Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment
• Social Responsibility
• Governance

Environmental Achievements

• Reduced atmospheric emissions from flaring and/or utilization of Sulphur Dioxide, Nitrogen Dioxide, Carbon Monoxide, Carbon Dioxide, Methane, and Nitrous Oxide compared to 2017. Initiated a project to put stationary diesel generators in power generation clusters to rationalise usage, improve redundancy and reduce diesel consumption.
• Commissioned an Environmental Impact Assessment (EIA) for Block 49 seismic acquisition, leading to the discovery of previously unrecorded Paleolithic archaeological sites.

Social Achievements

• Developed a comprehensive CSR program for Block 49 focusing on education, training, sustainable economic development, local employment, and minimizing negative operational effects.
• Sponsored the fourth annual Wilayat of Maqshin Heritage Festival.
• Donated USD 13,000 to the Governate of Dhofar in support of Omani Government Relief Aid following Cyclone Mekunu.
• Provided scholarships to students at Sultan Qaboos University pursuing a master's degree in geosciences.

Governance Achievements

• Implemented a strict Health, Safety, and Environmental (HSE) policy framework.
• Implemented anti-corruption and anti-fraud policies, along with a whistleblower policy.
• Maintained a strong balance sheet and low cash flow breakevens, allowing for responsiveness to oil price fluctuations.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in oil and gas prices.
• Potential impact of natural disasters.
• Variations in production from a single license in Oman.
• Decline in reserves unless new reserves are discovered or added.
• Accidents resulting in damage to facilities, the environment, and personal injury.
• Geological risks associated with oil and gas exploration.
• Competition for licenses, assets, investors, and skilled staff.
• Risks associated with shared ownership and partners in Block 3&4.
• Other operational risks.
• Financing risk (though not experienced in 2018).
• Liquidity risk (though not experienced in 2018).
• Other financial risks (currency, counterparty, transaction).
• Political and economic instability and corruption in the region.
• Negative changes in fiscal terms.
• Environmental regulatory risks related to climate change.

Mitigation Strategies

• Continual evaluation of the need to hedge oil prices.
• Customary property and liability insurance policies.
• Net cash position to mitigate revenue and cash flow variations.
• Exploration in new licenses and pursuit of acquisitions to diversify production.
• Strict HSE policy framework for all employees, partners, and contractors.
• Skilled technical team and use of independent third-party consultants for reserve estimations.
• Focus on assets and areas overlooked by major oil companies.
• Established governance and conflict resolution mechanisms in Block 3&4 partnership.
• Active risk awareness and a culture of openness and transparency.
• Maintaining a significant cash buffer.
• Active dialogue with banks, advisors, and equity investors to ensure access to external financing.
• Good relations with relevant government ministries and institutions.
• Producing oil and gas in an environmentally responsible way and reporting environmental impact transparently.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Increased regulation
• Decreased demand for oil and gas
• Divestment from the sector

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Social Responsibility
• Governance

Environmental Achievements

• Installation of increased flaring capacity resulted in reduced emissions through cold vent (reduced CO, N2O, and Methane emissions).

Social Achievements

• Continued Block 49 stakeholder engagement; execution of a comprehensive CSR program for Block 49; continued engagement in the governance of Blocks 3&4 CSR activities; selective CSR projects; Master in Geosciences Scholarships; scholarship program in Business for two students; scientific and technological forum at Maqshin School; support for Salalah Khareef festival; reviving cultural traditions at Wilayate of Maqshin and National day celebrations; training entrepreneurs during the 4th Entrepreneurship Skills Week with University of Dhofar.

Governance Achievements

• Implementation of a modern operations management system including comprehensive policies, procedures, and instructions within HSE matters; updates provided to all employees on the Group’s Code of Conduct and policies; strict anti-fraud policies implemented; whistleblower policy implemented; active risk management processes across various areas (operational, financial, political, environmental).

Climate Goals & Targets

Environmental Challenges

• More than doubled CO2 emissions compared to 2018, primarily due to increased flaring of associated natural gas following higher production in the Ulfa field; increased competition for assets, skilled staff, and licenses; potential partner risk due to minority ownership in some blocks.

Mitigation Strategies

• Implementing a large-scale gas utilization project to reduce emissions by utilizing gas for power generation and selling excess gas; focusing on assets and areas overlooked by major oil companies to reduce competition; establishing governance and conflict resolution mechanisms with partners; maintaining good relations with government ministries and institutions; actively pursuing exploration and acquisition opportunities to diversify production and revenue sources.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Increased regulation, decreased demand for oil and gas, divestment from the sector

Opportunities

• Gas utilization project to reduce emissions

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Decreased total atmospheric emissions in 2020 due to reduced production following OPEC+ mandated production limitation guidelines. Small-scale gas-to-power project implemented, reducing diesel consumption for power generation.
• 84% water recycle rate in Blocks 3&4.

Social Achievements

• Continued Block 49 stakeholder engagement; execution of a comprehensive CSR program for Block 49; continued engagement in the governance of Block 3&4 CSR activities; various community development projects and scholarships.

Governance Achievements

• Implemented anti-corruption policy and procedures; strict anti-fraud policies; whistleblower policy.

Climate Goals & Targets

Environmental Challenges

• Reduction of emissions resulting from the flaring of associated gas as well as the consumption of diesel for power generation in Blocks 3&4.
• Potential environmental impact from seismic acquisition and drilling operations (Block 49), including surface environment disruption, spills, water pollution, noise pollution, and habitat disruption.
• Climate regulatory risk, including increased regulation, decreased demand for oil and gas, and divestment from the sector.

Mitigation Strategies

• Studying alternatives for reducing routine flaring and related emissions in Blocks 3&4 (including gas utilization for local power generation).
• Implementing suitable measures at all stages of company activities to minimize potential impact from exploration and drilling (Block 49), based on EIA recommendations.
• Producing oil and gas in an environmentally responsible way with minimal environmental impact; transparent reporting of environmental impact; participation in industry initiatives to reduce emissions.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Increased regulation
• Decreased demand for oil and gas
• Divestment from the sector

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: PricewaterhouseCoopers AB

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed drilling of the Thameen-1 well without environmental incidents.
• Mapping and promoting biodiversity in operating areas.
• Small-scale gas-to-power project in Blocks 3&4, reducing diesel consumption and emissions.

Social Achievements

• Awarded more than 50 contracts with a combined value of close to MUSD 40 to local stakeholders in Oman in 2021.
• In Blocks 3&4, sponsored a dozen CSR projects in local infrastructure, healthcare, and education.
• Supported 14 community engagement projects.

Governance Achievements

• Zero unethical or corruption cases reported.
• Developed a Crisis Management Plan (CMP).

Climate Goals & Targets

Environmental Challenges

• Emissions from flaring associated gas and diesel consumption in Blocks 3&4.
• Potential disruptions to biodiversity and land use from seismic acquisition and drilling.
• Community engagement limitations due to Covid-19 restrictions.

Mitigation Strategies

• Ongoing FEED study for gas-to-power project in Blocks 3&4.
• Rigorous environmental impact studies (EIA) before any activity.
• Minimizing impact through suitable measures at all stages of activities.
• Active dialogue and collaboration with local stakeholders.

Supply Chain Management

Supplier Audits: 51 subcontractor agreements, all with locally based contractors and suppliers

Responsible Procurement

• Focus on In-Country Value (ICV) creation.

Climate-Related Risks & Opportunities

Transition Risks

• Increased regulation, decreased demand for oil and gas, divestment from the sector.

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 8
• Goal 10
• Goal 13
• Goal 15
• Goal 16

The Company's sustainability strategy contributes and supports these goals.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Total GHG emissions (operational control method) declined by 1.8 percent year on year.
• Number of Tier 1 hydrocarbon releases were 0 recorded incidents.
• Significant reduction in Tier 1 leaks compared to previous years on Blocks 3&4.

Social Achievements

• Four consecutive years of zero severe injuries.
• Continued key focus is the engagement with the communities in the areas where Tethys Oil conducts its operations.
• 14 community engagement projects (7 Global/national, 3 Regional, 4 Local).

Governance Achievements

• New Supplier Code of Conduct and Biodiversity Policy adopted.
• Several existing policies updated.
• 100 percent employees trained on Code of Conduct and relevant policies and procedures.

Climate Goals & Targets

Environmental Challenges

• Declining production on Blocks 3&4.
• Emissions resulting from the flaring of associated gas and the consumption of diesel for power generation on Blocks 3&4.
• Potential disruption of biodiversity and interference of land use during exploration.

Mitigation Strategies

• Gas-to-Power project on Blocks 3&4 to reduce flaring and diesel consumption.
• Leak reduction programme on Blocks 3&4.
• Biodiversity Policy implemented, precautionary principles applied to minimize and restore potential impact on natural habitats.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• New Supplier Code of Conduct adopted.

Climate-Related Risks & Opportunities

Physical Risks

• Dust storms
• High temperatures
• Heavy rains
• Flash flooding

Transition Risks

• Oil price decline
• Carbon price increase
• Stricter regulations
• Reputational concerns

Opportunities

• Gas-to-Power project

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 3 (Good health and well-being)
• SDG 13 (Climate action)
• SDG 4 (Quality education)
• SDG 8 (Decent work and economic growth)
• SDG 16 (Peace, justice and strong institutions)

Company initiatives contribute to these goals through emissions reduction, community engagement, education support, and promoting decent work.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social & Safety
• Governance

Environmental Achievements

• First power generated from the Gas-to-Power project, reducing routine flaring and diesel consumption.
• Reduced GHG emissions (operational control method) by 3.9% year on year.

Social Achievements

• Company-wide employee satisfaction program rolled out.
• Updated Human Rights Policy implemented.
• Updated Diversity and Non-Discrimination Policy adopted.
• Zero human rights-related grievances filed.

Governance Achievements

• Established a Sustainability Committee.
• Updated several key policies (Human Rights, Anti-Fraud, Anti-Corruption, AML-CFT and KYC, Diversity and Non-Discrimination, Whistleblowing, Supplier Code of Conduct, Biodiversity).

Climate Goals & Targets

Environmental Challenges

• Production decline in Blocks 3&4 due to underperforming wells and processing facility constraints.
• Challenges in finding commercially viable offers for re-testing Thameen-1 well.
• Oil price vulnerability.

Mitigation Strategies

• Implemented production assurance initiatives and asset integrity projects (workovers, new pumps) in Blocks 3&4.
• Ongoing evaluations and discussions with MEM regarding Block 49.
• Adaptable expenditure strategy and strong financial resilience.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Dust storms
• High temperatures
• Heavy rains
• Flash flooding

Transition Risks

• Oil price decline
• Carbon price increase
• Stricter regulations
• Reputational concerns

Opportunities

• Gas-to-Power project

Reporting Standards

Frameworks Used: GRI Standards, GHG Protocol, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through emission reduction, community engagement, and responsible resource management.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed