Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental Impact
• Social Impact
• Human Rights
• Climate Change
• Safety

Environmental Achievements

• No significant known breaches of environmental regulations in 2022.
• Continued efforts to improve maintenance routines, production processing capacities, and field integrity investments in PNGF Sud, resulting in significantly reduced operating cost per unit production.

Social Achievements

• No accidents resulting in loss of human lives or serious damage to people or property reported in 2022.
• Congolese subsidiary allocated USD 1.5 million towards CSR projects (same as 2021).
• No reported instances of intimidation or harassment in 2022.

Governance Achievements

• Successful redomicile from Australia to Norway and listing on Oslo Stock Exchange.
• Established a dedicated board sub-committee to manage the company’s response to ongoing investigations.
• Refreshed internal procedures consistent with a Norwegian governance model.
• Two new directors appointed in January 2023, increasing board diversity.

Climate Goals & Targets

Environmental Challenges

• Ongoing investigations from the National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway and the Department of Justice in the US.
• Delays in implementing a new oil sales agreement with ADNOC.
• Arbitration process to resolve legacy licence dispute in Senegal.
• Climate change poses tangible risks to the planet and humanity, potentially impacting demand for fossil fuels and leading to additional compliance obligations.

Mitigation Strategies

• Re-established lifting arrangements with operators at the Djeno terminal.
• Engaged an independent law firm to conduct a targeted fact-finding process and cooperate with investigating authorities.
• Integrating climate risk into the risk management system and reporting according to TCFD.
• Establishing a plan for climate accounting and reporting on the company’s emissions.
• Awaiting arbitration ruling in Senegal.

Supply Chain Management

Responsible Procurement

• Know your supplier policy

Climate-Related Risks & Opportunities

Transition Risks

• New laws and regulations impacting business.
• Decreased demand for fossil fuels.

Opportunities

• Aje field gas deliveries to onshore West Africa.

Reporting Standards

Frameworks Used: GRI, TCFD, UN Sustainable Development Goals

Environmental Metrics

ESG Focus Areas

• Good health and well-being
• Affordable and clean energy
• Decent work and economic growth
• Peace, justice, and strong institutions

Environmental Achievements

• Reduced emissions by decreasing the flaring of natural gas through the installation of a 27MW gas-fired power generation system on the Tchendo II platform in Congo.
• Indirectly pioneering a biodiversity conservation initiative within the Conkouati-Douli National Park in the Republic of Congo, restoring over 21 water wells.

Social Achievements

• Prioritised local employment in West Africa (55% of staff)
• Participation in a water well-digging project in Congo
• Sponsoring academic business programmes and financially supporting the refurbishment of a university in the Republic of Congo.

Governance Achievements

• Revised Code of Conduct and all other governance guidelines, making them available in English and French.
• 100% of PetroNor’s employees signed the Code of Conduct.
• Early adopter of the new EU sustainability reporting standard ESRS

Climate Goals & Targets

Environmental Challenges

• Political and economic uncertainties in West African operating countries (Congo, Nigeria, Gambia).
• Risks associated with less developed legal systems in operating countries.
• Corruption risks in operating countries.
• Fluctuations in oil and gas prices.
• Operational risks (mechanical problems, storms, shutdowns).
• Climate change concerns and potential regulatory measures.
• Currency exposure (NOK, GBP).
• Capital-intensive operations and potential challenges in raising debt.
• Ongoing Økokrim investigation into individuals associated with the company.

Mitigation Strategies

• Active participation in official decision bodies of licenses and informal communication on climate change and pollution issues.
• Implementation of corporate values, ethical guidelines, and policies for corporate social responsibility (detailed in Code of Conduct and other online policies).
• Risk management evaluation based on ISO 31000 standard.
• Procedures and safety policy for traveling employees.
• Proactive approach to due diligence, including supplier prequalification and reporting mechanisms.
• Debt refinancing facility.
• Successful monetisation of exploration assets.
• Engaging independent legal counsel and initiating an independent fact-finding process to address Økokrim charges.

Supply Chain Management

Supplier Audits: Supplier prequalification using Refinitiv’s World Check One platform.

Responsible Procurement

• Know Your Supplier policy (available in English and French).

Climate-Related Risks & Opportunities

Physical Risks

• Storms

Transition Risks

• Regulatory changes, decrease in demand for fossil fuels.

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: IFRS, ESRS, OECD Guidelines for Responsible Business Conduct, UN Guiding Principles for Business and Human Rights, EITI

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 16

PetroNor's initiatives contribute to these goals through its operations and community engagement.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Development Goals (implied)

Environmental Achievements

• Aje field redevelopment – a strong ESG profile; potential to reduce CO2 emissions in Nigeria by replacing diesel-generated power with gas and providing LPG for cooking gas, contributing to UN sustainability goals.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Q2 2021 production impacted by logistics chain issues, leading to a lack of production maintenance equipment (ESP's) and planned/unplanned field shutdowns.

Mitigation Strategies

• Q2 production issues resolved; production levels increased above forecast; infill drilling programs underway to increase PNGF production.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Aje field redevelopment to reduce CO2 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