2008EnvironmentalStatement

BPWestJavaLtd.
Bravo,CentralPlant,MikeMike,EchoFlowStation Muarakarang&TanjungPriokOnshoreReceivingFacilities JavaShorebase

Foreword

IampleasedtoannouncethatBPWestJavaLtdMuarakarang and Tanjung Priok Onshore receiving facilities/ORF has achieved the ISO 14001 certification in October 2008. This is achievementfollowingpreviouscertificationof5flowstations &Shorebase.IalsoproudlyannouncethatBPWestJavahas proven its commitment to the environment by attaining a GreenPROPER1statusfromtheIndonesiaStateMinistryof theEnvironment(MENLH)in2008. Mostoftheenvironmentalmanagementprogramssetbythosecertifiedstations have met their objectives and targets, i.e., improving produced water quality, maintaining gas flaring level, and maintaining waste segregation practices, including meeting the Indonesian applicable environmental laws, regulations andrequirements. The environmental targets set for 20072008 show a continuing reduction in emissionsandfurtherimprovementinenvironmentalperformance.BPsgoalto become a leading company in pursuit of Best Practice in environmental performancecontinues.TothisendourgoalsaresimplystatedasNoAccident, NoHarmtoPeople,andNoDamagetotheEnvironment. In 2008, our objectives remain to reduce our atmospheric emissions, waste generated and good housekeeping, improve our oil spill preparedness, and maintain compliance with Indonesian applicable environmental laws & regulations. Next year we will improve integration of hazardous waste managementamongstationsandJavaShorebase,integratethemanagementof issuesofoilspill,Halonphaseout,andregulationcompliance.Wewillcontinue to identify and implement options that reduce the potential impact of our operations. I am delighted to present the Environmental Performance Report for 2008 covering the Bravo, Central Plant, MikeMike, Echo flow stations; Java Shorebase;andMuarakarangandTanjungPriokORF.

IgnatiusTennyWibowo ExecutiveVicePresidentJava
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PROPER (Company Environmental Performance Rating Evaluation Program) represents the Indonesia Governments annual assessments on company waste-management (including & particular toxic waste), environmental impact control, environmental impact assessment reporting, environmental management system, and community development operations.

Introduction
InlinewiththecorporategoalofNoDamagetotheEnvironment,BPWestJava Ltd. Bravo, Central Plant, MikeMike, and Echo flow stations, Java Shorebase, Muarakarang and Tanjung Priok ORF recognize their responsibility to protect the environment while conducting their operations. In this regard, every operational activitythatcausessignificantenvironmentalimpactsareidentifiedandmanagedin ordertoreduceand/oreliminatethepotentialimpactstoenvironment. After successful implementation of environmental management, BP West Java is committedtoimplementingitsenvironmentalmanagementundertheframeworkof the ISO 14001:2004 Standard on Environmental Management System/EMS at all platforms in West Java. Several sites have been certified, i.e., Bravo, Central Plant Complex,andJavaShorebasesinceNovember2002,thenexpandingthesystemto theMikeMikeFlowStationinDecember,2003,andEchoFlowStationinJuly2007. Afterthisachievement,duringthisyear2008,theMuarakarangandTanjungPriok OnshoreReceivingFacilities(ORF)toobtainISO14001certification. The EMS shall be part of our business processes to minimize impacts on the environment.ByhavingthisEMS,italsosatisfiesBPsGettingHSERight(gHSEr), and 2006 ERNP, Environmental Performance Requirements (EPR 7) Flaring and Ventingand(EPR9)OzoneDepletingSubstances. BelowistheISO14001:2004EMSframework.

Figure1.TheEnvironmentalManagementSystemCycle

The ISO 14001 standard requires that the environmental management system be basedonthethreefundamentalcommitments,i.e.Compliancewithregulationsand other environmental requirements, pollution prevention, and continual improvement. These requirements are real reflections of our environmental goals, NoDamagetotheEnvironment. The current Environmental Policy was signed on 1st May 2008 by the West Java OperationDirectorastopmanagementforBravo&CentralPlant,MikeMike,and Echoflowstations,JavaShorebase,MuarakarangandTanjungPriokORF. NosignificantchangeshaveoccurredwithrespecttotheEnvironmentalPolicy,and we are still focusing on managing solid waste, produced water discharges, GHG emissionsmanagement,andnaturalresourcesusage. As a result of corporate reorganization, the management has rearranged and appointed the Operation Managers as the Environmental Management Representatives (EMR) in order to increase the EMS effectiveness. The EMR has responsibilitytoensurethatISO 14001requirementsareestablished,implemented, and maintained, as well as reporting on the performance of the EMS to BP top management. SeeFigure9fortheOrganizationalStructureDiagram. Currently, the scope of certification for the ONWJ field is BP West Java Ltd., Bravo, Central Plant, MikeMike, and Echo Offshore Oil and Gas Processing FacilitiesandOperationFacilities;JavaShorebase,MuarakarangandTanjung PriokOnshoreReceivingFacilities. UsingtheEMSISO14001schemeallowsustoimproveoursystemcontinually.By consistent implementation, we achieved a Green PROPER11 status from the IndonesiaStateMinistryofEnvironment(MENLH)in2008. This 2008 Environmental Statement formally reports the environmental performance of Bravo & Central Plant, MikeMike, and Echo flow stations, and Java Shorebase, Muarakarang and Tanjung Priok ORF for the period of 2007 2008.ItalsoexplainstheEMSframeworktomanagetheenvironment.

Descriptionofouroperations
BP West Java, Ltd., operating the ONWJ contract area, is located offshore of NorthWestJavaisland.ItstretchesfromnorthofCireboncitytotheThousand Islands Kepulauan Seribu, at a distance of 50 miles from the shoreline. The production facilities comprise 468 producing strings, 171 producing platforms, and40processingandservicefacilities.Morethan1000milesofpipelineinter connect the production facilities. It is also facilitated by a central processing plantandacrudeoilstoragefacility. TheBPWestJavaLtdareaisformallydefinedat(420550Southand10550 0700East,500608Southand1063010825Eastapproximately.

Figure2.BPWestJavaLtd.OffshoreOperationsMap

Main production of all ONWJ operations is crude oil and gas with total production figures from all platforms at 24,000 BOPD and 260 BBTUD of gas.

TheultimatewastedisposalpointistheJavashorebase,andthenthehazardous wasteisforwardedtoathirdpartycompanywhoislicensedandapprovedfor hazardous waste disposal. In addition, the shore base has achieved ISO 14001 certificationandtheircurrentcertificateisvaliduntilJune,2011. BP West Java Ltd has eleven manned platforms & one crude terminal located offshore,threeonshorereceivingfacilities(ORF,)andashorebaseasthelogistics base. The coordinates of the MikeMike, Bravo complex, Central Plant complex, and EchoFlowStation,andMuarakarangandTanjungPriokORFareasfollows:
MikeMike055220S1071754E Bravo055451S1074345E CentralPlant055450S1074400E Echo055220S1071754E. MuarakarangORF060625.66S,1064645.46E TanjungpriokORF060638.29South,1065146.89East

The four platform complexes are offshore facilities surrounded by the sea and recognizedastraditionalfishingwatersbytheindigenouslocalfishermen. LogisticalsupportforBravo,CentralPlant,MikeMike,andEchoisprovidedby various marine boats / vessels. There is no regular helicopter transportation exceptforemergencysituations. CentralProcessingPlant The Central Plant consists of five platforms that are interconnected by bridges namelyPlatformAforcrudestabilization,PlatformBforgasgathering,Platform Cforthedewateringunit,Junction,andQuarters.. The Central Processing Plant receives produced liquid ( 94,000 BFPD) from mostoftheplatformsintheONWJfieldtobefurtherseparatedintheseparator. The Central Plant separator is a 3rd stage separator that functions to split crude oil, associated gas, and produced water. Maximum water content from this separationprocessis1%weightandisfurthertransportedtothecrudeterminal, FSOArcoArdjuna.Recoveredgasistransferredtoaboostercompressorforgas sales.Lowpressuregasthatcannotbeutilizedanymoreisflared. Producedwateristhenfurthertransferredtotheproducedwaterprocessingunit (DewateringUnitWemcoDepurator)withatotalcapacityof260,000barrelsof

water per day. Total produced water at current production is 70,000 80,000 BWPD. The maximum oil content in produced water discharges is maintained accordingtoregulations,i.e.,below50ppm.Awastewaterdischargepermitno 413/2007 has been obtained from the Minister of the Environment this year as compliance to Government Regulation No. 19/1999 pertaining to sea pollution prevention. ThemaximumpersonnelonboardCentralPlantareapproximately30atanyone time, of which 15 are BP personnel (including 2 offshore installation manager workingbacktoback).Others(15personnel)arecontractorssuchascatering crews,maintenanceoutsourcingcrews,andfieldsupportteampersonnel,doctor, etc.). Asinnormaloilandgasproducingandprocessingfacilities,CentralPlantuses various chemicals, gas and liquid fuel, and emits flue gas which is flared as unprocessedgas.Thefacilityalsogeneratesvarioussolidandliquidwastessuch asmetal,wood,paper,food,grease,chemicalwaste,etc.

Figure3.CentralProcessingPlant

BravoComplex Bravohas six(6)platformcomplexesthatareinterconnectedby bridgesand20 remote platforms. The six platforms are the B2C Compression Platform, B1C Compression Platform, BService Platform, BProcess Platform, BBWell Platform,andBCSLivingQuartersplatform. The Bravo complex currently produces approximately 7500 BPD of wet crude and25MMSCFDofgas.

The maximum personnel on board the Bravo Complex are approximately 55 at any one time, of which 26 are BP personnel (including 2 offshore installation manager working back to back). Others ( 29 personnel) are contractors (cateringcrew,maintenanceoutsourcingcrew,andfieldsupportteampersonnel, etc.).

Figure4.BravoComplex

MikeMikeComplex MikeMike has four (4) platform complexes that are interconnected by bridges and3activeremoteplatforms(APNA/B/D).ThefourplatformsareMikeMike Compression (MMC), MikeMike Flow Station (MMF), MikeMike Service Platform(MMS),andMikeMikeJunctionPlatform.Aproductionseparatorwas not operated because all wet crude is sent to the Central Plant by sub sea pipeline.TheMikeMikeproducingcomplexcurrentlyprocessesapproximately 1,500BPDofwetcrudeand120MMSCFDofgas. ThetotalnumberofemployeesattheMikeMikeComplexisapproximately33at any one time, of which 22 are BP personnel (including 2 offshore installation manager working back to back). Others ( 13 personnel) are contractors (cateringcrew,maintenanceoutsourcingcrew,andfieldsupportteampersonnel, doctor,etc,).

Figure5.MikeMikeFlowStation

EchoComplex The Echo Complex has four (4) platform complexes that are interconnected by bridges namely the Echo Service Platform, EA Well Platform, Echo Process Platform, and Echo Compression Platform. There are currently 17 operated remoteplatforms(unmanned)withaproductionrateof11,000BPDofwetcrude and 18 MMSCFD of gas. The Echo Complex consists of some of the oldest platforms,builtin1972andlocatedintheeasternpartoftheONWJfield. The Echo complex also has installed a Vapor Recovery Unit (VRU) that can recover2.5MMSCFDofgas.Thisrecoverygasisusedforgasliftandadditional gassales. Themaximumpersonnelonboardisaround33peoplewhoworkbacktobackin a12dayshiftsystemandstaysintheplatformlivingquartersduringtheirduty.

Figure6.EchoFlowStation

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JavaShorebase TheBPWestJavaLtdShorebase,whichoperatesasaconsolidatedShorebasein Kawasan Berikat Nusantara (KBN) Marunda, is a part of the Java Performance Unit.ItislocatedinNorthJakartaattheMarundacoastneartheBlencongRiver. The total area used is about 3.5 hectares, complete with facilities such as shelteredstorage,piperackstorage,offices,coolrooms,andjetty.Theecologyof Shorebase is surrounded by seawater, with low biodiversity and local communitywithfishermenandindustriallaborers. AllactivitiesatShorebasearedesignatedasmainsupplychainsinsupportingoil and gas exploration and production activities of BP West Java Ltd. ; including Hazardouswastetemporarystoragefromoffshoreandonshoreoperations,tobe disposedoftocertifiedexternalparties.

MuarakarangORF The Muara Karang ORF is the main gas receiver from the NorthWest Java Offshore whereby the gas is distributed to PLN (State Owned Electricity Company),namelythePT.IndonesiaPower/IPUBPPriok(throughtheTanjung Priok OnShore Receiving Facilities) and PT.PJB UP Muara Karang and PGN. This facility is guarded and monitored continually for 24 hours and the monitoringsystemoftheGasflowofONWJisdoneusingtheSCADASystem. The Gas which is distributed from ONJW to the Customers have an average BBTUDofaround252atanaveragepressureof350PSIG.TheuseofgasbyPLN

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is for the power plant fuel, and PGN. Gas would be distributed back to industries,suchasceramic,plastic,powerplant,theTransJakartabusfuel,andit wouldbedistributeddirectlytohousehold. TanjungpriokORF The Tanjung Priok ORF is the main ONWJ gas receiver that is distributed throughtheMKORFtosupplytheneedsoffuelatPLNPTIPUBPPriok.From thispointitrequiresanaverageconsumptionof35BBTUDofgasforeachofits ElectricityGenerator/PLTGU,wherebyPTIPUBPPriokhas6unitsofPLTGU.

Figure7.MuarakarangORF

Figure8.TanjungPriokORF

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West Java Operations Director Team Assistant Deputy JFO Manager

West Operations Manager

East Operations Manager

Operations Support & IFP Manager

Marine Performance Manager

Operations HSE Coordinator

West Operations Coordination Manager

East Operations Coordination Manager

7 OIMOIM 7 position (1:1) Position (1:1)

6 OIM position 6 OIM Position (1:1) (1:1)

offshore

office

Figure9.OrganizationalStructureDiagramofJavaFieldOperationsOrganization

Howweidentifyandmanagepotentialimportant environmentalimpacts
TheheartofdevelopinganEMSisenvironmentalaspectsandimpactsidentification. An environmental aspect is an element of an organizations activities, products, and/or services that can interact with the environment. The basic process of our environmentalaspectidentificationcanbeseeninthefollowingdiagram.
Emissions/DischargestoAir

Input

PROCESS/ACTIVITY/ OPERATION

Output

Natural resources Consumption

WasteDisposal Dischargeto Water Potential Leakage / Spill

Figure8.IdentificationofEnvironmentalAspectsandImpacts

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Fromthediagram,itcanbeseenthatoneprocess/activity/operationcanhavemore thanoneenvironmentalaspect(displayedinbluecolor).Thisisthereasonwhythe identification process needs high involvement from operations personnel for each specificprocess,toavoidanymisidentificationofenvironmentalaspects. BPWestJavaLtd.Bravo,CentralPlant,MikeMike,andEchoflowstations,Java Shorebase,andMuarakarangandTanjungPriokORFhaveidentifiedandevaluated their environmental aspects and impacts. The assessment was done based on the followingconsiderations: 1. Legalandotherrequirements 2. Frequencyofoccurrence 3. Scaleofimpact 4. Geographicalimpactdistribution 5. Impactrecoverycost 6. Effectonexternalissues 7. Recoverytimeoftheimpact. A scoring system (weighted average method) is used to determine the significanceofimpacts.Inaddition,ifthereareanylegalandotherrequirements relatedtotheaspect/impact,thesaidaspect/impactisautomaticallyconsidered significant. These (negative) significant aspects are summarized, listed, and registered as a basisfordevelopmentoftheEMS. Theimpactsaremanagedinanumberofways: 1. Operational Control by developing Environmental Procedures or WorkingInstructionsorusingrelatedStandardOperatingProcedures 2. EstablishingObjectivesandTargets 3. Performingfurtherinvestigationforuncertainimpacts.

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Ourimpactsandperformance
The following is a description of the significant environmental impacts of the operations and the Objectives & Targets for BP West Java Ltd. Some management programs at Bravo & Central Plants, MikeMike, and Echo flow stationsandMuarakarangandTanjungPriokORFhavebeenaccomplishedand updatedasfollows:

Issue:Flaring&Venting

BP has publicly stated its position on climate change and its commitment to reduce the production of greenhouse gases that contribute to global warming. Elimination or minimization of flaring and venting supports the intent of these commitments.ExcellenceinflaringandventingperformancedemonstratesBPs responsible custodianship of hydrocarbon resources, and improved gas utilizationmaypresentfiscalopportunitiesderivedfromrecoveredproduct. Flaringand/orventingofgascanberequiredinoilandgasoperationstoensure safe facility operation or to dispose of oilproductionrelated gas which, for commercialortechnicalreasons,cannotbemarketedorutilized.Gasdisposalis typicallyachievedbydirectventing,bycontrolledburning(flaring). Impact Flares and vents release greenhouses gases and other pollutants to the atmosphere, either as components of gas or as combustion products, and are considered to be a contributing factor to climate change. Specifically, carbon dioxide (the principle combustion product) and vented methane contribute to global warming, however, vented methane is typically perceived as more environmentallyharmful.Forexample,methanehasaglobalwarmingpotential 21 times higher than an equal mass of carbon dioxide. In addition, flares and vents can impact regional and local air quality, and may cause a disturbance to thecommunity. The main sources of carbon dioxide at BP West Java Bravo, Central Plant, Mike Mike, and Echo are from flaring, combustion engines (i.e., fuel burning for process heatingandturbineemissionsduringpowergeneration).Whilethesourceofcarbon dioxide at Muarakarang and Tanjung Priok ORF is from atmospheric elevated Vents/Cold Vents. All figures for atmospheric emissions and energy usage are

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calculatedbasedonfueluse,gasflared,andestimationofventing. Management BP West Java Bravo, Central Plant, MikeMike, and Echo flow stations and MuarakarangandTanjungPriokORFhaveestablishedacomprehensiveprogram to reduce the GHG emissions, i.e., implementing preventive maintenance thru MAXIMO the maintenance management system software for all combustion engines, conducting regular calibrations for all critical metering instruments, developing a GHG emission reporting procedure, and updating GHG emission performancequarterlytomanagement.Aftersuccessfulachievementin2003,this programisstillcontinuingasaregularprogram. For Muarakarang & Tanjung Priok ORF has also conducted regular monitoring and evaluation of Hydrocarbon that goes to the Cold vent. In year 2008, the management has developed an assessment program to look for potential reductionforGHGemission,startingwithcalibrationandmanualgassampling. In year 20072008, the GHG reduction programs at Echo flow station are still focusedongasflaring.Theseareaccomplishedbyimprovingtheflaringstrategy andimprovingthemeteringsystem/recording. Objectives&Targets: o Muarakarang&TanjungPriokORFhavesettargettomaintainCO2toCold vent at maximum the2007 figure (0.003 MMSCFD); and to complywith the nationalandlocalemissionstandardsfortotalhydrocarbontovents. o Bravo,Quarters,andMikeMikearecontinuingregularprogramtomaintain CO2emissionstoatmosphere. o EchohassettargettoreduceCO2emissiontoatmosphere10%fromthe2007 figurebyQ42008. Performance o Muarakarang&TanjungPriokORF:BasedonmonthlyGHGreportingupto June08, the CO2 emission has been maintained at maximum level of 0,003 MMSCF.Forhydrocarbontotalemittedtothecoldventhascompliedwiththe nationalandlocalemissionstandards. o GasflaringatBravohasbeenmaintainedatmaximum2007figure.Resultsup toNov2008,totalgasflaringhaveachieved30%reductionforLPFlare,and 78%reductionforHPFlare.

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 o IntheCentralplantcomplex,totalresidualflaringwasincreasedsignificantly due to the B1C shut down in April 2008. Soon after that month, gas flaring achievedasteadyconditionoratnormalflaring.STEPRegenerationgascycle fordehydratorcannotstopwhileB1Cs/d,sogasoutletfromDehydratorthat shouldgotosuctionB1Cwasdivertedtoflare. o InMikeMike,gasflaringfromHPFlareisincreasedinearly2008compareto 2007.But,totallyfigureuptoOct2008hasachieved33%reductionfromthe total2007figure.During20072008.thereisnogasflaringformLPFlare. o ThegasflaringreductionprogramforEchoisstillinprogress.Achievement uptoOct2008isstillslightlyabovetargetofmaximum2007figure.Total2007 gasflaringis83.87MMSCF,andTotaluptoOct2008=84.40MMSCF.Dueto intelligent pig 20MGL ECOM to NGLB and black outdue to air intake gas generator081AGD04. Thefollowinggraphsshowtheperformanceofflaringprograms.
Bravo LP Flare 2007 vs 2008
12 10 MMSCF 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2007 2008 Total 2007= 78.14 MMSCF Total up to Nov 2008= 54.18 MMSCF

Bravo HP Flare 2007 vs 2008

90 80 70 60 50 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul Aug

Total 2007= 240,055 MMSCF Total up to Nov 2008= 50,874 MMSCF

MMSCF

2007 2008

Sept

Oct

Nov

Dec

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MM HP Flare 2007 vs 2008

40 35 30 MMSCF 25 20 15 10 5 0 Jan Feb Mar Apr May Jun Jul Aug

Total 2007= 100.64 MMSCF Total up to Oct 2008= 67.50 MMSCF

2007 2008

Sept

Oct

Nov

Dec

ECHO- Flare 2007 vs 2008

30 25 MMSCF 20 15 10 5 0 Jan Feb Mar Apr May Jun Jul Aug

Total 2007 = 83.87 MMSCF Total up to Oct 2008 = 84.40 MMSCF

2007 2008

Sep

Oct

Nov

Dec

FuturePlans As the gap analysis of the BP Group Environmental Performance Requirement (EPR 7. Flaring & Venting) has been completed gaps on mandatory & recommendedrequirementsfortheexistingoperationarebeingclosedthrough environmental management programs & objectives, and monitored through managementreviewsandestablishedaudits.

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 Issue:WaterManagement Water is a basic need for all life. Many types of natural water resources are integraltoecosystemmaintenanceandsocietalwellbeing.Theseincludemarine systemssuchascoastalwater,seas,andoceans.Marinewaterresourcesarealso importantbutfrequentlyundervalued. One of the primary BP concerns is with wastewater discharges. The guiding principleisthatBPsdischargesofwastewaterwillnotdiminishthevalueofthe receiving watercourse and that a precautionary approach will be taken to managingtheimpacts. AllproducedwaterraisedfromallflowstationsatBPWestJavaistreatedatthe CentralProcessingPlant.Besidesproducedwater,domesticwastewatercoming fromkitchens,laundry,&sanitaryactivitiesarealsodischargedtothesea. Impact Directdischargeofwastewatercanpotentiallygivesignificantimpactstolowersea waterquality.Incontrastwithlandecosystems,inawaterenvironmentpollutants quicklyspreadoverlargedistancesfromthesourcesofpollution. BP West Java continuously discharges treated produced water at a flow rate of around60,000to80,000barrelsofwaterperday.Sincethedischargeisconcurrent withtheproductioncycle,impacttotheseaecologyisoneofourmainfocuses.The potentialsecondaryimpactofsuchdischargesmaygivedirectimpacttotheincomes oflocal,traditionalfishermen. Management Prior to discharge, produced water is treated in a dewatering unit called a WEMCODepurator.Inyear2008,improvementprogramforproducedwater dischargeiscontinuinginordertopreventspill/leaksandmaintainproduced waterquality. Themaximumoilcontentaccordingtoapplicablelegislationisbelow50ppm. Produced water discharged are monitored using both of continuous and manual sampling methods. In year 2008, a continuous oil monitoring equipmentisinstalled,sothatrealtimeoftheoilcontentofproducedwater can be monitored. In addition the regular sampling (twice a day) is also

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conductedtoensurethatthequalityofdischargescomplywiththeregulation. A 5year validity waste water discharge permit no 413/2007 has also been obtainedfromtheMinisteroftheEnvironmentin2007. Establishedproductionduringabnormaloperation. RegularreportingtotheGovernmentmonthly.

Performance Since 2005, produced water discharges are consistently below 50 ppm. The figure below illustrates this performance to date during 2008. Produced waterdischargedhascompliedtothestandard.
2008- Produce d Wate r Discharge
50 45 40 35 30 25 20 15 10 5 0 Jan Feb Mar Apr May Jun
Oil Content

Standard: 50

Jul

Aug

Sep

Oct

Nov

FuturePlans BP West Java is continuing to focus on achieving compliance to the new government regulation No 4/2007, particularly for quality of sanitary waste discharges.

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Issue:WasteManagement

Ourproductionactivitiesconsumenaturalresourcesandothermaterials.These activities result in the generation of solid and liquid waste of variable characteristics. Waste management is recognized by BP as a significant global environmentalissue.Thecleanupofstorage,handling,treatment,anddisposal facilities may represents a significant longterm financial liability for BP if these aspects are either poorly managed or where legislation changes over time. The effective management of waste is therefore a fundamental part of our EnvironmentalManagementSystem. Impact Being offshore locations, it is very important to manage waste, especially toxic and hazardous wastes. Improper waste management could lead to sea water pollution. Moreover, the local vicinity is a fishing ground where sea water qualityisofutmostsignificance.

Management ProcedurestomanageToxicandHazardousWasteandNontoxicWaste has been established, communicated, and implemented to all parties, especiallycontractors. Waste segregation is implemented by color code: red for toxic and hazardouswaste,greenfororganicwaste,andyellowforinorganicwaste. InorganicwastesthatareallnonbiodegradablearesenttotheJavashore baseandwillbedisposedofatanapprovedpubliclandfill.Wastepaper/ and PET plastic / drinking water bottles are collected for recycling (throughagarbagesubcontractor). ForBravo,CentralPlant,MikeMike,andJavaShorebase,improvementfor B3 and nonB3 waste disposal management systems has been established since 2003, while Echo flow station since 2007, and Muarakarang and TanjungpriokORFsince2008.Therefore,thetargetsforyear20072008are to maintain consistent implementation of relevant procedures and work instructions.Thisincludesmanagementofwastegeneratedfromstandby boats. In year 2008, a good housekeeping program has been launched for all stations as part of waste management programs. This program is facilitatedbytheJavashorebase,throughintensivecommunicationamong offshoreonshorestations,andwithsuppliers. JavaShorebasehasinitiatedimprovementprogramsinitswastehandling

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using steel basket designed according to the type and characteristic of waste to be transported, and reducing the number of wooden pallet as a naturalresource. Performance AllB3wastepermitshavebeenobtainedasperapplicableregulations, i.e.,forvesselsandtheJavashorebaseastheB3temporarywaste storagefacility.ThefinalB3wastelandfill/destinationisalso approvedbytheGovernment. B3wastereductionperformanceisasfollows:the2008figuretendsto increase slightly due to the housekeeping program in all stations. SignificantincreaseofhazardouswasteisinBravoFlowstation. Thereisasignificantreductionintheuseofwoodenpalletformaterials andwastehandling,startingonSeptember2008.
Hazardus Waste 2006-2008
2006 2007 up to Oct 2008

40 35 30 25 Ton 20 15 10 5 0 Bravo F/s Quarters Station Echo F/s Mike-Mike

Futureplans Keep maintaining current practice and compliance levels to all applicable waste managementlegislation,andimproveimplementationthroughanintegratedwaste managementprogramconsistently.

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Issue:OZONEDEPLETINGSUBTANCES

Ozoneintheearthsstratosphereabsorbsmostoftheultravioletwavelengthsolar radiation(UVB)andsopreventsitfromreachingtheearthssurface,whereitcan be biologically harmful. Halons, chlorofluorocarbons, and other chlorine and bromine containing compounds, known collectively as Ozone Depleting Substances(ODS),candestroystratosphericozoneandsoallowhigherlevelsof UVBtoreachtheground OneofthemainconcernsatBPareHalons,primarilyHalon1301,typicallyused as explosion and fire suppressants in predominately BP E&P operations. This requirement excludes air conditioners fitted to vehicles, hermetically sealed domestictype appliances (e.g. refrigerators, chilling units, and portable air conditioners) with an inventory less than 3 kg and also the use of Halons in companyaircraftandhelicopters. Impact InlinewiththeODSrequirement,BPWestJavashallnotuseHalonbasedfixedand portable fire suppression systems. Halocarbon inventories and losses shall be recordedonanannualbasis. Management

Manage the Halon inventory and report to Group HSSE annually and to theIndonesiangovernment. AllHalonsreleasedarereportedandloggedinTraction. Developed procedures to prevent Freon releases to the atmosphere during maintenanceofequipment. DevelopaHalonphaseoutplanforJavaPUtobeeliminatedby2010asper Indonesialegislativerequirements.

Performance Halocarbon inventory has been identified, recorded, and submitted to the relevantgovernmentofIndonesiaagency. Halon alternative substances are still under review and the result will be submittedtoBPMIGASforapproval. Dispensation to vary from Group EPR 9 has been obtained from the Group EnvironmentalDirectorandBPWestJavaiscommittedtoeliminatingHalons usageby2010. MuarakarangORFhasachievedthetargetforFreonreduction.R12/Freonuse

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in2008havebeenreplacedin2008withHFC134a. HalonPhaseoutprojecthasbeenstartedatMMf/sinthisyear(byinstalling CO2 snuffing at TGS AB) and at Quarters (currently under engineering design).

Futureplans We will continue to make every effort to eliminate the use of ODSs in accordance withapplicablelaws&regulations.ThemanagementintegratedtheissueofHalon phaseoutprojectamongthestations.

Issue:OilandChemicalSpills E&Pactivitieshavethepotentialtogeneratepollutiontotheenvironment,oiland chemical spills. It may happen to various environmental media such as water, caused by subsea pipeline leakage or overflows from process vessels during loading, unloading, or handling operations. If existing protection is not good, suchspillswillgotothesea. Impact All BP West Java production facilities are located offshore and some remote platforms are close to the shoreline. The sea surrounding platforms is a traditionalfishingarea.Spillsofoiltoseacandamagetheseaecologymayhave negativelongtermconsequencesfortheenvironment,neighboringcommunities, peoples livelihoods and their health. Additionally, if the oil spill spreads to shore, it can impact sensitive environments such as mangrove forests or fishing platforms. Cleanup, claims, and compensation then should be managed correctly. Finally, this can also impact company reputation if oil spill preparedness and timelyresponseisnotmanagedproperly. Management OperationalControl All hydrocarbon releases are reported in Traction, investigated, and monitoredforfollowupactions. An Integrity Management Plan has been implemented to minimize the risksofspillsandleaks. Identificationofthespillrisksandinstallationofsecondarycontainmentto preventspillstoseaatEchoflowstation.

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 OilSpillResponseandPreparedness PeriodicoilspilldrillforWestandEastOperationarea Ensure readiness of the oil spill equipment (currently kept at Bravo and Quarters)usingMAXIMOsystem Upgrade the existing oil spill equipment by purchasing new oil spill equipmentasbackup/replacetheexistingone. EnhancetheTier2OilSpillResponsecooperationwithotheroilcompanies that are located in Jakarta and West Java province under BPMIGAS (the Oil&GasImplementingBody)coordination. Performance In 2008, there 2 cases of hydrocarbon spill to sea more than 1 barrel. All spillsareinternallyreportedinTractionandexternallytothegovernment. Operations took corrective and preventive action for any hydrocarbon releaseandmonitoredtheactioncloseouts. CompletedoilspilldrillforWestandEastarea. Completed maintained the oil spill equipment (oil boom, oil skimmer, powerpack,andupgradethemaintenancesystem). Return the oil spill equipment from Marunda to Papa f/s to cover West area.

Futureplans Maintaintheexpectationofnospillstowaterbyregularlyholdingoilspill responsedrills,upgradeandmaintainoilspillequipmentreadiness,review regularlyandupdate(asnecessary)theTier1OilSpillContingencyPlan,and workcloselywithotheroilcompanies,keystakeholders(bothatthenationaland regionallevel)tofinalizetheTier2OilSpillResponseProcedure.

OilSpillDrill

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OtherObjectivesandTargets
Objective Allauditfindings relatedtoenvironment, bothinternaland external,corrective actionrequestsare closedoutonschedule. Maintainhighlevelof environmental awarenessofthe employeesandthe contractors. Target Nooverdue issueson correctiveand prevention actions. Status Allactionswereproperly monitoredandtheresponsible personreportsmonthlyabouttheir actiontakentoDocumentControl. Allopenactionswerecloseouton schedule. Implementedregularinhouse training,i.e.,ISO14001awareness, B3wastehandling,andregulation awareness.

Increasethe environmental awareness.

FurtherInformation
References: 1. Environmental Management System, Specification with Guidance for Use, ISO14001:2004. 2. EMS ISO 14001 Manual BP West Java Ltd. Bravo, Central Plant, Mike Mike,Echo,ORFMKTPandJavaShorebase. 3. Related Environmental Procedures and Working Instructions of BP West Java Ltd. Bravo, Central Plant, MikeMike, Echo, ORF MKTP and Java Shorebase. 4. Progress Report of Environmental Management Program of BP West Java Ltd. Bravo, Central Plant, MikeMike, Echo, ORF MKTP and Java Shorebase. 5. EnvironmentalPerformanceRequirement(EPR)GroupPractice

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Glossary
Continual Improvement Process of enhancing the environmental management system to achieve improvement in overall environmental performance in linewiththeorganizationsenvironmentalpolicy. Note The process need not take place in all areas of activity simultaneously. Environment Surrounding in which an organization operates, including air, water, land natural resources, flora, fauna, humans, and their interrelation. NoteSurroundinginthiscontextextendfromwithinan organizationtotheglobalsystem.

Environmental aspect

Elementofanorganizationsactivities,products,orservicesthat caninteractwiththeenvironment. Note A significant environmental aspect is an environmental aspectthathasorcanhaveasignificantenvironmentalimpact.

Environmental impact

Anychangetotheenvironment,whetheradverseorbeneficial, wholly or partially resulting form an organizations activities, products,orservices.

Environmental management system

The part of the overall management system that includes organizational structure, planning activities, responsibilities, practices, procedures, processes, and resources for developing, implementing, achieving, reviewing, and maintaining the environmentalpolicy. Overall environmental goal, arising from the environmental policy,thatanorganizationsetsitselftoachieve,andwhichis quantifiedwherepracticable.

Environmental objective

Environmental performance

Measurableresultsoftheenvironmentalmanagementsystem, related to an organizations control of its environmental

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aspects, based on its environmental policy, objectives, and targets. Environmental policy Statement by the organization of its intentions and principles in relation to its overall environmental performance which provides a framework for action and for the setting its environmentalobjectivesandtargets. Detailed performance requirement, quantified where practicable,applicabletotheorganizationorpartsthereof,that arises from the environmental objectives and that needs to be setandmetinordertoachievethoseobjectives. Health,Safety,andEnvironment. Green House Gas: gases from which their concentration can increase earths temperature. For upstream operations, the focusisonCO2andCH4gases. EnvironmentalPerformanceRequirementGroupPractice

Environmental target

HSE GHG

EPR

Feedback
Telluswhatyouthink.Areourstatementseasytounderstand,notdetailedenough, orperhapstoocomplicated? Isthereanyfurtherinformationinwhichyouareinterested?Letusknowwhatyou think so we can improve our environmental reporting. If you have any queries aboutthisreportorgeneraloperations,pleasewriteortelephoneusandwewillbe happytoassist. PerformanceUnitLeader BPWestJavaLtd. Jl.TBSimatupangKav.88 Jakarta12520 Indonesia Tel. 622178548848 Fax. 622178549060 The next Verified Environmental Statement (VES) will be issued by the end of December2011andwillcovertheperiod20092011.

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VerificationStatement
We have independently reviewed the BP West Java Ltd., Bravo, Central Plant, MikeMike,andEchoFlowStationOffshoreOilandGasProcessingFacilities andOperationFacilities,MuarakarangandTanjungpriokOnshoreReceiving FacilitiesandJavaShorebaseEnvironmentalStatementandconcludeitrepresents a true and fair reflection of the environmental program and performance within 20072008.Wehavefoundnostatementsinthisreportwhichwehavebeenunable to substantiate and verify through observations, visits, and a review of the appropriatesystems.

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