Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee Health, Safety and Welfare
• Community Investment
• Employment of physically challenged persons

Social Achievements

• The Company enforces strict health and safety rules and practices within the work environment. These are reviewed and tested regularly. Fire prevention and fire-fighting equipment are installed in strategic locations within the Company's premises.
• The Directors maintain regular communication and consultation with the employees on matters affecting employees and the Company.
• There is great emphasis on staff development and training through carefully planned training courses and seminars to update the special skills and job requirements of the staff.

Governance Achievements

• Auditors Deloitte & Touche have expressed their willingness to continue in office as auditors of the Company.

Climate Goals & Targets

Environmental Challenges

• The Company had a working capital deficit of ₦9.3 billion (US$24.2 million) as at 31 December 2020 (2019: ₦9.7 billion (US$26.7 million)).

Mitigation Strategies

• The Company closely monitors and carefully manages its liquidity risk. Cash forecasts are regularly produced, and sensitivities run for different scenarios including, but not limited to, changes in commodity prices and different production rates from the Company’s producing asset.
• The Company continues to closely monitor cash flow forecasts and would take mitigating actions in advance including further reducing its operational costs, deferment of capital projects until it has raised the required funds to execute them; further renegotiate its debt obligation; and to raise additional funds if the need arise.
• Lekoil Nigeria Limited has pledged that it will not request the Company to repay the outstanding payable amount of ₦2.6 billion (US$6.9 million) due to it until such a time in which the company will be able to make such repayment.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte & Touche

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Renewable Energy
• Financial Sustainability

Environmental Achievements

• Otakikpo oil field producing over 10,000 barrels daily

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Dwindling oil revenue and investment
• Lack of funding for fossil fuel projects due to global pressure for energy transition
• High national debt
• Need for increased oil production to address foreign exchange crisis

Mitigation Strategies

• Prioritizing existing oil well development, offshore gas projects, and possible LNG for power generation
• Seeking investment both domestically and internationally
• Focusing on existing portfolio for best value
• Advocating for a just energy transition plan tailored to Africa's unique circumstances

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Reduced investment in fossil fuels

Opportunities

• Investment in renewable energy

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