Subject: VN mercury

The Nation

Friday, Sept 13, 1996

TOXINS FOUND IN VN OFFSHORE GAS FIELD

JAMES FAHN

 
   HO CHI MINH CITY -- THE natural gas in Vietnam's Lan Tay offshore field
   has been found to contain mercury, according to the company seeking to
   develop the area.
 
   Mercury, a dangerous neurotoxin, and other hazardous substances -
   including low-level radioactive material - have also turned up in gas
   fields in Malaysia and Indonesia, industrial sources say.
 
   As with Vietnam, however, the environmental impact in these areas
   remains unclear.
 
   British Petroleum (BP), which is currently negotiating a gas sales
   agreement with the Vietnamese government for the Lan Tay field,
   reported yesterday that the gas there contains ''extremely small
   amounts of mercury".
 
   Barry Bidston, head of public relations for BP Exploration in Vietnam
   said that delays in negotiating the agreement make it unlikely that
   any commercial development of the field will occur before 1999.
 
   ''We have a very stringent health, safety and environment programme
   and see ourselves in the forefront of pollution control," he said.
 
   The Lan Tay field is located 400 kilometres off the southeastern coast
   of Vietnam in the South China Sea.
 
   The only gas being produced in Vietnam currently is at the offshore
   Bach Ho field, where Vietsov Petro ­ a Russian-Vietnamese
   joint-venture firm ­ is producing a small amount of gas along with its
   larger oil production operations.
 
   Dr Nguyen Duc Huynh of Petro Vietnam claimed there were no pollution
   problems at the site.
 
   Australia-based BHP is also producing oil at Vietnam's offshore Dai
   Hung Field in a production sharing arrangement with Petro Vietnam.
 
   The operation is discharging toxic substances such as barium, copper
   and zinc into the sea, but within government-mandated standards, a
   well-placed source who asked not to be named said.
 
   The levels of heavy metals in fish around the platforms at Dai Hung
   were also under the set health standards, the source said.
 
   Vietnam has also awarded a gas exploration concession to Unocal in the
   Gulf of Thailand, not far from Unocal's Thai operations.
 
   Both Unocal and Total ­ Thailand's other gas concessionaire ­ have
   reported discharging mercury from their operations into the sea,
   raising concern over the mercury levels in fish in the Gulf.
 
   The mercury is discharged in the produced water as it is pumped up
   from underground along with the gas.
 
   Meanwhile, in Malaysia, there is a small amount of mercury in the gas
   being produced off Terrenganu state, but there is none in the produced
   water and so the metal is not being discharged into the sea, said Ir
   Hussein Rahmat of the Malaysian oil firm Petronas.
 
   Rahmat, who was in Vietnam attending a conference on regulating
   pollution from the oil and gas industry, added that the gas in
   Malaysia also contains naturally-occurring radioactive materials
   (NORMs).
 
   Petronas' low-level radioactive sludge is stored in a gas processing
   plant in Terrenganu  state, he said.
 
   Sources at Total and Unocal ­ both of which have operations in
   Indonesia ­ say the gas in some fields there contains both mercury and
   NORMs.
 
   But Indonesian officials at the conference yesterday said they knew
   nothing about it.
 
   In Burma, where two major gas fields have been found in the Gulf of
   Martaban, there have so far been no reports of toxic contaminants,
   both industry representatives and a government official said.
 
   Finally, Cambodia has awarded several exploratory concessions for
   offshore areas in the Gulf of Thailand. But so far no petroleum has
   been found. 1