Nostrum Oil & Gas PLC
Climate Impact & Sustainability Data (2017)
Reporting Period: 2017
Environmental Metrics
Total Carbon Emissions:254,332 tCO2e
Scope 1 Emissions:254,332 tCO2e
Scope 2 Emissions:640.3 tCO2e
Carbon Intensity:17,821 mtCO2e/mmboe in 2017
ESG Focus Areas
- Health & Safety
- Community Investment
- Emissions Intensity Ratio Reduction
- Climate Change Risk Management
Environmental Achievements
- Independent environmental audit found compliance with all relevant regulatory and legislative requirements.
- Commissioning of a gas turbine power station, anticipated to reduce future environmental impact.
- 77% of drilling waste recycled in 2017.
Social Achievements
- Funding of local schools and educational projects.
- Sponsorship of WestKazInvest investment forum and sporting events.
- Financing of festive events and social contributions in Yanvartsevo, Beles and Sulukol Akimats.
- 721 employees benefited from education and training programs.
Governance Achievements
- Improved governance structure and independence of the Board.
- Successful refinancing of almost two-thirds of debt in 2017.
- New long-term incentive plan implemented.
Climate Goals & Targets
Long-term Goals:
- Fully develop the Chinarevskoye field prior to the end of licenses in 2031-2033.
Medium-term Goals:
- Grow production to reach full capacity of treatment facilities.
- Reduce costs by 20% on a boe basis by 2020.
- Grow reserves and raw gas processing to allow for 100% utilization of gas plants beyond 2020.
Short-term Goals:
- Stabilize production by drilling four production wells in H1 2018.
- Reduce LTIF to 2.00.
Environmental Challenges
- Higher than anticipated production decline due to loss of producing wells and delays in bringing on new wells.
- Increased Lost Time Injury Frequency (LTIF) to 2.48.
- Oil price volatility.
- Delays in the completion of GTU3.
Mitigation Strategies
- Focus on drilling four production wells in the first half of 2018 to stabilize production.
- Focus on investigating and addressing the causes of increased LTIF and implementing improved safety procedures.
- Successful refinancing of debt, extending maturities to 2022.
- Hedging 9,000 boepd at US$60/bbl for 2018.
- Implementation of 2018 HSE Competency Program.
Supply Chain Management
Supplier Audits: Seven Contractor HSE Management System Audits in 2017.
Responsible Procurement
- Contractor management system to ensure compliance with RoK legal requirements and company QHSE standards.
Climate-Related Risks & Opportunities
Physical Risks
- Changing weather conditions
Transition Risks
- Legislative and policy responses to address climate change
- Changing energy market demands
Opportunities
- Development of energy-efficient products