SHAMARAN Petroleum Corp.
Climate Impact & Sustainability Data (2020, 2021, 2022)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Proper disposal of all produced water
- Effective waste management program
- Timely remediation of all impacted locations
- Plan to eliminate flaring and emissions via gas sweetening project
Social Achievements
- Successful localization plan >80% staffing from Kurdistan
- Optimizing local content in services and suppliers
- Engaging in and improving local communities in three key sectors in 2020
Governance Achievements
- Adhering to Corporate Governance Practices established in National Policy 58-201 - Code of Business Conduct and Ethics
- Policies and practices in place ensuring Board and Managerial decisions are made in best interests of Company, its shareholders and other stakeholders
Climate Goals & Targets
Environmental Challenges
- Liquidity shortfall
- Revenue payment uncertainty from KRG
- COVID-19 pandemic impacting operations
Mitigation Strategies
- Successfully resolved liquidity issues with bondholders (drawdown of Liquidity Guarantee, waivers, deferrals, cash sweep mechanism)
- Resumption of timely payments from KRG
- Continuing dialogue with KRG for repayment of outstanding amounts
- Maintaining and optimizing COVID-19 Action Plan
- Adjusting work plan to minimize exposure points
- Optimizing workforce schedule
- Deployment of IT solutions for communication
- Focus on flexibility in physically distanced working environment
Supply Chain Management
Responsible Procurement
- Optimizing local content in services and suppliers
Climate-Related Risks & Opportunities
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Gas Solution project underway to eliminate flaring and emissions via gas sweetening
- Effective waste management program and timely remediation of all impacted locations
Social Achievements
- Staff localization levels currently greater than 75%
- Focus on local services and suppliers in 2021
Governance Achievements
- Policies and practices in place ensuring Board and Managerial decisions are made in best interests of Company, its shareholders and other stakeholders
Climate Goals & Targets
Short-term Goals:
- Second Produced Water Disposal well planned for 2022
Environmental Challenges
- KRG payment delays
Mitigation Strategies
- Successful amendment of Shamaran Bond Terms in January 2021 to allow for free cash flow to be used to buy back bonds and reduce debt
- KRG proposed new payment mechanism
Supply Chain Management
Responsible Procurement
- Focus on local services and suppliers in 2021
Climate-Related Risks & Opportunities
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Atrush first asset in KRI to have Produced Water Disposal via re-injection, online since 2019
- Gas Solutions to eliminate flaring and emissions via gas sweetening strategies
- Facilities heat capture project for diesel displacement underway in Atrush 2022
- Continued deployment of solar systems in Atrush to displace diesel during 2023
- Exclusive corporate sponsor for nature-based initiative implemented by climate action NGO in KRI: Planting one million native trees in center Erbil by 2024 (Quarter million planted to date)
Social Achievements
- Very high levels of staff localization in each block
- Continued development and deployment of critical social initiatives
Governance Achievements
- ShaMaran Canadian oil and gas company, publicly listed in Toronto and Stockholm
- Policies and practices in place ensuring Board and Managerial decisions are made in best interests of Company, its shareholders and other stakeholders
Climate Goals & Targets
Long-term Goals:
- Planting one million native trees in center Erbil by 2024
Medium-term Goals:
- Maintain Swara Tika production plateau by keeping all 3 facilities full, improving operating efficiency and reducing OPEX at all production facilities
- Develop East Swara Tika and evaluate additional prospective Triassic areas on block
- Develop Jurassic reservoir if commercially attractive
- Materially reduce CO2 emissions
Short-term Goals:
- Optimize production in 2022 and Swara Tika Pad B 25K bopd facility by Q3 2022
- Manage water treatment and disposal and advance gas handling solution
- Prepare development plan for East Swara Tika and assess Jurassic reservoir
- Connect to KRG Pipeline and drill wells to increase production capacity at ST Pad B
- Acquire 3D seismic on western half of ST field and begin return of capital to equity investors
Environmental Challenges
- Reducing Scope 1 and Scope 2 emissions
Mitigation Strategies
- Multi-pronged strategic process designed to reduce Scope 1 + Scope 2 emissions
- Investment in “net zero barrels” extending beyond life of field
- Prioritize investment in mechanical/technical gas solutions across our assets
- Grow our nature based carbon sequestration activities to provide lasting impact in the regions we operate in