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Protect The Environment

We Are Committed To Protect The Environment


Reducing Greenhouse Gas Emissions



Halon And CFC Removal

HCFC And HFC Losses

Managing Waste

Oil In Produced Water


Environmental Impact Assessment (EIA)

Nera Tests At Retail Sites

Promoting Biodiversity


What They Say About Shell Malaysia



The natural environment supports all human, plant and animal activity. We continually look for new ways to reduce the environmental impact of our operations, products and services throughout their life cycle.


Challenging targets are set for a number of environmental parameters. Many of these are over and above the requirement of the Malaysian legislation and related international conventions and protocols. Finding effective ways to reduce our environmental impacts also makes us more competitive.


We made good progress in almost all the areas covering our environmental parameters in 2003, beating our own reduction targets for gas emissions, gas flarings and spills.


Reducing Greenhouse Gas Emissions

SOx Emission (SRC) chart

Increased atmospheric concentrations of greenhouse gases (GHGs) are believed to be raising average global temperatures. This could lead to changes in the climate and local weather – storms, droughts, floods and a rise in sea levels.


Shell supports the international effort to address climate change through various initiatives such as reducing our GHG emissions through energy efficiency and environmental management programmes.


Our response begins with reducing greenhouse gas (GHG) emissions from our operations namely, reduce usage of fuel (combustion), venting and flaring, vapour losses or evaporation from tanks and equipment during transport and storage of oil products, and leaks from process equipment.


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Gas venting or release of gas of no local use to atmosphere, was a prime reduction target in EP because of its big contribution to global warming potential. Major modifications were made at locations where venting occured, to reduce or eliminate continuous venting. We met our target to reduce gas venting, in our EP operations from 77.3 kilotonnes (KT) of gas in 2002 to just 7.64 KT in 2003 – a performance which is better than the company target of 9.42 KT of gas. This significant improvement was due to the lower emissions in Central Luconia field and the conversion of our South Furious and Barton vent-to-flare projects in 2003.



Continuing efforts to reduce flaring in our operations through a number of initiatives have resulted in significant reduction of Carbon Dioxide (CO2) emissions in 2003.

  • The introduction of heavy paraffin synthesis off-gas firing into the boilers in our GP operations has reduced flaring by around 170 kilotons per annum. 
  • In EP, better compressor uptimes, close monitoring and good Gas Oil Ratio (GOR) management as well as the commissioning of the Kinabalu compressor contributed to the lower flaring levels at 375.553 kilotons against the target of 444.967 kilotons in EP operations.
  • The actual Sulphur Oxide (SOx) emissions of 0.12% of throughput was higher than the 2002 figures for our refinery operations due to the processing of Middle East Crude which carries a higher sulphur content; however, the emission level is still well below the target limit of 0.16% set within the Shell Asia Pacific Zone refineries.


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A section of the Shell MDS plant.

Case Study


Reducing Flaring And Cost Leadership

Shell MDS made further progress on the utilization of Heavy Paraffin Synthesis (HPS)-off gas or HOG  in 2003, resulting in a reduction in flaring as well as witnessing significant cost leadership.


The completion of the engineering works with respect to the utilization of HPS-off gas to the Hydrogen Manufacturing Unit (HMU) by end of 2003 enabled about 400 tonnes of HPS-off gas per day to be utilised in the HMU.


Since the commencement of this environmentally-friendly and efficient energy initiative in 2002, approximately 80 percent of every 1,000 tonnes of HOG per day (1000 T/day) has been utilised. This has resulted in savings worth about RM6 million if compared to the level of efficiency in 2002.


This initiative saw a reduction some 410,000 tonnes per annum of CO2. 


CO2 Emission (SRC)



Halon And CFC Removal

F6 have phased out Halon and CFC completely in 2002.

In compliance with our Minimum Environmental Standards, all equipment containing halon and chlorouflourocarbons (CFC), which are ozone-depleting substances, have been phased out   completely in 2002 and relinquished to the Halon Bank in 2003.


HCFC And HFC Losses

Equipment having hydro-chloroflurocarbon (HCFC) content are identified and the amount of HCFC present recorded. We estimate a total of 4067 kg of hydro-chloroflourocarbon (HCFC) in stock and equipment are present in EP operations. Through maintenance, approximately 1052 kg of HCFC was lost to the atmosphere in 2003. Both figures are higher when compared to 2002 mainly due to improved reporting from the sites.


Similarly, hydro-flourocarbon (HFC) found in equipment for our EP operations (2385 kg) and losses (152 kg) in 2003 witnessed a higher level compared to 2002.


Managing Waste

Oil in Effluent Discharge (EP) chart

Seeking ways to minimise the amount of waste we produce is an ongoing challenge, not just because capacity for hazardous waste is diminishing, but because our commitment to sustainable development demands it. If waste elimination is not a viable option, we try to find alternative solutions to reuse or recycle the waste we generate. In EP, one of the continuous improvement efforts is the introduction of Green Procurement Policy, which gives preference to products and services which are environmentally friendly, e.g. in terms of recycability.


The main sources of solid wastes arising from our operations are:

  • Domestic wastes
  • Non-hazardous wastes, and
  • Hazardous wastes from oil production and storage


Shell MDS generated 299 metric tonnes of waste in 2003, with 59 metric tonnes of accumulated scheduled waste sent to a government approved recycler, Kualiti Alam, for disposal.


A total of 81.9 kilotonnes (KT) of non-hazardous waste and 0.092 KT of hazardous waste were generated in EP's operations in 2003 compared to 31.6 KT and 0.92 KT of non-hazardous and hazardous wastes generated in 2002. The increase in non-hazardous waste quantity   is primarily due to increase construction and demolition waste from renovation of company housing facilities in Lutong.


Shell Refining Company's deployment of a proven sludge reduction technology has reduced the volume of wet sludges disposed from its operations by as much as 70%. The quality of the treated materials from the equipment more than meets the landfill criteria with moisture content less than 0.1% and Total Organic Carbon (TOC) at 0.25%.


Spent catalysts generated from SRC operations, amounting to 2,430 MT, were re-used as raw feedstock at cement plants in Perlis and Negeri Sembilan. Another 1,900 MT of recovered waste oil has been sent for off-site recycling via the Department of Environment's (DoE) licensed recycler.



Thorough checkings at retail stations to ensure integrity of underground tanks.

Case Study


Wet Stock Management

All fuels delivered to our petrol retail stations are stored in underground tanks. To ensure that the integrity of the tanks are maintained at all times, Shell Malaysia OP embarked on a standardised process in our wet stock management (WSM).


With the process in place, proactive measures are undertaken such      as tank and pipeline testings so that leaks can be detected early. The WSM covers a step-by-step process from the acceptance of the fuel at the retail station to the dispensing of the fuel. The quantity of the stock is recorded and if data derails from the prescribed limits, remedial action can be taken immediately.


WSM is a journey through several phases. For 2003, the focus centred on the standardisation of the process and submission of the wet stock data. This process presents a big challenge to the way we work as in the past, dealers kept their records on site.


Oil In Produced Water

The Labuan Integrated Facility.

A considerable amount of water is used for the purpose of cooling and make-up for steam generation in our operations, which when discharged may contain a small quantity of oil. In EP we also discharge an increasing amount of formation water with the crude oil that we produce.


The overall average oil content of produced water discharged into the sea from operating facilities in EP was 20.8 milligrams per litre (mg/l), an improvement against the overall 2002 performance of 21.2 mg/l and the target of 21.2 mg/l. Individual facilities such as the F6 offshore platform saw a vast improvement of 6.4 mg/l from 11.6 mg/l in 2002, due to optimization of corrosion inhibitors injection rate. (See graph on Oil in Effluence Discharge- EP )


Our GP operations recorded an average of 1.28 mg/l. against the legislative limit of 10 mg/l


At SRC, the average oil in water content was at 1.6 mg/l for 2003, well below the legislative limit of 10 mg/l for refineries and the limit set by the Organisation for Economic Cooperation and Development (OECD).


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Crude Oil Spill in 2003

Spills of crude oil, oil products or chemicals can impact the environment, erode stakeholder trust and cost a lot of money to clean up. In 2003, there were no major oil spill incident. However, there were three minor hydrocarbon (diesel and kerosene) spill incidences against our zero spill target in EP. Quantity spilled were minor (2 liters and 45 liters) and the third 300 liters.


Appropriate remedial measures in accordance with our oil spill response procedures were taken during each of these incidents and lessons learnt were shared among our operations personnel to prevent similar occurrences in the future.


Our SRC operations reported one spill incident when an oil interceptor overflowed during heavy rain. Immediate action was successfully taken by SRC personnel to contain the weathered hydrocarbon with the full knowledge of DoE, the local district council and Port Dickson community leaders. Learning from the incident has resulted in the following improvements:

•            Revising the overall effluent/drainage system

•           Raising the bund wall of the interceptors

•            Updating operating procedures


Shell's Gas and Power operations reported zero spill incidents in 2003.


Environmental Impact Assessment (EIA)

Environmental Impact Assessments are carried out for all new projects and major modifications to existing facilities. Some EIAs are conducted for purpose of compliance to Malaysian legislation but there are others, which are conducted for internal use, thereby contributing to improved environmental focus on the project or activity. Three EIAs for new projects, two post EIA monitoring study and an Environmental Risk Assessment (ERA) study for the decommissioning of the Ketam offshore facility were completed in EP for the year 2003.


There was one EIA conducted in GP for its Shell MDS debottlenecking project.


The EIA findings confirmed that all the projects were environmentally acceptable and could proceed.


Global Warming Potential (GWP) chart

Case Study


Global Warming Potential (GWP)

Our EP operations achieved an overall good performance in the GWP parameters in 2003.


This was due to lower than target emissions in all our offshore producing platforms as a result of good compressor uptimes. Close monitoring on our flaring levels, particularly in our Sabah operations, and an efficient GOR management also contributed to the reduction in the GWP.


We however did not meet the stretched target range due to the following reasons:

•       Higher production leading to higher associated gas flaring

•       Additional production well tests during the year which were not incorporated during GWP target setting time

      Emissions from fuel burning equipment were higher than forecasted.


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Nera Tests At Retail Sites

In 2003, 12 retail sites which were classified as medium risks under the Network Environmental Risk Assessment (NERA) underwent some improvements to reduce the risk of soil and groundwater contamination. Improvement activities included:

•             Replacing double-wall underground tanks & replacing pipelines

•             Installing monitoring wells and remediation measures

•             Improving discharge facilities

•             Installation of oil interceptors

•             Resurfacing of retail site forecourts


A total of 39 retail sites in the Klang Valley had undergone the NERA exercise in 2002.


In the NERA exercise, soil and groundwater quality at retail sites are tested and monitored primarily to ensure that the environmental risk element around our retail station sites is contained at all times. The plan is to cover all 830 retail sites in the country progressively.


Promoting Biodiversity

Shell Nature Camps organised in 2003.

Malaysia has a rich and diverse biological life (biodiversity) which is the envy of other countries. Preserving this priceless heritage is part of sustainable development. Towards this end, Shell Malaysia actively conducts a number of on-going projects in collaboration with local authorities and non-governmental organisations; aimed at promoting biodiversity awareness among schoolchildren and undergraduates.

In 2003, several hundred schoolchildren, local undergraduates and 40 college students from Holland benefited from educational nature camps conducted in Miri and Bintulu in Sarawak, Kepong, Selangor and Pulau Perhentian, Terengganu.


Shell Malaysia signed a Memorandum of Understanding (MoU) with the Malaysian Coral Reef Conservation Society (CoRAL) to sponsor the former's Coral Planting project at Pulau Perhentian.


A leaflet on the recycling campaign under LA21

Case Study


Supporting Local Agenda 21

Agenda 21 is one of five documents agreed during the United Nations Conference on Environment and Development (UNCED), in Rio de Janeiro in June 1992. Signed by 179 Heads of Government, it is a blueprint for sustainable development in the 21st century, aimed at providing a high quality environment and healthy economy for all the peoples of the world.


It is a guide for individuals, businesses and governments in making choices for less environmentally destructive developments, and ultimately a challenge to translate understanding into action in developing sustainable lifestyles.


In line with our commitment to sustainable development, Shell Malaysia EP supported the Local Agenda 21 initiatives hosted by the Miri Municipal Council, one of two Local Agenda 21 pilot projects in Malaysia.


The Miri pilot project concentrates on managing solid waste and sewage, and Shell headed one of the six working groups formed to implement the programme.


Under the Shell-driven working group, two new commercially run recycled centres were established. A detailed Eco-Pack booklet providing useful information and tips was published and distributed to Miri residents. This was followed by a seminar cum exhibition designed to give participants and visitors the environmental and ethical awareness, values and attitudes, skills and behaviour needed for delivering sustainable development.


Particpants having a closer look at the consequence of illegal dumping.

Case Study


Sharing Environmental Awareness With Young Stakeholders

We approach our commitment to protecting the environment in a number of ways. One is realising the commitment in our operations through a continuous improvement journey. The other focus is through sharing the environmental responsibility message with young stakeholders who will inherit this planet.


The Environmental Camp at Membedai at Labuan in July 2003 was one such sharing initiative. Over 30 secondary school children and teachers participated in the three-day environmental awareness camp which was a joint "green project" between Shell Malaysia EP, the Education Department and the Department of Environment (DoE) Labuan.


Environmental Advisers from Shell and DoE put the participants through their paces with particular emphasis on the proper management of industrial, domestic and scheduled wastes. They visited some illegal dumping sites on Labuan Island to see for themselves the consequences of improper handling and irresponsible disposal of wastes.


It was a learning process about some issues in the real world for these young future guardians of planet Earth. Like many other such camps that shell conducts regularly, the initiative is ultimately designed to realise shared sustainable development goals.


Shell volunteers ready to seal the Shell logo on the seabed off Pulau Perhentian.

Case Study


Conserving Our Precious Corals

In 2003, Shell Malaysia signed a Memorandum of Understanding (MoU) with the Malaysian Coral Reef Association (CoRAL) for the development of the proposed coral planting project, known as the "Coral Garden Initiatives", in the serene waters around Pulau Perhentian, Terengganu.


Under the MoU, Shell provides financial support to the tune of RM 76,000 towards the project which will be implemented in phases. Besides contributing the funds, Shell sees the project as a capacity building opportunity for our local scuba diving community and staff volunteers in coral management and research models.


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Chief Minister's Environmental Award

We are proud to report that our leadership in environmental management systems and environmental care programmes have earned us the following awards in 2003:

•      Joint winner in the ACCA Malaysia Environmental Reporting Award 2003 (won by Shell Malaysia for the 2nd consecutive year)

•      Overall champion in the Sarawak Chief Minister's Environmental Award (won by Sarawak Shell Berhad)

•      Best Environmental Reporting Award in the National Annual Corporate Reporting Awards (NACRA) (won by Shell Refining Company (FOM) Bhd for the second consecutive year)

•      Champion in the Large Enterprise Category of the Sarawak Chief Minister's Environmental Award (won by Sarawak Shell Berhad)

•      Excellence Award from Atomic Energy Licensing Board (AELB) Malaysia for Shell Malaysia EP (Labuan Integrated Facility)

•      Runner-up in the Large Enterprise Category of the Sarawak Chief Minister's Environmental Award (won by Shell MDS (M) Sdn Bhd)



SRC staff posing with the NACRA Award


What They Say About Shell Malaysia

"This generous gesture in sponsoring the Danum Nature Interpretation and Environmental Education Building is yet another instance of Shell Malaysia's commitment towards fulfilling a fundamental requirement as we strive to create a better society  in Sabah."

YAB Datuk Musa Haji Aman, Sabah Chief Minister.



"Environmentally, Shell through its staff had lived up to its pledge not only through their company's initiated programme but most notably through their voluntary efforts to promote awareness on environmental appreciation. What Shell had done, within and outside the organisation, reflected deserving respect for their proactive and responsive approaches to enable the environment to be sustainable and could be enjoyed through to the next generations of society."

Hamdan Ismail, Senior Journalist, The Borneo Post, Sarawak.



"I am extremely impressed by the support from both the management and staff of Shell Refining Company, undertaking many communal projects. We receive lots of information on safety, health and the environment. So much so that each time we think of Shell we think of safety."

Tuan Haji Tomijan Md Nor (Chairman JKKK Kampong Arab, Port Dickson)



"I learnt how a corporate organization like Shell Malaysia rises to the challenge of supporting sustainable development initiatives in areas which are considered far apart from their core business."

Siti Safura Abdul Aziz, UiTM undergraduate.



"The active participation of Shell staff clearly demonstrated their commitment to educational, social, tourism and safety excellence in Bintulu."

Hussaini Hakim, Social Manager, Bintulu Division, Sarawak



"The science camp, held in collaboration with Shell, has helped to enhance love for science through experiential learning as well as inculcate a responsible attitude towards environmental care among primary school students in Bintulu."

Isah @ Aishah bt Hj Saberi, Headmistress, SK Agama Majlis Islam Sarawak.



"Your offer of help during the 'Anti-Pollution Campaign' is truly appreciated. We believe together we can achieve our target of 10,00 trees to be planted in Port Dickson ... contributing to the greening of Port Dickson."

Maj. (R) Anthony S. Raj (President Port Dickson Residents Association, Negeri Sembilan)



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