Climate Change Data

Awilco Drilling PLC

Climate Impact & Sustainability Data (2020, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:5912.5 tCO2e/year
Scope 1 Emissions:5651
Scope 2 Emissions:31
Carbon Intensity:15.6 tonnes CO2e per days of contract from operations in 2020

ESG Focus Areas

  • Health and Safety
  • Environment
  • Employee Wellbeing
  • Ethical Business Conduct
  • Stakeholder Engagement

Environmental Achievements

  • Reduced CO2e emissions from 6579 tonnes in 2019 to 5912.5 tonnes in 2020. Zero drill cuttings disposed to the environment from operations in 2020.
  • Maintained ISO 14001 certification.

Social Achievements

  • Achieved a total recordable incident rate (TRIR) of zero in 2020 (down from 1.07 in 2019). No lost-time incidents (LTIs) in 2020.
  • Implemented cost reduction measures resulting in the closure of the Norwegian shorebase office.
  • Operates a flexible benefit scheme for employees, including leisure club membership, private medical and dental insurance, and an Employee Assistance Programme.
  • Achieved the Silver Healthy Working Lives Award.
  • Group sick leave decreased from 4.3% in 2019 to 1.7% in 2020.

Governance Achievements

  • Has a specific Anti-Bribery and Corruption policy.
  • Regularly reviews financial projections to ensure resources are available to meet operational requirements.
  • Maintains high standards of corporate governance, adhering to the Norwegian Code of Practice for Corporate Governance (with some explained departures).
  • Board includes two independent non-executive directors.
  • Annual process to evaluate the effectiveness of Board Committees and individual directors.

Climate Goals & Targets

Environmental Challenges

  • Uncertainty regarding securing additional revenue contracts to cover the going concern period.
  • Uncertainty regarding sufficient liquidity to cover costs arising from significant operational risks.
  • Uncertainty in relation to the possible crystallisation of a contingent taxation liability.
  • Low oil price and cyclical nature of the offshore contract drilling industry.
  • Termination of vessel construction contracts for two semi-submersible drilling rigs, resulting in an arbitration process.
Mitigation Strategies
  • Prepared cash flow forecasts covering a period until 30 June 2022.
  • Implemented cost reduction measures.
  • Engaged specialist legal advisors to defend actions taken in the arbitration process.
  • Mitigates utilisation risks through operating, marketing, and pricing strategies.
  • Has a QHSE management plan to ensure operations are conducted within normal industry standards and procedures.

Supply Chain Management

Responsible Procurement
  • Suppliers invited to tender; purchasing procedures require fair and transparent selection of vendors.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young LLP

Awards & Recognition

  • Silver Healthy Working Lives Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:0 tCO2e/year
Scope 1 Emissions:0 tCO2e/year
Total Energy Consumption:65,867 kWh/year (indirect emissions only)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced direct emissions to nil in 2023 from 1,749 tonnes in 2022 due to rig disposals. WilHunter was sold for recycling in accordance with regulations.

Social Achievements

  • Group sick leave reduced to 0.0% in 2023 from 0.6% in 2022.
  • Operates a flexible benefit scheme for employees including leisure club membership, private medical and dental insurance, health screening, and an Employee Assistance Programme.
  • Maintained fair compensation and benefits packages for employees, though offshore and most onshore personnel were made redundant due to rig disposals.

Governance Achievements

  • Continued adherence to the Norwegian Code of Practice for Corporate Governance (with some explained departures).
  • Established an Audit Committee, Remuneration Committee, and Nomination Committee.
  • Implemented anti-bribery and corruption policy and equal opportunities policy.

Climate Goals & Targets

Environmental Challenges

  • Liquidity risk due to cessation of rig operations.
  • Legal risks associated with arbitration proceedings.
Mitigation Strategies
  • Secured a short-term loan of USD two million in May 2024.
  • Established a dedicated team and engaged specialist legal advisors to support arbitration proceedings.

Supply Chain Management

Responsible Procurement
  • Fair and transparent vendor selection processes.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK-adopted International Accounting Standards (UK-adopted IAS)

Certifications: ISO 14001 (suspended)

Third-party Assurance: Ernst & Young LLP