SDX Energy Plc
Climate Impact & Sustainability Data (2019)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Climate change
- Safety and Wellness
- Local workforce and community engagement
- Good governance
- Promoting diversity and equality
Environmental Achievements
- Reduced carbon emissions by c.143,000 tonnes of CO2e in Morocco by supplying cleaner-burning natural gas to industrial customers.
- Designed, constructed, and commissioned a Central Processing Facility (CPF) at South Disouq with efficient and environmentally sensitive operation.
- Zero routine flaring at South Disouq.
Social Achievements
- Zero Lost Time Incidents across operations.
- 98% of in-country roles populated by citizens of Egypt or Morocco.
- Donated EGP1,000,000 to restore Kafr El Gezira-Zifta Primary School.
Governance Achievements
- Established an ESG committee.
- Adopted the Quoted Companies Alliance Corporate Governance Code.
- Appointed Catherine Stalker to the Board as a Non-Executive Director.
Climate Goals & Targets
Environmental Challenges
- Production decline in NW Gemsa.
- Lower realised oil price.
- Increased operating expenses due to South Disouq start-up and employee cost allocation.
- Uncertainty caused by COVID-19 pandemic and its impact on oil prices and equity valuations.
- Temporary closure of three Moroccan customers due to COVID-19.
Mitigation Strategies
- Long-term fixed-price gas contracts in Egypt and Morocco mitigating commodity price risk (approximately 90% of 2020 and over 95% of 2021 cash flows from gas businesses).
- Meseda oil field remains profitable at US$35/bbl oil price.
- Forecast capital expenditure reduces materially after completion of drilling campaigns.
- Monitoring activity at customers and taking necessary steps to ensure safety of employees, contractors, and operations.
- Maintaining robust cash balance and undrawn credit facility with EBRD.
Supply Chain Management
Responsible Procurement
- Prioritising the use of domestic suppliers and contractors