July 25, 2022

2021 Sustainability Report

XP release its Annual Sustainability Report for the 5th year in a row.

The global Oil and Gas Industry is confronted with increased pressure to lower its environmental footprint. According to the objectives of the Paris Climate Conference and other similar inter-governmental agreements, the emissions from carbon dioxide and methane from the Oil and Gas operations must and can be reduced significantly, and the use of freshwater and other natural resources must be minimized. Regulatory frameworks like the EU Methane Regulation and voluntary initiatives such as UN SDG, OGMP 2.0, or the World Banks Zero Routine Flaring, are tangible evidence of the strong political and social persuasion.

It is therefore urgent, important and also economically sound to reduce now dramatically the environmental footprint of the mature oil and gas fields.  Especially as these mature fields are the ones on which the Energy Transition is going to rely on in the next 20/30 years to provide the oil and gas needed while transiting to new forms of energy.

XP has built over the years unique proven practical and pragmatic knowledge about how to reduce this environmental footprint.

Within this fifth Annual Sustainability Report, we would like to continue to demonstrate our capabilities and report in a transparent way our performance as well as  continue to engage in a dialogue with all our stakeholders

Like the previous reports, the current one was developed in line with the latest EU requirements for reports on the social and environmental impacts of our activities and according to the Global Reporting Initiative Standards (Core option and G4 Oil and Gas Sector supplement).

The key take-aways of our 2021 Sustainability Performance are:

  • Economic performance: We continue to have solid and sustainable financial to continue our growth and our investments.
  • Compliance: In 2021, there have been no fines or sanctions imposed on XP for non-compliance with laws, regulations or acts of corruption.
  • Health, Safety and Security: We continued to strive to achieve our objective of zero incident, unfortunately we recorded in 2021, 1 Loss Time Incident in Țicleni operations. All incidents have been thoroughly investigated to understand their root cause and valuable lessons learned out of the investigation have been communicated throughout the organization.
  • Environmental Performance:
    • Green House Gas Emissions: Despite an increase in absolute number due to the Ukrainian operations addition to the reporting, Our scope 1 GHG Emissions Intensity has decreased in 2021 by 21% compared with 2020 as some significant upgrading works are being done in Timis 2021 and our Ukrainian operations came with a low intensity. In 2021 for the first time since we started to report and measure our scope 2 GHG Emissions in Romania in order to improve it in the years to come.
    • Hydrocarbon Spills: in 2021, we had no serious spill in our operations incident recorded. More importantly, despite the increase of our activity (our boe production operated has increase by 40% with Lviv addition) we have both decrease the total number of spills vs 2020 (by minus 44%) and their impact on the environment as in 2021, 26% of the spills were classified as Serious vs 84% in 2020.
    • Energy Intensity: In 2021 our Energy intensity was reduced by 25% mainly due to the addition of the Ukrainian operations in Lviv which have lower energy intensity and the electricity and natural gas consumption reduction in our facilities in Timis and Ticleni
    • Freshwater withdrawal: Our Total freshwater withdrawal intensity has been reduced by 24% compare to 2020. The main contribution is due to our new Lviv operations with a low freshwater consumption and freshwater intensity as the rest of the operations stayed more or less constant after a big decrease in 2020.
    • Waste management: In 2021 the total quantity of solid waste, both hazardous and non-hazardous, have shown an increase. But this is not due to a higher level of activity. It is in fact caused by the acceleration of our surface facilities optimization and decommissioning in Ticleni and Timis and also from the additional quantity of waste generated by the Lviv PEC.
  • Human Resources: At the end of 2021, XP  had 960 employees spread over 2 countries.(2 management offices and 3 production locations). 18% of our employees are women. We have hired 61 employees in 2021 and in average each employees has received around 17hours of training. All had a performance review.