From hazard to resource: strategies for payao management in offshore petroleum exploration in Northwest Palawan, Philippines

PNOC Exploration Corporation (PNOC EC) acquired 1,519 km2 3D seismic data in deepwater area in its petroleum Service Contract No. 57 (SC 57) block located in offshore Northwest Palawan, Philippines. Despite several operational challenges, the seismic survey was successfully completed, safely and without delay. One of the major reasons attributed to this is the strategies in managing the problems related to the fish aggregating devices (FADs) in the survey area. FADs have been utilised in the traditional fishing cultures in Southeast Asia especially in the Philippines where they are locally known as ‘payao’. These payaos are mostly owned by fishing companies or by groups of fisherfolks. While the availability of the seismic vessel was perfectly timed to coincide with the good weather window in the second quarter of the year, PNOC EC had to deal with 285 payaos because it was also a peak fishing season. The payaos are both an operational risk and a navigational hazard for the 3D seismic vessel and fishing boats in the area. The obvious solution was to remove the payaos prior to the actual survey. However, this process entailed collection and proper disposal of the structures to avoid environmental hazards. Most importantly, it required addressing the economic impact on fisherfolks whose livelihoods depend on payao. In addition, it was essential to prevent possible backlash from local government, communities, the media, and other stakeholders. To address these challenges, PNOC EC applied strategies that included managing stakeholders and finding alternative uses for collected payaos.