrogen Oxides 300 150

3 Sulfur Oxides 100 35

4 VOC 20 10

Environmental, Health, and Safety General Guidelines, April 30 2007 and EHS guideline for Thermal Power plant December 19 2008

Section 13, Power Plants and Section 18 Combustion Sources

1 Particulate Matter (PM)

NA 50

2 Nitrogen Oxides Power Generation: 152

Boilers: 320

150

3 Sulfur Oxides Use of 0.5% or less Sulphur fuel 35

4 VOC NA 10

The Omani Air Emission from Stationary Sources, MD 118/2004 is more stringent than the EHS

Guideline Large Volume Petroleum-based Organic Chemicals Manufacturing (April 30, 2007) and as

such the Omani Standard was adopted for the Project.