Hazardous Waste Management in the Oil

Industry: An Overview in Brazil

Gisele Benedicto dos Santos, UNISUL - Rio de Janeiro, Brazil.

CONTACT

Gisele Benedicto dos Santos

UNISUL,
Avenida dos Lagos, N° 41, Cidade Universitária Pedra Branca – Palhoça, SC - Brasil
Phone: (005548) 3279-1242 / (005521) 8452-5194
Email: giselebenedicto@gmail.com

EXECUTIVE SUMMARY

The exploration and production of petroleum in Brazil has grown substantially in the last decade
due to the opening of the domestic market to foreign companies. This activity, being considered of
potentially high impact on the environment, is regulated by specific permitting at federal level,
establishing the implementation of environmental programs, including a rigorous pollution control
project whose scope covers the control of disposal of effluents, release of emissions and waste
disposal. This study aims to explain the current situation regarding the management of hazardous
waste in Brazil, the technologies that are available and used more frequently, possible areas for
improvement, and also to suggest measures for the optimization of the logistics process focused on
the final waste disposal, using indicators whose database was obtained through the records
generated in the years 2010 and 2011 in the activities of Drilling, Production and unloading
conducted by SHELL Brasil Petróleo Ltda..

INTRODUCTION

Known as Petroleum Law, the Ordinary Law 9478 from August 6, 1997 was a mark established by
the Brazilian government, which through the implementation of a legal device allowed
multinational companies to explore and produce petroleum within the Brazilian territory. This
segment growth also increased the number of marine units installed offshore, as well as the number
of people working in this modality as a direct consequence of the expansion of this segment and the
environmental impact caused by the generation of waste and disposal of effluents resulting from the
activities.
Environmentally, this activity is regulated by specific permitting at federal level through the
executing agency - IBAMA (Brazilian Institute of the Environment and Renewable Natural
Resources) - which after granting the Operation Licenses necessary to the utility companies of
exploration blocks and production fields establishes the implementation and development of a series
of environmental programs, among them a strict Pollution Control Project which encompasses the
standardization of the releasing of effluents, emission of atmospheric pollutants and disposal of
wastes.

The Pollution Control Project

Up until the year 2008, the steps related to the Pollution Control Project were related to the issuance
of an annual report to the environmental agency whose indicators reported were defined and related
to the process of emission and renewal of the Operation License of each entrepreneur.
The concession of new exploratory blocks resulted in the entrance of new companies in the country.
Thus, concerned about the increase of the environmental impacts caused by the growth of the
Petroleum Exploration and Production activities, and aiming to standardize the Environmental
Programs IBAMA, on October 9th 2008, defined stricter rules to control these activities through the
standardization of the Pollution Control projects, whose premises were defined by the Technical
Note CGPEG/DILIC/IBAMA # 08/08, being completely replaced on March 22, 2011 by Technical
Note CGPEG/DILIC/IBAMA # 01/11, and this second version is used up until the closure of this
study.
This Note establishes that the entrepreneur report the amount of waste generated, stored and
disposed, the treatment and disposal forms used, and requires the definition of quantitative goals to
reduce the generation of wastes in the production activities, and percentage goals to dispose of
wastes during the drilling. In the scope dedicated to the management of wastes, this note defines
that the information shall be reported in a specific report format, provided by IBAMA in the
predefined periods according to the table below:

Table 01 - Description of the period for the delivery of pollution control reports

The environmental reports containing the indicators shall be prepared according to the geographic
location defined by the environmental agency. The entrepreneurships shall be identified according
to their location, and the reports should be prepared according to their activity and location. The
delimitations of the entrepreneurs’ location have specific coordinates divided in the following way,
as shown in tables and figures below:

Table 02 - Regionalization and participant states

Figure 01 - Geographic regionalization

Source: CGPEG/DILIC/IBAMA # 07/11 (2011)

The management of wastes to meet this regulation requires the environmental indicators preparation
to follow up and manage continuously the values to be reported, and mainly assess the percentage
related to the goals defined by the entrepreneur. Meeting this goal requires the adoption and
maintenance of a strict system of environmental management in the places where wastes are
generated through the identification of their kind, as well as the respective quantity.

Characterization Of The Activities

In practice, the process of waste generation in the exploration, production and outflow happens
according to the steps described in the diagram below:

Figure 03 - Logistics of generation and shipping of waste

Marine Unit (Offshore Unit): offshore unit licensed to explore and/or produce petroleum. Semi-
submersible floating platforms or drill ships are commonly used in drilling activities. Most of the
waste considered hazardous is generated in this phase. In the production and outflow activities,
FPSO (Floating production storage and offloading) type ships are preferably used. Fixed or
submersible platforms are also commonly used in Brazil.
The wastes generated in the offshore units are classified by typology through an specific form for
waste shipping, and transferred to the supply vessel;

Supply vessels: Service and support vessels dedicated, per project or otherwise, to the exploration,
production and outflow. They are used in the logistics of sending and receiving materials to and
from the offshore units, as well as for transporting the waste generated in those units. Wastes are
also generated in these vessels, and they should comply with the same waste management systems
adopted by the offshore units in order to identify the wastes;

Shore base: Port facility intended for logistic support of offshore activities. It is here that the
wastes generated by the offshore units and ground support vessels are disembarked. The shore base
is also used as a place to store chemicals used in the drilling activities and it additionally supports
the cleaning operations of the vessels tanks used for the transportation of chemicals and in the bulk
transport of the liquid or semi-solid wastes. Once on shore, the wastes are weighed and forwarded
to treatment facilities and then final disposal.

Up until the end of 2011, SHELL Brasil Petróleo Ltda., had operations in three different offshore
areas according to the distribution presented on the table below:

Table 03 - Description of SHELL Brasil Petróleo Ltda. projects, according to the activity and
regionalization
 Figure 02 - Location of the exploratory offshore blocks operated by SHELL Brasil Ltda., and the shore
bases located in Rio de Janeiro State and Espírito Santo State

The Waste Identification And Classification

In the offshore exploration and production of petroleum, wastes are generated as a result of the
process and they can also be of human origin related to the crew who work in the platforms and
ships. As mitigation and aiming at recycling as much waste as possible, the environmental agency
established the implementation of selective collection from the areas where there is generation in
order to segregate the recyclable wastes, enabling the selection of treatment and disposal destination
which cause least impact on the environment and allowing the wastes to return to the consumption
chain through the post consumer reverse logistics process.
Compared to the amount of hazardous wastes generated, the recyclable wastes or non-hazardous
wastes represent a minimum parcel of the total of waste generated. However, they need the same
level of attention from the operating companies.

Once on shore, the company in charge of the venture where the wastes have been generated shall
ensure that they are classified, quantified and have their generation place registered.

Classification as to the type: In order to meet the Technical Note CGPEG/DILIC/IBAMA # 01/11,
the wastes shall be classified according to the following guidelines established by the environmental
agency:

Table 04 - Aspects identified in the wastes generation stage

Classification by place of generation: aims at identifying the place where the wastes are
generated, whether in offshore units, vessels or shore support bases;
Predetermined nomenclature: The environmental agency predetermined the nomenclature for the
types of wastes generated most frequently. Thus, the following types of wastes are estimated to be
generated;

Table 05 - Classification of the waste typology in function of the classification, established by Technical
Standard NBR 10004/2004.

*The Drilling Fluids waste is not mentioned in the report forwarded to the environmental agency.
However, it is required that this waste go through the same identification and tracking steps of the
other wastes and that this information be available whenever asked for by the environmental
agency.

Classification - NBR 10004/2004: regulatory Brazilian Standard which sets the classification of
solid wastes, regarding not only the disposition classification, but also the waste management
process. The wastes may be classified according to their origin or hazard potential, receiving the
following nomenclatures:
• Class I - Hazardous Wastes: those which can harm health and the environment;
• Class II - Non hazardous: subdivided in two classes:
o Class IIA - Not inert and with solubility characteristics, and can cause alterations
when in contact with water;
o Class IIB - Inert and not soluble in water;

Quantitative described in kg: all wastes shall have their respective quantity described in kg, and
the weight of every waste disembarked must be verified at the shore base.

The Disposal Process

The environmental agency defined that for treatment and/or disposal of the waste the process used
must be that causing least impact on the environment, and the first suggestion is the post consumer
reverse logistics when returning the waste originated in the use of the products to their respective
manufacturers.
Following this guideline, it is then suggested the reuse and reconditioning of waste products as
these are considered treatment forms that aim at the reuse without the application of technology or
energy consumption in the recovery process. These forms of treatment are applied mainly to the
waste from metal and plastic drums as having low cost and simplified operation, allowing its return
to the consumer market with its original characteristics, that is, they will be reused for what they
were originally made.
Brazil's vast territory was for years a favorable factor for the construction and implementation of
landfills for being a more economic alternative and with low-technology use compared to the other
existing forms of treatment.
With the implementation of the Technical Note CGPEG/DILIC/IBAMA # 01/11, the requirements
related to the permitting exploration activities and outflow of petroleum in Brazil controlled the
forms of treatment and waste disposal so that the disposal in landfills was established as one of the
last alternatives to be used. On figures 06 and 07 it is possible to see through the disposition
percentages of years 2010 and 2011, a significant reduction in the hazardous waste disposed of in
landfills.

The treatment for oily waste is accomplished by the re-refining of industrial oils which allows for
the recycling of mineral oil so that it can be reused for the service for which it was originally made.
Although this process demands a large operational infra-structure, since several physical-chemical
techniques are used simultaneously, it is still a way to reduce the extraction of hydrocarbons for the
production of oils as well as avoid the permanent disposal of this waste in the environment.

Co-processing is the most used form of treatment for the contaminated waste as this technology
uses the waste as energy input, partially replacing the use of raw material in clinker furnace in the
cement manufacturing process. Despite being considered the most appropriate process for the
treatment of hazardous waste that are not subject to reuse since it enables the recovery of the energy
in the waste, this process is hampered due to the small quantity of industrial plants manufacturers of
cement in Brazil licensed for this activity. On figures 06 and 07, it is possible to observe the
percentage increase of waste sent to co-processing between the years 2010 and 2011, and
consequently the reduction of the quantity sent to landfill.

It is important to highlight that the contaminated wastes, which are destined for final disposal at the
cement manufacturing companies, are not disposed of immediately after landing at the shore bases.
They are sent to the companies that provide a process to unify, to compact and to encapsulate the
wastes, and later store them until the cement company is available to receive this material to use it
in clinker furnace.

The decontamination is the most used form of treatment, to remove harmful components of a waste
so that it can be disposed of in landfills. It is more commonly applied to the treatment of fluorescent
lamps and health-care waste.

The effluents treatment stations are used for the treatment of liquid waste if they are not within the
acceptable standards to be discharged. After receiving appropriate treatment it allows the disposal
of the treated effluent into the aquatic environment in order not to cause impact, in accordance with
Brazilian standards.

Regarding the goals agreed with the environmental agency, the percentage goals for disposal has a
more qualitative character, as not only the quantity to be disposed but also the technology used in
the treatment process should be assessed. Thus, an environment management program that aims to
meet all the permitting requirements should also adhere to the availability of appropriate
technologies for the treatment of the waste on offer in the Brazilian technological arena.

As to the great volume of Drilling Fluid waste, an alternative to reduce the quantity of this waste,
would be the reduction of the quantity in the generator source through the installation of mobile
units for centrifugation in the places where waste is disembarked in the shore base, represented by
the yellow arrows on figure 02, or in the surrounding port region.
The centrifugation process of drilling fluids, concomitant with the injection of heat in the waste,
allows the evaporation of the waste liquid part, resulting in a sandy material in the end of the
treatment process, making it possible to use in civil construction as recycled aggregated in paving
works.

This process is already a reality in the North Sea region, where the service for the treatment of the
drilling fluids manufactured and sold to the oil and gas companies, is offered together, like a
optional service for the treatment for this waste, aiming at reducing the final quantity to be
transported and disposed in other places, allowing additionally the reduction of costs associated
with logistics for transportation.

This way, through the application and utilization of technologies that allow the reuse of waste by
linking with other industrial activities and that not only consider the recyclable waste, a logistic
chain can be established, allowing the entrepreneurs that operate in Brazil to widen the existing
possibilities related to the waste treatment and disposal, whether through the diffusion of
technologies to reduce the volume and the quantity of waste requiring disposal or in the use of
recycled compounds, reducing the permanent destination forms like the landfills, being an
alternative to the co-processing which is saturated. This will result in the minimization of the
environmental impacts, as well as in the development of an economical segment considered under-
represented in the domestic market, which is the waste treatment industry.

Report To Regulatory Agency

After the identification and weighing of the waste, their transportation and sending for treatment
and final disposition is provided. The data below shall be identified in this phase because they will
be used later in the preparation of the environmental indicators:

Table 06 - Relevant aspects used in the preparation of environmental indicators

After all phases related to the management of wastes have been completed, the consolidated data
shall be grouped in accordance with the place of generation and the region which the project is
located. In accordance with the established guidelines by Technical Note CGPEG/DILIC/IBAMA #
01/11, Shell Brasil Petróleo Ltda., provided two reports containing the quantity of wastes generated
and disposed in the years 2010 and 2011. In the indicators below, the total sums of the wastes
generated per year are represented in a unified way:
 Table 07 - Total of wastes generated
generated in the years 2010 and 2011 in drilling, production and outflow by
SHELL Brasil Petróleo Ltda.

Figure 04 - Wastes generated by typology. Data made available by SHELL Brasil Petróleo Ltda.

Figure 05 - Classification of the wastes generated

Segregation And Disposal Data Analysis
As it can be observed on figure 05, the hazardous wastes generated represented a high quantity
compared to the non-hazardous ones. Among the types of hazardous wastes, the drilling fluids and
oily wastes correspond to the highest individual quantities. This result is due to the offshore drilling,
where there is a great demand for the utilization of drilling fluids, mainly in the drilling of wells in
ultra deep water in order to retain the safety and integrity of the process.
Regarding the disposal quantity, according to the regulating environmental agency, the different
types of wastes shall be informed through a single value related to the quantity resulting both from
the platforms and the vessels, separated according to the treatment way and disposition adopted, in
a priority order. These priorities are related mainly to the fact that the waste is disposed or not
permanently in the environment. On the figures below the percentage related to the destined wastes
quantity is shown, in accordance with the form of disposal:

Figure 06 - Percentage destinated in 2010 Figure 07 - Percentage destinated in 2011

Analyzing the percentage values presented on figure 06 and figure 07, it is possible to see that the
following processes to treat and dispose the hazardous waste generated in the activities by Shell
Brasil Petróleo Ltda., were used in the years 2010 and 2011: return to the manufacturer, reuse,
reconditioning, re-refining, co-processing, decontamination, landfill, incineration and effluents
treatment station; It is also possible to see that the priority adopted for the treatment and disposition
of waste has always been directed to alternatives that
that cause less impact on the environment.
Comparing the quantity generated and presented on table 07 to the percentage destined on figures
06 and 07, it is possible to see the quality improvement of the processes adopted to treat and dispose
the waste.

CONCLUSION:

Exploration and Production of petroleum is more than one

Compared to other countries, where the Exploration
century old, Brazil can be considered a market still in development in this segment.
The setting of a regulating mark regarding the pollution controls
controls of this activity defined new
guidelines which will motivate the reduction of generated quantities, as well as the adoption of
better forms of treatment and disposition of waste. However, the growth of the exploration,
production and outflow of petroleum shall be aligned with the development and expansion of the
domestic market directed to transportation, treatment and final disposal of waste so that it reduces
the environmental impact caused by these activities as much as possible.
Thus, based on the analysis of the requirements regarding the implementation and follow up of the
Projects to Control Pollution established by the Technical Note CGPEG/DILIC/IBAMA # 01/11
and information made available by the operator SHELL Brasil Petróleo Ltda,. related to the waste
generated and disposed by its activities in Brazil, it can be concluded that the hazardous waste is
part of the greater parcel of waste generated and that the infra-structure available concerning the
demands related to the management of the wastes generated in these processes has low
technological use and it is insufficient, making it difficult to meet the goals established.
With the expansion of the petroleum industry in Brazil, it will be more and more difficult to meet
the environmental permitting requirements, since there is no sign of new suppliers in sufficient
quantity and of adequate quality to accommodate not only the ventures located in the regions of the
process herein mentioned but also all Exploration, Production and Outflow of Petroleum of the
companies who have similar operations in Brazil.

ACKNOWLEDGEMENTS

I thank SHELL Brasil Petróleo Ltda., specially Mr. Anídio Correa, Environment and Permitting
Manager, for making available the data used in this study; my co-workers Luiz Goes and Fernando
Soído for the invaluable support and specially my friend Jacyra Veloso, the one who has helped me
since this idea came up; the GIS consultant Rony Sutter, for his valuable contribution to the
geoprocessing topic; UNISUL university for contributing to my academic and professional growth;
Leonardo Jerônimo and Terence Alan Chapman for believing and supporting me; all my family,
specially my aunt Solange Aguiar.

REFERENCES

Brazilian Institute of the Environment and Renewable Natural Resources - IBAMA.

CGPEG/DILIC/IBAMA Nº 01/11 (2011): Guidelines for presenting, implementing and preparing
reports in the process of environmental permitting of the offshore exploration and production of
petroleum and gas ventures . Rio de Janeiro.

Brazilian Association of Technical Standards - ABNT. NBR 10004/2004. (2004): Solid Wastes –
Classification. 2. ed. Rio de Janeiro.

Law no. 9.478 from August 6, 1997. Presidency of the Republic. Civil House. Deputy chief for
legal matters. That provides for the national energy policy, the activities related to the petroleum
monopoly, establishes the National Council of energy policy and the Petroleum National Agency
and other provisions.
http://www.planalto.gov.br/ccivil_03/leis/L9478.htm
(Apr. 01, 2012)

Baker Hughes Eco Centre. (2012). Do site Baker Hughes Drilling Fluids
http://www.bakerhughes.com/products-and-services/drilling/drilling-fluids/waste-management