Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Significant reduction in international crude oil price forecast owing to COVID-19 global pandemic.
• Reduced crude oil demand and excess supply, deteriorating the price of crude oil and other petroleum products.
• Uncertainty regarding the ongoing impact of COVID-19 on global commodity prices.
• Controlled production from Ayesha, Aminah and Ayesha North leases to maintain CO2 contents within agreed threshold.
• Retrospective application of 20% quality discount on production from Ayesha, Aminah and Ayesha North leases owing to expiry of waiver period for the installation of amine sweetening unit.

Mitigation Strategies

• Implementation of mandatory self-quarantine policies, travel restrictions, enhanced cleaning and sanitation measures, and social distancing measures.
• Additional measures at field sites, including changes to crew size and shift durations, screening measures prior to field access, and mandating the use of masks.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• The Company continues to proactively respond to the safety challenges associated with COVID-19 and remains committed to ensuring the health and safety of all its personnel and the safety and continuity of its operations.

Climate Goals & Targets

Environmental Challenges

• Significant decline in gas production from Zarghun South lease, mainly attributed to a significant drop in wellhead flowing pressures and excessive formation water production caused by a water breakthrough in the Dunghan reservoir.
• Closure of international borders as a result of COVID-19 pandemic, impacting the offtake of gas from Sara and Suri leases.
• COVID-19 global pandemic impacting global commodity prices and creating uncertainty regarding the ongoing impact on global commodity prices.
• Consistent decline in daily production from Zarghun South
• Economic dependence on joint venture partners
• Current economic and political conditions in Pakistan

Mitigation Strategies

• Implemented mandatory self-quarantine policies, travel restrictions, enhanced cleaning and sanitation measures, and social distancing measures.
• Additional measures implemented at field sites, including changes to crew size and shift durations, screening measures prior to allowing field access to employees and staff, and mandating the use of masks.
• Revised terms of the Sara and Suri GSA, reducing the DCQ.
• The Company’s ability to continue its operations and to realize assets at the carrying values is dependent upon obtaining additional debt or equity financing, maintaining continued support from its majority shareholder, generating positive cash flows and compliance with its capital expenditure commitments.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Significant decline in production due to natural decline in production from Guddu block, suspension of production from Aminah and Ayesha North wells in Badin IV South due to excessive water production and reduction in production from Zarghun South lease.
• Litigation with PEL regarding alleged non-payment of cash calls and forfeiture of working interests in Badin IV North and South blocks.
• Expiry of exploration licenses and leases, requiring applications for extensions.
• Non-compliance with financial covenants under Askari Bank syndicated term finance facilities.
• Water breakthrough in the Zarghun South lease's Dunghan reservoir.
• Damage to sales gas pipeline in Zarghun South lease (Q4 2022).

Mitigation Strategies

• SEPL entered into farm-out agreements with MPCL to assign working interests in Zarghun South lease and Nareli exploration license.
• SEPL entered into a trust agreement with APEL to hold its working interest in Zamzama North exploration license.
• Applications for extensions of expired licenses and leases submitted to GoP.
• Application for waiver from compliance with financial covenants submitted to AKBL.
• Applications for assignment of working interests in Badar and Kandra leases submitted to GoP.
• Initiated ICC arbitration proceedings against PEL.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes, market shifts