Climate Change Data

Environmental Metrics

ESG Focus Areas

• HSSE (Health, Safety, Security, and Environment)
• CSR (Corporate Social Responsibility)
• Stakeholder Engagement

Environmental Achievements

• Waste recycling rate increased to around 80%
• Improved air quality monitoring system implemented

Social Achievements

• Continued community projects (installing water well, generators, water supply pipe)
• Increased purchases of supplies and services from surrounding communities
• Competency Based Framework (CBF) training programs continued with 15 promotions
• Annual sponsorship scheme for Kurdistan employees to study in the UK
• Kurdistan national employees exceeded 80%
• Summer Student and Internship Programme provided opportunities for 19 students

Governance Achievements

• Successful completion of balance sheet restructuring
• New Chairman and two new Non-Executive Directors appointed
• Developed a more sophisticated suite of Key Performance Indicators (KPIs) for 2017
• Share consolidation completed

Climate Goals & Targets

Environmental Challenges

• Disproportionate amount of debt
• Weak and unpredictable crude oil price
• Daesh threat to Kurdistan Region of Iraq
• KRG financial pressure affecting payments
• Export pipeline disruption
• Security risks (terrorist attacks, protests)
• Gas flaring restrictions
• Uncertainty relating to the payment mechanism for export oil
• Low oil price environment
• Field delivery risk (water/gas breakthrough, mechanical failure)
• Liquidity and funding capability
• Local community opposition to projects

Mitigation Strategies

• Successful balance sheet restructuring
• Regular dialogue with KRG
• Wells and facilities protected by security consultants and local forces
• Detailed risk assessments, security procedures, and contingency plans
• Strong community relations
• Ongoing CSR initiatives
• Cost reduction measures
• Regular monitoring of liquidity risk
• Robust cash flow projections
• Focus on core asset (Shaikan Field)
• Interim project to stabilize Shaikan production at 40,000 bopd and increase to 55,000 bopd
• New export route for Shaikan crude established (trucking to Turkey)
• Improved HSSE procedures and emergency response plans
• Competency Based Framework (CBF) for workforce development
• New HSSE policy rolled out

Supply Chain Management

Responsible Procurement

• Increased purchases of supplies and services from local communities

Climate-Related Risks & Opportunities

Awards & Recognition

• Certificate of Thanks and Appreciation from the Mayor of Shaikan in 2013