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ARCO and PERTAMINA, the Indonesian State Oil and Gas Company, produced gas from reserves in the Kangean Block, about 100 miles north of the island of Bali. The block areas covers approximately 4508 sq.km. of ocean and land, including 10 islands, and consists of 14 production wells, 30 exploratory wells, 2 gas processing trains, a harbour, an air strip and other support facilities. An estimated 225 miles of subsea and 45 miles of onshore pipelines deliver produced gas to customers. Potential environmental impacts of development and operations include affects on marine life, terrestrial function ecosystems and the atmosphere. The potential impact also exist on the socio and human environment. We used social cultural needs and government regulations issues is a main tool to minimize or prevent the impact and to avoid possible reversals and disturbance to the gas development and operation itself. These tools then effectively raise many ideas on how to protect, preserve, and develop or enhance environmental quality, to integrate the company policy and commitment, and to arrive at the decision making with involving all concerned individuals, groups, or organizations in Environmental Management System (EMS) planning, implementing, and monitoring steps. These processes produced a "Top - Down Strategy" to develop and operate the Kangean block area. In addition, the strategy also tends to produce a severe imbalance between gas development on the hand, and EMS implementation on the other. To overcome the problem, we used six structural components in the EMS for Kangean block: planning/policy, project assessment, implementation, technical rigor, consultation, and institutional integrity.

No abstract

ARCO and Pertamina in Indonesia have developed and are producing from gas reserves in the Pagerungan Field. The gas production has provided a clean burning fuel for power plants in East Java that were burning diesel oil and coal in the past. Conversion of these plants to natural gas has been beneficial to local air quality and has economic benefits for the area as a result of reducing operating expenses and diversifying fuel sources. The substantial commercial gas reserves of Pagerungan Field were discovered 1985. The gas producing facilities were built in 1991-1993 on Pagerungan and were designed for 350 MMSCFD of dry gas and 3,500 bbl/day of condensate. About 9 of the 16 planned wells are producing. The gas and condensate sales commenced on January 1994. In Pagerungan island, the aquatic marine environment plays an important role in sustaining organisms which in turn provide both employment and business opportunities for the local people. The Pagerungan gas development has been completed with a series of environmental studies. The studies point out that the development is likely to have a significant impact on the marine environment. For this reason, the company are responsible for managing and monitoring these possible effects and taking action to mitigate potential or actual problems. In order to fulfill these responsibilities, the company have managed the coral communities, prevented nursery ground degradation and controlled marine pollution, installed artificial reefs and improved local fishermen's incomes. The discharge of waste disposal into marine water and dredging and drilling works on reef communities and nursery ground areas have been selected as the highest priority in marine management activities. All wastes produced by development activities have been treated by using the current available technology in Indonesia. As a socio economical support, artificial reefs, ice plant & cold storage facilities have been constructed on the island to improve the fishermen's incomes. To support these efforts, marine and socio-economic monitoring has been implemented on the island. Presently, the marine environment of Pagerungan is still in very good condition. The live coral community is still healthy and the fishermen can harvest commercial fish without any environmental degradation. To maintain these marine condition and improve the marine quality as well as the fishermen's incomes, mangrove trees have been planted around Pagerungan. Introduction In 1985, substantial commercial gas reserves were discovered in the Pagerungan field-Kangean Block Area, which is approximately 137 Km north of Bali island (Fig. 1). ARCO and its partners British Petroleum and Bimantara, as Production Sharing Contractor with Pertamina, have developed and produced these gas reserves for customers in the Surabaya city area via a 28" diameter offshore and onshore pipeline, to provide critical fuel for power generation and other industrial users. The central gas processing plant was built on Pagerungan Island and was designed for 350 MMSCFD of dry gas and 4,500 bbl/day of condensate. The Pagerungan gas development activity is estimated to have a potentially significant effect on the local marine environment. Construction activities include blasting, dredging, and on land activities resulting in erosion and sediment transport to the ocean likely to affect the marine environment in the form of: destruction of coral reef and disturbance of marine life and nursery grounds. Drilling activity, especially discharge of drilling debris may also have important effects on coral reef and marine water quality. Other potential disturbances to the marine environment from this development activity include discharge of sanitary waste, desalination brines and produce water. Individually or concurrently, these impact sources have the potential to exert fundamental effects on local marine life and fishery production which, in turn, exert other significant changes on the local social welfare. Therefore, the company is responsible for managing and monitoring these possible effects and taking action to mitigate potential or actual problems. P. 891