Environment

We recognise and appreciate that protecting the environment is a fundamental expectation for all activities and operations Ophir undertakes.

We take a precautionary approach to our business activities and to the extent possible, we avoid creating negative impacts on the environment and biodiversity. If they cannot be avoided, we take all reasonable steps to mitigate and/or remedy the negative environmental impacts associated with our activities.

Our performance

Environmental responsibility

Our strategic and operational decisions are informed and guided by best international environmental practices for the energy and mining industries, in addition to local requirements and expectations.

We aim to maintain high standards of environmental protection and seek to avoid creating negative impacts on the environment and biodiversity. If they cannot be avoided, we take all reasonable steps to mitigate and/or remedy the negative environmental impacts associated with our activities.

Our environmental policies identify the potential impacts of exploration, drilling, development, production and processing at our operational sites, and identify doable and practical controls to mitigate such impacts.

Waste and discharges

We now operate two producing assets, at Kerendan and Bualuang, and we aim to prevent and reduce discharges, emissions and waste capable of adversely affecting their surrounding environment, including the discharge of contaminants to surface and ground water. We accordingly closely monitor air emissions, waste generated, discharges and inadvertent releases. At Kerendan, we plan to drill water re-injection wells in 2018. Water re-injection removes the risks posed by above ground storage. We did have to undertake gas flaring at the facility due to fluctuating demand from our customer and to ensure safe operations. We are looking at solutions to avoid this, however any flaring is undertaken to both protect our people and is in the context that the gas we supply is displacing more carbon-intensive fuels.

Assessment and audit

We conduct environmental impact assessments and environmental monitoring studies, including risk assessment, risk mitigation and contingency planning and audits. We place a high value on regular reporting.It is important that our surrounding communities understand how seriously we take environmental protection. At Bualuang, with our proposed addition of a new platform, we conducted a series of public participation events to gather community input, to inform, and to be transparent about our plans. The Thai Department of Minerals Fuels also conducted a successful audit of our waste management process at the Bualuang field.

Environmental Impact Assessment

This year, we submitted an environmental impact assessment to ONEP (Office of Natural Resources and Environmental Policy and Planning the environmental regulator) for the Phase IV development at Bualuang, Thailand. In the lead up to submission, we conducted over 10 public participation sessions with different groups of stakeholders, including focus-group meetings and one-on-one engagement.

We also completed a number of environmental assessments with regards to the Kerendan asset. An environmental assessment was completed for the onshore 3D seismic survey in the Kerendan area, we monitored our activities closely and at the end of 2017 we commenced an environmental review of the project. In preparation for an increase in operational activity in 2018 at the West Bangkanai location, we completed an environmental base assessment that will provide a point of reference when evaluating the impact of our activity.

Environmental results

  • We had zero significant spills or other loss of containment events.
  • At KGPF, we plan to drill water re-injection wells, which will come into use during 2018. All produced water at Bualuang continued to be re-injected.
  • Our Group-wide energy intensity – energy used per unit of production is in line with the average of E&P companies worldwide.

Group-wide environmental Key Performance Indicators

Are available to view here.

Environmental expenditure

Our expenditures on environmental matters in 2017 totalled US$0.9 million, compared to US$0.6 in 2016. This includes costs for waste disposal, environmental studies and other environmental management services.

We had no fines or non-monetary sanctions for non-compliance with environmental laws and regulations, and no grievances about environmental impacts filed through formal grievance mechanisms.

Climate change

Ophir recognises the scientific consensus that greenhouse gas emissions are driving man-made climate change. Achieving the internationally agreed target of limiting global mean temperature rise to well below 2°C above pre-industrial levels will require significant and sustained reductions in these emissions.

The global changes required to achieve this 2°C goal will impact the oil and gas industry significantly. At Ophir, we are deepening our understanding of the implications of the climate change debate and international agreements for our business, and what actions we may take across a range of areas including our core business strategy, our operational emissions and our interactions with stakeholders. In 2017, the Board reviewed its approach to tracking trends to provide commercial foresight on how quickly the world is moving toward decarbonisation. Climate change and the implications for Ophir will continue to remain on the Board’s strategic agenda.

As the world transitions to a lower carbon future, natural gas will play an important role as a bridging fuel to this future, replacing higher carbon-emitting fuels. With Kerendan and our plans for Fortuna FLNG, we will help contribute to this lower carbon future.

With respect to our greenhouse gas emissions, we report Scope 1 and 2 and certain Scope 3 emissions. Scope 1 emissions are those over which Ophir has direct control; Scope 2 emissions are indirect energy emissions from electricity we purchase for offices and logistics bases; the Scope 3 emissions we report are a result of passenger air miles from business flights.