Tullow is committed to acting as a responsible steward of the environment and ensuring robust systems are in place for assessing and managing environmental risk. We subscribe to the precautionary principle established in the Rio Declaration on Environment and Development in 1992 and promote sustainable development through our operations.
Our Ghana operations are certified to ISO 14001 Environmental Management Systems Standard, ensuring that the systems and processes which we apply to our key operating asset are consistently maintained. We aim to comply with all applicable environmental laws and regulations in all the countries in which we operate.
A key focus of our environmental efforts is our contribution to mitigating the effects of global
climate change through our commitment to Net Zero. Additionally, we aim to minimise our
water and waste impacts while protecting biodiversity.
Progressing our Net Zero roadmap
Tullow supports the goals of the Paris Agreement of 2015, namely, to hold the increase in the global average temperature to well below 2°C and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels. We have committed to achieving Net Zero by 2030 on our Scope 1 and 2 GHG emissions on a net equity basis through a combination of decarbonising our operated assets in Ghana and identifying suitable nature-based solutions to offset our hard to abate emissions.
We are prioritising decarbonisation of our operations with a target to reduce emissions across our portfolio by at least 40% by 2025, on a net equity basis, against a 2020 baseline, through the elimination of routine flaring.
Supported by our internal Net Zero Task Force and approved by our Board of Directors and Senior Leadership Team, we have a defined pathway to achieving our Net Zero target by 2030.
The two core components of our Net Zero pathway are:
- Eliminating routine flaring: By eliminating routine flaring of gas from our Jubilee and TEN fields by 2025, we will reduce GHG emissions by at least 40% from a 2020 baseline. The majority of spend linked to these decarbonisation initiatives will occur before 2025.
- Nature-based solutions: By investing in verified nature-based carbon removal projects in Ghana, we expect to be able to offset at least 40% of our residual, hard to abate GHG emissions.
An essential step on our pathway to Net Zero is the elimination of routine flaring, which we have committed to achieve by 2025. Flaring is an established method of disposing of gas that is generated through oil production in quantities that exceed our capacity to process it either for sale or for use as an energy source. By increasing our gas processing capacity at our Jubilee and TEN fields, we will avoid the need for routine gas flaring. Implementation of the changes necessary to eliminate routine flaring requires the shutdown of operations at each site to allow for switching out of core equipment and other upgrades. This activity is scheduled to occur during planned maintenance shutdowns to avoid disruption to production and supply.
Jubilee FPSO: Eliminating routine flaring at our Jubilee FPSO will be achieved through topside expansion works to increase gas processing capacity and gas compression capacity by around 35 percent in total. Increasing gas compression capacity requires replacement of all six current gas compressor electric motors with larger electric motor drivers. Additionally, a higher capacity compressor wheel will replace smaller capacity wheels on different compressor units. The efficient operation of these upgraded compressors is sufficient to process expected higher gas flow arriving at the FPSO from current and new production wells. All motors have now been replaced, rewheeling of compressors and completion of the gas compressor control system upgrade is planned to for completion in 2023. Alongside the increase in gas compression capacity, we are increasing gas dehydration capacity by repurposing an existing unused process vessel which is also planned for 2023. Therefore, our plan is that all these changes will eliminate the need for routine flaring from our Jubilee FSPO by early 2024, ahead of our Net Zero commitment.
TEN FPSO: Routine flaring elimination on the TEN FPSO will be achieved through modifying
our system to allow routing of low-pressure separated gas from a multi-functional separator vessel into the low-pressure gas compression system.
At present, gas routed through a multifunctional separator cannot be mixed with higher pressure separated gas from the FPSO’s main high-pressure separator, meaning that excess gas must be flared. Upon completion of the gas flow modification, low-pressure gas will be routed to the appropriate system and flaring will no longer be required. These modifications require a full facilities shutdown are currently scheduled to be completed during the second half of 2023.
Non-operated assets: We take a proactive role in working with our partners at our nonoperated assets to drive the elimination of routine flaring and pursue other emission reduction opportunities. Routine flaring on Ezanga, Echira and Turnix in Gabon ceased in 2021 and gas from these assets is now exported or utilised for power generation. In 2022, we supported routine flaring elimination at non-operated assets in Gabon:
- At the Limande field, a gas compressor was refurbished to increase gas compression capacity.
- In 2023, works sanctioned in 2022, are to commence on a project at the Simba and Tchatamba fields, that will reduce flaring.
We plan to mitigate our residual, hard to abate emissions through the implementation of nature-based carbon offsets, initially in Ghana, informed by the Oxford Principles for Net Zero Aligned Carbon Offsetting. In 2022, we completed a feasibility study on a Reduced Emissions from Deforestation and forest Degradation (REDD+) project which is aligned with the Government of Ghana’s REDD+ strategy and its Nationally Determined Contributions under the global Paris agreement. The feasibility study identified key drivers of deforestation in the proposed project area and sought initial views from a range of stakeholders on potential intervention activities to conserve existing forest and restore degraded lands. This initiative is likely to enable us to meet our residual emissions commitments of approximately 600,000 tonnes of CO2e annually while generating significant local community engagement and positive biodiversity outcomes through reduced deforestation and improved land management, in line with leading climate and biodiversity standards. Additionally, this project will provide alternative livelihoods for local communities. We signed a Letter of Intent with the Forestry Commission in Ghana that will enable us to progress project structuring and due diligence ahead of an anticipated Final Investment Decision and project implementation in 2023.
Across our operations, we seek to operate at the highest levels of carbon efficiency, and we continuously assess our activities for opportunities to avoid or reduce GHG emissions. However, our overall emissions performance is impacted by our continued need to support gas disposal by flaring. Our pathway to Net Zero includes plans to eliminate routine flaring to deliver a 45% reduction in total Scope 1 and 2 emissions (net equity basis) by 2025.
We continue to drive carbon efficiencies through our operations, and this can be seen in the approximately 75% reduction in Scope 2 GHG emissions recorded in 2022, compared to 2018. In the meantime, our Scope 1 emissions, correlated to production and associated flaring levels, show a further temporary increase in 2022.
We will continue to closely monitor these emission sources, until gas handling projects are completed on Jubilee and TEN.
In 2022, we also recorded a significant increase in Scope 3 emissions, which is due to an expanded basis of reporting, to include emissions associated with Tullow’s value chain including purchased goods and services, capital goods and the use of sold products, in addition to the non-operated emissions, waste generated in operations, business travel, transportation and distribution and employee commuting we disclosed last year.
We are continuously working to better understand our Scope 3 emissions including with our supply chain partners to manage the emissions outside of Tullow’s immediate operational control.
For details of our Scope 1, 2 and 3 greenhouse gas emissions for the years 2017-2022, please see our Sustainability Data workbook.
Increasing solar power: In 2022, we tripled the capacity of our PV solar array at our offices in Takoradi, Ghana from 131 kwh/ year to approximately 390 kwh/year. The installation, once commissioned in Q1 2023, will provide all power needs for our Takoradi office.
Our detailed pathway to Net Zero and managing climate risks to our business are laid out in our third annual Climate Risk & Resilience Report, prepared in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This report provides an in-depth description and analysis of our approach in the following areas:
Governance of climate change and climaterelated risks: Our Board of Directors holds accountability for our management of climate-risk and is supported by three of the four Board Committees, our Senior Leadership Team, managers throughout our operations and specialist consultants. The sustainability team leads the integration of climate risk management across the business.
Strategy for managing climate- related risks: In line with our belief that fossil fuels will remain part of the global energy mix for some time, and that oil and gas resources must be developed and produced responsibly, we have committed to and defined a pathway to achieve Net Zero on our Scope 1 and 2 net equity emissions by 2030, supporting our host countries in benefitting from the responsible development of natural resources wealth. We continued to test the resilience of our portfolio against International Energy Agency scenarios: the Net Zero Emissions by 2050 Scenario, Announced Pledges Scenario, and Stated Policies Scenario.
As a predominantly oil producing company with no downstream assets, the key financial
risk for our business remains oil price.
We remain a resilient business, positioned to support our host nations in developing their hydrocarbon resources to promote sustainable and inclusive economic development.
Assessment of climate-related risks: Tullow considers climate-related risks and opportunities as an upstream exploration and production company with limited exposure to impacts in the downstream and distribution aspects of the oil and gas sector. We continue to examine the interconnection of climate-related and other risks identified through our enterprise risk management processes, which provides a systematic approach of understanding, evaluating and addressing risks to ensure strategic objectives are achieved.
Metrics and targets: Tullow has a performance culture focused on achieving the key metrics and targets we set for the business, including performance indicators for the management of climate-related risks and opportunities. Tullow is committed to achieving Net Zero by 2030 on our Scope 1 and 2 net equity emissions, supporting the 2°C goal of the Paris Agreement. This is a target we are focussed on from the Board through to our operations team in Ghana, where we are focussing on decarbonising our operated production.
At Tullow, we aim to minimise our water impacts. In 2022, more than 83% of our water withdrawal was from seawater, with zero withdrawal from surface water sources or areas of water stress.
We recorded a 6% increase in water withdrawal in 2022, principally to support reservoir management. However, more than 99% of our total water withdrawn was discharged back to the sea, after treatment.
Water as a community resource: In 2022, we continued our management of community water boreholes for the benefit of local communities in our operating regions in Kenya.
On average, almost 20,000 households benefit from our water distribution which reaches approximately 4,000 cubic metres of water per year.
We aspire to reduce waste generated by our operations with a specific objective of achieving zero waste to landfill at all our sites.
In 2022, 74% of our waste was recycled or re‑used and 17% was landfilled.
At Tullow Ghana, we have continued to implement a rigorous programme of waste segregation and waste management, aiming to reduce waste at source and recycle wherever possible. All wood and fibre waste is recycled, and we reduce plastic waste by eliminating single-use plastics from our offices and offshore operations. Remaining plastic waste is recycled to make pavement blocks and other goods.
As a result, we reduced total non-hazardous waste by 25% in 2022, diverting more nonhazardous waste from landfill (69% in 2022 compared to 38% in 2021).
For the first time, we achieved zero waste to landfill over a two-month period at our Jubilee FPSO, and we continue to embed waste awareness and practices to ensure this is maintained.
Avoiding plastic waste: In 2022, we progressed a project to reduce single use plastic on the Noble Venturer, a drill ship. With a crew of approximately 180 individuals, working offshore in high temperatures, a regular supply of water to hydrate the crew was supplied in small plastic bottles, adding up to more than 180,000 plastic bottles per year. This has now been avoided with the installation of nine water dispensers connected to the potable piping system with the addition of stronger filtration for better taste. Crew members can reuse their own drinking containers for a steady supply of plastic-free water.
Across our operations, we seek to engage with Joint Venture partners, and other business partners and suppliers to combine our experience, insights and actions to deliver environmental benefits across the full scope of the Tullow value chain. Some examples of
our practices and progress in 2022 follow:
Ghana subsea development: An example integrating environmental imperatives and carbon reductions in our project planning can be found in our subsea development project at the Ghana TEN oilfield, which is being progressed in partnership with the project management company, TechnipFMC. Right from the start, sustainability requirements were incorporated into the project charter and detailed project plans, including carbon reduction objectives and training for all contractors involved in the development project. Emphasis is placed on key areas such as:
- Fuel saving opportunities.
- Business travel optimisation.
- Locally fabricated subsea structures to minimise emissions from transportation.
- Technology transfer to enable completion of parts manufacture to avoid Carbon Zero intensive shipments from the U.S.
- Encouragement of contractors to adopt ISO14001 Environmental Management Standard.
Ghana Well Engineering: The Tullow Ghana (TGL) Well Engineering Sustainability Steering Group comprises all project business partners within TGL operations and aims to support our shared environment, health and safety goals. The Steering Group proactively drives initiatives to support safe and sustainable operations, reduce our operational carbon emissions, offer guidance and direction to departmental or project Green Teams and share best practice across companies and geographies. The Steering Group meets quarterly to discuss plans in detail and ensure the appropriate resources are available to progress tangible improvement plans.
Noble Venturer: The Noble Venturer Green Initiatives Team is a dedicated team which includes managers and EHS specialists from Tullow Ghana and the Noble Venturer. The team meets biweekly to discuss power management performance on the vessel and EHS improvement suggestions and follow up on commitments. A notable achievement of this team in 2022 was the elimination of plastic water bottles in use on board the vessel – see the section: Managing our waste.
Engaging contractors: In 2022, at Tullow Ghana’s bi-annual EHS Contractor Forum, we led a session for more than 60 participating contractors under the theme: Reducing operational environmental footprint. The session focused on GHG emissions reduction and waste management and provided contractors with practical suggestions to make positive change in their own operations.
World Environment Day: An opportunity to raise awareness and leverage our partnerships
to support global environmental initiatives, in 2022, we came together once again to take positive action for the planet. 200 volunteers from Tullow Ghana and partner companies engaged in tree planting and beach cleaning in Accra and Takoradi, jointly planting 500 trees and cleaning up more than 7.5 tonnes of marine litter from the local beaches. Additionally, Tullow’s Well Engineering team visited the Airforce Primary School to educate students on waste disposal and other environmental practices.
Tullow is committed to protecting the biodiversity of the regions in which we operate, and we strive to minimise negative impacts on biodiversity at the planning, exploration, development and decommissioning phases of our activities.
As we exit exploration or development operations in our host countries, our objectives are to leave oil field sites with no negative impacts on biodiversity or other environmental implications. We maintain a highly skilled team to manage outsourced professionals and specialist service providers to decommission our assets, ensuring that:
- All oil field infrastructure is hydrocarbon free.
- Potential for oil or gas leaks is eliminated by plugging and abandoning wells.
- All above and below surface infrastructure is removed and responsibly disposed of in accordance with As Low As Reasonably Practicable (ALARP) principles.
- No potential snagging hazards are left on the seabed.
- Tullow is compliant with applicable laws and regulations covering decommissioning.
Generally, decommissioning activities take years to complete, including ongoing monitoring and frequent surveys, although we aim for a shorter timeframe than industry practice where possible for the benefit of local communities. Since 2016, Tullow has invested more than half a billion dollars in decommissioning assets in line with our guiding principles, which is reflective of our deep commitment to ensuring protection for both marine biodiversity and local communities as we move on from our exploration and development activities.
In 2022, we continued with our decommissioning activities in two regions:
UK: Drilling activity ceased in the UK in 2018, and we are currently nearing the completion of full and final decommissioning of operated and non-operated assets in this region. We have removed all drilling platforms and in 2022, commissioned a rock placement survey to enable us to proceed with protecting the seabed with sustainable local rocks, leaving it safe for fishing. We are proceeding with safe decommissioning of platforms in satellite fields, which is scheduled for completion by the end of 2025.
Mauritania: We are on track to complete our clearing and decommissioning activities from our fields in Mauritania following cessation of activity in non-operated areas in 2014. All seabed equipment and support facilities have been removed and final well head protections are being put in place, scheduled for completion in 2023, with zero residual impact on the marine environment.
Our Sustainability Report 2022
This Sustainability Report complements our 2022 Annual Report and provides further details of our environmental and social performance over the past year.