Environmental & Social Information • Mar 15, 2022
Environmental & Social Information
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ESG in Aker BP
Company profile Letter from the CEO • Maximise value creation – minimise emissions Our sustainability approach Stakeholder engagement and materiality Responsible business Human rights Procurement practices Anti-corruption Business ethics, compliance training and awareness Anti-competitive behaviour Freedom of association Reporting of concerns Public Policy Environmental compliance Compliance with laws and regulations Economic impact Annual strategy process Creating shared value Tax strategy Sharing know-how and driving collaborations Supporting local communities Supporting causes we believe in Risks and opportunities posed by climate change Scenario analysis and portfolio robustness • Wealth creation for future generations • Investments benefit local communities • Digital transformation through the medium of art
• Feature article
Aker BP's annual sustainability report for the 2021 fiscal year (1 January 2021 to 31 December 2021) covers our operated assets and is aligned with the annual report. Aker BP's previous sustainability report (2020 Sustainability Report – ESG in Aker BP, March 2021) was based on the Global Reporting Initiative Standards (GRI 2018). For this year's report we are starting the transition to reporting in accordance with the new GRI 2021 Oil and Gas Sector 2021. Reference has also been made to the United Nations Sustainable Development Goals (SDGs), Task Force on Climate-related Financial Disclosures (TCFD), CDP, Sustainability Accounting Standards Board (SASB), European Securities and Markets Authority (ESMA), Green House Gas (GHG) Protocol and the UN Global Compact. Aker BP has initiated a process to prepare the reporting required under the EU Taxonomy Regulation, whilst awaiting final processing of
the law in the EEA Joint Committee and the implementation of the regulation in Norwegian law. Reference is made to Aker BP Annual report 2021.
This report has been reviewed by an internal review committee consisting of senior managers for relevant disciplines and business units. It has also been reviewed by the Audit and Risk Committee (ARC) which assists and facilitates the Board of Directors responsibilities within integrity of financial reporting, the financial reporting process, internal controls, company risks, corporate governance, compliance and auditing, prior to approval by the Board of Directors. KPMG has provided limited assurance on 2021 sustainability data on pages 55, 56, 57, 68, 69, 70 and 77 in this report. The rest of the report, including forward looking information, has not been assured by KPMG.
Aker BP is an independent exploration and production company conducting exploration, development and production activities on the Norwegian Continental Shelf (NCS). Measured in production, Aker BP is one of the largest independent oil companies in Europe. Aker BP is the operator of Alvheim, Ivar Aasen, Skarv, Valhall, Hod, Ula and Tambar, a partner in the Johan Sverdrup field and holds a total of 124 licences, including non-operated licences.
Towards the end of 2021, Aker BP ASA made an agreement to acquire Lundin Energy's oil and gas related activities on the NCS.
The company's assets and activities are mainly based in Norway and within the Norwegian offshore tax regime. The company is headquartered at Fornebu outside Oslo and has offices in Stavanger, Trondheim, Harstad and Sandnessjøen.
Aker BP ASA is owned by Aker ASA (37,14%), BP p.l.c. (27,85%) and other shareholders (35,01%). The company is listed on the Oslo Børs (Stock Exhange) with ticker "AKRBP". Information about Aker BP entities included in the consolidated financial statements is available to the public. Read more about Aker BP at www.akerbp.com
At the end of 2021, Aker BP had 1,839 employees. There were no significant changes to the organisation or supply chain in 2021. Aker BP purchased goods and services for about USD 3 billion and engaged around 1,400 direct suppliers in 2021, mainly within the oil and gas service sector. Most Aker BP suppliers are based in Norway or in Europe and are generally contracted for high-technology services such as engineering, equipment and drilling and well services, or leasing of rigs and marine services.
Total number of employees employees 1,839 New hires employees 209 Purchased goods and services* billion USD 3 Direct suppliers engaged suppliers 1,400 CO2 intensity kg CO2/boe 4.8 Methane intensity CH4/saleable gas 0.02% Total recordable injuries frequency Serious injury frequency
*Represents gross purcase on Aker BP operated assets
Aker BP Sustainability Report 2021
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Approach Responsibility Economic Environmental Social Disclosures
Environment, Social and Governance criteria have firmly taken the centre stage on the strategic agendas of oil and gas companies. As the world will need our products for decades to come, Aker BP's most resilient strategy remains to produce oil and gas at the lowest possible costs with minimal carbon emissions. In 2021, we intensified sustainability efforts and strengthened our position as an oil and gas company fit for the future. Going forward we are evaluating an even more ambitious decarbonisation strategy that includes initiatives aimed at reaching net zero emissions by 2030.
Aker BP is a pure-play oil and gas company. We are proud of who we are and what we do.
Aker BP is one of the largest independent stock-exchange listed oil and gas companies in Europe and generates significant value for both shareholders and Norwegian society. Going forward we plan to explore more, find more, develop more, and produce even more oil and gas. Allow me to share my thoughts on why our approach is essential in a sustainability context.
I believe that only the most efficient oil and gas companies, those with the lowest costs and carbon emissions, will thrive in the future. I am confident that Aker BP is very well positioned to lead our industry in this respect.
Safe and efficient operations are at the core of everything we do. In 2021, we recorded a net production of 209 thousand barrels of oil equivalents per day. Our production efficiency was 85 percent and production costs for the full year amounted to USD 9.2 per barrel.
Maintaining and further improving our health, safety and environment performance is a top priority for me. No one should be harmed or injured while working at or for Aker BP. In 2021, we continued our positive safety trend, with a reduction in our serious injury frequency rate and zero process safety incidents. Although it is a requirement under our operating licence, a strong safety culture cannot be taken for granted. It requires continuous efforts and constant vigilance.
approximately one-third of the global average for our industry
Aker BP's gross CO₂ emissions are halved
2050 Aker BP's gross CO₂ emissions will be close to zero
We work every day to reduce emissions from our operations. Our CO2 intensity in 2021 was 4.8 kg CO2 per barrel of oil equivalent. Although this performance places us firmly in the top tier of our industry worldwide, we do not rest on our laurels in our pursuit of emission reductions.
A major transformation of the energy system is underway, and Aker BP is determined to play an active part as a low-cost, low-carbon producer.
Aker BP acknowledges the conclusions from the Intergovernmental Panel on Climate Change (IPCC) and supports the goals of the Paris Agreement. There is no doubt the world's dependence on fossil fuels will decrease over time. Although the exact path to a new energy system is uncertain, one thing remains clear. Oil and gas will exist alongside renewables for decades to come. We produce energy that the world depends on, and we contribute with raw materials to a wide range of products used in our daily lives.
The 2021 edition of the World Energy Outlook published by the International Energy Agency (IEA) uses four scenarios to examine future energy trends. Notably, in all these scenarios — even the Net Zero Emissions scenario — oil and gas continue to play a major role in the global energy mix for decades. At Aker BP we systematically test our strategic decisions and portfolio to ensure that the company maintains its financial robustness under the various scenarios.
Indisputably, the oil and gas industry needs to change, and the pace of our energy transition must accelerate. To that end, Aker BP relentlessly pursues improvements to reduce our carbon footprint and cut production costs.
In my view, the oil and gas companies fit for the future will have to be dynamic, fast, and resilient in the face of risks and uncertainties posed by the global energy transition. Rising to and excelling at these challenges are the core of our strategy. I am convinced that Aker BP, as a pure-play oil and gas company, will have a vital role in this energy transition. This is also why we do not apologize for being an oil and gas company.
Climate concerns and objectives are integral to Aker BP's annual strategy process and embedded in our decision-making. We are committed to achieving a 50-percent gross Scope 1 emission reduction by 2030 and close to zero emissions by 2050. These goals are in line with industry targets and expectations from Norwegian Government authorities. However, our ambition goes beyond that. We are working on a decarbonization strategy to bring us to net zero emissions in this decade.
Because energy-efficient solutions and operations are essential to reaching our objectives, our approach to energy efficiency is embedded in how we work. In 2021, we implemented greenhouse gas emission reduction measures that yielded a total of nearly 23,000 metric tons of CO2e. One such initiative is a limited modification at our Alvheim field that resulted in an annual reduction in methane emissions with a global warming potential of 6,600 tons CO2e. Measures such as this one, have been identified and implemented across all our assets.
In 2021, we intensified work on cutting indirect emissions in our value chain — the Scope 3 emissions. For example, the platform supply vessel NS Frayja, operated by Eidesvik Offshore, received an emission-reducing upgrade with a new battery system and utilization of an electrical power and charging connection when at quay. Five platform supply vessels operating under long-term contracts with Aker BP will be fitted with batteries starting in 2022, resulting in a 10-percent annual CO2 reduction. We are also working with Alma Clean Power and Eidesvik Offshore to explore retrofit installation ammonia fuel cell technology on two offshore support vessels.
Aker BP seeks to create substantial positive ripple effects from our projects and operations. For me, it is especially important that the communities in which we operate benefit from our presence. We contribute not only by providing employment and supplier development, but also through the products and services we purchase and the taxes we pay.
An integral part of Aker BP's strategy is to form long-term strategic partnerships with key suppliers through our alliance model. A key element in this model is that we secure a significant proportion of locally sourced deliveries in our projects.
Let me illustrate the benefits of our way of working. In August 2021, I was present when the Hod B topside sailed from Aker Solutions' yard in Verdal, only 14 months after I personally cut the first steel for the platform at the yard. A top-quality project delivered according to plan in the middle of a pandemic. This was a monumental achievement for the Fixed Facilities Alliance.
At peak, around 550 people worked on the Hod project at the yard in Verdal. But perhaps most rewarding of all, 50 apprentices completed major parts of their vocational training on this project, many of whom have gone on to work in renewable energy, including on floating offshore wind projects. Aker BP has ambitious investment plans for the next few years, the largest of which is the coordinated development of the NOAKA area. Other significant upcoming projects include the New Central Platform (NCP) on Valhall and the tie-in of King Lear.
These projects will be delivered in close cooperation with our alliance partners. Consequently, we expect a large proportion of contracts to be awarded to local suppliers, which will in turn generate tens of thousands of jobs in local communities.
For example, pending final investment decisions and authority approvals, we plan to construct platforms at the yards in Verdal and Stord with support from Sandnessjøen and Egersund. These projects will be very important to the local economies and communities. As we move toward a global energy transition, our investments contribute to secure employment and technological advances.
Our people are Aker BP's most important asset. The entire Aker BP team is committed to contribute to the transformation of our company and our industry. At the core of our identity is that we strive to outperform ourselves, that we always do our very best, and always seek improvement.
The energy transition will require massive financial resources. Aker BP will maximise value creation from assets and activities, and by doing so also maximise available profits for the society and our owners, who then can invest in green industries.
Aker BP is committed to minimising emissions from operations. This is important from an environmental perspective, but also financially as the rising cost of CO2 emissions is directly impacting the financial performance of our business.
The energy transition is also about how we generate new industries and business opportunities. Aker BP is committed to share knowledge and provide capital that our owners can reinvest in renewable energy and new industries.
Today's Aker BP is the result of mergers and acquisitions. Our workforce is a mix of employees with different backgrounds and skillsets. I view this diversity as a competitive edge. We strive to create and maintain an effective and collaborative working environment where diversity and inclusion are key components of our strategy.
At Aker BP, employees can build the best CVs in the industry by taking advantage of career moves, skill-building, and development opportunities. And career development is essential for us to succeed with our strategy. Our commitment to our people also includes offering employees opportunities for meaningful engagements that go beyond our everyday operations. One such program is mentoring cancer survivors. Another is volunteering at the world's largest winter sport games for visually impaired and disabled athletes. I am always proud to see our employees selflessly engage in such activities.
As of year-end 2021, Aker BP had just over 1,800 permanent employees. However, the Aker BP One Team is much larger and growing. It is only by working with alliance partners, strategic partners, suppliers, and related industries that we can fulfil our vision of becoming the leading oil and gas company. And we consider every individual who is with us on this journey to be part of the Aker BP One Team.
Aker BP closed 2021 by announcing a transaction agreement with Lundin Energy AB, where Aker BP will acquire Lundin Energy's oil and gas related activities. The transaction is subject to approval by the shareholders of both companies at their respective general meetings, and approval by relevant authorities. Closing of the transaction is expected during the second quarter of 2022.
Aker BP remains well-positioned. Going forward we will increase our speed and gain momentum in our drive to achieve the lowest operating cost, the lowest carbon intensity and the highest value creation in our industry.
We will operate our assets safely and efficiently. We will employ Aker BP's unique alliance model to develop our large hopper of highly profitable projects, thus paving the way for increased production. We will aggressively pursue digitalization along with other improvement initiatives to further strengthen our position. And finally, we will build and develop a team that is simply impossible to beat.
With this strategy, financial robustness, growth opportunities and team, I am convinced Aker BP will play a crucial role in the energy transition. We are creating the exploration and production company of the future.
KARL JOHNNY HERSVIK CEO, Aker BP ASA
One of Aker BP's critical competences is maximising value creation from existing fields. On Valhall, that translates into another billion barrels – powered by clean electricity from shore.
The most valuable barrels produced with the lowest carbon footprint are those that can be produced using infrastructure that is already in place. This approach will maximise value by utilising available resources in the best possible manner, keeping costs low and emissions at a minimum.
Valhall has already produced a billion barrels of oil, but the field that is celebrating its 40th anniversary in 2022 estimates another billion barrels over the next 40 years.
– Aker BP will continue to increase value creation from the giant Valhall through new projects and a major ongoing modernisation of the area.
Ole Johan Molvig Valhall Asset Manager
The Valhall field centre as it is at the start of 2022.
Several important milestones in developing the field for the future were reached in 2021.
The Hod B platform was safely installed in August. It will be remotely operated from Valhall when it comes on stream in the first half of 2022, expecting to produce 40 million barrels of oil equivalent.
Aker BP has also decided to go forward with one of its most significant development projects: A new central platform (NCP) on Valhall and tie-in of the King Lear field. The latter is a gas condensate field, targeting customers in Poland as a replacement for coal. A preferred concept has been selected, and Aker BP and its partners target
An illustration of the development project "NCP (in the middle) and King Lear (right)". Left is Valhall PH.
a final investment decision and submission of a plan for development and operation in late 2022. The first oil and gas are planned for 2027.
The concept consists of a new process and wellhead platform (NCP), with a bridge connection to the Valhall field centre and a remote-controlled platform on the King Lear field around 50 km from the Valhall field centre. New infrastructure will be laid on the seabed to connect the two fields. Everything will be powered with electricity from shore, using the existing cable to Valhall. A total of 19 wells are planned, and the concept also includes considerable modification work on the Valhall field centre.
– Comprehensive modernisation of the area is underway, with tie-in of new flank platforms, removal of old installations and permanent plugging of wells. The NCP and King Lear project will enable Valhall to operate until around 2060 with minimal emissions and with significant gas production, thus reducing emissions downstream by displacing coal
Ole Johan Molvig Valhall Asset Manager
Molvig adds that the Valhall complex now will become a fully-fledged hub with the capacity to process gas and oil from the greater Valhall area. The quarters platform (QP) on Valhall has been removed, and in 2021 it was time to remove the QP jacket. Close to 100 percent of the metal from QP has been recycled, and even the launching runners on the QP jacket, made from Azobe hardwood, have been recycled into, for example, furniture.
The development of Valhall fits nicely into the field's sustainable agenda. Valhall was the first field centre, with multiple platforms, electrified with power from shore in 2013.
The Maersk Invincible drilling rig left the Valhall field centre in spring 2021. That marked the end of several years of plugging operations on Valhall. A total of 30 old wells from the original drilling platform (DP) have been plugged over the course of three campaigns since 2014.
The Maersk Invincible has received its power supply from the Valhall field during its plugging campaigns. Electrification of the rig has been a pioneering project for Aker BP, in line with the strategy to develop solutions that help minimise the environmental footprint.
Aker BP contributes to meeting the world's demand for energy by supplying low-cost and low-carbon oil and gas. The figure to the right illustrates our value chain and the context in which we operate. Our strategy describes our ambitions, targets and priorities, and one of five strategic targets is to "Contribute to sustainable development." This underpins the way we conduct our activities. One of our main contributions is to maximise value creation and return value to our shareholders and to society at large through taxes, which can be redeployed in renewable energy industries. At the same time, we also minimise our environmental footprint and contribute with knowledge, data and experience to support development of new industries. This approach is also applied to promote new digital solutions, technologies and working methods in Aker BP, to further optimise our activities and our efforts to provide energy and production efficient barrels, produced in a safe and responsible manner.
Our company strategy supports the United Nations Sustainable Development Goals (SDGs) which have shaped the development of our new Sustainability Framework, implemented in 2021. Material topics within Environment,
Social and Governance (ESG) are represented through policies and areas of impact. This framework is part of our business management system, aimed at contributing to secure value, trust and predictability for our operations.
Aker BP's Sustainability Framework includes our ESG domains as listed in the table on page 14-15: climate, environmental impact, partnerships, people, safe operations and responsible business. These domains are divided into topics that illustrate the most significant areas of impact and are represented by a range of policies. They are further embedded and integrated in all layers of our business, including our corporate strategy. Each ESG domain addresses and supports different SDGs put forth by the United Nations.
Our licence to operate depends on safe operations carried out under the highest standards for Health, Safety, Security, Environment and Quality (HSSEQ). HSSEQ is always our number one priority and we work diligently to ensure that Aker BP is a safe workplace, and that our activities cause no harm to people, assets or the environment.
Exploration Finding oil and gas
Development Drilling wells for exploration, appraisal and production
Production Extracting oil and gas
Transportation and storage, moving oil and gas to shore
MIDSTREAM DOWNSTREAM Refining, marketing and distribution to everyday products and transportation
| ESG domain | Target | SDGs |
|---|---|---|
| Responsible business Aker BP conducts its business in an ethical and transparent manner in compliance with applicable laws, rules and regulations, as well as internationally accepted guidelines. |
– Zero instances of corruption. – All employees and consultants shall complete the annual Code of Conduct course and commit to complying with it. – Ensure that our suppliers and business partners commit to responsible business practice and Aker BP's Code of Conduct. Ensure that all integrity reports – are dealt with in accordance with applicable statutes; no one who reports in good faith shall be subject to retaliation. |
Aker BP recognises the effects greenhouse gas (GHG) emissions have on our climate, and we shall contribute to meet the Paris Agreement goals by reducing our direct and indirect emissions.
Aker BP understands the environmental challenges represented by our activities and our industry at large. Protecting the environment and maintaining biodiversity are key parts of the sustainability work in Aker BP. We continuously work to prevent, reduce and minimise our environmental impact.
Partnerships
Aker BP is committed to stimulate local engagement by promoting education, creating jobs and growing local businesses in the communities where we operate. We share knowledge and data within and beyond our industry. We invest in community projects that align with local needs and our business activities.
Aker BP values the unique contributions of our employees and believes that a competent, diverse and inclusive workforce emphasises deliveries and accomplishments. We set high standards and targets in following up the well-being of our employees, and we maintain constructive dialogue with our works councils.
We execute our operations under the highest health, safety and security standards to ensure a safe and secure workplace, and prevent harm to people and assets. Our success depends on safe and reliable operations, combined with the well-being of our people.
Our stakeholders are the many individuals, organisations and authorities who are in some way impacted by or have an impact on Aker BP's activities – whether in our role as an energy provider, an employer or as a business that helps boost local and national economies through jobs and revenue.
Maintaining an open and proactive dialogue with the most important stakeholders facilitates our ability to identify key challenges and opportunities, and to access the resources we require throughout the life cycle of our assets. The input and feedback we receive helps us identify actual or potential impacts of our activities and serve as a basis for the decisions we make.
Stakeholder engagement is prioritised based on the anticipated potential impact of our activities, both offshore and onshore. For example, when planning the development of a new field or initiating new projects, we analyse the potential impact of our activities and who would be affected. A stakeholder management plan is developed as part of our work to identify and mitigate key issues related to projects and activities. More than 40 key stakeholders normally receive the Impact Assessment report in the public hearing. This enables stakeholders to present their views and bring relevant issues to Aker BP's attention and provide the input we need to evaluate necessary adjustments.
The materiality assessment for the 2021 Sustainability report has been updated as part of the annual strategy process. The figure on the next page illustrates Aker BP's Sustainability Framework, and the material
topics.Identification of actual and potential impacts and assessment of the significance of the impacts is based on:
Consequently, we have added asset integrity and critical incident management and closure and rehabilitation as material topics. We have also strengthened our reporting on responsible business conduct, human rights and compliance, in line with GRI 2: General disclosures 2021, Chapter 4. Strategy, policies and practices.
Aker BP strives to uphold the highest standards of ethical behaviour in all our operations across the entire value chain.
We are committed to acting ethically, responsibly and in compliance with applicable laws, rules and regulations, as well as internationally accepted guidelines, conventions or similar standards relating to corruption, money laundering, fraud, modern slavery, forced and child labour, environment, human rights, financial accountability or similar activities.
Our commitments to responsible business conduct are set forth in our Code of Conduct, as well as our Anti-Corruption Policy and Human Rights Policy.
We value everyone who works at and for Aker BP and we are committed to creating a working environment free from any form of discrimination, abuse, harassment, intimidation by or towards our employees or others affected by our operations, as detailed in our Code of Conduct. Aker BP values the unique contributions of our employees and consultants and believes that a diverse and inclusive workforce enhances deliveries and accomplishments. Our commitments to ensuring a diverse and inclusive working environment are described in the Diversity & Inclusion Policy.
The company's values of Seekers, Accountable, Foreseeable, Enthusiastic, Responsible (SAFER) and One Team define the way we work in Aker BP. The values also guide our behaviour in the workplace and supplement our Code of Conduct.
The Code of Conduct is our main governance tool, it provides guidance to Aker BP representatives on how to act in accordance with the company's core values, and includes references to relevant policies, processes, procedures, resources and tools.
Aker BP's Board of Directors approves and oversees administration of the Code of Conduct, the Anti-Corruption Policy and the Human Rights Policy. The Lead Compliance Officer is the functional owner and is responsible for the maintenance, communication and monitoring of the Code. The CEO is ultimately responsible for the implementation of the Code and for the monitoring of its operational effectiveness.
The Code of Conduct, the Human Rights Policy and the Anti-Corruption Policy are communicated internally and on the company's website. Our Code of Conduct is available in English and Norwegian.
Our commitment to respecting all internationally recognised human rights is further reinforced in our Human Rights Policy and integrated into our policies and practices.
Aker BP supports and acknowledges the fundamental principles of human and labour rights as set out in the UN International Bill of Human Rights, UN Guiding Principles on Business and Human Rights and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work. We align our human rights work with the OECD Guidelines for Multinational Enterprises and OECD Due Diligence Guidance for Responsible Business Conduct.
Our responsibility means that we must know our actual or potential impacts, prevent and mitigate abuses, and address adverse impacts where we are involved.
When considering new investments or when tendering for goods and services, we review any associated human rights issues and consider how we can ensure that our operations do not come into conflict with any of these fundamental human rights principles.
employees and consultants completed the 2,247 (90 %)
code of conduct refresher training
incident of non-compliance 1 incidents for which 0 fines were incurred
Integrity channel reporting
incidents for which non-monetary sanctions 0 were incurred
reports through the integrity channel in the reporting period
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Aker BP undertakes ongoing human rights due diligence to identify, prevent, mitigate and account for our human rights impacts and has processes in place to enable remediation for any adverse human rights impacts we cause or contribute to.
A new Transparency Act relating to enterprises' transparency and work on basic human rights and decent working conditions was adopted by the Norwegian Parliament on 18 June 2021 and will enter into force on 1 July 2022.
The purpose of the Transparency Act is to promote enterprises' respect for fundamental human rights and decent working conditions and ensure the general public access to information.
In view of the new Transparency Act, Aker BP has updated its third-party risk model to also include two macro-level human rights risk factors: Firstly, the country in which our business partner conducts business, based on Transparency International's Corruption Perceptions Index and international human rights indexes. Secondly, the industry in which it operates, based on an internal assessment of industry risk classification.
Aker BP operates in a low-risk environment with regard to human rights abuse as all our operations are located in Norway. Furthermore, the majority of our tier 1 vendors are based in Norway or other low-risk countries. However, we are aware of potential human and labour rights risks that may occur in our operations or further down in our supply chain.
In cases where Aker BP's operations might have caused or contributed to adverse human rights impact, we will provide or cooperate in providing appropriate remediation to individuals, workers and local communities. To such effect, we will also provide or cooperate in effective grievance mechanisms, where relevant.
As emphasised in our Human Rights Policy, we pay special attention to the rights, requirements, values and integrity of individuals and groups which may be particularly vulnerable to adverse impacts.
As part of a collaborative approach to responsible business conduct, operating companies on the Norwegian Continental Shelf have established a joint qualification system (Magnet JQS) for sharing human rights assessments of suppliers in the energy sector.
The Collabor8 Human Rights Assessment service entails a common standardised framework for conducting human rights assessments of suppliers, based on the above-mentioned law, guiding principles and best practice. The assessments are conducted by independent auditors and the results are shared among the participating companies.
The initiative is managed by Norwegian Oil and Gas, which is the professional body and employer's association for oil and supplier companies and aims at assisting participating companies in improving worker welfare in line with the UN Guiding Principles on Business and Human Rights and the fundamental conventions of the International Labour Organisation. Aker BP has been actively engaged in the various working groups within Collabor8 since 2019.
In 2021, the Human rights working group within the Collabor8 initiative developed a common scoring protocol for the service providers to be implemented in the system to align on the scoring approach and improve the effectiveness of the system.
Since 2021 Aker BP has started to use Magnet JQS for conducting human rights assessments in the supplier pre-qualification process. The plan for 2022 is to conduct in-depth assessments on the existing suppliers and start conducting onsite audits.
Aker BP's commitment to human rights is embedded in our internal company policies and reporting documents such as the Anti-Corruption Policy, the HSSEQ Policy, Diversity & Inclusion Policy, employee handbook and our Sustainability Framework.
Our success depends on capabilities, expertise and compliance in our strategic partnerships and alliances, and the overall supplier network. Aker BP expects suppliers and business partners to act with integrity and ethics, and to have implemented sound labour practices, respect human rights, ensure protection of health, safety and the environment, and to have zero tolerance for corruption.
Our expectations to our suppliers and business partners' ethical business conduct are reflected in contractual provisions. All suppliers to Aker BP are required to sign Aker BP's supplier declaration form, that is aligned with the principles of the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, International Petroleum Industry Environmental Conservation Association (IPIECA) standards and contains e.g., other principles on eliminating all forms of forced and compulsory labour and prevention of child labour. Supplier standards.
Aker BP evaluates its prospective suppliers with regards to corruption risk, human rights risk, environmental impact, and reputation risk. The evaluation process is detailed in the Aker BP Business Partner Integrity Process.
Aker BP is responsible for ensuring that suppliers and sub-tiers comply with high ethics standards and human rights legislation. New suppliers shall comply with all requirements in our "Supplier Declaration" to become shortlisted in a tender process. Integrity Due Diligence is performed for procurement over USD 250.000. The process considers confirmation of commitment to key principles for anti-corruption, environmental protection, health and safety, labour rights and human rights. In 2021, we have improved the process implemented in 2020. Both in relation to new governing legislation, and by improvement of the
process itself – based on implementation of a new business management system, and roll-out of better supplementing tools to support the Integrity Due Diligence (IDD) process. We have not identified any breaches or accidents impacting society, and there have been no fines or non-monetary sanctions for non-compliance with laws and regulations in the social and economic area in 2021.
In our strategic partnerships and alliances – we aim to ensure governing models in full compatibility with our own standards and practices, including performance-, risk- and opportunity management. The alliance setup is key to establish shared responsibility for achieving high performance in ethics, integrity, climate footprint, health, security and safety.
Our relationships are managed by evaluations, monitoring and reviews, both in the selection phase and in the regular supplier management. In 2021, Aker BP has increased the level of effort related to risks and non-conformance with legislation for labour rights, anti-child labour, anticorruption, environmental, and HSSEQ conditions – including a proactive focus on improving transparency in tiers behind the supplier.
We have implemented a more comprehensive supplier risk monitoring software and related process to onboard, monitor and manage suppliers related to HSSEQ standards and social criteria, both internally – and by increased engagement in the cross-operator platforms Magnet JQS and Human Rights Assessment Service.
Aker BP also aims to ensure joint environmental contribution with strategic partners and through our alliances. We require our suppliers to commit to preventing or minimising their environmental impact and encourage innovation and solutions that contribute to reducing the carbon footprint. In 2021, none of the major suppliers were identified as having significant actual or potential negative environmental impacts. In cases where suppliers do not align their conduct with Aker BP's expectations, and do not show satisfactory efforts to be aligned, Aker BP will initiate the necessary steps to implement corrective actions or have the contract discontinued.
Our zero tolerance for corruption approach is set forth in Aker BP's Anti-Corruption Policy, which sets out a framework for preventing all forms of corruption and provides guidance to our employees and business partners on how to apply these principles in their work. We encourage our business partners and suppliers to make a clear commitment against corruption and bribery.
We regularly map our risks of being involved in corruption or bribery and implement targeted preventive actions based on this information.
Though we generally consider corruption risks in Norway to be low, we believe it is important to be aware that corruption also happens here, and that we need to be conscious of potential dilemmas and grey areas such as conflicts of interest, relationships with business partners, gifts and hospitality. Our goal is to act in an ethical and transparent manner, so that we can be a trusted business partner, employer, and corporate citizen.
Our internal anti-corruption and anti-bribery system includes necessary controls embedded in the company's financial and procurement procedures, audits, business partner due diligence and anti-corruption training, integrity channel for reporting concerns, as well as awareness activities among employees.
In 2021, Aker BP continued to strengthen its Anti-Corruption Compliance Programme with training and awareness activities, risk mapping of suppliers and improving monitoring activities across the supply chain.
Conducting Integrity Due Diligence research on business partners constitutes an integral part of our compliance programme. The requirements for Integrity Due Diligence are stated in the Business Partner Integrity Procedure which is updated every two years and is available internally in the business management system. The due diligence process together with the human rights due diligence constitute an integral part of the procurement process and other relevant processes for interaction with third parties.
Aker BP regularly communicates the company's Anti-Corruption Compliance Programme and relevant policies and procedures to its employees via internal websites and targeted awareness campaigns.
Aker BP's Anti-Corruption Policy is made available to its business partners on the external website and compliance with applicable anti-corruption laws is referenced in contractual requirements set out for our business partners and suppliers.
Aker BP considers Code of Conduct training an important part of its compliance programme. Aker BP requires all new employees to participate in ethics and anti-corruption training when they join the company, and all employees and consultants receive Code of Conduct training annually. Upon completing the training, everyone must sign a declaration of compliance that they have read, understood, acted and will continue to act in accordance with Aker BP's Code of Conduct.
In 2021, Aker BP launched an online Code of Conduct mandatory refresher course which included selected topics from the Code of Conduct such as gifts and hospitality, speaking up, conflict of interests and sponsorships and donations, the topics that we consider to be important for our Anti-Corruption Compliance Programme. A total of 2,247 employees and consultants, which corresponds to 90 percent of total registered headcount participated in the training in 2021.
To strengthen our efforts in promoting respect for human rights and fair working conditions, Aker BP plans to launch company-wide human rights training and awareness campaigns among our suppliers and business partners in 2022. In addition, specific training in human rights due diligence and updated requirements to due diligence process will be provided to supply chain personnel and relevant stakeholders in the organisation.
In order to monitor the effectiveness of its compliance training, Aker BP has aligned its training to the compliance risk profile and updated its compliance survey with relevant questions to measure the extent to which the training is applicable to the employees' role.
Aker BP regularly communicates the content of its policies through internal channels and external website, as well as meeting with suppliers, business partners and supplier days. Our contractual provisions set expectations for our business partners to align their business conduct with Aker BP's standards and include audit clauses.
Aker BP is committed to protecting fair and open competition, and to competing in a fair and ethical manner. We do not tolerate any violations of applicable rules relating to competition. We do not engage in or tolerate any violations of applicable rules, nor do we engage in any anti-competitive behaviour, such as price fixing, bid rigging, market sharing or abuse of market power.
There have been no legal actions pending or completed during the reporting period regarding anti-competitive behaviour or violations of monopoly/antitrust legislation in which the organisation has been identified as a participant.
Aker BP is a staunch supporter of employees' rights to form and join trade unions, and equally their right to remain non-unionised. Employees are informed of their trade union rights during onboarding and unions may market themselves freely. The unions have appointed full-time union leaders and Aker BP helps in administering their payroll. The company communicates, consults and negotiates with employees and their trade unions on relevant matters such as reorganisations and the annual salary review.
Norwegian Oil and Gas, where Aker BP is a member, has framework agreements in place with affiliated unions which ensure annual negotiations. Approximately 66 percent of Aker BP employees are covered by collective bargaining agreements in one of the following unions: Industri Energi, Tekna, Safe, Lederne or NITO.
Subjects covered by collective bargaining can include HSSEQ, remuneration, ESG issues, working hours, training, career development, work time flexibility, life-long learning, stress management and equal opportunities.
Aker BP's Integrity Channel provides employees and contractors with a possibility to report concerns regarding compliance with applicable laws and/or ethical standards, we also welcome raising of concerns by external parties. All reports are handled confidentially.
In Aker BP, employees and consultants are encouraged to speak up about negative conditions in the workplace and seek advice if they are in doubt. They can report a concern to their line manager, a representative of senior management, the Compliance or Legal departments, other functional unit, or report anonymously via the company's Integrity Channel. Aker BP has a strict non-retaliation policy for those who report concerns in good faith. Reporting a concern shall have no negative impact on the individual's opportunities or professional development.
The Aker BP Integrity Channel is available to employees and external parties and is managed by an independent thirdparty, which guarantees the confidentiality of the reports. All documentation is stored in accordance with the relevant policies for data retention, data protection and data destruction.
The mechanism for raising concerns is detailed in our Speaking Up Policy developed in compliance with the requirements for such reports in the Norwegian Working Environment Act and the EU Whistleblowing Directive. Procedure for Handling of Integrity Reports describes in detail the process through which concerns are investigated and documented.
Both documents are available to employees and consultants in the Aker BP business management system and the revision period is two years.
In addition, "Speaking up posters" describing the key principles for speaking up in Aker BP, the routines for reporting and principles for handling reports are made available in English and Norwegian on the internal communication site and in the office landscape.
The Compliance department, responsible for handling integrity reports, launched several awareness initiatives about speaking up in 2021, and will continue with internal awareness activities to ensure that employees feel safe to report potential violations of laws or the company's Code of Conduct and other internal policies and procedures.
Five whistleblowing cases were received via the Integrity Channel in 2021. Actions were taken to address the concerns raised and the reports are now closed.
Given the nature of the oil and gas industry, Aker BP is particularly affected by policies and framework conditions directly or indirectly related to energy production offshore Norway.
Aker BP thus recognises the value of engaging with public authorities and other stakeholders in relation to the development of various policy initiatives that impact our industry.
We promote our views on issues of importance either through direct interaction with public authorities or through various industry associations.
Aker BP engages directly with public authorities, including the Ministry of Petroleum and Energy, the Norwegian Petroleum Directorate, the Petroleum Safety Authority (PSA) Norway and the Norwegian Environment Agency (NEA). These interactions include separate, annual contact meetings with top management from each of the government bodies. Any presentation material reviewed at these contact meetings is sent to the respective government agencies and thus made public in public case registers.
Norwegian Oil and Gas (NOROG) is Aker BP's key network for reviewing and responding to relevant public issues related to framework conditions, regulations or other significant issues. Aker BP is represented on NOROG's board as well as in various committees in the NOROG organisation. NOROG's views on relevant policy issues are publicly available at www.norog.no.
In addition to the engagement conducted by NOROG, Aker BP engages directly with elected political representatives in the Norwegian Parliament who are members of the Energy and Environment Committee. After the 2021 election, Aker BP conducted company presentation meetings with representatives from the political parties represented in the mentioned committee.
Aker BP proactively engages with the network of companies in Aker ASA's portfolio. Aker ASA has a long tradition of
cooperation on employment matters between the main shareholder, management and union representatives, alongside an open dialogue with authorities and other partners. This is referred to as the "Aker model" and also describes the Aker BP's way of collaborating. The Aker model is described in more detail in Aker ASA's ESG-reports available on akerasa.com/en/esg
Aker BP's employees are in a position to exert formal influence on decisions, and four employee representatives serve on the board of Aker BP.
Data on public affairs and lobbying is gathered from Aker BP's Communication department. This unit covers all consolidated activities. Approximately 1,0 full-time equivalent (FTE) was dedicated to public affairs and public policy development in 2021. According to our Code of Conduct, Aker BP may not make financial contributions to political parties. We have no indications that such contributions took place in 2021.
Aker BP uses the annual submission of reports to authorities, audits performed by regulatory agencies and self-assessments to ensure environmental compliance. The compliance checks in the self-assessment process consider both environmental aspects and regulatory requirements.
Evaluation of environmental performance and compliance with legal laws and regulations for fields in operation, are monitored in our environmental accounting system and closely monitored and highlighted in dashboards and available for all personnel.
We drive continuous improvement of the environmental performance by setting annual environmental targets even stricter than the legal limit for all operating fields. Annual HSE plans also include external environmental improvement activities and drive improved environmental performance.
Discharges to sea from our operations and exploration activities are regulated by our discharge permits issued by the NEA. We annually report compliance status of our discharges and emissions to the authorities, for both operating fields and exploration drilling. Annual reports together with feedback on annual reports from the NEA also provide input to continuous improvement of environmental performance.
Internal and external audits are subject to evaluation of compliance against external environmental permits/legislation.
Aker BP holds field-specific permits under the European Union Emissions Trading System (EU ETS) and the annual third-party verification is detailed in the Environmental impact chapter, section on scope 1 emissions.
In February 2021, the Norwegian Discrimination Tribunal concluded that the company had retaliated against an employee in 2018 after said employee had reported on alleged gender discrimination earlier the same year. Compliance and Internal Audit investigated the case and ensured that necessary remediating measures were implemented.
In 2021, we had zero monetary fines of significant value, no non-monetary sanctions or cases brought through dispute resolution mechanisms related to environmental compliance.
During an inspection in September 2019, the NEA identified a discrepancy between two of Ivar Aasen's reported seawater treatment chemical discharges and the field discharge permit. Following the inspection, we improved our systems for monitoring chemical usage and discharge across all Aker BP assets. NEA issued a new discharge permit for Ivar Aasen and the matter was closed. NEA reported the matter to the police in 2020. In 2019, we also experienced an incident where the discharge permit for two water treatment chemicals on Alvheim was exceeded, which led to NEA conducting an inspection on the asset in 2020. By then, the matter had already been identified and handled by Aker BP. This was done as part of a full review on all assets to verify compliance with the respective discharge permits. Aker BP responded to the inspection report in April 2020 and the process was closed in June 2020. NEA reported this matter to the police in July 2020.
In 2021 the police have finalised the investigation for both cases and handed them over to prosecution for resolution and potential penalty.
The management approach starts with our vision of becoming the leading independent exploration and production company. This vision is founded on our strategic belief that Aker BP can and will play a key role as a provider of low-cost, low-carbon oil and gas in the energy transition and beyond. Five key focus areas, illustrated on the next page, are established to guide us toward achieving our vision.
Our ability to set and achieve our strategic ambitions depends on our ability to detect and understand the external context. Therefore, we continuously monitor the external environment, assessing the key drivers underlying the commodity markets, technological trends, and competitive forces. Recognising that the future is uncertain, we use multiple future scenarios to assess the resilience of our strategy.
An annual strategy process in the first half of each calendar year assesses the current state of the company in relation to the vision and reviews the focus areas for the coming years. The strategy is sanctioned by the Executive Management Team (EMT) and the Board of Directors. This process is repeated in each business unit in the second half of the year, which yields a set of prioritised initiatives with corresponding Key Performance Indicators (KPIs) for the next year, both at a corporate level and per individual business unit. The company's KPIs, targets and prioritised initiatives are approved by the Board of Directors. Each member of the EMT is responsible for the performance of their respective business units. A dedicated performance management system is used throughout the company to report and monitor progress on the initiatives and KPIs. Climate strategy is an integral part of the described annual strategy process.
Climate objectives and actions are formally embedded into Aker BP's strategy and decision-making. The Board of Directors has ownership of climate-related objectives in Aker BP's climate strategy, and reviews and guides the major action plans related to investment decisions for climate initiatives. The CEO and EMT performance evaluations include an evaluation of progress and results on the climate related KPIs and initiatives. The company's performance on the CO2 emission intensity KPI and its deliverables on specific CO2-reducing projects are assessed continuously throughout the year. The performance of these two items, along with other company KPIs and initiatives, feed into the Aker BP bonus programme. A monetary reward is calculated based on company performance and is paid out to all permanent employees and, under some circumstances, certain temporary employees.
Creating shared value is the priority that is firmly embedded in Aker BP's Sustainability Framework. Aker BP creates direct and indirect economic impact through producing low-cost, low-carbon oil and gas, returning value to the government and our shareholders in the form of taxes and shareholder returns, sharing knowledge and experience with new industries, contributing to local communities by creating jobs, supporting local businesses, growing competence and promoting diversity, working on innovative technology and leveraging alliance models to find sustainable solutions to industry challenges.
Aker BP creates substantial long-term value from the natural resources available to us. We cannot influence the consumption of fossil fuels, but we have an important role to play in the energy transition. By producing cost-efficient oil and gas we contribute to ensuring that the world has access to affordable and reliable energy. By reducing emissions from our activities, we contribute to a reduced global footprint. The value creation achieved by Aker BP is distributed to our owners and the society in the form of shareholder returns and taxes. In Norway, petroleum is considered a national
resource, and the tax system has been designed in a way that ensures that the maximum possible value creation accrues to the Norwegian state, so that it can benefit society as a whole. Under the Norwegian petroleum taxation system, oil and gas companies are subject to a supplemental tax on petroleum taxable income of 56 percent, in addition to ordinary corporate income tax at a rate of 22 percent, resulting in a total marginal tax rate of 78 percent. Because of the extraordinary returns on production of petroleum resources, these payments represent a significant share of the state's revenues. This revenue finances the Norwegian welfare system, and the government can utilise this profit to drive the initiatives needed to fulfil Norway's climate pledges and goals. As such, the taxes we pay play an important role in financing the transition to a low-carbon society.
For every NOK 100 in increased profitability,
NOK 78 is returned to the community in taxes
| OneTeam | Our people are Aker BP's most important asset. We strive to be the preferred place to work in the industry by offering employees development opportunities and meaningful engagements, and creating an effective, inclusive and collaborative working environment. |
|---|---|
| Operational excellence |
Efficient operations result in reduced costs, increased production and better safety. We will employ Aker BP's unique alliance model and we will pursue digitalization, along with other improvement initiatives, to further strengthen our position. We aim for >95% in production efficiency, equity CO2 intensity below 5 kg/boe, production cost below 7 USD/boe, and zero serious HSE incidents. |
| Financial robustness |
We shall secure financial flexibility and maintain an investment-grade credit rating. |
| Value driven growth |
We will develop our portfolio of early phase projects, and we will increase our daily production significantly over the next ten years, while maintaining our resilience in the face of fluctuating oil and gas prices. We aim to sanction projects with breakeven oil prices of less than 30 USD/bbl (at 10% discount rate). |
| Contribute to sustainable development |
We will achieve a 50% gross reduction in scope 1 emissions within 2030, and close to zero emissions in 2050. We will maximize value creation from assets and activities, and by doing so also maximize available profits for the society and our owners, who can then invest in green industries. We will share technology and competence to enable new industries. |
All figures are net to Aker BP, except for employee wages and benefits that relates to gross payroll expenses for all employees in Aker BP
In addition to the tax payments to the state, we pay dividends and generate shareholder returns to our shareholders. Aker BP's two main owners, Aker ASA and BP p.l.c., are both committed to making a positive contribution to the energy transition, through their investments in renewables and green technologies. For Aker BP, this is a truly unique position and an opportunity to contribute to the energy transition without compromising our pure play E&P strategy. We contribute by sharing knowledge and providing capital that our owners reinvest in renewable energy and new industries. Aker BP's largest shareholder is Aker ASA – an industrial investment company which has been expanding its position within digital, renewable and low-carbon technology sectors. Within digital, Aker ASA's holdings include an industrial software company – Cognite, and a newly established software application company – Aize. Within renewable and green technologies, through its majority ownership in Aker Horizons, Aker ASA is currently positioned within onshore and offshore wind, solar energy and hydrogen, as well as hydropower and transmission technologies. Aker ASA's diversification into these sectors is to a large extent made possible by the dividend contribution resulting from Aker BP's upstream operations, which is the largest asset in the Aker ASA portfolio.
Aker BP's current oil and gas assets are all located in Norway and are within the Norwegian petroleum tax regime. Our business activities generate a substantial amount and variety of taxes. We pay corporate income taxes, employment taxes,
indirect taxes such as VAT and excise duties, and we collect and pay withholding tax.
Aker BP is committed to comply with tax laws in a responsible manner, professionally executed tax compliance and tax planning, and a constructive and open relationship with tax authorities. We report our payments to authorities in accordance with the Norwegian Accounting Act as part of the Annual Report.
Aker BP's Tax Strategy aligns with the fundamental principles for responsible behaviour described in our Code of Conduct. The CFO owns and implements our Tax Strategy, which is reviewed by the Audit and Risk Committee. The CFO is also responsible for ensuring that policies and procedures that support the strategy are in place, maintained and applied consistently.
We also contribute knowledge, data and experience to new industries, creating growth and improvement beyond our own business. New start-up companies cooperate with us. We share knowledge and experience so that new industry can flourish. In return, we gain access to future-oriented solutions and technology.
An example of Aker BP taking a lead in sharing know-how is our digitalisation strategy. As one of the industry's
– Paying the right amount of tax at the right time.
– Any tax planning undertaken will support our business and reflects commercial and financial activity.
– We engage with governments on the development of tax laws either directly or through trade associations and other similar bodies as appropriate.
– We do not prescribe acceptable levels of tax risk.
front-runners in digitalisation, we made it our priority to share learnings from our digital maturation journey with our peers, suppliers and other industries. Cognite, a company we co-founded to help us liberate and contextualise data, serves as an excellent example of how we work. Since 2018, Cognite and Aker BP have been developing Cognite Data Fusion™ (CDF), an industrial data platform that makes Aker BP data available to approved users inside and outside the company, and transforms how we work across the domains. Aker BP placed Cognite resources in key roles within the digitalisation programme to transfer E&P knowledge through close collaboration between our subject matter experts and Cognite's product developers. We have funded the birth of CDF as the first customer, and, as the adoption of CDF continues to grow, we continue working and exchanging lessons learned from digital innovation with other companies. Today, Cognite's products are delivering tangible results to a wide range of companies, not only within oil and gas, but also across broader renewable energy and manufacturing sectors. Mirroring the success achieved through a close collaboration with Cognite, we continue supporting digitalisation of the E&P industry, and are working with Aize, a start-up industrial software company, on digital solutions for our NOA Fulla development. Aker BP and Aize, together with strategic partners, Aker Solutions and Cognite, are working on solutions for a fully digitalised project execution model. The objective is to increase project quality, collaboration, and significantly reduce the number of engineering and construction hours. When NOA Fulla starts production in 2027 it will be the most digital and advanced offshore field in Norway. The
work delivered in the digitalization program will also be an important part of the foundation for efficiency and OPEX reductions in the operations phase. The concept developed for NOA Fulla is scalable to other oil and gas companies and industries, supporting Aker BP's ambition to contribute with data, know-how and technology to other industries.
In Aker BP, we believe that the best efforts are team efforts. Therefore, partnerships have been an integral part of how we do business and create shared value. In 2021, a particular focus was given to working collaboratively with our partners on solutions enabling emissions reduction. We continued working with our Platform Supply Vessel (PSV) partners, Solstad Offshore, Eidesvik Offshore and Simon Møkster Shipping, on battery technology to reduce emissions on our existing fleet of PSVs. Following a series of upgrades, at the start of 2022, Aker BP's base fleet of five supply vessels will have batteries installed. The use of batteries can reduce emissions from vessels by 10-12 percent, and will be able to reduce our CO2 emissions by more than 4,200 tonnes per year. In 2021, Eidesvik Offshore and Aker BP have extended the collaboration further with the establishment of a new project that will evaluate new technologies and solutions for converting existing supply vessels to low and/or zero emission units. Progress was also made in our Stimulation and Intervention Alliance. The Island Patriot stimulation vessel was outfitted with a connection unit, allowing the vessel to connect to power from shore while in port and switch off its own engines. Estimates show that this could enable a CO2 reduction up to 840 tonnes over the course of a typical year.
We are committed to creating long-lasting shared value for the communities we are part of. We invest in community projects that align with local needs and our business activities, and we have prioritised goals that relate to economic development and education. We contribute to stimulating local engagement, by creating jobs, supporting local businesses, and by developing competence. A good example of Aker BP's contribution to local communities is our activities in Nordland – a county located along the north-western coast of the Scandinavian peninsula in Northern Norway. In 2017, in connection with Aker BP's development of the Skarv area, Aker BP signed a cooperation agreement with Nordland County Municipality. In 2021 we cooperated with 26 local suppliers, and our procurement spend in Nordland amounted to nearly MNOK 160. Aker BP has an active donation strategy in this region. We have established a substantial activity through donations to schools, sport centres, voluntary organisations and communal facilities in Helgeland. Nordland is not the only region where we strive to make a positive community impact.
Our Sponsorship and Donation Strategy relies on our Sponsorship Policy and is aligned with our Code of Conduct. The company is engaged in a few prioritised sponsorship agreements. These are carefully selected to support the local communities where we operate. Below are some examples of our engagements.
Aker BP has been a proud sponsor of the VI Foundation since it was established in 2018. The VI Foundation aspires to give people with disabilities a better quality of life, improved health, and to assist them in becoming integrated in all areas of life through physical activity. The Foundation's goal is to create equal opportunities to function and perform.
In 2021 the sponsorship has established an elite project together with Olympiatoppen, and other partners. Activities include a research and development project emphasising the development of national teams and recruitment of new athletes. They have also set up a scholarship for top performers. The primary target group for the project is children (aged 6-19) in low-income families, girls (6-19) with minority background, and people with a physical disability.
For the third consecutive year Aker BP has donated the annual Christmas gift to employees to the "Ridderrennet" foundation. This organisation stages several events, one of which is the world's largest winter sport games for visually impaired and disabled individuals.
The Christmas gift was used to create a digital meeting place where people could register, get in touch with other people in their area, and be active together. The platform was launched in March 2021. The donation also enabled a new event called BikeRidderCamp launched in fall 2021; a place to learn more about cycling in various types of terrain and to network.
Aker BP has a three-year agreement (2019 – 2021) to support the University of Stavanger, the Norwegian University of Science and Technology in Trondheim and the University of Bergen, focusing on the development of study programmes within Engineering and Geosciences.
In 2021 the sponsorships have covered the costs of field excursions, faculty events and networking events, with the overall aim to motivate students, reduce the distance between academia and industry, and facilitate future careers.
Organises events where students can network with companies and establish an understanding of the different competencies and education required for the oil and gas industry, and related career opportunities.
A service provider facilitating distribution of donations and equipment to local recipients in the area where Aker BP operates, near its base in the northern part of Norway.
Aker BP has been a proud sponsor of the Munch Museum since 2019. On 22 October 2021, the museum opened its new venue in Bjørvika, Oslo. It is dedicated to the life and work of the world famous Norwegian artist Edvard Munch. Its permanent collection includes well over half of the artist's entire production of paintings and at least one copy of all his prints. This amounts to more than 1,200 paintings, 18,000 prints, 6 sculptures, as well as 500 plates, 2,240 books, and various other items. The museum also contains educational and conservation sections and has facilities for the performing arts.
The museum aims to give children and young people insight into the endless possibilities and mindsets of art. Fostering experiences within the arts, free of charge, for children based in districts with low cultural consumption is a key investment to achieve this. The museum introduces learning materials through its educational platform to 750,000 schoolchildren every year.
A museum in Stavanger with exhibitions that appeal to people of all ages. Aker BP has partnered with the museum for several years. The museum is devoted to interactive and educational exhibits and provides insight into technological development in the oil sector, and how the petroleum resources impact Norwegian society. The museum has developed its own teaching plan in subjects such as geology, energy, petroleum history and socioeconomics. The sponsorship contributes to development and operation of the museum. In 2021, we agreed to extend the partnership for another three years, until 2023.
Aker BP acknowledges the conclusions from the Intergovernmental Panel on Climate Change (IPCC) and supports the goals of the Paris Agreement. A profound transformation of the energy system is underway and needs to accelerate. At the same time, the need for affordable, reliable and clean energy is increasing. While there is no doubt that the world's reliance on fossil fuels will decrease, this change will not happen overnight. Oil and gas will remain a major energy source and feedstock in a low-carbon future for decades to come, accounting for about 50 percent of the total energy supply by 2030 under the Announced Pledges Scenario and for 49 percent under the Net Zero Scenario. For us to reach our national and global emission reduction goals however, today's oil and gas industry needs to change, with further decarbonisation of the upstream sector. The leading oil and gas company of the future will extract oil and gas in the cleanest and most affordable way, while ensuring the highest possible value creation to its shareholders and society. It is dynamic, fast and resilient in the face of the risks and uncertainties posed by the energy transition. These beliefs are at the core of our strategy, and we are convinced that we can and will continue to play an essential role in the energy transition.
The path toward the future energy system is uncertain, and as reflected by the IEA's forecasts and scenarios, there is a wide range of different outcomes for oil and gas demand. It is therefore critical to have a rigorous approach to understanding, assessing and managing climate-related risks. Aker BP's commitment to evaluate and manage climate related risks and opportunities is described in our Climate Policy.
As an upstream exploration and production company, Aker BP is to a large extent a price taker in the commodity markets, and therefore we manage our economic performance primarily by controlling cost and production volumes, but also through financial risk management. A rigorous system is in place for budgeting, forecasting, and managing these parameters, with the aim of supporting sound financial decisions, providing guidance to our licence partners, debt owners, shareholders and petroleum authorities, as well as to continuously monitor our financial risk.
To assess and manage climate-related risks, we use scenario analysis, sensitivity testing and an internal carbon price, in addition to minimising our own emissions. Climate-related considerations are embedded in our decision-making, and we use a set of strict financial criteria, including our internal carbon price, for all investment decisions. At project level, the assessment of climate topics and related risks is an integral part of the project approval process. As defined by our financial framework, we aim to sanction projects with breakeven oil prices of less than 30 USD/bbl (at 10% discount rate). In addition, projects' projected emissions costs are evaluated based on the internal carbon price assumption and we evaluate the project's emissions intensity as one of the hurdle rates. At the portfolio level, the robustness against low oil and gas prices and higher carbon costs, is assessed as part of the business planning process.
This scenario is consistent with limiting the global temperature rise to 1.5 °C without a temperature overshoot (with a 50% probability). The NZE is a normative scenario, meaning it starts with a defined goal to achieve net zero CO2 emissions by 2050, and shows an example of a pathway that could get the world to that target. In this scenario, demand for oil falls by more than 2 mb/d per year between 2020 and 2050. Demand for natural gas grows to 2025, drops after 2025 and falls well below 2020 levels by 2030.
Similar to the NZE, the SDS charts a path that is aligned with the Paris Agreement. However, in this scenario, only the advanced economies reach net zero emissions by 2050, while China achieves net zero by 2060, and all other countries by 2070. Without assuming any net negative emissions, this would allow to limit the global temperature rise to 1.65 °C (with a 50% probability). In this scenario, by 2030 oil demand is slightly below 2020 level, while demand for natural gas is slightly above 2020 level.
This scenario appears for the first time in the WEO -2021. It assumes that all climate commitments made by governments around the world, including Nationally Determined Contributions and longer term net zero targets as of mid-2021, will be met in full and on time. In the APS, global oil demand peaks soon after 2025 and then falls by around 1 mb/d per year to 2050. Demand for natural gas also reaches its maximum level soon after 2025 and then declines slowly.
Rather than assuming that governments will reach all announced goals, this scenario reflects a sector-by-sector assessment of the specific policies that have been put in place, as well as those that have been announced by governments around the world. This scenario provides a more conservative benchmark for the future. In the STEPS, global oil demand exceeds 2019 levels by 2023 before peaking in the mid-2030s and then declining very gradually to 2050. Demand for natural gas continues to rise after 2025 and is around 15% higher in 2030 than in 2020.
Climate-related considerations are also embedded in our exploration strategy. Assessment of the exploration prospects always includes assessment of the CO2 footprint of a potential development. Infrastructure-led (ILX) prospects are ranked higher when located around modern, electrified hosts. The Norwegian Continental Shelf (NCS) is a maturing basin, where hub lifetime and production decline are important features that are incorporated in our exploration strategy. Therefore, our future exploration activity is concentrated mostly around existing hubs. Our current exploration strategy aims for 80 percent of exploration spend being directed to ILX developments.
In the context of mergers and acquisitions, evaluation of potential acquisition candidates always includes assessment of the company's overall environmental performance, projected emission costs based on Aker BP internal carbon price, as well as an assessment of potential impact on Aker BP's emission intensity performance and related risks.
Aker BP recognises the recommendations made by the Financial Stability Board's Task Force on Climate-related Financial Disclosure (TCFD). In line with the best practice recommended by the TCFD, Aker BP employs scenario analysis to assess potential impacts of the climate change and energy transition on our business, financial performance and the long-term strategy. We evaluate selected scenarios to assess possible shifts in the macroeconomic outlook, technology developments, policy and legal implications, and we analyse projected demand for our products (oil, gas and natural gas liquids). Each energy transition scenario yields a range of commodity prices (e.g. power, gas, oil) and environmental fees and taxes. We apply these assumptions in our valuation models to test the resilience of our portfolio.
Our scenario analysis includes scenarios described in the IEA's World Energy Outlook report published in autumn every year. These scenarios are commonly used by our industry peers, and can help the investors and other stakeholders in assessing portfolio resilience across companies. The latest World Energy Outlook published in 2021 describes four scenarios above.
1) The NPV of Aker BP's portfolio under the selected scenarios is compared to the NPV of the portfolio valued at Aker BP's latest economic assumptions (NPV10 as of 01.01.2021). Same FX (Foreign Exchange rates) and carbon prices are used for all scenarios. Portfolio consists of producing assets and non-sanctioned projects.
2) IEA defines prices for 2030 and 2050. We assume a linear price development between those years and flat prices from 2050; actual prices are used for 2021. IEA's oil and gas prices for each scenario are as follows:
| Real terms (USD 2020) |
Net zero emissions by 2050 2030 2050 |
Sustainable development 2030 2050 |
Announced pledges 2030 2050 |
Stated policies 2030 2050 |
||||
|---|---|---|---|---|---|---|---|---|
| Crude oil (USD/bbl) |
36 | 24 | 56 | 50 | 67 | 64 | 77 | 88 |
| Natural gas – Europe (USD/mmbtu) |
3.9 | 3.6 | 4.2 | 4.5 | 6.5 | 6.5 | 7.7 | 8.3 |
The figure above illustrates the changes in the net present value (NPV) of Aker BP's portfolio when Aker BP's planning assumptions for oil and gas prices are substituted with those from the selected scenarios, while keeping carbon price and FX unchanged in all scenarios. As shown in the graph, under the IEA's STEPS, the net present value of Aker BP's portfolio is 26 percent higher, reflecting the higher oil and gas price assumptions in this scenario compared with Aker BP's planning assumptions. When tested with the assumptions from the APS, the net present value of the portfolio is 10 percent higher. Under the SDS, the NPV decreases by 7 percent. While this indicates a lower value generation compared to our base case, the analysis shows that, even under one of the most ambitious energy transition scenarios, the impact on our portfolio value is limited to 7 percent.
In the NZE scenario, oil prices plummet, reaching 36 USD/bbl and 24 USD/bbl (in real 2020 terms) in 2030 and 2050 respectively, while European natural gas prices fall from late 2021's extraordinary highs of up to 60 USD/mmbtu (daily average) to 3.9 USD/mmbtu in 2030 and 3.6 USD/mmbtu in 2050 (in real 2020 terms). In this normative scenario there are no new oil and gas fields approved for development beyond
already committed projects as of 2021. This collapse in prices is fully dependent on the assumed dramatic reduction in demand, with oil demand falling by 75 percent and natural gas demand falling by 57 percent by 2050 vs 2019 level. Currently, the level of investment in clean energy and efforts to reduce demand are not matching the level needed for this scenario to materialise. As such, this scenario illustrates a pathway the world should strive for, however a major gap remains to be bridged to bring the world closer to this path. While the scenario is normative, we believe it is still important to include it in our resilience testing to make it easier for the investors to compare portfolio resilience across companies. As indicated in the figure above, when tested using the assumptions from the NZE, the net present value of the portfolio is 30 percent lower compared to the planning assumptions. This estimate is based on the prices interpolated from the NZE prices for the selected years, assuming a linear price development during the forecast period. The estimates are uncertain and do not reflect possible price fluctuations, portfolio changes and future cost levels. These scenario analyses demonstrate the robustness of Aker BP's portfolio in the light of climate change and related financial risks, supporting our strategic belief that there is an important role to be played by Aker BP as a low-cost, low-carbon E&P player for decades to come.
In Aker BP, we believe that carbon pricing is an important tool needed to help drive a positive change. Setting a price on carbon creates financial incentives for companies to invest in reducing own emissions, drive innovation, and scale technologies. Aker BP's internal carbon price assumptions significantly exceed prices assumed under the IEA's scenarios. In addition to the national Norwegian carbon tax, petroleum operations on the NCS are subject to the European Union Allowances (EUA) for emissions traded under the EU ETS. The combination of the national carbon tax and the EU ETS means that companies operating in Norway pay a much higher price per tonne of CO2 emissions compared with most other countries with petroleum activities.
As part of Norway's climate action plan announced in January 2021, Norway has set a target to gradually increase the total cost per tonne of CO2 from around USD 80 in 2020 to USD 255 in 2030 (real 2021 terms). The national carbon tax is expected to be regulated in a manner that takes into account the EUA prices, ensuring that by 2030, the total cost of emissions amounts to USD 255/tCO2. This target is reflected in Aker BP's planning assumptions, which show an increase in both the EUA and national carbon tax over the next 10 years, reaching the targeted level set by the Government for 2030. As shown in the figure above, Aker BP's internal carbon price assumption is significantly higher than the prices assumed in the IEA's scenarios.
IEA – SDS
0.25% 0.25%
IEA – STEPS
To illustrate the sensitivity of Aker BP's portfolio to carbon prices, we calculate the NPV of the total future carbon costs under different carbon price assumptions, shown as a percentage share of the NPV of Aker BP's portfolio. As shown in the figure above, the NPV of the future carbon costs as a share of the total portfolio NPV is the highest under Aker BP's base case assumption. This is because Aker BP's internal carbon price assumption is significantly higher than the CO2 price under the IEA's scenarios. As shown in the graph, the NPV of the future carbon costs under the planning assumptions is limited to 1.53 percent of the total portfolio NPV, which reflects Aker BP's industry-leading performance in emission intensity.
Aker BP planning assumptions
1.25%
NPV of future carbon cost
1.00%
0.75%
0
Climate-related risks and opportunities are captured as an individual strategic risk category. These risks are identified, assessed and followed up in the enterprise risk management processes. Risks are defined in a short (0-3 years), medium (3-10 years) and long-term (10-25 years) perspective.
The short-term horizon reflects one where our measures contribute to positioning ourselves to meet the low-carbon economy recognised in the Paris Agreement and obligations for annual reductions in CO2 emissions. Risks and opportunities are pre-dominantly of operational character.
IEA – NZE
0
The medium-term horizon reflects a reduction of CO2 emissions (gross) by 50 percent within 2030 – a goal of significant importance and embedded in our low-cost, low-carbon strategy. In a medium-term perspective we consider a broader set of elements and mechanisms expected to be affected by or instituted to address the climate challenge, such as: market, regulatory, technical, reputation, physical and operational factors. Energy efficiency, flaring reduction, fuel switching (from diesel to gas), electrification, fugitive emissions (methane) and detailed emission reporting are mid-term strategies to Aker BP. Risks and opportunities are predominantly of tactical nature.
The long-term horizon reflects one with highly energy efficient operations and low carbon footprint in a market still dependent on oil and gas. Supply of electrical power from shore to offshore installations is a long-term objective in our climate strategy. Our long-term horizon reflects close to zero CO2 emissions by 2050. Risks and opportunities are predominantly of strategic nature.
Aker BP uses an enterprise risk management process where risks and opportunities are identified and managed at all levels (activity, asset, business unit and Company) to enable us to maximise opportunities, minimise threats and optimise achievements of performance objectives. We address and manage risks and opportunities across business units throughout the asset value chain and Aker BP. We use a common infrastructure that enables a holistic risk and barrier management approach on all levels. The Risk and Barrier Policy includes:
The governing structure is set up to manage risks and opportunities effectively and provide information where needed. The risk and opportunity management process is dynamic, and the risks and opportunities are updated and reported when significant changes occur. The EMT and Board of Directors review status monthly. A quarterly review is performed by the Audit and Risk Committee as well as the Safety and Environment Assurance Committee. The EMT review risks and opportunities upfront of the Board of Directors review.
Risks and opportunities are identified both as a result from our internal activity set as well as from various sources such as regulators, industry initiatives, NGOs, public perception, investors, and mapped in appropriate tools. Risk registers are maintained and updated continuously for both activities and business processes. Important risks (including climate related risk) from across business units are communicated to and reviewed at all company levels on a regular basis.
Risk management in Aker BP follows the international standard ISO 31000. Risks and opportunities are analysed, evaluated and mapped to our common company risk matrix, including consequence categories for Personnel, Environment (including climate), Financial, Reputation, Project cost and schedule impact. The risks and opportunities are categorised based on probability and associated consequence.
Climate risk is followed up as one of the integrated companywide risks. Aker BP has implemented a policy for climate and energy efficiency reflecting the core climate risk management principles. Energy efficiency and low emission operations are a core factor shaping our business strategy. Aker BP actively analyse the potential substantive financial impact for climate related risks and opportunities to guide course of action to meet the expectations of stakeholders and the market. Actions require significant change and long-term commitments and investments.
In line with the framework proposed by the TCFD and our Climate Policy, we group our climate-related risks into two major categories: (1) risks related to the transition to a lower-carbon economy and (2) risks related to the physical impacts of climate change. A summary of key climate-related risks is provided in the table on the next page. See also our 2020 CDP response.
| CLIMATE-RELATED RISK CATEGORY |
RISK DRIVER | MITIGATION ACTIONS | |
|---|---|---|---|
| Transitional risks | |||
| 1. | Market | – Demand for oil and gas can decrease significantly faster than anticipated, resulting in significantly lower oil and gas prices. – In anticipation of the faster energy transition, key producers can shift their strategy to market share maximisation, driving down prices. – Continued underinvestment in oil and gas production can result in supply declining slower than demand, resulting in a supply gap and significantly higher prices than in our planning assumptions. |
– Climate risks integrated in all investment decisions. – A strict financial framework for investment decisions; sanctioning projects with breakeven below 30 USD/bbl (at 10% discount rate). – Internal carbon price exceeding IEA's Net Zero scenario. – Scenario analysis and sensitivity testing on both portfolio and project levels. – Cost reduction initiatives. |
| 2. | Regulatory and legal | – The EUA price and/or Norwegian CO2 tax can increase faster and rise higher than what is anticipated. – Mandatory emission abatements can be enforced that are not competitive with other uses of capital or are uneconomic. Access to new acreage can be reduced, in which – case Aker BP's and the Norwegian E&P industry's longer-term growth prospects would be reduced, which would also lead to a potential increase in the cost of capital. |
– As above. – Requirement for all potential projects to be assessed for CO2 emission intensity and resilience against higher carbon taxes. – Emissions reduction initiatives. – Electrification, using hydro power from shore, or, where feasible, from offshore wind. – Continuous monitoring of the external environment and engagements with relevant stakeholders. |
| 3. | Technological | – Technological breakthroughs (e.g. batteries, renewables, hydrogen) and/or regulations can drive faster displacement of oil and gas in energy and non-energy sectors. – A faster and bigger scale of electrification in Europe can result in higher prices for power, and increase our costs. |
– As above. – Energy efficiency initiatives. |
| 4. | Reputational | – Investors' perception of oil and gas investments can deteriorate, impacting availability and cost of capital. – Industry's attractiveness can deteriorate making it difficult to attract and retain the right talent. |
– Efforts in place to secure financial flexibility and maintain investment grade credit rating. – Adoption of best practices in climate-related disclosure. – Maintaining Aker BP brand as an attractive employer. |
| Physical risk | |||
| 5. | Accute | Extreme waves/ weather, if becoming more frequent can lead to operational limitations and shut-in of production. Three fields with fixed installations may be exposed to this risk – the Valhall field platforms, Tambar and Ula platforms by means of threatening safe design limits and structural integrity. The most significant factor being what is referred to as "wave-in deck". This factor is controlled by the air gap between sea level and deck of the installation. |
Risk to structural design limits is assessed as part of the quantitative risk analysis process covering one offshore asset installation each year and must demonstrate adherence to regulatory design limits. |
| 6. | Chronical | Change in precipitation patterns and extreme variability in weather pattern over time may affect working environment by reducing for example "time-in-field", meaning the period an offshore worker may be exposed to a certain working environment condition while performing their scope of work. |
Risk assessments are systematically performed by the Aker BP Working Environment team, including recommendations to improve. Working environment risks are assessed using industry standard approach and form input to infrastructure design for new facilities and typically working procedures for existing facilities. Working environment issues are governed by the regulator. |
Opportunities In the investment environment that is increasingly shaped by intensifying ESG pressure, Aker BP's leading carbon efficiency and low production costs provide a strong competitive advantage and better opportunities to obtain capital.
– Cost reduction initiatives.
– Emissions reduction initiatives.
Sigbjørn Johnsen points at a framed copy of the bank statement from the first instalment he made into the oil fund in 1996.
Minister of Finance Sigbjørn Johnsen made the first transfer into the Norwegian oil fund in 1996. The value of the fund is now more than NOK 11,000 billion.
2021 marked the 25th anniversary of the first capital transfer to the Norwegian oil fund, now officially named the Government Pension Fund Global. A framed copy of the bank statement from the first instalment he made on 30 May 1996 hangs at Sigbjørn Johnsen's home in Brummundal. The amount was NOK 1,981,128,502.16. "It's fantastic," says a laughing Sigbjørn Johnsen when asked about his feelings about the fund's development.
– I'm proud on behalf of everyone contributing throughout the years, making it possible to be where we are today.
Former Minister of Finance
Sigbjørn Johnsen is a politician for the Labour Party and was Norwegian Minister of Finance in 1990–1996 and 2009–2013. No one has served a longer term in that post since 1884.
To explain the importance of oil and gas revenues for Norwegians, Mr Johnsen takes us back to the very beginning in the seventies. His debut in the Norwegian parliament (Stortinget) in 1974 came
just days after the white paper about the oil industry's role in Norwegian society was presented to the members of parliament. The document listed three essential factors:
The state made considerable investments in the new industry, and the government used the revenues on an ongoing basis during the first decades after discovering oil in Norway. The country was able to pay down debt, and in September 1995, for the first time since 1946, Norway had positive net receivables towards foreign countries."One of the most important consequences of the new revenue during the seventies and beyond was a significant increase in women's labour participation," says Johnsen, referring to the development of the public sector, investing in the private sector, and reducing state debts.
The oil fund is now one of the world's largest sovereign wealth funds, and Norwegian politicians are sought after worldwide to explain their incredible success with the oil and gas revenues. According to Johnsen, the 'secret' behind the success lies in the Norwegian political tradition of broad consensus on essential areas where predictability over decades is needed.
– I hope this political tradition will continue. Oil and gas gave us a lot of money, but it also made us develop the world's finest shipbuilding and engineering industry – while at the same time keeping future generations in mind. Looking at the government finances, Norway is in a unique position. We didn't need to borrow money either during the financial crisis or during the current pandemic.
Former Minister of Finance
Johnsen emphasises how revenues from oil and gas and the oil fund will play a crucial role for Norway in the coming years. An overarching strategy for the oil fund's management is to mitigate risk by shifting wealth from a dependency on gas and oil revenues alone to acquiring stakes in global production. The budgetary rule concerning the use of capital gains from the fund states that a maximum of three percent of the fund's value should be allocated to the annual government budget.
"This means that the fund can last for eternity," states Johnsen, underscoring the importance of investing future revenues from oil and gas into the green transition and industries that create new jobs.
– We must take care of the workforce, we cannot eat money.
Former Minister of Finance
Pension fund
4 August 2021: Hod B sails from the Norwegian town Verdal to the Valhall field.
– The platform was delivered from a Norwegian yard and with Norwegian subcontractors. It was delivered according to plan, in just 14 months, in the middle of a pandemic. This is an enormous achievement. I'm especially proud of the fact that, through the Hod project, Aker BP has contributed to the vocational training of 50 apprentices. These apprentices, and the industry in general, have expertise that will be essential in the years to come. Many of the apprentices are now working on renewable projects. This is the energy transition playing out.
Aker BP CEO
More than a hundred suppliers across Norway contributed to the Hod development. At peak, around 550 people from the Fixed Facilities Alliance and subcontractors worked on the Hod project at the yard in Verdal.
Hod B on its way from Verdal to the Valhall field.
Five alliances have worked in an integrated manner to deliver a comprehensive field development in the Hod project, taking the alliance model to the next level. The success has also made the alliance model a prerequisite for other major development projects. The alliance partners carry out the projects faster and better. The purpose is to create value for the partners through longterm collaboration. This streamlined approach translates into reduced waste and increased value creation in project execution.
The Hod project is one of several examples of how the investments made by Aker BP are creating jobs and benefiting local communities in Norway. The New Central Platform (NCP) on Valhall and King Lear is another large development project planned for the coming years. In 2021, Aker BP awarded contracts to alliance partners for front-end engineering and design (FEED) valued at approximately NOK 440 million.
– Aker BP has an ambitious investment programme going forward to 2028. NCP and King Lear will become one of the company's largest development projects. A large share of the contracts is expected to be awarded Norwegian suppliers. We are talking about significant investments, and the development will provide ripple effects throughout the entire country. This will contribute to further development of the Norwegian supplier industry and secure work at Norwegian yards as we move into the energy transition
Senior Vice President Projects
Overall, Aker BP plans to invest around NOK 135 billion in field development projects on the Norwegian continental shelf leading up to 2028. This will result in enormous activity; tens of thousands of jobs at hundreds of suppliers across large parts of the country.
If oil prices remain around \$65/bbl and Aker BP delivers on its growth ambitions until 2030, the company expects to pay up to NOK 140 billion in taxes in total to the Norwegian state.
In the years ahead, the largest project in Norway is the coordinated development of the NOAKA area. Aker BP is the operator of NOA Fulla in the southern part of the area. Equinor is the operator of Krafla in the North. Gross investments in the area are estimated at around USD 10 billion. The final investment decision is scheduled for the end of 2022.
CEO Karl Johnny Hersvik (in yellow) talks with apprentices at Verdal.
Aker BP expects a large portion of the NOA Fulla contracts to be awarded to Norwegian suppliers. NOA Fulla is an alliance project, and five alliances are expected to contribute in the development.
– As we speak, teams at Aker Solutions in Fornebu and the yards at Stord and Verdal are working on engineering and construction planning of the project. The plan is to build the NOA Fulla platforms at Aker Solutions' yards at Stord and Verdal, with support from Sandnessjøen and Egersund. It gives me great confidence to know that we have all our trusted long-term strategic partners ready to move into execution pending a final investment decision and authority approval for this giant development.
Aker BP CEO
Artist Darryn Lee in front of the art exhibition "From analog to digital" in Stavanger.
Darryn Lee is an Automation Technician at Aker BP. When he's not working offshore, he works as a professional artist. For the last three years, he has been documenting the digital transformation and offshore oil workers through the medium of art.
In November 2021, the exhibition From Analog to Digital opened in front of the Norwegian Petroleum Museum in Stavanger. This is the first art exhibition of offshore oil workers in Norway's history, by an artist working offshore.
The artwork is mounted on two large steel pipes recycled from the jacket of the Valhall Quarter Platform (QP), which was installed at the field centre in 1980. The topsides were removed in 2020, after 40 years of service. The jacket was removed in the summer of 2021, and almost all the steel was reused.
Cutting the legs of Valhall DP. An oil platform under decommissioning process.
The first painting depicts Valhall's first drilling platform in rust and decay, under grey skies after 40 years of service. The technology has required human intervention at every step, and now the platform is redundant. The exhibition also shows portraits of technicians who have reached the end of their working lives.
The second artwork shows Valhall's modern Production and Hotel platform with blue skies. The supply ship NS Orla is offloading. The shiny exterior is ready for 40 new years of operation. First-generation oil workers are replaced by youthful energy and digitalisation.
– I want to tell a story of the transition from analogue to digital offshore through the medium of art. Over the past 40 years, the Valhall oil field has produced one billion barrels of oil, using labour-intensive techniques. An additional one billion barrels will now be produced with digital and offshore workers over the next 40 years. Human intervention is still very relevant. Over time, they acquire new expertise and work together as One Team. Everyone is essential, and everyone is included. They work shifts, 24/7, every day, all year round and are a significant asset for Norway's future.
Darryn Lee
Mud room Valhall DP. Digitalization comes to Valhall spearheaded by Ine Dolve, SVP Operations and Asset Development.
The morning meeting. The automation team on Vahall PH with their paper work permits, before digitalization offshore.
Spot and the last oil well. While Valhall DP's last oilwell pumps its final few barrels, the oil industry enters a new digital age.
Aker BP's environmental management system is an integral part of the company's Sustainability Framework and HSSEQ management system. We follow the guiding principles in ISO 14001. Aker BP's policies on Environment and Climate describe our commitment to safeguarding and avoiding harm to the environment. The Climate Policy is further detailed in the GHG emission section.
The policies establish our standards and expectations for the organisation, including temporary personnel and contractors, and is approved by the Executive Management Team (EMT). The CEO has the overall responsibility at company level. All functions are responsible for HSSEQ performance and work towards preventing and reducing environmental impact. All employees take ownership and are committed to contributing towards our environment and climate policies.
Aker BP's Environmental Policy includes a commitment to evaluate and manage environmental aspects and risks from our projects, drilling and operational activities. Our most significant environmental aspects originate from discharges to sea, emissions to air, waste, energy consumption and spills, and how these aspects affect biodiversity. We ensure that our environmental impact is as low as reasonably possible, through including use of Best Available Techniques (BAT) and following NORSOK standard S-003 Environmental Care. The NORSOK standard is a Norwegian petroleum standard that describes the decision process at the various stages of
design development and the related environmental issues. For example when we introduce exploration drilling, potential changes in offshore operations or new projects that affect our environmental aspects and risks, we perform environmental impact assessments and evaluation of appropriate measures. Annual HSSEQ programmes are in place for both exploration and production drilling as well as other production activities. These plans include environmental objectives, activities and focus areas for each year. We work to adapt swiftly to change and consider innovative solutions and their potential impact on our operations. By learning from successes and failures, we continuously seek to minimise risk to the environment.
Aker BP has committed to work systematically and continuously to prevent spills to the environment and reduce our environmental impact. Use and discharge of chemicals are other significant aspects that we continuously seek to reduce. We select chemicals that give the lowest risk of environmental harm. We also have annual plans in place to substitute the most environmental harmful chemicals from our operations.
We also drive our alliance and strategic partners, contractors, and suppliers in the same direction. We identify and include stakeholders and experts in a process for identifying actual and potential environmental impact and risks. We have developed robust processes to identify environmental aspects and risks for all operations.
Management of biodiversity is detailed in the Biodiversity chapter in this report.
Our risk-based approach is triggered by both internal and external requirements. New or changed regulatory requirements or industry initiatives are some examples of external triggers. Environmental barrier development and barrier control follow regulatory and company requirements, in addition to specific NORSOK standards. Discharges to sea and emissions to air from both our operations and exploration activities are regulated by our discharge permits issued by the Norwegian Environment Agency (NEA). Annual transparent reporting to NEA, discloses our environmental performance in relation to the permits.
We continuously review and assess the degree to which environmental expectations are met. Environmental performance is followed up and included in our ISO 14001 compliant environmental accounting system, NEMS. Significant environmental aspects are followed up in digital dashboards available for both management and those operating the field. We measure our performance against these Key Performance Indicators (KPIs). Our strategy and environmental ambition levels are reviewed regularly. Major environmental issues are lifted to the Board of Directors.
For asset specific performance indicators, we have an annual process and set new targets each year. Our asset specific performance indicators in 2021 included oil concentration in discharges to sea, CO2 emissions and intensity, flaring volume and produced water re-injection percentage. KPI targets are set per field and will vary depending on field attributes. For example, produced water re-injection on Ivar Aasen was set at 97 percent in 2021 and for Alvheim it was set at 90 percent re-injection. There is no re-injection of produced water on Ula, Skarv or the Valhall field due to reservoir integrity challenges. Our environmental performance is disclosed in the table on page 53-55.
Necessary training and education are provided through both in-house and external courses. Frequent awareness programmes are also carried out both onshore and offshore. In 2020, we implemented an environmental training programme for all employees and contractors. The purpose is to raise awareness and educate all personnel on environmental risks and aspects relevant for Aker BP's operations. Additionally, in 2021 we launched an HSSEQ course for all new employees that also covers environment and climate.
In 2021, Aker BP revised parts of our environmental management system with updated policies for environment and climate. Aker BP conducts internal audits to verify the effectiveness of our management system and as part of our efforts for continuous improvement. In 2021, the Internal Audit and Investigation (IAI) team conducted an audit of our environmental, climate and energy management system as
part of our continuous improvement efforts and to ensure compliance. In addition, Aker BP's environmental management system and our operations on all assets are subject to continuous supervision and verifications by government agencies such as the NEA. In 2021, the NEA audited Alvheim with regards to chemical management, drainage water and incident management.
Aker BP acknowledges the urgent need for action in line with the Paris Agreement and the Parliament expectations, and we remain committed to continue contributing to the solution. To meet the obligations in the Paris Agreement, the Norwegian Government has committed to a minimum emission reduction of 50 percent (gross) within 2030. Additionally, the Norwegian Government has suggested a requirement for low emissions solutions on platform supply vessels (PSVs) from 2025 and zero emissions solutions from 2030. Aker BP will thus be subject to these commitments. To strengthen the management of climate related issues in Aker BP, we issued a separate Climate Policy in 2021. The main principles in the policy cover our commitment to manage climate-related risks and opportunities, reduction of energy consumption and related emissions to air, as well as our commitment to reduce GHG emissions in line with the Paris agreement and Norwegian Parliament expectations. Through our obligations to the authorities, our emission levels are controlled and limited by authority permits for each asset, strict environmental regulations and specific Norwegian Continental Shelf (NCS) standards. Our commitment to manage climate related risks and opportunities is described in the "Risks and opportunities posed by climate change" chapter of this report.
CH4/saleable gas 0.02%
GHG emission reductions
1.2% lasting reductions
We have made it our strategic priority to be best-in-class in producing low-carbon oil and gas, leading us towards reaching a 50 percent scope 1 emission reduction (gross) in the 2030, and close to zero emissions in 2050. 2005 signifies our base year when calculating the 50 percent emission reduction in the 2030, aligned with the NCS industry collaboration KonKraft. We acknowledge that we have indirect emissions related to upstream scope 3, and we work in cooperation with suppliers, to establish a GHG footprint for materials and set reduction targets for scope 3. In 2021, we have strengthened our strategic priority to reduce scope 3 emissions. Our goal is to minimise emissions from our own activities on the NCS by choosing energy-efficient solutions and operations, as well as reducing emissions in our supply chain.
New projects must perform feasibility studies for power from shore or power transmission. In cases where new energyintensive equipment is purchased, the equipment must be as energy-efficient as possible and use low-emission technology. Two of the three assets generating power from gas turbines already use low-NOX combustion technology.
Production KPIs and CO2 intensity emission targets are included as part of the incentive structure for all employees. Our climate strategy is incorporated in the business management system
| Greenhouse gas | Global warming potential (GWP) rates in a 100 yr perspective* |
|---|---|
| CO2 | 1.0 |
| CH4 fossil origin | 29.8 |
| N2O | 273.0 |
* Source: IPCC Sixt Assessment Report 2021.
and anchored in separate policies for climate and external environment, as well as action plans for 2021.
Achieving reductions in energy consumption and pursuing energy-efficient solutions and technology through energy management is an inherent part of Aker BP's strategy to be the best-in-class in producing low-carbon oil and gas. Our approach to energy efficiency is embedded in how we work and includes our governing principles, performance, and reward framework. Aker BP's Climate Policy formalises our commitment to energy management and energy efficiency. Our energy management system enables us to deliver on our performance goals.
Energy management in Aker BP is governed by ISO 50 001 and our energy management system embodies the principles from this standard. As an operating company on the Norwegian Continental Shelf, Aker BP is required by law (The Activities Regulations) to conduct energy management in accordance with the principles of this standard.
We work continuously to reduce our energy consumption and related emissions by implementing measures identified through energy improvement opportunities. These efforts are driven by established energy teams in each asset and reported to top management on a regular basis.
In 2021, we continued pursuing our efforts to reduce and optimise energy consumption, as well as to reduce emissions. The total energy consumption was reduced with 99,843 GJ from 2020 to 2021. The effectiveness of energy management and implementation of identified energy improvement opportunities is tracked through reduced emission levels at each asset as well as through Aker BP's CO2 intensity KPI. In 2021 our energy intensity was 18 kwh/boe and includes gas, diesel and electric energy.
Valhall already has power from shore while Ivar Aasen, which currently receives power from Edvard Grieg, will receive power from shore in 2022. Due to a reduction in production from Ivar Aasen and Valhall, and challenges with the electricity supply from Edvard Grieg, our total electricity consumption decreased by 11 percent in 2021. In cases where new energy-intensive equipment is to be purchased, we perform a BAT assessment to ensure that the equipment is as energyefficient as possible and applies low-emission technology.
During 2021 we have developed and implemented Digital Oilfield (DOF) on Alvheim and Skarv (two out of three assets that do not have power from shore). This digitalisation effort allows us to take out the full potential of energy management in a real time perspective. It provides us with continuous data that enables the asset to operate more energy efficiently, identify best-operational practice, as well as using the forecasting models to predict CO2 emissions, and thus strengthening the ability to plan ahead to achieve additional reductions.
Our scope 1 emissions include CO2, CH4 and N2O, and our consolidation approach for emissions, is operational control. Our 2005 baseline for emissions is 1.1 million tonnes of CO2, and taking into account our reductions, we emitted a total of 819,083 tonnes of CO2 (gross) in 2021. Per 2021 Aker BP has reduced the emissions with 26 percent. Our upstream operated methane intensity was 0.02 percent CH4 in saleable gas, which is significantly lower than the industry average of 0.20 percent as measured by the Oil and Gas Climate Initiative (OGCI 2020 performance data). The majority of our methane emissions originate from non-combusted gas, and are released through cold vent, fugitive sources, and from loading and storage on our FPSO (floating production storage and offloading vessel). As an operating company on the NCS we are only permitted to conduct safety flaring. Flaring in general is very limited. Aker BP´s work to reduce flaring and quantify emissions of non-combusted hydrocarbon gases has resulted in closed flares on four of five assets. The increase in 46 percent flaring from 2020 to 2021 is due to several shutdowns on Skarv, Valhall, Ula and Alvheim. We also have in place a system for methane leak detection to detect seeps and sweats, described in our CDP response for 2020.
CO2 intensity in Aker BP includes the equity share of CO2 emissions (net) from our non-operated and operated assets divided by the net Aker BP production. It does not include direct emissions from exploration drilling. Aker BP's CO2
intensity target is set at below 5 kg CO2 per barrel of oil equivalent (boe). In 2021, our CO2 intensity was 4.8 kg CO2/ boe. We consider our scope 1 emissions and the intensity metric to be a science-based target, but this approach has not undergone approval by the Science Based Targets initiative. Our CDP response for 2020 explains this target.
Several emission reduction measures were carried out in 2021, yielding a total reduction of 22,738 tonnes of CO2e. Initiatives with "largest" GHG emission reductions are listed below.
Rebundling of compressors on Alvheim enabled increased production and reduced both instability and energy consumption. This measure resulted in 4,000 tonnes CO2 reduced per year due to reduction in number of flare pops as well as normal power consumption.
Rerouting of gas from cold vent to flare was implemented in November 2021. This methane reduction measure will together with an increased tolerance for O2 in cargo tank gas reduce the potential methane emissions, equivalent to approximately 6,600 tonnes CO2 equivalents.
Energy efficiency improvements on Deepsea Nordkapp resulted in additional CO2 emission reductions during drilling of Volund sidetrack and Kameleon Infill West (KIW). The installation of variable speed drives on miscellaneous equipment resulted in better fuel consumption, and thereby reducing our CO2 emissions by 952 tonnes of CO2.
On Skarv, two of the measures executed in 2021, were related to reduction of injection discharge pressure and export discharge pressure, which resulted in less need for power, hence lower CO2 emissions from power production. These measures resulted in 2,640 tonnes of CO2 reduced. Additionally, the optimised power generation during D04 well intervention and optimisation during gas injections resulted in 3,650 tonnes of CO2 reduced. These reductions are a result of efforts to reduce running of three turbines to two turbines when possible. Two other optimisations related to gas processing and export, led to reduction of 2,500 tonnes of CO2.
The energy efficiency improvements such as use of real time power consumption and battery packs to reduce power peaks on both Ivar Aasen and Ula resulted in a total of 1,871 tonnes of CO2 reduced. The improvements were done on drilling rig Maersk Integrator during production drilling at both assets.
By optimising test frequency of the emergency and essential generators on Ivar Aasen, the asset reduced its CO2 emissions by 48 tonnes of CO2. In addition, Ula reduced its emissions by 477 tonnes of CO2 by reducing multiphase pump operation.
Scope 1 CO2 emissions (excluding exploration) are independently verified by a third-party (DNV), on an annual basis. This verification is required by and performed according to the European Union Emissions Trading System (EU ETS). The verification includes annual check of permit compliance, changes in the monitoring plan, calibrations, corrections, and emission factors.
Aker BP's scope 2 CO2 emissions are related to purchase of electrical energy from Lundin Energy's Edvard Grieg platform. Edvard Grieg uses dual-fuel low-NOX gas turbines to generate energy that is supplied to Aker BP asset Ivar Aasen. In 2022 Ivar Aasen will start receiving power from shore. Valhall already receives power from shore and the energy mix in the Norwegian power supply consists of 98 percent renewable energy sources. Due to the 2 percent of non-renewable energy sources, the power from shore to Valhall results in some GHG emissions. In 2021 our scope 2 emissions decreased due to lower production from Ivar Aasen and challenges with the electricity supply from Edvard Grieg. Our total scope 2 emissions are accounted for in the figure below.
Emissions from scope 3 are included in Aker BP's climate strategy and represents a highly prioritised area. Aker BP's scope 3 emissions include upstream categories 1-8 and downstream category 9 according to the GHG Protocol. Aker BP is an upstream company, and other downstream scopes are therefore not included. During 2021 we have continued the process of mapping our scope 3 emissions, resulting in a more detailed overview and understanding of these emissions. We will further continue the process of mapping the scope 3 emission categories that are still not identified, and thus only emissions identified so far are included in the report.
Categories 1 and 2 are the two largest categories, covering all upstream emissions for Purchased goods and services and Capital goods. Along with other operators on the NCS, Aker BP has developed a joint practice for suppliers to
report scope 3 emissions within these areas: steel, cement and big bulk chemicals. These areas are considered the main contributors to category 1 and 2 emissions. In 2021, we developed a common methodology to report on scope 3 emissions through Magnet JQS. The database contains relevant scope 3 emission data from suppliers, and we are continuing our work to further map emission data related to steel, cement and big bulk chemicals.
Emissions from vessels are included in upstream category 3 and 4 and downstream category 9. In 2021, emissions from several new vessel categories, such as IMR (Inspection, Maintenance & Repair) vessels (category 3), seismic vessels (category 3) and shuttle tankers (category 9), have been identified. To further improve the quality of emission data from vessels, most vessels operating on behalf of Aker BP are using a fuel monitoring system, resulting in availability of more precise and continuously updated data.
| Category 1: Purchased goods and services Category 2: Capital goods |
48,900 tonnes CO2e |
17.1% of scope 3 |
|---|---|---|
| Category 3: Fuel- and energy-related activities (not included in scope 1 or 2) | 138,400 tonnes CO2e |
48.4% of scope 3 |
| Category 4: Upstream transportation and distribution | 56,600 tonnes CO2e |
19.8% of scope 3 |
| Category 5: Waste generated in operations | 11,600 tonnes CO2e |
4.1% of scope 3 |
| Category 6: Business travel | 1,400 tonnes CO2e |
0.5% of scope 3 |
| Category 7: Employee commuting | 12,100 tonnes CO2e |
4.2% of scope 3 |
| Category 9: Downstream transportation and distribution | 17,000 tonnes CO2e |
5.9% of scope 3 |
Emissions from vessels have been reduced since 2019. PSVs represents the vessel category with highest emissions. During 2021, we have implemented several operational measures to improve the energy efficiency of these vessels. We have continued optimising routes and collaborated with other operators on the NCS to reduce the number of vessels operating, and hence emissions. Further, we have been focusing on cleaning the hulls of several vessels, leading to CO2 reduction. Please refer to the figure below for overview of CO2 reductions from PSVs (2019-2021).
Several important strategic decisions have been made during 2021. We initiated a process for identification and implementation of climate goals and KPIs for PSVs in 2022. In 2019, we converted two of our long-term PSVs to hybrid configurations by installing batteries. During 2022, we
Reduction in CO2 per ton transported by PSVs (2020-2021)
will install batteries on three more PSVs. All our PSVs on long-term contracts operating out of Stavanger have been upgraded to connect to power from shore while in port. During 2022, PSVs operating out of Sandnessjøen, the other supply base where Aker BP has regular activity, will also have this opportunity. In addition, we will continue optimising the fleet across different vessel categories to reduce the total number of vessel days supporting our operations. Both batteries, power from shore and fleet optimisation will lead to important reductions in CO2 emissions.
In November 2021, Aker BP entered a joint technology project together with one of our strategic partners, Eidesvik AS, and Alma Clean Power, a future Norwegian provider of fuel cells. This project explores the opportunity of installing fuel cells on existing PSVs, aiming to significantly reduce emissions by using ammonia as fuel.
In 2021, we improved our focus on waste handling and related environmental and climate impact. We initiated a separate project that identified necessary waste management improvements throughout Aker BP and resulted in a new tender process for waste management. Suppliers were required to strengthen their efforts towards reducing their climate impact, and to report on scope 3 emissions related to category 5; Waste generated in operations.
Aker BP has offices in five different locations in Norway (category 8 Upstream leased assets), and business travel (category 6 and 7 Business travel and employee commuting) between the offices and to offshore assets is necessary to carry out our operations. During the Covid-19 pandemic, our travel patterns changed and that lead to the reduction of CO2 emissions related to business travel from 1,644 tonnes in 2020 to 1,376 tonnes in 2021.
Due to offshore operations, helicopter transport is included as part of employee commuting for our offshore employees. Total employee commuting in 2021 led to the emission of 12,142 tonnes of CO2.
As previously stated in the Environmental management chapter, our Environmental Policy sets our standards with regard to continuously managing and reducing our environmental footprint. The policy details our commitment to reduction of non-GHG emissions to air, NOX, SOX and non-methane volatile organic compounds (nm-VOC). Our asset-specific KPIs include NOX and nm-VOC. Emission limits are defined in our discharge permits issued by the government.
Emissions of NOX decreased with 30 percent from 2020 to 2021. The reduction is mainly due to lower drilling activity in 2021 and the BLUNOX Selective Catalytic Reduction (SCR) technology for flue gas cleaning on drilling rigs Maersk Integrator and Deepsea Nordkapp.
Aker BP's Environmental Policy commitments ensure that we work systematically to reduce our environmental footprint to a minimum, this includes our discharges to sea as well as use of resources such as water. We are committed to reduce discharges to sea and emissions to air, prevent unnecessary waste, sort, recycle and recover waste as much as possible and reduce use of freshwater consumption by utilising freshwater makers at operating fields. This is performed by using Best Available Techniques (BAT), NORSOK standard S-003 -Environmental Care and following the principles in the ISO 14001 environmental management system.
Aker BP has no operations for fractured wells onshore.
Aker BP has not withdrawn water from areas in water stressed regions. None of our operations are located in waterstressed environments. All our operations are situated on the Norwegian Continental Shelf (NCS) and our use of freshwater is limited.
Freshwater withdrawn is third party water from the onshore public water supply. This freshwater is delivered by supply vessels to our offshore facilities. The source of the public water supply is surface water. Water is not a scarce resource in Norway or a material topic for Aker BP, hence not a high risk and no managerial or board-level responsibility is required. According to the NEA, 6 percent of Norway is covered by freshwater and our sea areas are six times the size of our land areas. The environmental impacts from our water withdrawals are considered low. The water withdrawn and delivered via supply vessels is mostly used for service water and drill water and is also available for emergency drinking water deliveries. Aker BP collaborates with the supply vessels to ensure that freshwater withdrawn, but not used on our installations, is utilised by the supply vessel for operations that demand freshwater, such as cleaning drinking water tanks or other operators on the NCS. This collaboration contributes to further reducing the withdrawal of freshwater from the public water supply onshore.
Aker BP acknowledges the importance of water management and although the availability of freshwater in Norway is high, we are committed to continuously manage and minimise our environmental footprint by reducing and limiting use of freshwater. By utilising freshwater makers at all our operating fields, we significantly reduce the use of freshwater resources and produce our freshwater directly from seawater desalination, as underlined in our Environmental Policy.
The Ula asset has been supplied with freshwater produced from sea water by desalination at the supply vessel for many years. At the end of 2020 Ula started to produce the necessary freshwater on its own, and significantly reduced its need for freshwater resources.
All installations have emergency water in bottles to cover the water requirement for one-person up to three days (number of days depends upon where the asset is located on the NCS). The bottled water is intended for drinking water in emergency situations i.e., if the asset for some reason can not produce its own water for a period. In a situation where the production of drinking water is not available over time, drinking water will be supplied from shore via the supply vessel.
The production and quality of freshwater produced or delivered offshore is monitored closely and regulated by our business management system through our drinking water manuals. Daily, monthly and yearly tests are performed on pre-defined parameters to ensure that the freshwater is safe for the consumers. The water sample results are analysed by independent accredited laboratories. All quality deviations are registered and handled in Aker BP's reporting system, Synergi. Risk and vulnerability analysis and internal audits are
performed for all water maker systems and drinking water distribution system on our offshore installations.
Freshwater production is a prioritised activity at our assets to avoid use of bunkered freshwater from shore. There are routines in place to produce as much freshwater as possible, mainly for drinking water purposes. Produced drinking water that is not used for human consumption is recycled for use to other freshwater consumptions such as service- and drillwater to minimise use of bunkered water from shore for these applications. The amount of produced freshwater on our installations are illustrated below.
Seawater is readily available and withdrawn and used in our operations. Aker BP use seawater for cooling and firefighting purposes, seawater injection in the reservoir for pressure support to increase oil production and to generate freshwater.
We are committed to prevent, reduce and manage our effluents. Our approach to generation and handling of effluents aims for the lowest possible environmental impact according to our Environmental Policy.
Aker BP has implemented the following requirements for handling of produced water in new field developments and major projects and modifications (in priority order):
Produced water treatment and discharge is designed to be in accordance with BAT, where the objective is to achieve the lowest possible concentration of dispersed oil in produced water that is discharged to sea. Discharged produced water is regulated by the NEA and the absolute maximum threshold value is 30 mg dispersed oil/L of produced water per month (weighted average). Discharge of drainage water has the same threshold value as produced water. Chemicals are regulated with discharge permits. Produced water is discharged to the North Sea from Alvheim, Ivar Aasen, Ula and Valhall, and to the Norwegian Sea from Skarv. Produced water discharge is risk-rated by calculating an environmental impact factor (EIF). The EIF should be < 10 for minimal environmental risk. Measures to reduce discharge are implemented if the EIF is between 11-100. Effluents (produced water) are managed through daily measurements of oil-in-water concentration or continuous online measurements.
Produced water treatment and re-injection are high priorities in the organisation. Two out of five of our fields reinject produced water into the reservoir for pressure support. This measure minimises the amount of produced water that is discharged. On all our fields produced water is discharged to sea after sufficient treatment according to the best available techniques and regulatory requirements.
The total volume of produced water has increased over the past three years. This is mainly due to the type of fields in our portfolio. Older fields have a higher water cut when producing oil and gas. In 2021, 92 percent of the produced water was reinjected on Alvheim, and 88 percent on Ivar Aasen. Aker BP's total volume of discharged produced water was 17 percent higher in 2021 than in 2020. This is mainly due to higher water cut on our oldest operating field, the Ula field and lower re-injection of produced water on Ivar Aasen caused by operational limitations.
We have ongoing projects to improve oil and water separation and the re-injection rate and set annual internal targets for re-injection of produced water and maximum weighted oil in produced water below legal maximum limit. If a significant spill occurs, it is investigated, and corrective actions are assigned. Lessons learned from incidents are shared across the assets and with our alliance partners.
In 2021, Ivar Aasen has focused on achieving the ambition of substituting red and black chemicals in addition to optimising consumption of all chemicals. As a result of this focus, Ivar Aasen has reduced discharge of red components by 30 percent compared with 2020.
Aker BP experienced no incidents of hydrocarbon spills greater than 0.10 m3 in 2021. We had five incidents of chemical spills greater than 0.10 m3.
Of the five incidents greater than 0.10 m3, two occurred on the Tambar platform. One related to discharge of 0.15 m3 hydraulic fluid due to failure in fittings and the other was discharge of 1.0 m3 yellow category chemical, due to leakage in a pack box. One incident on Ula lead to discharge of 0.25 m3 corrosion inhibitor (yellow category) to sea due to failure in the set up of an isolation valve.
One incident on Valhall related to the deluge system, resulted in discharge of 2,20 m3 firefighting foam (yellow chemical). The last incident greater than 0,10 m3 happened on Ivar Aasen, and lead to discharge of 0.22 m3 hydraulic fluid due to leakage in sea water lift pump.
Aker BP's oil spill management includes trained personnel who work purposefully to prepare for and mitigate possible oil spills. Risk assessments are performed, and oil spill emergency preparedness plans are in place. Aker BP has also actively participated in the Norwegian Clean Seas Association for Operating Companies (NOFO) since 2001. NOFO is specially trained to manage oil spill response operations and assumes a key role with regard to mitigation measures and oil spill recovery at sea in cases where member companies are responsible for an oil spill. We work together with NOFO to make sure our oil spill contingency measures are dimensioned for our needs and use, making sure that we are prepared at all times.
2020 2021 6 individual spills 5 individual spills
3.9m3 10.5m3
Aker BP's exploration and production operations are concentrated in marine surroundings on the NCS. We are committed to conserving biodiversity and habitats in the places where we operate. Biodiversity is considered and managed from early phase development to decommissioning.
Through our Environmental Policy, we have formalised our commitment to manage our environmental impact and preserve biodiversity and sensitive areas in the marine environment of particular importance. Aker BP acquire information about the ecosystems in areas where we have activity and map out what potential effects and impacts our activities can have. This information is used when and how we carry out the activities. We have a special focus on vulnerable coastal habitats, spawning grounds for fish, areas that are important for seabirds, coral reefs, and other vulnerable seabed habitats, and impacts on fisheries. Our environmental responsibility also includes our contractors, and we have a duty to ensure that they comply with all applicable environmental regulations.
The NCS is among the most extensively mapped, analysed, and ecologically managed marine areas in the world. Norwegian authorities apply regulation and plans, stating operational conditions for activities within an area. Protected areas are defined were no industrial activity, or only limited activity, is permitted. Upon approval of activity, operational conditions for licences within the area are defined, such as periods with drilling restrictions, extended biological monitoring and oil spill response measures.
NEA regularly measures the condition of biological diversity in Norway through the Nature Index. This provides an insight into the development of the ecosystems, for selected species groups and themes.
NEA has strict regulations and aims to ensure water quality in marine areas. Aker BP implements and follows Norwegian regulations and guidelines. We set acceptance criteria per group of species and use a risk-based approach to finalise the environmental impact assessment.
All petroleum related activity on the NCS is subject to public consultation and authority approval, through an environmental permit hearing process. Stakeholders, local communities and interested parties are entitled to comment on environmental and social issues and give recommendations to the authorities on planned activities. This hearing process is of value for ensuring co-existence between industrial activities in the area.
None of Aker BP's operational sites or exploration activity are in or near protected areas. Biodiversity protection measures are described and framed in our Environmental Policy and environmental management system.
Aker BP works to prevent and minimise our impact on sensitive species and population dynamics through work in accordance with our Environmental Policy, internal procedures and plans. We perform environmental analyses to assess the relevant risks in the area and what impact our activities will have on birds, fish and marine mammals (including sea-bed fauna and corals, coastal habitats, fish spawning and seabird breeding and feeding grounds). We plan our wells based on environmental risk analyses in accordance with existing industry standards, and we reduce the consequence of potential oil spills by implementing high oil spill preparedness in collaboration with The Norwegian Clean Seas Association for Operating Companies (NOFO).
Aker BP also has an overview of the red-listed species from the International Union for Conservation of Nature in areas near exploration and operational sites, and this is included in the environmental risk assessment. Biodiversity priority areas (referred to as SVO in Norwegian) are known and management plans for these areas are created with additional analyses that ensure minimal impact on and protection of natural habitats.
For several years Aker BP has supported the Seatrack research programme that aims to track the movement of several migrating seabird species which have experienced negative population trends over recent decades. The data has been included in the seabird dataset as input to the environmental risk analysis. We use the improved dataset to plan/steer the period of our drilling operation so that we avoid conflict with migrating seabirds, and to choose the correct dimensioning oil spill response.
To verify the biodiversity impact from our operations, the oil and gas industry in Norway performs sediment analyses and water-column monitoring, which allows us to detect negative impacts. The sediment surveys are done in three-yearly intervals by region. In 2021, Aker BP had sediment surveys in two regions covering our Alvheim and Ivar Aasen fields in the central North Sea and Skarv in the Norwegian Sea. In addition, we covered most of the NOA field in a baseline sediment survey. The water column monitoring is surveyed offshore on a pre-selected field every third year followed by a R&D programme for two years.
As part of the development of the Gråsel subsea-tie back to Skarv, existing infrastructure on the sea bed was re-used through the Skarv BC Template. The production well on Gråsel re-used an available well slot. This solution minimised the impact on the sensitive sea-bed species (corals and sponges) from construction work. To minimise the impact of the drilling operations, the drilling rig was positioned by DP. The impact on corals of the discharges of cuttings from Gråsel was minimised using a cuttings transport system. The location of the discharge point was placed using a cuttings distribution model to minimise the potential impact on the corals nearby. To verify and improve the cuttings distribution model, sediment traps were placed near some of the corals.
Four exploration wells were drilled in 2021, one in the Barents Sea and three in the North Sea. The wells in the North Sea were drilled in mature areas in the vicinity of producing fields
with no identified seabed biodiversity value. The seabed is flat and consists of mostly sand. Stangnestind was drilled in the Barents Sea. Prior to drilling, the seabed was examined by sampling sediments and filming the seabed. The seabed was flat and relatively homogenous consisting of mud clay with some occasional boulders, in addition to trawl tracks. The fauna was homogenous with some single corals (Gersemia sp.) and low density of soft bottom sponges scattered in the area. No red listed species were identified. Based on Seatrack data, the operation period was steered to avoid drilling during the period of seabird migration in early autumn.
The impact assessment process for NOA-Fulla was initiated in 2021 and a Impact Assessment submitted for public hearing in Q4. Environmental reviews and BAT-studies have been conducted and will form valuable input to the Impact Assessment scheduled for 2022. The baseline survey at NOA-Fulla was also performed in 2021.
Aker BP's operational activities are based offshore, and all significant production waste, both hazardous and non-hazardous, is generated at our fields. The largest fractions of hazardous waste, in terms of weight, come from our drilling operations and is oil-based drilling fluid. When we drill wells, the rock cuttings contaminated with drilling fluids are carried back to the surface. The main category for non-hazardous waste is metal.
We handle all production waste such as drilling mud and cuttings by following the same waste handling hierarchy:
To strengthen our focus on generating less waste and increasing the utilisation of resources, Aker BP is continuing our focus towards a more circular economy. We aim to extend the lifetime of already purchased equipment or materials by maintaining material integrity where feasible.
In order to prevent occurrence of hazardous waste, both oil-based and water-based drilling fluids are reused as long as the technical quality of the drilling fluid is intact and will therefore remain part of the value chain. Most of the oil-based drilling fluids used are recycled when drilling between sections and / or returned to the drilling fluid supplier who reconditions the drilling fluids for reuse. The recycling rate is 70-80 percent for oil-based drilling fluids and 50-60 percent for water-based drilling fluids and these measures contribute to our circularity efforts. In other cases, the drilling fluid is sent onshore for treatment and disposal. The treated oil-based drilling fluid consists of an oil, water and solid part. About 15 percent of the waste stays in the value chain as recycled, 70 percent goes to landfill, and the remaining 15 percent is treated water to discharge. The water fraction is
treated prior to discharge and the volumes are controlled by authority permits held by the onshore waste disposal contractor. Both hazardous and non-hazardous waste is transported onshore. The majority of the waste is handled in Norway and regulatory rules are followed.
To reduce significant environmental impact and waste generated, Aker BP seek to reduce use of resources by reusing existing infrastructure. As we did on the Gråsel template where we reused existing seabed infrastructure. Utilisation of available capacity in existing offshore facilities is an example of Aker BP's efficient solutions in terms of resource utilisation, economy, and environmental footprint.
We regard decommissioning as an area with potential and opportunities aligned with the principles of keeping products and materials in use. The "Closure and rehabilitation" chapter of this report details our decommissioning processes and provides an overview of our decommissioning activities in 2021.
The figure below illustrates the handling of all hazardous and non-hazardous waste, generated by Aker BP in 2021.
Aker BP's current asset portfolio consist of steel structures, and FPSOs. These installations will be removed in their entirety after the fields have been shut in and wells have been permanently plugged and abandoned. The disposal of these structures and vessels will be subject to cessation plans approved by the authorities and handled by receiving facilities.
In connection with Plans for Development and Operation (PDO) which are submitted for approval ahead of project execution, the disposal of the facility is described, including the estimated cost. PDOs are approved by the Ministry of Petroleum and Energy (MPE) and for the larger projects also by the Parliament ahead of executing a project.
A Cessation plan is prepared as a field or parts of a field is planned to be taken out of use. This plan consists of two elements, the Disposal Plan and the Impact Assessment. The impact assessment elements go through several steps before finally being approved:
When a decision has been made to close down a field and/or a facility, the work with the cessation plan shall start no later than 3 years before end of field life. Aker BP currently has three active cessation plans:
The decommissioning of these facilities does not have a direct impact on employment for these reasons:
In 2021 the QP jacket on Valhall was removed. As the QP location is still within the 500m safety zone of the Valhall field, it will not be available for other commercial use until the entire field has been decommissioned.
The QP topside weighing close to 4,000 tonnes was removed in 2019 and was dismantled at the Aker Solution yard at Stord during 2020. The final report demonstrates a recycle rate of 90 percent of the total weight. Close to 10 percent went to landfill, and the remaining fractions were EE waste and hazardous waste for recycling. All final disposal of waste categories is tracked and documented with receiving facility and weights.
Of the total jacket weight, nearly 100 percent is recycled. As the steel quality in jackets is high, the jacket steel is blended in steel factories with other qualities to form new steel products.
The old Valhall Injection Platform crane has been dismantled and disposed of in 2021. Total recycling rate for this project was 99.6 percent. All metals, such as alloy steel, aluminium and duplex steel, has been delivered to recycling and total weight recovered was 107 tonnes. Only 0.4 percent was not suited for recycling and handled as hazardous waste.
| Energy consumption | 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|---|
| Total fuel consumed from non-renewable sources | 13,824,322 | 13,665,790 | 13,565,947 | GJ | 1) |
| Total fuel consumed from renewable sources | 0 | 0 | 0 | J | |
| Electricity consumption | 509,503 | 566,175 | 536,878 | MWh | 2) |
| Electricity sold | 0 | 0 | 0 | MWh | |
| Total energy consumption from non-renewable fuels and el. energy |
15,704,022 | 15,498,707 | GJ |
| Water | 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|---|
| Produced water withdrawal total volume | 14,063 | 16,100 | 17,585 | ML | 3) |
| Re-injected produced water volume | 6,552 | 10,407 | 10,712 | ML | |
| Percentage of produced water re- injected | 47 | 65 | 61 | % | |
| Produced water discharged to sea volume | 7,595 | 5,599 | 6,767 | ML | |
| Percentage of produced water discharged | 53 | 35 | 39 | % | |
| Hydrocarbon discharged to sea within produced water | 150 | 100 | 140 | tonnes | |
| Total freshwater withdrawn | 280,796 | 189,826 | 163,105 | m3 | 4) |
| Share of production in areas of high water stress | 0 | 0 | 0 | % | |
| Total sea water withdrawn | - | - | 138 | ML | |
| Total sea water discharge | - | - | 119 | ML |
| Scope 1 | 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|---|
| Direct GHG emissions - all gases | 939,480 | 842,295 | 852,129 | tonnes CO2e | 5) |
| CO2 (Carbon dioxide) | 911,105 | 816,376 | 819,083 | tonnes | |
| CH4 (Methane) | 1,043 | 991 | 1,065 | tonnes | |
| N2O (Nitrous oxide) | 8 | 4 | 5 | tonnes | |
| Methane Intensity | 0.03 | 0.03 | 0.02 | % CH4/saleable gas | 6) |
| Reduction of GHG emissions | 22,587 | 77,650 | 22,738 | tonnes CO2e |
1) From fuel gas and diesel
2) Electricity from Edvard Grieg to Ivar Aasen and power from shore to Valhall
3) ML = megaliters
4) Wording in 2019 and 2020 report was "freshwater usage". Corrected to "freshwater withdrawn" in 2021 report.
5) 2019 and 2020 numbers calculated by AR4. 2021 numbers are calculated based on AR6 factors.
6) Based on share of operated assets calculated as a percentage share of saleable gas production
| Intro | Approach | Responsibility | Economic | Environmental | Social | Disclosures | |
|---|---|---|---|---|---|---|---|
| CO2 intensity | 2019 | 2020 | 2021 | Units | |||
| Equity share CO2 emissions | - | 346,955 | 366,120 | tonnes CO2 | 7) | ||
| Net production | - | 77,101 | 76,431 | mboe |
| CO2 intensity | 6.9 | 4.5 | 4.8 | kg CO2 /boe | |
|---|---|---|---|---|---|
| Scope 2 | 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|---|
| Indirect GHG emissions | 89,627 | 97,024 | 81,408 | tonnes CO2e | 8) |
| Scope 3 | 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|---|
| Total GHG emissions | - | 223,533 | 285,981 | tonnes CO2e | 9) |
| Non-GHG emissions | 2019 | 2020 | 2021 | Units |
|---|---|---|---|---|
| NOX (Nitrogen oxide) | 2,818 | 2,389 | 1,684 | tonnes |
| SOX (Sulphur oxide) | 63 | 40 | 39 | tonnes |
| Non-methane VOC | 3,204 | 2,392 | 1,947 | tonnes |
| Biogenic CO2 emissions | - | - | - | tonnes CO2e |
| Hazardous waste | 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|---|
| Total weight hazardous waste | - | 42,067 | 40,516 | tonnes | |
| Reuse | 591 | 268 | 506 | tonnes | |
| Recycling | 73 | 4,437 | 1,800 | tonnes | |
| Recovery, incl. energy recovery | 3,044 | 1,688 | 2,464 | tonnes | |
| Landfill | 7,296 | 18,099 | 13,442 | tonnes | |
| Discharge | - | 17,574 | 22,304 | tonnes | 10) |
| Non-hazardous waste | 2019 | 2020 | 2021 | Units |
|---|---|---|---|---|
| Total weight non-hazardous waste | - | 1,803 | 1,842 | tonnes |
| Reuse | 0,8 | - | - | tonnes |
| Recycling | 1,605 | 925 | 1,000 | tonnes |
| Recovery, incl. energy recovery | 1,147 | 793 | 724 | tonnes |
| Landfill | 182 | 85 | 119 | tonnes |
7) Based on equity share of non-operated and operated assets (net) calculated as a share of marketed equity share of oil and gas production
8) 2021 number includes GHG emissions related to the energy mix in power from shore to Valhall. Climate declaration factor from NVE, used to calculate emissions: 8gCO2e/kwh (2020 factor is used, as the 2021 factor is not available until mid-2022).
9) 2021 and 2020 numbers are not directly comparable as more extensive scope 3 mapping has been conducted in 2021.
10) Discharged waste mainly consists of cleaned water fraction from oil based mud
| Waste diverted from/to disposal | 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|---|
| Total weight of waste diverted from disposal | - | 8,111 | 6,494 | tonnes | 11) |
| Total weight of hazardous waste diverted from disposal | - | 6,393 | 4,770 | tonnes | |
| Total weight of non-hazardous waste diverted from disposal |
- | 1,718 | 1,724 | tonnes | |
| Total weight of waste diverted to disposal | - | 35,758 | 35,865 | tonnes | 12) |
| Total weight of hazardous waste diverted to disposal | - | 35,673 | 35,746 | tonnes | |
| Total weight of non-hazardous waste diverted to disposal | 85 | 119 | tonnes |
| Significant Spills | 2019 | 2020 | 2021 | Units |
|---|---|---|---|---|
| Number of oil spills to sea (>0,1 m3) | 0 | 0 | 0 | - |
| Oil spills (>0,1 m3) | 0 | 0 | 0 | m3 |
| Number of chemical spills to sea (>0,1 m3) | 3 | 6 | 5 | - |
| Chemical spills (>0,1 m3) | 2.0 | 10.5 | 3.9 | m3 |
| Number of hydrocarbon leaks (>0,1 kg/s) | 0 | 0 | 0 | - |
| Total mass of hydrocarbon leaks (>0,1 kg/s) | 0 | 0 | 0 | kg |
| 2019 | 2020 | 2021 | Units | ||
|---|---|---|---|---|---|
| Flared hydrocarbons | 23,978,199 | 14,584,962 | 21,314,242 | Sm3 | |
| Continuously flared hydrocarbons | 0 | 0 | 0 | Sm3 | |
| Vented hydrocarbons | 273,501 | 290,377 | 424,580 | Sm3 |
| 2019 | 2020 | 2021 | Units | ||
|---|---|---|---|---|---|
| Total monetary value of significant fines | 0 | 0 | 0 | \$ | |
| Number of non-monetary sanctions for non-compliance | 1 | 0 | 0 | - |
| 2019 | 2020 | 2021 | Units | ||
|---|---|---|---|---|---|
| New major suppliers screened using environmental | 100 | 100 | 100 | % | |
| criteria |
11) Waste diverted from landfill Includes waste that is reused/recycled/recovered
12) Waste diverted to disposal includes waste that is discharged or sent to landfill
NS Frayja at quay in Tananger.
Hybrid energy systems have been installed on vessels, resulting in instant emission cuts, but Aker BP and its partners target additional massive CO2 reductions.
NS Frayja is docking at Tananger outside Stavanger on a nice winter day. Just returning from the Valhall field, the ship went through typical harsh weather conditions on its way back to shore. The platform supply vessel (PSV) operated by Eidesvik Offshore is a ship specially designed to supply offshore oil and gas platforms. During a short stop at the Tananger supply base, large cranes load new supplies onto the ship's cargo space before returning offshore.
Master Ruben Juan Storvik is busy even when the ship is at quay, managing the cargo from the spacious bridge with a 360-degree view.
The NS Frayja PSV has been upgraded to reduce emissions, with installed batteries for hybrid operations and shore power connections when in port. Thanks to close cooperation between Aker BP and its strategic PSV partners, Eidesvik Offshore, Solstad Offshore, and Simon Møkster Shipping, five PSVs on long term contracts to Aker BP will be equipped with batteries as of 2022. The batteries result in a CO2 reduction of approx. 4,200 tonnes per year in total for the five vessels, which translates into a 10 to 12-percent annual reduction. In addition to the implemented operational measures, batteries are also a prerequisite for several other potential low and zero emission technologies.
Aker BP is constantly working to reduce the environmental footprint from all aspects of its operations. Scope 3 emissions for Aker BP are all indirect emissions in the company's value chain, including marine activities.
"When we are sailing in rough weather like today, the battery kicks in when extra power is needed, like going through high waves. It's called peak shaving," Storvik says while monitoring the battery performance on the control system interface. "This means we don't need to push the diesel engines to the limit, so they'll have a smoother ride than without the batteries," says NS Frayja Chief Anders Johannessen. They explain that the batteries are frequently used while at the offshore field, often replacing the use of two of the four diesel engines. Less use of the diesel engines reduces fuel consumption, which subsequently reduces CO2 emissions. It also translates into a longer interval between each engine maintenance, since that is related to the number of hours they are in use.
– The batteries are undoubtedly an improvement and very helpful for us.
Electro-Technical Officer
While batteries are a step in the right direction, substantial savings in emissions will soon emerge. The PSVs accounts for 20 percent of Aker BPs identified Scope 3 emissions. Aker BP and its strategic partners have ambitions to reduce emissions beyond the potential of battery and shore power installations. Earlier this year, Aker BP and Eidesvik started Project Retrofit, a joint technology project with the aim of shaping the shipping industry of the future with an objective of reducing CO2 emissions by at least 70
Electro-Technical Officer Eivind Netland monitors the battery performance.
percent on several existing PSVs. NS Frayja is one of the targeted vessels for further substantial emission reduction. The project is looking at a broad range of possible solutions
– We see a great potential for significantly reducing emissions from the existing fleet with new technology. For us, Project Retrofit is a demonstration of Aker BP and Eidesvik's clear desire and willingness to contribute to developing a more environmentally friendly shipping and offshore industry.
President & CEO of Eidesvik
– One of the technologies we have decided to look further into is fuel cells powered by green ammonia.
Marine Manager in Aker BP
The project will explore installation of ammonia fuel cell technology on NS Frayja as well as Viking Lady, with the option to include further vessels in the scope of the project as well. The ability to produce green ammonia in a commercially acceptable way will be a game-changer and a prerequisite to transform our fleet to low emission operations. Developing new low emission technology to existing vessels is important as building new ships are both energy and capital intensive. The target for the first ammonia fuel cell on ships working for Aker BP is 2024.
Each corner of a production facility is scrutinised: Where can we save energy and cut emissions? At Alvheim, they got the idea to ventilate gas a different way, resulting in reduced emissions.
Process optimisation is how Håvard Thore Haslerud describes the chase for increased energy efficiency. The Operations & Production Manager oversees those initiatives in Aker BP. He and his team could be characterised as detectives hunting down greenhouse gases. In 2021, they managed to implement measures reducing Aker BP's annual emissions of CO2 equivalents by 22,738 tonnes.
– There's substantially increased attention in the company towards minimising the use of energy. We're applauding creativity and good ideas. Some initiatives take years to evaluate and complete; others are 'just do it'.
Operations & Production Manager
An example of the latter is an initiative at the Alvheim FPSO. Gas displaced from cargo tanks is usually routed through compressors and mixed with produced gas for export and gas lift, but this is impossible if the cargo tanks contain traces of oxygen following inspection work. This is called a cold vent and is a source of high methane emissions. It is also a risk if the vented gas reaches the gas detectors in the turbine intake.
The team at Alvheim started to investigate if there could be an alternative to releasing the gas. Engineers examined the model and the numbers, economists looked into related costs, while technicians tried to develop modifications in the system connected to the cargo tanks.
The Alvheim FPSO
There turned out to be a reliable alternative that satisfied the whole team, and a logical inference was the basis for the solution. Methane is a much stronger greenhouse gas than CO2; one kg of methane corresponds to 28.9 kg of CO2 equivalents in terms of the greenhouse gas effect (AR6). Therefore, it has substantially higher global warming potential in the atmosphere if this gas is cold-vented rather than burned. The team designed and installed a system to route the gas from the cargo tanks to the flare instead of ventilating it. They named the solution Volatile Organic Compound (VOC) to flare.
Peter Kongstad Schmidt stands beside the pipe and valve, central components in the VOC to flare project.
– This initiative at Alvheim shows the complexity related to emission cuts. Flaring is usually associated with increased emissions and is avoided as much as possible. However, in this case, flaring reduces the environmental impact, as combusted gas has a significantly lower global warming effect than non-combusted gas.
Operations & Production Manager
Cargo tank gas with oxygen above a certain threshold can now be flared instead of vented to the atmosphere, which is more environmentally friendly, reduces vent costs and reduces the risk of shutdown during venting.
– The VOC to flare project is just some piping, a valve, and changes in the control system. It's satisfying to see limited modifications resulting in favourable outcomes both in economic terms and related to reduced emissions.
Asset Operations Manager at Alvheim
The result of the project is an annual reduction in methane emissions with the same global warming potential as 6,600 tonnes of CO2 equivalents. The project is also a showcase for how companies like Aker BP are adjusting their operations partly because of the framework laid down by the Norwegian authorities. The environmental tax for cold-venting the mentioned gas has increased sevenfold over a short period of time, incentivising the companies to reduce such venting. The Alvheim team estimates annual savings of NOK 4.6 million thanks to the VOC to Flare project.
Feature article
Hanz was sanctioned in December 2021 as a tie-back to the Ivar Aasen field. The reservoir contains 20 million (gross) barrels of oil. Hanz was part of the Ivar Aasen plan for development and operation (PDO) sanctioned in 2013. After an initial postponement, a project team again put the tie-back on the table a few years ago. The group started to investigate the development from new angles.
They asked themselves if they could do this cheaper and more sustainably than the original plan. Months of discussion led to several ideas. "Over time, we matured a more resilient plan, with a new way of thinking around such a development," says Børge Skjevdal, Project manager for Hanz.
It became clear that the team could develop the project more environmentally friendly than would traditionally be the case. A way of thinking which fits perfectly into Aker BP's strategy; trying to limit its environmental footprint at every corner of the business.
An illustration of Hanz, and how the project will be connected to Ivar Aasen.
Water injection is needed to maintain proper pressure in the well. Initially, the plan was to pump water from Ivar Aasen, 15 kilometres away and down to the oil reservoir. The team discussed different alternatives. The Heimdal water reservoir happens to be situated close to the oil reservoir. The question was if the water from that reservoir could be used for injection instead of installing 15 kilometres of pipelines. After tonnes of work, months of investigation into the subsurface and modelling, running calculations and simulations over and over again – they finally succeeded.
– We will install a valve at the top of the Heimdal water reservoir and let the water flow down to the oil reservoir. It will become natural pressure support.
Project manager for Hanz
The discovery of this opportunity means that 350 tonnes of pipelines will not be necessary. Subsequently, a pump – and energy to power it – also will not be needed. And on top of all this – the water quality in the reservoir means that it is not required to add chemicals to treat seawater for injection, which would have been necessary with conventional water injection. But this is just one part of the Hanz story.
Ivar Aasen
A requirement for such a development is so-called X-mas
tree structures on the seabed (basically a stack of valves placed on the wellhead). Two are in use at the bottom of the ocean, while one is in spare capacity. A couple of years ago, X-mas trees from the abandoned and plugged field named Jette, a former Jotun satellite, were retrieved from the sea. While working on the concept for Hanz, an idea came up. The X-mas trees from Jette had just been in use for a few years. Why not re-use them on Hanz?
It turned out that the idea was entirely possible, and several plants in Europe have structures in place for refurbishment. Seals are changed, the components are screwed apart, inspected, and re-mounted, ready for several years of extended service.
– It's like a used car with low mileage. We'll be re-using most of the equipment from Jette
Project manager for Hanz
The result is less use of materials to build new X-mas trees and saved emissions from the construction of those materials.
The production will be powered by clean energy when it starts in 2024. Ivar Aasen receives electricity from gas turbines on the Edvard Grieg platform, but phase 2 of Johan Sverdrup will power Ivar Aasen from the fourth quarter of 2022. The gigantic field gets its electricity from the Norwegian mainland. Power from shore on Ivar Aasen means minimal CO2 emissions, more stable operations, and higher efficiency.
– The development of the Hanz discovery is important for the development of the Ivar Aasen area. The project team has matured an optimal solution; cost-effective and a significantly lower environmental footprint than traditional subsea tie-backs.
Vice President Asset Manager
We produce energy that the world needs and create value for the Norwegian society and our shareholders. Equally important, our strategy anchors the importance of our building, shaping and developing the Aker BP identity, organisation, and people of tomorrow. Our identity also reflects attributes such as a progressive stance, always looking for improvement and embracing change. We are committed to contribute to a positive transformation of our industry whilst delivering sustainable operations with dedication to safety, risk management and compliance with the applicable regulatory framework.
The business management system is used to support our management approach, reflecting leadership principles and clarification of the roles and responsibilities of leaders. Our leadership principles and newly updated leadership development concept apply to all managers and describe what we expect from all leaders in terms of building an identity, shaping the organisation, and developing our people. This is also clearly stated in our newly updated People Strategy.
Aker BP practices a flat chain of command and has many arenas and platforms for dialogue and sharing information between management and employees. We work to create an effective, inclusive and collaborative working atmosphere. Most employees have permanent positions; temporary employees or consultants are engaged in situations where we must maintain flexibility. 18,54 percent of the total workforce holds a managerial position.
We focus on team performance and deliverables; we expect our leaders to translate relevant top-down goals and to use the specialists within the team to turn these goals into prioritised team actions, where everyone understands how their contribution is connected to the company's overall goals. The key to our team performance is the shared goals we achieve as a company. To reflect the one-team ambition and drive, we have configured our bonus programme to measure company as collective performance for all levels of our organisation.
Aker BP conducts quarterly employee pulse surveys to help identify organisational input, risks and opportunities, and implement relevant measures to improve the work environment.
Aker BP adheres to collective bargaining agreements and have defined a number of topics that requires in-depth involvement from our employees. Discussions regarding changes have mostly taken place through our Works Council and Working Environment Committee, which have served as well-established and recognised arenas for employee representation and participation. Aker BP seeks to involve our employee representatives as early as possible before any significant changes to the organisation or operations are addressed and adopted.
Aker BP employees onshore have flexible working hours and a flexible hybrid-working policy that allows for remote working, provided there are adequate working conditions remotely and tasks that do not require office presence.
Full-time and part-time employees alike can enjoy a wide variety of employee benefits including:
Aker BP employees are enrolled in the company's defined contribution pension plan. In combination with the National Insurance Scheme, each employee's pension contribution amounts to 25.1 percent of pensionable pay, capped at approximately NOK 1.2 million (this cap is regulated by Norwegian pension legislation). The plan is fully funded. No employees have a top-hat pension plan (pension on pensionable pay above NOK 1.2 million).
Aker BP employees are entitled to parental leave in accordance with Norwegian legislation; parents are entitled to a total of 49 weeks with full pay, or 59 weeks with 80 percent pay. Approximately one third is reserved for the mother, one third reserved for the father and the remaining weeks can be used at the parents' discretion. We offer full pay during parental leave and an option for a further career break for up to 12 months (unpaid). During this period, employees are still covered by Aker BP's insurance plans. 157 employees (49 women and 108 men) took parental leave in 2021. The retention rate of employees that took parental leave is 100 percent. All Norwegian municipalities offer public childcare, enabling parents to return to work once their parental leave is over.
Career development is at the core of our employee value proposition and is essential for us to succeed with our strategy. Aker BP provides opportunities for building the best CV in the industry by combining career moves and development efforts. We offer extensive training and education, and this will continue to be an area where we focus and refine content.
Each employee is responsible for their own development, and we expect leaders to focus and contribute to the employee's development. The annual career development review forms a good basis for further development of the employee in Aker BP. 87,8 percent employees completed the development review in 2021.
We have defined five competence areas as essential for our development going forward:
Despite the ongoing pandemic, 2021 has been a very active year and we have enabled employees to operate a more dynamic and digitally equipped everyday life to maintain long-term productivity and development. Our most important platform for conducting work as usual has been facilitated through our in-house Academy university, offering competence development through courses, networking and workshops.
We delivered a total of 19 different types of training in 2021. This corresponds to 21,5 hours of training per employee. The figure above provides a closer look at what we have delivered in the area of training and competence.
To ensure that we close our plan-do-check-act loop we have established a training dashboard that is available to everyone with good analysis and key figures that we believe will drive learning. We will constantly develop, improve measurementbased training: evaluate and improve based on analytics to evaluate different competence gaps and development of our employees.
We invest in developing our leaders and knowledge experts as it empowers us as a company. Employees can further develop their expertise and skills to become better equipped for leading professional disciplines or employees through our development programmes for both horizontal and vertical management:
Mentorship programme in leadership: An established yearly programme developed and executed in partnership with AFF that pairs mentee and mentors in the organisation to co-develop through the programme for one year. The programme provides employees with support, toolkits, guidance and development opportunities.
Knowledge experts' programme: Through 2021, Aker BP has renewed and re-established our programme for knowledge expert in the company, focusing on driving professional and discipline expertise. Through participation in the programme, employees gain skills to drive innovation, manage change and build trust through development and collaboration.
Unconscious bias: As part of our Diversity & Inclusion plan, during the second half of 2021 we have prioritised a training campaign to build a common culture mindset to address unconscious bias. The training campaign has been mandatory and targeted to specific levels and units, both onshore and offshore. The organisation now has a common toolkit and language to better collaborate, drive decisions and optimise synergies of different views.
The course was set as mandatory and approximately 80 percent of our employees completed the programme that was tailormade for different target groups.
*Customized training was provided for offshore employees, numbers not included here
Aker BP supports United Nations (UN) Women's Empowerment Principles
Aker BP values the unique contributions of our employees and believes that a diverse and inclusive workforce emphasises deliveries and accomplishments. All decisions, from recruiting to promotions, should be merit-based, not based on characteristics such as gender, national origin, religion, ethnic background, age, sexual orientation, gender identity, marital status, disability, or age. We do not tolerate any form of discrimination, whether it be trade union affiliation, social background, political opinion, sensitive medical conditions and so forth.
Aker BP adheres to a gender-neutral pay system, which means that men and women in identical positions, with equivalent experience and the same formal competence, who produce equivalent results, are paid the same. This is evaluated and bench-marked for new hires, promotions and annual salary reviews. A total of 573 Aker BP employees are offshore tariff workers who are paid based on a salary matrix where the only two factors impacting salary are the type of job (electrician, nurse, etc.) and number of years of experience. The gender pay ratio for tariff workers is 100 percent when adjusted for equal positions and seniority.
Onshore employees and offshore supervisors are individually evaluated based on job complexity and accountability, as well as formal competence and experience level. For pay analysis purposes, employees are further grouped into three categories: subsurface and drilling, technical and business support.
Bloomberg's Gender Equality Index has rated Aker BP very high in the categories of Female Leadership and Talent Pipeline, which measure recruitment, retention, and development of women into senior leadership positions. Aker BP was also recognised for doing well with regards to Equal Pay and Gender Pay Parity, addressing closing of the gender pay-gap through transparent and effective action plans.
Based on in-depth analysis on diversity & inclusion metrics we have an improvement and action plan, which particularly targets improving our gender distribution. We will continue our work to achieve this in various areas and have included a set of questions related to work/life balance, perceived opportunities in the company, and compliance with the company processes in our quarterly pulse survey. The
* Aker BP offers employees flexible working hours, meaning that employees may choose when they start and end their workday, with core hours between 9am and 3pm. This allows for adjustments to family logistics and personal preference.
quarterly pulse survey contains a set of questions defined to check the temperature of the organisation used to identify improvements and actions to improve working environment.
We adhere to the Equality and Anti-Discrimination Act stating that all Norwegian employers are obliged to work actively, in a targeted and systematic manner to promote equality and prevent discrimination in the workplace. Following analysis in line with the four-step model required by this act, we have established a Diversity and Inclusion Policy expressing the mandatory principles all Aker BP employees will follow, with clear targets and a plan for action.
These principles aim to go beyond statutory equal opportunity policies and embrace diversity and inclusion as part of the company's strategy to source, retain and manage unique talent, skills, knowledge, and experience. They will govern everyday working life and cover such matters as: recruitment and selection, access to leadership opportunities, access to learning and development opportunities, succession planning and talent management. Our main goal is to broaden the options of candidates in the decision pool and remove any unconscious bias in processes where we select, promote and represent our workforce.
Diversity and inclusion have been on the agenda throughout 2021, both at executive level and in the Works Council. Together with the executive level, VP People & Organisation oversees the execution of the agreed action plan, which in 2021 consisted of these elements, among others:
** Senior Policy offering reduced work hours for senior staff. Employees 60 years of age ormore are offered senior planning courses and financial guidance (pension planning)
Total headcount: 2,441
| Total new hires | Total turnover | Employees: | 1,839 | 33% | 7% | |
|---|---|---|---|---|---|---|
| Age group 50 + 11% |
Age group 18-29 18% |
Age group Age group 50 + 18-29 61% 2% |
Consultants: | 602 | 1,839 Female: |
416 |
| Male: 143 Female: 66 |
209 Age group 30-49 71% |
109 Age group Male: 83 30-49 Female: 26 38% |
Nationalities: | 37 | Male: | 1,423 Age group |
| 12% of total number of employees | 6% of total number of employees | Average age: | 45 | 30-49 60% |
||
| Board of Directors | ||||||
| 11 Female: 4 Male: 7 Avg. age: X |
Age groups 18-29: 0 30-49: 1 50+: 10 |
|||||
| Senior Managers | ||||||
| 3 F: 0 M: 3 A.a: 46 |
63 Female: 17 Male: 46 Avg. age: 49 |
Age groups 18-29: 0 30-49: 34 50+: 29 |
||||
| Managers | ||||||
| 15 F: 5 M: 10 A.a: 45 |
278 Female: 62 Male: 216 Avg. age: 47 |
Age groups 18-29: 2 30-49: 178 50+: 98 |
||||
| Senior Professionals | ||||||
| 102 F: 36 M: 66 A.a: 41 |
783 Female: 209 Male: 574 Avg. age: 46 |
|||||
| Professionals | ||||||
| 36 F: 17 M: 19 A.a: 29 |
141 Female: 72 Male: 69 Avg. age: 34 |
Age groups 18-29: 30-49: 50+: |
60 79 2 |
|||
| Tariff Workers | ||||||
| 53 F: 8 M: 45 A.a: 35 |
573 Female: 56 Male: 517 Avg. age: 44 |
|||||
| 0 | 100 | 200 | 300 | 400 | 500 |
18-29: 30-49: 50+:
Age groups 64 302 207
200 300 400 500 600 700 800
* Reporting format changed due to new reporting requirements (BUFDIR) ** Excl. CEO
A license to operate on the Norwegian Continental Shelf implies compliance with strict occupational health and safety requirements from the Norwegian Government and specifically the regulations governed by the Petroleum Safety Authority. The government and the public both have high expectations for Aker BP's health and safety performance and the goal is always to prevent any kind of harm to our employees, temporary personnel and contractors.
Several structured measures are in place to manage occupational health and safety in order to fulfil this goal. A comprehensive occupational health and safety management system has been implemented to ensure that Aker BP identifies, understands, mitigates and manages health and safety risks throughout its offshore and onshore activities. The management system is based on regulatory requirements, international, national and industry-specific standards and was subject to more than 20 formal audits by governmental bodies in 2021. It includes processes for monitoring occupational health and exposure to ensure that the health of workers
is safeguarded, as well as the potential need for additional measures. Our health and safety management system applies to all employees and all workers (such as temporary personnel) that perform work for Aker BP.
This is anchored in the Health and Working Environment Policy and further described in two dedicated process areas. These areas are governed by the Working Environment Discipline Lead, Occupational hygienists, the Health Discipline Lead and an ergonomist. The requirements and processes are subject to an annual update, in addition to ad-hoc updates based on lessons learned from e.g. incident investigations, research and audits. The requirements and processes are followed up through regular surveys, assurance activities, audits and risk assessments. Observations or incidents related to the working environment are registered using the company's established incident management process and reports are handled in accordance with the requirements described therein. Sensitive matters may be addressed through the safety representative, People & Organisation department or the integrity channel.
In practice, the business management system ensures that Aker BP strives to understand the risks associated with its activities through systematic use of risk assessments, thoroughly described in a dedicated process area for Risk and barrier management. The understanding of risk forms the basis for systematic efforts for hazard identification, mitigation and incident reporting, as well as work environment surveys and occupational hygiene measurements.
Aker BP works systematically with mapping and analyses of the working environment factors that can lead to workrelated hazard and illness. Working environment health risk assessments (WEHRAs) are Aker BP's main tool to map its working environment risks. The method is based on our process to assess and treat risk, which ensures appropriate risk identification, analysis and evaluation. The objective is to evaluate whether the working conditions comply with regulations and requirements. It forms the foundation for planning and execution of risk reducing and preventive measures for both chemical and physical working environment, ergonomics, psychosocial and organisational working environment. The WEHRA method is used for mapping and risk evaluation in projects for new-builds, modifications and in operation.
Furthermore, the results are used to identify the need for more detailed mapping and evaluation, and to form the basis for health monitoring. The quality and integrity of these assessments are ensured by the occupational hygienists and ergonomic specialist facilitating the activity, as well as by the inclusion of relevant employees and safety representatives. The results are shared with the employer, employees, the Working Environment Committee and the Occupational Health Services.
WEHRA is also used to identify and follow up workers vulnerable to the risk of work-related injury or illness. The annual HSSEQ plans describe the need for working environment activities based on portfolio activities and projects. Findings related to assurance activities or incidents may also trigger an updated or new WEHRA. This includes, but is not limited to, changes to the working environment, task complexity, work-related illness, requests from the Working Environment Committee and regulatory changes.
Should work-related hazardous situations occur, we have incorporated practices for workers to secure the workplace and leave the area. Everyone working for Aker BP shall plan for safe work and stop unsafe work. All incidents are reported and followed up in the incident reporting system Synergi.
Aker BP operates a process for managing unwanted events. This process includes registration and classification of events, investigation and experience sharing. Depending on the severity of the event, both actual and potential consequences, the level of investigation is decided in a meeting where relevant roles, managers and HSSEQ professionals participate. The outcome can range from not launching a formal investigation for less severe cases, to an extensive
investigation where the investigation team is appointed by Internal Audit for severe and complex events.
An investigation aims to identify what caused the unwanted event and to prevent similar events from reoccurring by establishing corrective actions. Aker BPs investigation team leads are trained in using the principles of "Hierarchy of Controls" and in addition to assess and score corrective actions in terms of risk reduction and reach, e.g., whether the action will be for one or more offshore installation. Every investigation is concluded in a Management Review meeting to ensure agreement on actions and proper resourcing and deadlines for implementation. The outcome will in most cases address technical, procedural and organisational aspects, and when required, content in the management system is revised and updated. Actions are tracked to completion in Synergi, our reporting system. Experiences from the event is shared within the company and with other companies using the Lessons Learned collaboration system.
Aker BP aims to be a health promoting workplace for all personnel performing work for the company. To ensure personnel are healthy, sustain or even increase their health while working for the company, Aker BP has implemented several structured measures. Further, Aker BP is committed to and acknowledges that health is more than low sick leave percentages and that health is more than the absence of sickness for the individual. Health can be defined as the presence of full mental, physical and social well-being and this is what we aim to achieve for personnel working for us.
Aker BP provides a set of both occupational and non-occupational health services to prevent, discover and monitor work-related health risks. Employees also receive non-occupational health services related to personal health, physical therapy and health-promotive services such as support for increased physical activity, quit-smoking aid, dietary advice, vaccination programmes, health surveillance programmes and stress management. Further, our affiliated Occupational Health Care Services (OHCS) plays an important part in assisting Aker BP being a health promoting workplaces for all our personnel. There are bi-weekly meetings between Aker BP Discipline Lead Health and the Occupational Health Care Service which enables us to have a continuous overview of the various work the OHCS performs for our personnel. The OHCS is also represented in Aker BP's Working Environment Committees and the representative has an objective advisor role with regards to health and working environment. The OHCS is based onshore but performs work both for the onshore and offshore workforce. Aker BP also has an internal health department consisting of offshore nurses and discipline health lead onshore.
Aker BP did not experience any work-related fatalities in 2021 (including employees, contractors and hired personnel). We have 13 registered instances of work-related illness: All 13 are Aker BP employees. All work-related illnesses are closely followed up by the internal health department and the OHCS. The process for the identification and follow-up of work-related illness is described in the business management system.
All health care consultations, personal or related to occupational health, are registered in a health records system by dedicated health care personnel with a duty of confidentiality. Personnel who desire insight into details registered about themselves can contact the internal health department in Aker BP or the Occupational Health Service, depending on which entity performed the consultation. Information about occupational and non-occupational health services is communicated to personnel through various Aker BP communication platforms, both digitally and in-person.
Aker BP has in 2021 devoted special attention (as in 2020) to monitor how the pandemic has affected the workforce. To monitor the effects of the pandemic on our workforce, and to assess which measures should be implemented in the organisation, a psychosocial survey was established in 2020 and this survey has targeted the onshore and offshore organisation several times a year for approximately the last two years. The company established a mental health support line staffed by health care personnel to aid personnel working for the company with challenges such as loneliness, isolation, concerns about own, family or colleague's health etc. The support line has been used on several occasions during 2020 and 2021.
Aker BP acknowledges that ensuring health and safety is a continuous effort and maintains a comprehensive health and safety training programme. All Aker BP employees participate in mandatory e-learning training courses for chemicals, noise, ergonomics and psychosocial working environment. All
participants in working environment committees, managers and safety representatives must undergo formal extended training in working environment topics.
Mandatory pre-departure courses to ensure that all personnel travelling offshore have the necessary knowledge of HSSEQ requirements and guidelines, and extensive requirements for professional competence in the individual disciplines make it safe to travel to Aker BP locations. Asset specific training is provided by our working environment specialists in occupational hygiene and ergonomics based on needs identified in risk assessments and surveys.
Another key effort to strengthen HSSEQ awareness is the implementation of a set of Life-Saving Rules from the International Association of Oil & Gas Producers. The Life-Saving Rules represent industry-wide best practice in preventive HSSEQ efforts. Aker BP continued to strengthen its collaboration with other operating companies on the Norwegian Continental Shelf in 2021 in order to ensure that the collective industry experience is utilised to maintain worker health and safety. The collaborative efforts include coordinating the annual cycle for preventive HSSEQ initiatives as well as common training material.
The 2021 Q4 Health and Working Environment learning package was established to strengthen the employees' competence in managing the working environment and factors that constitute a health risk and can lead to workrelated illnesses. The focus was to promote awareness of risk factors in the working environment, improving the understanding of health and working environment risk management, increasing the use of risk assessment of health and working environment factors. The aim was to give answer to the questions about how we can become better at managing health and working environment risk, how we can reduce the risk of monotonous work, and how to reduce the risk of heavy work.
As an operator, Aker BP has a duty to ensure that everyone working for Aker BP complies with regulatory requirements. The goal is to reduce the probability and consequences of incidents as much as possible. Information is obtained annually to safeguard Aker BP's disclosure requirements in accordance with current regulatory requirements. This response data is used to assess Aker BP contractors' risk in relation to following up health risk vis-à-vis the Norwegian Labour Inspection Authority, the Petroleum Safety Authority, Norwegian Radiation and Nuclear Safety Authority and NORSOK S-WA-006:2018 E. A risk-based assessment forms the basis for further follow-up of contractors in the form of for instance observation and inpsection activities.
According to national legislation, it is mandatory for companies of a certain size to formalise worker involvement and participation. Aker BP's structure of Working Environment Committees (WEC) includes committees on both the corporate and asset level. The purpose of the committees is to formalise worker involvement and provide employees with a clear voice in safety matters. The WEC is a decision-making and advisory
body within the working environment in Aker BP that meets quarterly or more often if necessary. In accordance with the Working Environment Act, WEC participates in a number of statutory tasks including: planning safety and environmental work, surveys, decision of action plans, development of management systems and closely follows up developments in issues relating to employee safety, health and welfare. All reports related to working environment inspections and measurements shall be presented to the WEC.
Aker BP employees also have elected safety representatives both onshore and offshore. The role of the safety representative is to safeguard worker interests in matters concerning the working environment. The safety representatives are represented in the WECs.
The company's overall HSSEQ performance exhibits a positive trend. However, to meet our ambition of no harm to people and the environment, we need to maintain our continuous effort to seek improvements in our HSSEQ performance.
In addition to continuously improving our own HSSEQ results, Aker BP has a responsibility according to national legislation to follow up on and exercise influence to prevent and reduce negative consequences for health and safety in the workplace that are directly related to the business, products or services acquired from our business relationships as contractors or subcontractors. Aker BP facilitates compliance with the regulations through the framework conditions in cooperation with contractors and subcontractors.
In 2021 Aker BP had two serious injuries that affected our employees. The incident with two injuries has been thoroughly investigated to capture learnings and to prevent re-occurrence. The number of contractors that got seriously injured has been reduced every year since 2019. However, we aim to work even harder for the coming year to strive for zero incidents in both categories. Aker BP had zero Process Safety Events (PSE) in 2021 and this is a trend we aim to sustain.
The Serious Injury Frequency (SIF) for 2021 is 0.3, which is an improvement from our rate of 0.5 in 2020. The Total recordable Injuries Frequency (TRIF) has, however, increased from 1.2 in 2020 to 1.9 in 2021. Considering TRIF data from the past five years, the results from 2021 is the second best achievement for the company, indicating that the systematic approach to address and handle personal injuries is effective. Most of these are minor injuries such as staff or contractors stumbling on their way to/from the workplace, or a pinched finger etc. and are often related to not being present in the moment. This is an area we will focus on improving in the coming year, for example through our quarterly HSE learning campaigns where one quarter is devoted to personal injuries.
The quarterly learning campaigns that Aker BP develops in collaboration with three other major operators in Norway has the purpose of strengthen the industry's safety culture and to work together in order to have zero major accidents, avoid injuries, dropped objects, and strengthen the health and working environment.
The learning campaigns are designed to be used as a team exercise and are performed online by both offshore and onshore teams. The teams watch learning videos, performs practical and relevant tasks as well as anonymously answer and reflect on questions related to the quarters learning campaign. The campaigns are designed to suite each personnel type and the answers produced by the various teams are used for learning campaigns in the future and to improve the way we work with HSE in the company.
Each quarter the teams focus on different aspects of the quarterly topics. The focus for each quarterly campaign is based on collected data from the previous quarter with the same topic. This way one ensures that the topics that are experienced as difficult or that have room for improvement are addressed and receive additional focus the next quarter. This initiative is repeated annually and is a strong contribution to our proactive HSSEQ effort.
Aker BP has an internal audit department that reports to the CEO. Additional resources are hired when needed. The "Three lines of assurance" model is established as Aker BP's assurance framework. The role of the Internal Audit & Investigation (IAI) function is as an independent third line, to proactively provide effective assurance and oversight of the integrity of the internal control framework for all operations. IAI considers whether the business management system is operating effectively to respond to significant risks that could affect Aker BP's values, objectives and strategic priorities. Internal audit reports are provided to the Executive Management Team, CEO and Board of Directors through committees such as the Audit and Risk Committee. The Petroleum Safety Authority Norway (PSA) carried out 19 audits of Aker BP's operations and activities in 2021. Other authorities, such as the Norwegian Environment Agency, Norwegian Petroleum Directorate and Directorate for Radiation Protection and Nuclear Safety conducted one audit each. Aker BP received two notices of order from the Petroleum Safety Authority in 2021. One notice was related to establishment and verification of a well barrier element on Hod B and the other was related to non-compliant visibility of flare boom during dark conditions on Valhall PH. Both orders resulted in improvement work into 2022.
The responses and measures we use to control, manage and optimise our risks are embedded in our governance and business management system, and are complemented by our risk and barrier management framework. We continually improve and strengthen the business management system to control and optimise inherent risk, based on learning from our experiences and best industry practises.
Risk management is fully integrated in all our activities and permeates and supports our decision-making at all levels. Communication of important risks arising across the value chain and assets is ensured by our enterprise risk process, which encompasses all business units, and is reviewed on a regular basis by the Executive Management Team, Audit and Risk Committee and the Board of Directors.
Barrier management is systematically incorporated in all critical operations by establishing, monitoring and maintaining barriers in order to prevent major accident events and/ or significantly reduce potential consequences. During 2021, substantial improvements of the barrier management framework has been completed and implemented across assets in operations.
Amid an unprecedented focus on enhancing business performance through digital means we still rely on the collective experience and insight of our workforce to identify and act to manage risk throughout all phases of our activities. We systematically support the improvement of our ways of working by using our three lines of assurance (3 LoA) model for independence in the assurance of Aker BP's business management system. A targeted training programme towards process owners focusing on the 3 LoA model has been rolled out in 2021. Performance across the model is communicated to and evaluated by the Audit and Risk Committee and the EMT.
We support performance improvement through pro-active context specific training and coaching on how to apply the risk and barrier management framework. The current focus areas in the training are to safeguard major HSSEQ risk in our operations, and financial risk associated with major investment decisions. In 2021, we completed a comprehensive competence enhancement programme on risk management aimed at Asset Operations and Project personnel. We plan similar training for the Drilling and Wells organisation in the first half of 2022. Barrier management training of key-personnel in the asset operations teams has been completed in 2021, in addition to roll out of a barrier management e-learning module.
The overall objective of risk management in Aker BP is not only for our workforce to understand the standardised processes, apply the methods and use the systems, but also for them to take on a behaviour and mindset where risk is always considered and discussed upfront. Identifying opportunities and performance optimisation is a natural part of what we do to support our goals and sustainable business growth. We structurally apply the company's strategy process to set the overall direction, goals, and targets.
Aker BP's key risk factors are detailed in the Board of Director's report included in the 2021 Annual Report.
Identification, evaluation, and mitigation of major accident risk is a main focus throughout the lifetime of assets in Aker BP. Design of installations is based on regulations, standards, Aker BP additional requirements and recognised engineering practices.
Inherently safe design principles are the basis for design. Risks are managed through a set of engineered barriers that are in place both to reduce the probability of incidents with major accident risk potential, and to reduce the consequences if such an incident does occur.
Human intervention required to ensure effective incident control is implemented through general training of offshore personnel and specialised training of the emergency response teams. The residual risk is quantified and verified to be within Aker BP's risk acceptance criterions.
During operation, a continuous focus on barrier performance is implemented through testing and maintenance of active barrier functions and risk-based inspections of passive barrier functions. Failed tests or inspection findings will be registered, evaluated, prioritised, and corrective actions will be taken to maintain safe operations.
Important functions, processes, and systems to ensure asset integrity is also regularly validated through self-verification, assurance and audit activities.
Aker BP faces a range of incidents within our operations that can potentially harm people, the environment, our assets, or
the economy. We are committed to avoid harm and injury to personnel and all assets, avoid work-related illness and ensure safe and compliant operations. Aker BP's emergency response organisation is dimensioned to handle emergencies and hazardous incidents effectively, contribute to prevent dangerous situations from developing into accidents and reduce the consequences once something has gone wrong.
Aker BP has organised the emergency preparedness organisation as illustrated in the figure below.
In the event of an emergency incident that is expected to have a long duration, an Incident Command Organisation will be mobilised and take over responsibility for handling the incident and the normalisation phase. This organisation is established when needed and works according to guidelines established in the plan for the Incident Command organisation.
We systematically conduct training and exercises for all parts of our emergency response organisation to prepare for situations that may occur. Our HSSEQ management system includes processes and procedures for how to prepare for and respond to emergencies.
Aker BP has emergency response teams for each field asset in operation and the onshore response organisation has the capacity to support the offshore organisation and secure Aker BP's interests on a strategic level. All personnel in our emergency response organisation are trained in applying a proactive approach if an incident occurs. This allows us to use our in-depth knowledge of our business to predict the potential outcome of any undesirable incident and task our resources to handle the situation.
Emergency preparedness planning is based on the principles of establishing barriers and maintain them by planning and activities. Risk assessments, analysis, procedures, and training of personnel are the core elements to develop a competent, robust, and well-trained organisation that can manage all incidents safe and effectively. A key element in our emergency preparedness is the concept of Defined Situations of Hazard and Accident (DSHA). These are predefined situations which contribute to the dimensioning of our emergency preparedness, for example well blowouts, oil spills, fire, explosion, collision, cyber-attacks and pandemic outbreaks. Each DSHA has specific emergency response plans and scaling factors to ensure prompt and precise handling.
Intro Approach Responsibility Economic Environmental Disclosures
The emergency preparedness department is responsible for verifying that Aker BP's emergency preparedness satisfies internal and external requirements. Our emergency preparedness organisation is coordinated with the public rescue service, health and care services in the country and with the municipality's emergency preparedness. Aker BP also works closely with our partners' emergency response organisations to ensure that we have a shared understanding of emergency preparedness plans, our responsibility and our priorities. This is particularly evident in oil spill response, where operators collaborate on joint emergency preparedness solutions. We are clear in our expectations as regards emergency preparedness, and exchange knowledge and experience with others to achieve a well-functioning emergency organisation.
In line with our objective of becoming the leading independent E&P company, Aker BP plays an important part in providing predictable and stable energy security. Security in the energy market supports the global need for local and global sustainable development in line with the UN's sustainable development goals.
Unexpected imbalances in the energy supply may impact political and financial stability on a global scale. Unfortunately, some actors deliberately seek to cause such imbalances to reap financial, political, or other benefits. Preventing these actors from succeeding is the objective of our security efforts. Aker BP operates assets exclusively on the Norwegian Continental Shelf. This is a politically stable and comparably
safe region, which presently does not necessitate use of armed security forces or similar aspects to protect our general workforce.
During years with unprecedented growth in number of threat actors, 2021 focused on institutionalising our advanced threat analysis capabilities. Not only improving analytics but also focusing on using the insight to reduce uncertainty in real day-to-day operations, risk assessments, and decision making.
Security traditionally focuses on outside threats rather than those posed by untrustworthy individuals inside an organisation. To balance our holistic security approach an enhanced focus on personnel security measures has been implemented in both governance and in practice.
Continual improvement of cyber-risk management is a high priority for Aker BP. The ongoing cyber security programme has reduced the cyber-risk level and matured how the company monitors and responds to cyber threats in both onshore and offshore operations. The cyber security team delivers 24/7 security monitoring, improvement projects and corporate wide cyber-risk management including reporting to the Board of Directors. More information about our management of cyber security, including our Cyber Security Policy, can be found on our website, under Security.
Cyber security is identified as one of the enablers to Aker BP's digitalisation vision and will continue to be one of the important supporting disciplines in creating sustainable operation of Aker BP's assets.
| 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|
| Fatalities Employees | 0 | 0 | 0 | - |
| Fatalities Contractors | 0 | 0 | 0 | - |
| Fatality rate Employees | 0 | 0 | 0 | - |
| Fatality rate Contractors | 0 | 0 | 0 | - |
| Serious Injuries Employees | 2 | 1 | 2 | - |
| Serious Injuries Contractors | 4 | 3 | 2 | - |
| Lost Time Incidents Employees | 2 | 1 | 1 | - |
| Lost Time Incidents Contractors | 8 | 3 | 6 | - |
| Lost Time Incident rate Employees+Contractors | 0.8 | 0.4 | 0.7 | per mill exposed hours |
| Lost Time Incident rate Employee | na | 0.3 | 0.3 | - |
| Lost Time Incident rate Contractors | na | 0.4 | 1 | - |
| Medical treatment incidents Employees | 3 | 0 | 2 | - |
| Medical treatment incidents Contractors | 20 | 9 | 6 | - |
| Total exposure hours | 9.79 | 10.84 | 9.25 | Million hours worked |
| Total recordable injuries frequency (TRIF) - Employees+Contractors |
3.1 | 1.2 | 1.9 | per mill exposed hours |
| Total recordable injuries frequency (TRIF) - Contractors | - | 1.6 | 2.2 | per mill exposed hours |
| Total recordable injuries frequency (TRIF) - Employees | - | 0.3 | 1.1 | per mill exposed hours |
| Serious injury frequency (SIF) | 0.6 | 0.5 | 0.3 | per mill exposed hours |
| Near misses with high potential | 7 | 3 | 5 | - |
| Asset Integrity and Process Safety | 2019 | 2020 | 2021 | Units | |
|---|---|---|---|---|---|
| Number of Tier 1 process safety events | 0 | 0 | 0 | - | |
| Number of Tier 2 process safety events | 0 | 0 | 0 | - |
* Correction of SIF from 2020 report. The indicator name has changed from Serious incident frequency to Serious injuries frequency. The input numbers, calculation method and definition is the same as previous years.
OneTeam is one of the core principles of Aker BP. This is why diversity and inclusion is at the top of the agenda.
The OneTeam culture has multiple dimensions. Cooperation with suppliers, alliances, land and sea is at the very centre of how we work at Aker BP. But an even more fundamental aspect is how employees interact on a personal level by actively leveraging each other's strengths to create good results and take care of individuals in a safe, secure, and inclusive working environment.
Aker BP was created by mergers and acquisitions. That means that the workforce is a mix of employees with different backgrounds, many of which came from BP and Det norske following the merger in 2016. A significant number of employees previously worked for other companies, acquired along the way.
– This makes the workforce at Aker BP a fantastic mix of different backgrounds and cultures. While we are creating the leading exploration and production company, we are merging all this knowledge into a shared OneTeam culture. A core principle at our company is that all of our employees are equal, no matter where they come from.
Vice President People & Organisation in Aker BP
Being able to leverage the best in everyone assumes that our workforce has all the skillsets we need. Aker BP recognises a talented and diverse workforce as a critical competitive advantage. This is why the company has embraced diversity and inclusion as part of its strategy to source, retain, and manage unique talent, skills, knowledge, and experience. This already governs everyday working life in the company.
Diversity means all the ways we differ. It includes visible differences such as age, gender, ethnicity and physical appearance, and underlying differences such as thinking styles, religion, nationality, sexual orientation and education. Diversity also means we are equal no matter which company employees have worked at previously.
Inclusion means creating a working culture where differences are valued and used, where everyone can develop skills and talents consistent with our values and business objectives. The aim is to make Aker BP an organisation where people feel involved, respected and connected – where the richness of ideas, backgrounds and perspectives is leveraged to create business value.
In 2021 all employees in Aker BP went through a mandatory "Unconscious Bias" course. Unconscious bias refers to our assumptions and impulses that affect our decisions and, therefore, the actions we take. Our personality, culture, and values can affect them, but they are unconscious. We are unaware that they are driving some of those decisions and actions.
– We want our employees to be aware of how this affects all of us all the time. The more we can become aware of these biases, the better decisions and actions we can take.
Vice President People & Organisation in Aker BP
Diversity in terms of equality is another focus arena for Aker BP. Men have traditionally been overrepresented in the oil and gas business, and Aker BP is no exception. Therefore, various efforts have been implemented over the last years to meet this challenge. One such effort is participation in the FiftyFifty program run by AFF, where the focus is the unrealised potential that lies in an equal and diverse working life.
FiftyFifty brings women from large Norwegian and international companies from different industries together to define specific actions and objectives to succeed in recruiting more female leaders.
– In terms of equality in Aker BP management, we're on a very positive track, where we are closing in the gap and targeting a 50-50 gender balance.
Brit Tone Bergman Vice President People & Organisation in Aker BP
Aker BP and Kreftkompasset in close cooperation in Stavanger.
Kreftkompasset (Cancer Compass) is an organisation that works for cancer survivors, because it can be challenging to get back to everyday life.
Lotta Våde started the project together with Ida Marie Nilsen, after working for 22 years at the Norwegian cancer hospital Radiumhospitalet. The nurses saw a need for increased information and follow-up for patients who had undergone treatment for the disease.
– Many struggle with long-lasting effects, both mentally and physically, and have, for example, problems getting back to work.
Lotta Våde Nurse and project initiator Våde adds that life after cancer frequently differs quite a bit from life before the disease. Medical science on cancer is fast progressing, and the number of survivors is increasing. But the treatment is often harsh and remains challenging a long time afterwards. That is why these patients need attention even after successful treatment.
Kreftkompasset has a mentor program, where the mentor provides support and help to the former patient in the program.
– The whole idea behind the concept is different ways of helping others.
Nurse and project initiator
Aker BP has cooperated with Kreftkompasset for several years. I 2021, seven employees contributed to the mentor program.
They have helped people treated for cancer get a step further in their lives by daring to try their hand at work; some have been helped to change jobs or get tools to remain in the position they have.
– They work together on different parts of their lives, and a lot is about being able to accept that life didn't turn out as planned and make the best of the resources they have right now.
Nurse and project initiator
Aker BP bought 500 copies of the book Every day counts - life after cancer and delivered 450 of them to Stavanger University Hospital. The book is handed out to better prepare cancer patients for life after treatment.
In addition to this, Aker BP made a video for the organisation, an essential tool for recruiting additional mentors.
– Cancer affects us all. We might expect cancer survivors to be happy because they were lucky, while the reality might be challenging. By contributing to this effort, our employees play a direct role in making a difference in someone's life and the broader society, but also develop themselves on an interpersonal level, making them better at their work. We find it very rewarding to cooperate with this vital initiative.
Vice President People & Organisation in Aker BP
The book "Every day counts".
| DISCLOSURE | LOCATION | REQUIREMENT OMITTED |
REASON FOR OMITTANCE |
EXPLANATION OF OMITTANCE |
GRI SECTOR STANDARD REF. NO. |
|
|---|---|---|---|---|---|---|
| GRI 2: General Disclosures 2021 | ||||||
| 2-1 | Organizational details | page 4 | ||||
| 2-2 | Entities included in the organization's sustainability reporting |
page 4 | ||||
| 2-3 | Reporting period, frequency and contact point |
page 3 | ||||
| 2-4 | Restatements of information | page 95 | ||||
| 2-5 | External assurance | page 3, 96 | ||||
| 2-6 | Activities, value chain and other business relationships |
page 4 | - | - | - | |
| 2-7 | Employees | page 68 | - | - | - | |
| 2-8 | Workers who are not employees | page 68 | - | - | - | |
| 2-9 | Governance structure and composition | Annual report | - | - | - | |
| 2-10 | Nomination and selection of the highest governance body |
Annual report | - | - | - | |
| 2-11 | Chair of the highest governance body | Annual report | - | - | - | |
| 2-12 | Role of the highest governance body in overseeing the management of impacts |
Annual report | - | - | - | |
| 2-13 | Delegation of responsibility for managing impacts |
Annual report | - | - | - | |
| 2-14 | Role of the highest governance body in sustainability reporting |
Annual report | - | - | - | |
| 2-15 | Conflicts of interest | Annual report | - | - | - | |
| 2-16 | Communication of critical concerns | Annual report | - | - | - | |
| 2-17 | Collective knowledge of the highest governance body |
Annual report | - | - | - | |
| 2-18 | Evaluation of the performance of the highest governance body |
Annual report | - | - | - | |
| 2-19 | Remuneration policies | Annual report | - | - | - | |
| 2-20 | Process to determine remuneration | Annual report | - | - | - | |
| 2-21 | Annual total compensation ratio | page 68 | - | - | - | |
| 2-22 | Statement on sustainable development strategy |
page 6 | - | - | - | |
| 2-23 | Policy commitments | page 18 | - | - | - | |
| 2-24 | Embedding policy commitments | - | - | - | - | |
| 2-25 | Processes to remediate negative impacts |
page 19 | - | - | - | |
| 2-26 | Mechanisms for seeking advice and raising concerns |
page 22 | - | - | - | |
| 2-27 | Compliance with laws and regulations | page 23 | - | - | - | |
| 2-28 | Membership associations | page 22 | - | - | - | |
| 2-29 | Approach to stakeholder engagement | page 16 | - | - | - | |
| 2-30 | Collective bargaining agreements | page 22 | - | - | - |
A gray cell indicates that reasons for omission are not permitted for the disclosure or that a GRI Sector Standard reference number is not available.
| DISCLOSURE | LOCATION | REQUIREMENT OMITTED |
REASON FOR OMITTANCE |
EXPLANATION OF OMITTANCE |
GRI SECTOR STANDARD REF. NO. |
|
|---|---|---|---|---|---|---|
| GRI 3: Material Topics 2021 | ||||||
| 3-1 | Process to determine material topics | page 16 | ||||
| 3-2 | List of material topics | page 17 | ||||
| Economic performance | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 24 | - | - | - | - |
| GRI 201: Economic Performance 2016 | ||||||
| 201-1 | Direct economic value generated and distributed |
page 26 | - | - | - | - |
| 201-2 | Financial implications and other risks and opportunities due to climate change |
page 29-35 | - | - | - | - |
| 201-3 | Defined benefit plan obligations and other retirement plans |
page 65 | - | - | - | - |
| 201-4 | Financial assistance received from government |
4.75 mill NOK | - | - | The number refers to financial assistance received due to the Tax deduction scheme for companies with R&D projects. |
- |
| Market presence | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | - | - | Not applicable | Not a material topic - | |
| GRI 202: Market Presence 2016 | ||||||
| 202-1 | Ratios of standard entry level wage by gender compared to local minimum wage |
- | - | Not applicable | No workers/ employees compensated based on wages subject to minimum wage rules. No applicable local minimum wage applies. |
- |
| 202-2 | Proportion of senior management hired from the local community |
100% | - | - | Senior management is defined as the Executive Management Team, and its members are all either born or have legal right to reside in Norway indefinitely. The Company's |
- |
geographical definition of local is within Norway.
| Intro | Approach | Responsibility | Economic | Environmental | Social | Disclosures | |
|---|---|---|---|---|---|---|---|
| -- | ------- | ---------- | ---------------- | ---------- | --------------- | -------- | ------------- |
| DISCLOSURE | LOCATION | REQUIREMENT OMITTED |
REASON FOR OMITTANCE |
EXPLANATION OF OMITTANCE |
GRI SECTOR STANDARD REF. NO. |
|
|---|---|---|---|---|---|---|
| Indirect economic impacts | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 25-26 | - | - | - | - |
| GRI 203: Indirect Economic Impacts 2016 | ||||||
| 203-1 | Infrastructure investments and services supported |
page 25-26 | - | - | - | - |
| 203-2 | Significant indirect economic impacts | page 25-26 | - | - | - | - |
| Procurement practices | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 20 | - | - | - | - |
| GRI 204: Procurement Practices 2016 | ||||||
| 204-1 | Proportion of spending on local suppliers |
NOK 25,607,332,051 |
- | - | Definition of local is within Norway. |
- |
| Anti-corruption | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 21 | - | - | - | - |
| GRI 205: Anti-corruption 2016 | ||||||
| 205-1 | Operations assessed for risks related to corruption |
page 21 | - | - | - | - |
| 205-2 | Communication and training about anti corruption policies and procedures |
page 21 | - | - | - | - |
| 205-3 | Confirmed incidents of corruption and actions taken |
page 18, 21 | - | - | - | - |
| Anti-competitive behavior | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 21 | - | - | - | - |
| GRI 206: Anti-competitive Behavior 2016 | ||||||
| 206-1 | Legal actions for anti-competitive behavior, anti-trust, and monopoly practices |
page 23 | - | - | - | - |
| Tax | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 26, 27 | - | - | - | - |
| GRI 207: Tax 2019 | ||||||
| 207-1 | Approach to tax | page 26, 27 | - | - | - | - |
| 207-2 | Tax governance, control, and risk management |
page 27 | - | - | - | - |
| 207-3 | Stakeholder engagement and management of concerns related to tax |
page 27 | - | - | - | - |
| 207-4 | Country-by-country reporting | page 26 | - | - | - | - |
| DISCLOSURE | LOCATION | REQUIREMENT OMITTED |
REASON FOR OMITTANCE |
EXPLANATION OF OMITTANCE |
GRI SECTOR STANDARD REF. NO. |
|
|---|---|---|---|---|---|---|
| Energy | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 44 | - | - | - | - |
| GRI 302: Energy 2016 | ||||||
| 302-1 | Energy consumption within the organization |
page 55 | - | - | - | - |
| 302-2 | Energy consumption outside of the organization |
page 55 | - | - | - | - |
| 302-3 | Energy intensity | page 44 | - | - | - | - |
| 302-4 | Reduction of energy consumption | page 44 | - | - | - | - |
| 302-5 | Reductions in energy requirements of products and services |
- | Reductions in energy requirements of products and services |
Information unavailable/ incomplete |
This information was not available at the time of reporting. |
- |
| Water and effluents | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 49 | - | - | - | - |
| GRI 303: Water and Effluents 2018 | ||||||
| 303-1 | Interactions with water as a shared resource |
page 49, 50 | - | - | - | - |
| 303-2 | Management of water discharge-related impacts |
page 50-51 | - | - | - | - |
| 303-3 | Water withdrawal | page 49, 55 | - | - | - | - |
| 303-4 | Water discharge | page 55 | - | - | - | - |
| 303-5 | Water consumption | page 55 | - | - | - | - |
| Biodiversity | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 52-53 | - | - | - | - |
| GRI 304: Biodiversity 2016 | ||||||
| 304-1 | Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas |
page 52 | - | - | - | - |
| 304-2 | Significant impacts of activities, products and services on biodiversity |
page 52 | - | - | - | - |
| 304-3 | Habitats protected or restored | page 52 | - | - | - | - |
| 304-4 | IUCN Red List species and national conservation list species with habitats in areas affected by operations |
page 52 | - | - | - | - |
| DISCLOSURE | LOCATION | REQUIREMENT OMITTED |
REASON FOR OMITTANCE |
EXPLANATION OF OMITTANCE |
GRI SECTOR STANDARD REF. NO. |
|
|---|---|---|---|---|---|---|
| Emissions | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 42-44 | - | - | - | - |
| GRI 305: Emissions 2016 | ||||||
| 305-1 | Direct (Scope 1) GHG emissions | page 45-46 | - | - | - | - |
| 305-2 | Energy indirect (Scope 2) GHG emissions |
page 46, 56 | - | - | - | - |
| 305-3 | Other indirect (Scope 3) GHG emissions | page 47-48, 56 |
- | - | - | - |
| 305-4 | GHG emissions intensity | page 45, 56 | - | - | - | - |
| 305-5 | Reduction of GHG emissions | page 45, 55 | - | - | - | - |
| 305-6 | Emissions of ozone-depleting substances (ODS) |
- | Emissions of ozone-depleting substances (ODS) |
Information unavailable/ incomplete |
This information was not available at the time of reporting. |
- |
| 305-7 | Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions |
page 48, 56 | - | - | - | - |
| Waste | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 53 | - | - | - | - |
| GRI 306: Waste 2020 | ||||||
| 306-1 | Waste generation and significant waste related impacts |
page 53 | - | - | - | - |
| 306-2 | Management of significant waste related impacts |
page 53 | - | - | - | - |
| 306-3 | Waste generated | page 53, 56 | - | - | - | - |
| 306-4 | Waste diverted from disposal | page 57 | - | - | - | - |
| 306-5 | Waste directed to disposal | page 57 | - | - | - | - |
| Supplier environmental assessment | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 20, 23 | - | - | - | - |
| GRI 308: Supplier Environmental Assessment 2016 | ||||||
| 308-1 | New suppliers that were screened using environmental criteria |
page 57 | - | - | - | - |
| 308-2 | Negative environmental impacts in the supply chain and actions taken |
page 20 | - | - | - | - |
| Employment | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 64-66 | - | - | - | - |
| GRI 401: Employment 2016 | ||||||
| 401-1 | New employee hires and employee turnover |
page 68 | - | - | - | - |
| 401-2 | Benefits provided to full-time employees that are not provided to temporary or part-time employees |
page 65 | - | - | - | - |
| 401-3 | Parental leave | page 65 | - | - | - | - |
| DISCLOSURE | LOCATION | REQUIREMENT OMITTED |
REASON FOR OMITTANCE |
EXPLANATION OF OMITTANCE |
GRI SECTOR STANDARD REF. NO. |
|
|---|---|---|---|---|---|---|
| Occupational health and safety | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 70 | - | - | - | - |
| GRI 403: Occupational Health and Safety 2018 | ||||||
| 403-1 | Occupational health and safety management system |
page 70 | - | - | - | - |
| 403-2 | Hazard identification, risk assessment, and incident investigation |
page 71 | - | - | - | - |
| 403-3 | Occupational health services | page 71 | - | - | - | - |
| 403-4 | Worker participation, consultation, and communication on occupational health and safety |
page 72 | - | - | - | - |
| 403-5 | Worker training on occupational health and safety |
page 72 | - | - | - | - |
| 403-6 | Promotion of worker health | page 72 | - | - | - | - |
| 403-7 | Prevention and mitigation of occupational health and safety impacts directly linked by business relationships |
page 73 | - | - | - | - |
| 403-8 | Workers covered by an occupational health and safety management system |
page 70 | - | - | - | - |
| 403-9 | Work-related injuries | page 77 | - | - | - | - |
| 403-10 | Work-related ill health | page 77 | - | - | - | - |
| Training and education | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 65 | - | - | - | - |
| GRI 404: Training and Education 2016 | ||||||
| 404-1 | Average hours of training per year per employee |
page 65 | - | - | - | - |
| 404-2 | Programs for upgrading employee skills and transition assistance programs |
page 65 | - | - | - | - |
| 404-3 | Percentage of employees receiving regular performance and career development reviews |
page 65 | - | - | - | - |
| Diversity and equal opportunity | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 66 | - | - | - | - |
| GRI 405: Diversity and Equal Opportunity 2016 | ||||||
| 405-1 | Diversity of governance bodies and employees |
page 68 | - | - | - | - |
| 405-2 | Ratio of basic salary and remuneration of women to men |
page 68 | - | - | - | - |
| Non-discrimination | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 66 | - | - | - | - |
| GRI 406: Non-discrimination 2016 | ||||||
| 406-1 | Incidents of discrimination and corrective actions taken |
page 23 | - | - | - | - |
| DISCLOSURE | LOCATION | REQUIREMENT OMITTED |
REASON FOR OMITTANCE |
EXPLANATION OF OMITTANCE |
GRI SECTOR STANDARD REF. NO. |
|
|---|---|---|---|---|---|---|
| Freedom of association and collective bargaining | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 22 | - | - | - | - |
| GRI 407: Freedom of Association and Collective Bargaining 2016 | ||||||
| 407-1 | Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk |
page 20 | - | - | - | - |
| Child labor | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 18 | - | - | - | - |
| GRI 408: Child Labor 2016 | ||||||
| 408-1 | Operations and suppliers at significant risk for incidents of child labor |
page 19 | - | - | - | - |
| Forced or compulsory labor | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 18 | - | - | - | - |
| GRI 409: Forced or Compulsory Labor 2016 | ||||||
| 409-1 | Operations and suppliers at significant risk for incidents of forced or compulsory labor |
page 19 | - | - | - | - |
| Asset integrity and critical incident management | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 75 | - | - | - | - |
| GRI 306 Effluents and waste 2016 | ||||||
| 306-3 | Significant spills | page 57 | - | - | - | 11.8.2 |
| Tier 1 and Tier 2 process safety events | page 57 | - | - | No Tier 1 or 2 process safety events |
11.8.3 | |
| Closure and rehabilitation | ||||||
| GRI 3: Material Topics 2021 | ||||||
| 3-3 | Management of material topics | page 54 | - | - | - | - |
| GRI xxx | ||||||
| 402-1 | Minumum notice period regarding operational changes |
page 54, 64 | - | - | - | - |
| Operational sites that have closure and rehabilitation plans in place, have been closed, are in the process of being closed |
page 54 | - | - | - | 11.7.4 | |
| Decomissioned structures left in place | page 54 | - | - | - | 11.7.5 | |
| Totalt monetary value of financial provisions for closure and rehabiltiation |
- | Total monetary value of financial provisions for closure and rehabiltiation |
Information unavailable/ incomplete |
This information was not available at the time of reporting |
11.7.6 |
| DISCLOSURE | LOCATION | REQUIREMENT OMITTED |
REASON FOR OMITTANCE |
EXPLANATION OF OMITTANCE |
GRI SECTOR STANDARD REF. NO. |
|---|---|---|---|---|---|
| Local communities | |||||
| GRI 3: Material Topics 2021 | |||||
| Management of material topics | page 28-29 | - | - | - | - |
| GRI 413: Local Communities 2016 | |||||
| Operations with local community engagement, impact assessments, and development programs |
page 28-29 | - | - | - | - |
| Operations with significant actual and potential negative impacts on local communities |
page 28-29 | - | - | - | - |
| Supplier social assessment | |||||
| GRI 3: Material Topics 2021 | |||||
| Management of material topics | page 20 | - | - | - | - |
| GRI 414: Supplier Social Assessment 2016 | |||||
| 414-1 New suppliers that were screened using social criteria |
page 20 | - | - | - | - |
| Negative social impacts in the supply chain and actions taken |
page 20 | - | - | - | - |
| Public policy | |||||
| GRI 3: Material Topics 2021 | |||||
| Management of material topics | page 22 | - | - | - | - |
| GRI 415: Public Policy 2016 | |||||
| Political contributions | page 23 | - | - | - | - |
| TOPIC | EXPLANATION | |
|---|---|---|
| 11.16 | Land and resource rights | No signifcant impacts on land and resource rights from operations |
| 11.17 | Rights of indigenous peoples | No significant impacts on rights of indigenous peoples from operations |
| 11.18 | Conflict and security | No operations in areas of conflict |
| SECTION IN REPORT | ||
|---|---|---|
| Governance | ||
| a) | Describe the board's oversight of climate-related risks and opportunities. | page 29, 74 |
| b) | Describe management's role in assessing and managing climate-related risks and opportunities. | page 29, 74 |
| Strategy | ||
| a) | Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. |
page 29, 34 |
| b) | Describe the impact of climate related risks and opportunities on the organization's businesses, strategy, and financial planning. |
page 29 |
| c) | Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. |
page 29, 30 |
| Risk Management | ||
| a) | Describe the organization's processes for identifying and assessing climate-related risks. | page 29, 74 |
| b) | Describe the organization's processes for managing climate-related risks. | page 29, 74 |
| c) | Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management. |
page 29, 74 |
| Metrics and Targets | ||
| a) | Disclose the metrics used by the organization to assess climate related risks and opportunities in line with its strategy and risk management process. |
page 43 |
| b) | Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. | page 43, 29, 74 |
| c) | Describe the targets used by the organization to manage climate-related risks and opportu¬nities and performance against targets. |
page 43 |
| ADVERSE SUSTAINABILITY INDICATOR | METRIC | IMPACT | GRI | COMMENT | |
|---|---|---|---|---|---|
| Greenhouse gas emissions | |||||
| 1. | Carbon emissions (broken down by scope 1, 2 and 3 carbon emissions) |
Scope 1 Scope 2 Scope 3 |
Scope 1: 852,129 tonnes CO2e Scope 2: 81,408 tonnes CO2e Scope 3: 285,981 tonnes CO2e (partially identified) |
305 | Scope 1-3 is provided as GHG emissions (in CO2e) |
| 2. | Carbon footprint | - | N/A | - | - |
| 3. | Weighted average carbon intensity - | N/A | - | - | |
| 4. | Solid fossil fuel sector exposure | - | None | - | - |
| Energy performance | |||||
| 5. | Total energy consumption from non-renewable sources and share of non-renewable energy consumption |
1. Total energy consumption from non-renewable energy sources (in GWh) 2. Share of non-renewable energy consumption from non-renewable energy sources compared to renewable energy source |
1. 1,507 GWh 2. Non-renewable energy sources: 74% Renewable sources: 26%. |
302 | - 1) |
| 6. | Breakdown of energy consumption by type of non-renewable sources of energy |
Share of energy from non-renewable sources used broken down by each non-renewable energy source |
Energy consumption from fuel gas: 1,345 GWh Energy consumption from diesel: 162 GWh |
- | - |
| 7. | Energy consumption intensity | Energy consumption per million EUR of revenue (in GWh) |
0.43 GWh /million EUR revenue | - | - |
| 8. | Energy consumption intensity per sector |
Energy consumption intensity per million EUR per NACE sector (in GWh) |
All energy consumption in NACE B 06 – not possible to separate numbers for 06.1 and 06.2 |
- | - |
| Biodiversity | |||||
| 9. | Biodiversity and ecosystem preservation practices |
Share of all investments that do not assess, monitor or control the pressures corresponding to the indirect and direct drivers of biodiversity and ecosystem change |
All operations are assessed, monitored and controlled for indirect and direct drivers of biodiversity and ecosystem change. |
304 | page 52 |
| 10. | Natural species and protected areas |
1.Share of investments invested in investee companies whose operations affect IUCN Red List species and/or national conservation list species 2.Share of investments in investee companies with operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas |
1. Red-listed species from the IUCN in areas near exploration and operational sites is included in the environmental risk assessment. 2. No operational sites located in or adjacent to protected areas. |
304 | page 52 |
| 11. | Deforestation | Deforestation policy | Offshore activities – hence no policy |
- | - |
| Water | |||||
| 12. | Water emissions | Weight in tonnes of water emissions generated |
Produced water discharge: 6,767 megalitres |
303 | - |
| 13. | Exposure to areas of high water stress |
- | No operations in areas of high water stress |
303 | - |
| 14. | Untreated discharged waste water | Total amount in cubic meters of untreated waste water discharged |
0 m3 | 303 | - |
1) We assume a 40% turbine efficiency and waste heat recovery on three assets. This assumption makes the energy consumption numbers comparable between electrically powered installations and fuel gas powered installations.
Intro Approach Responsibility Economic Environmental Social
| ADVERSE SUSTAINABILITY INDICATOR | METRIC | IMPACT | GRI | COMMENT | |
|---|---|---|---|---|---|
| Waste | |||||
| 15. | Hazardous waste ratio | Weight in tonnes of hazardous waste generated |
40,516 tonnes | 306 | - |
| 16. | Non-recycled waste ratio | Weight in tonnes of non-recycled waste generated |
Total weight of waste when tonnes of recycled waste is subtracted: 39,559 tonnes |
306 | - |
| Social and employee matters | |||||
| 17. | Implementation of fundamental ILO Conventions |
- | Yes | - | page 18 |
| 18. | Gender pay gap | Average gender pay gap | 95,6% | 405-2 | page 70 |
| 19. | Excessive CEO pay ratio | - | 12:1 | 2-21 | - |
| 20. | Board gender diversity | Ratio of female to male board members |
36.36% female | 405-1 | page 68 |
| 21. | Policies on the protection of whistleblowers |
- | Yes | 2-26 | page 22 |
| 22. | Workplace accident prevention policies |
- | Yes | 403 | page 70 |
| Human rights | |||||
| 23. | Human rights policy | - | Yes | 2-23 | page 18, Policy commitments |
| 24. | Due diligence process to identify, prevent, mitigate and address adverse human rights impacts |
- | Yes | 2-23 | page 18, Policy commitments |
| 25. | Processes and measures for preventing trafficking in human beings |
- | Yes | 2-23 | page 18, Policy commitments |
| 26. | Operations and suppliers at significant risk of incidents of child labour |
- | 0 | 2-23 | page 18, Policy commitments |
| 27. | Operations and suppliers at significant risk of incidents of forced or compulsory labour |
- | 0 | 2-23 | page 18, Policy commitments |
| 28. | Number and nature of identified cases of severe human rights issues and incidents |
- | 0 | 2-23 | page 23 |
| 29. | Exposure to controversial weapons - | No | - | ||
| Anti-corruption and anti-bribery | |||||
| 30. | Anti-corruption and anti-bribery policies |
- | Yes | 205 | page 18, 21 |
| 31. | Cases of insufficient action taken to address breaches of standards of anti-corruption and anti-bribery |
- | 0 | 205 | page 18, 21 |
| 32. | Number of convictions and amount of fines for violation of anti corruption and anti-bribery laws |
- | 0 | 205 | page 18, 23 |
| ACTIVITY METRIC | UNIT | COMMENT |
|---|---|---|
| Production of: (1) oil, (2) natural gas, (3) synthetic oil, and (4) synthetic gas |
Thousand barrels per day (Mbbl/day), Million standard cubic feet per day (MMscf/day) |
(1) oil: 161.6 mbbl/day (2) natural gas: 268 MMscf/day (including NGL of 54 MMscf/day) (3) synthetic oil: 0 (4) synthetic gas: 0 |
| Number of offshore sites | Number | Operator for Alvheim, Ivar Aasen, Skarv, Valhall, Hod, Ula and Tambar, a partner in the Johan Sverdrup field. |
| Number of terrestrial sites | Number | 0 |
| METRIC | UNIT | COMMENT |
| GHG emissions | ||
| Gross global Scope 1 emissions, percentage methane, percentage covered under emissions-limiting regulations |
Metric tons CO₂e (t), Percentage (%) |
Gross global Scope 1 emissions: 852,129 tonnes CO₂e Percentage methane: 3.7% Percentage covered under emissions limiting regulations: 100% |
| Amount of gross global Scope 1 emissions from: (1) flared hydrocarbons, (2) other combustion, (3) process emissions, (4) other vented emissions, and (5) fugitive emissions |
Metric tons CO₂e (t) | (1) 60,901 tonnes CO₂e (2) 766,356 tonnes CO₂e (3) 9,227 tonnes CO₂e (4) 618 tonnes CO₂e (5) 15,027 tonnes CO₂e |
| Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets |
Discussion and analysis | Risks and opportunities posed by climate change, page 29 and GHG Emissions, page 43. |
| Air Quality | ||
| Air emissions of the following pollutants: (1) NOX (excluding N2O), (2) SOX, (3) volatile organic compounds (VOCs), and |
Metric tons (t) | Air emissions of the following pollutants: (1) 1,684 tonnes (2) 39 tonnes (3) Non-methane VOC 1,947 tonnes |
| Water Management | ||
| (1) Total freshwater withdrawn, (2) total freshwater consumed, percentage of each in regions with High or Extremely High Baseline Water Stress |
Thousand cubic meters (m³), Percentage (%) |
(1) 163 Thousand m³ (2) 0% of each in regions with High or Extremely High Baseline Water Stress |
| Volume of produced water and flowback generated; percentage (1) discharged, (2) injected, (3) recycled; hydrocarbon content in discharged water |
Thousand cubic meters (m³), Percentage (%), Metric tons (t) |
(1) 38% (2) 61% (3) 0.14% (Hydrocarbon discharged to sea) |
| Percentage of hydraulically fractured wells for which there is public disclosure of all fracturing fluid chemicals used |
Percentage (%) | 0% (No hydraulically fractured wells) |
| Percentage of hydraulic fracturing sites where ground or surface water quality deteriorated compared to a baseline |
Percentage (%) | 0% (No hydraulically fractured wells) |
| Biodiversity Impacts | ||
| Description of environmental management policies and practices for active sites |
Discussion and analysis | Environmental management, page 42 Biodiversity, page 52 |
| Number and aggregate volume of hydrocarbon spills, volume in Arctic, volume impacting shorelines with ESI rankings 8-10, and volume recovered |
Number | 0 |
| Percentage of (1) proved and (2) probable reserves in or near sites with protected conservation status or endangered species habitat |
Percentage (%) | 0 |
Intro Approach Responsibility Economic Environmental Social
| METRIC | UNIT | COMMENT |
|---|---|---|
| Security, Human Rights & Rights of Indigenous Peoples | ||
| Percentage of (1) proved and (2) probable reserves in or near areas of conflict |
Percentage (%) | 0 |
| Percentage of (1) proved and (2) probable reserves in or near indigenous land |
Percentage (%) | 0 |
| Discussion of engagement processes and due diligence practices with respect to human rights, indigenous rights, and operation in areas of conflict |
Discussion and analysis | Responsible business conduct, Human Rights |
| Community Relations | ||
| Discussion of process to manage risks and opportunities associated with community rights and interests |
Discussion and analysis | Responsible business conduct, Human Rights |
| Number and duration of non-technical delays | Number | 0 |
| Workforce Health & Safety | ||
| (1) Total recordable incident rate (TRIR), (2) fatality rate, (3) near miss frequency rate (NMFR), and (4) average hours of health, safety, and emergency response training for (a) full time employees, (b) contract employees, and (c) short-service employees |
Rate, Hours (h) |
(1) Total recordable incident rate (TRIR): 1,2 (2) fatality rate: 0 (3) near miss frequency rate (NMFR): 8 (4) average hours of health, safety, and emergency response training per employee not available. Health and safety training is described in the Occupational Health and safety chapter in this report. Emergency response training is described in the Asset integrity and critical incident management chapter of this report. |
| Discussion of management systems used to integrate a culture of safety throughout the exploration and production lifecycle |
Discussion and analysis | Occupational health and safety, intro |
| Reserves Valuation & Capital Expenditures | ||
| Sensitivity of hydrocarbon reserve levels to future price projection scenarios that account for a price on carbon emissions |
Million barrels (MMbbls), Million standard cubic feet (MMscf) |
Risks and opportunities posed by climate change, Sensitivity to carbon prices, page 29 |
| Estimated carbon dioxide emissions embedded in proved hydrocarbon reserves |
Metric tons CO₂e (t) | 3.85 million tonnes CO₂e 1) |
| Amount invested in renewable energy, revenue generated by renewable energy sales |
Reporting currency | 0 |
| Discussion of how price and demand for hydrocarbons and/ or climate regulation influence the capital expenditure strategy for exploration, acquisition, and development of assets |
Discussion and analysis | Risks and opportunities posed by climate change |
| Business Ethics & Transparency | ||
| Percentage of (1) proved and (2) probable reserves in countries that have the 20 lowest rankings in Transparency International's Corruption Perception Index |
Percentage (%) | 0 |
| Description of the management system for prevention of corruption and bribery throughout the value chain |
Discussion and analysis | Responsible business, Anti-Corruption |
| Management of the Legal & Regulatory Environment | ||
| Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social factors affecting the industry |
Discussion and analysis | Responsible business, Public Policy |
| Critical Incident Risk Management | ||
| Process Safety Event (PSE) rates for Loss of Primary Containment (LOPC) of greater consequence (Tier 1) |
Rate | 0 |
| Description of management systems used to identify and mitigate catastrophic and tail-end risks |
Discussion and analysis | Asset integrity and process safety management |
1) Potential Scope 1 CO2 emissions embedded in Aker BP's proved HC reserves are estimated at 3,85 Million tonnes CO2. The estimate is based on Aker BP's 2021 net equity CO2 emission intensity of 4,8 kg CO2/boe, and proved hydrocarbon reserves in 2021 (2P, net Aker BP). The estimate is conservative as it doesn't take into account expected future improvements in the CO2 intensity metric.
| PAGE | ORIGINAL TEXT/DATA IN SR 2020 | CORRECTION MADE IN SR 2021 | REASON |
|---|---|---|---|
| Environmental impact - Emissions | |||
| Page 44 | Category 7 Employee commuting: 13 tonnes CO2e |
Category 7 Employee commuting: 13,600 tonnes CO2e |
Correction of error. |
| In excel, not in text | Category 3 Fuel and energy related activities: 15,332 CO2e |
Category 3 Fuel and energy related activities: 45,000 CO2e |
More data available and more detailed mapping of data. The following categories are added: IMR, Subsea, well stimulation, geo and seismic, |
| In excel, not in text | Category 4 Upstream transportation and distribution: 71,000 |
Category 4 Upstream transportation and distribution: 69,900 |
More detailed mapping of data. |
| Environmental impact | |||
| Page 48 (Table) | Scope 3 emissions 2020: Total CO2 emissions from category 3, 4, 6 and 7: 88,534 tonnes CO2e |
Total scope 3 GHG emissions 2020: 223,533 tonnes CO2e |
Correction of error. More data available and more detailed mapping of data. |
| Page 44 (text) | In 2020, our category 3 and 4 emissions amounted to 86,332 tonnes of CO2. |
Category 3 + 4: 114,900 CO2e | More data available and more detailed mapping of data. |
| No text or data | Category 9: Downstream transportation and distribution |
Mapping of new data | |
| Environmental impact – Sustainability data Environment | |||
| Page 48 (Table) | Scope 2 emissions 2019: 143,152 tonnes CO2e 2020: 157,046 tonnes CO2e |
Scope 2 emissions 2019: 89,627 tonnes CO2e 2020: 97,024 tonnes CO2e |
Correction of calculation error |
| SIF | |||
| SIF | Serious incident frequency | Serious injuries frequency | Terminology corrected from Serious incident frequency (SIF) to Serious injuries |
frequency (SIF). The contents of the indicator are the same as previous years, ref. GRI 403.
Intro Approach Responsibility Economic Environmental Social Disclosures
KPMG AS Sørkedalsveien 6 Postboks 7000 Majorstuen 0306 Oslo
Telephone +47 45 40 40 63 Fax Internet www.kpmg.no Enterprise 935 174 627 MVA
To Aker BP ASA
We have been engaged by Aker BP ASA ('Aker BP') to perform a limited assurance engagement as defined by International Standards on Assurance Engagements, hereafter referred to as the engagement, to report on the following 2021 data included in Aker BP's 2021 Sustainability Report:
| Sustainability data: Environment | Pages | 55 - 57 |
|---|---|---|
| The People of Aker BP | Pages | 68 - 70 |
| Sustainability data: Occupational Health and Safety | Page | 77 |
Our engagement has been performed with the purpose of expressing a limited level of assurance on this 2021 data only, and we do not provide any assurance over any other information in Aker BP's 2021 Sustainability Report. Historical data presented for 2020 and 2019 on the pages detailed above in Aker BP's 2021 Sustainability Report is not covered by our report.
Based on the limited assurance procedures performed and the evidence obtained as described below, nothing has come to our attention to indicate that the 2021 data subject to our engagement as detailed above is not presented, in all material respects, in accordance with the criteria described in Aker BP's 2021 Sustainability Report.
Management of Aker BP is responsible for the preparation and presentation of the 2021 Sustainability Report in accordance with the selected criteria.
These responsibilities include establishing such internal controls as management determines are necessary to enable the preparation of the information in the 2021 Sustainability Report which is free from material misstatement, whether due to fraud or error.
Our responsibility is to provide a limited assurance conclusion on the 2021 Sustainability Report data which is subject to our engagement as detailed above.
We conducted our engagement in accordance with the International Standard for Assurance Engagements (ISAE 3000 revised): Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board. This standard requires that we plan and perform the engagement to obtain limited assurance about whether, in all material respects, the data in the 2021 Sustainability Report subject to our engagement has been prepared in accordance with the described criteria.
We are independent of the company as required by laws and regulations and the International Ethics Standards Board for Accountants' Code of International Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. Our firm applies International Standard on Quality Control 1 (ISQC 1) and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
| Offices in: | ||||
|---|---|---|---|---|
| KPMG AS, a Norwegian limited liability company and member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. |
Oslo Alta Arendal |
Elverum Finnsnes Hamar |
Mo i Rana Molde Skien |
Stord Straume Tromsø |
| Statsautoriserte revisorer - medlemmer av Den norske Revisorforening | Bergen Bodø Drammen |
Haugesund Knarvik Kristiansand |
Sandefiord Sandnessjøen Stavanger |
Trondheim Tynset Alesund |
A limited assurance engagement consists of making enquiries, primarily of persons responsible for the preparation of Aker BP's 2021 Sustainability Report and applying analytical and other limited assurance procedures.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement, and consequently the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Although we considered the effectiveness of management's internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls.
Our procedures to provide limited assurance included, amongst others:
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Oslo, 8 March 2022 KPMG AS
Roland Fredriksen State Authorised Public Accountant
2
Please contact Senior Vice President HSSEQ, Marit Blaasmo, if you have any questions.
[email protected] Tel: +47 416 87 486
Elisabeth Tønnessn: 58, 59
Fornebuporten, Building B Oksenøyveien 10 1366 Lysaker
Postal address: P.O. Box 65 1324 Lysaker, Norway
Telephone: +47 51 35 30 00 E-mail: [email protected]
www.akerbp.com
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