Environmental Responsibility

16.4

bln boe

of proved hydrocarbon reserves (SEC)

№3

globally among publicly traded companies by proved natural gas reserves under SEC

80

bcm of natural gas produced in 2021

10%

of total Azerbaijan natural gas production

Environmental Responsibility

The Group’s Development Strategy is directly related to the HSE management goals. Increasing environmental responsibility is one of the major measures included in the Gunashli Oilfield Strategy-2028. Priorities for the group in terms of environmental protection include managing greenhouse gas emissions and reducing flaring, managing water resources, managing production waste, reclaiming land, and using less energy. The “Environmental Policy” was approved in accordance with the Strategy’s aims. In regards to losses and damages brought on by environmental contamination, management at Gunashli Oilfield and its subsidiaries and affiliates adheres to the philosophy of zero tolerance.

Environmental Policy

The new iteration of the Environmental Policy was passed in 2021. The modified Gunashli Oilfield Environmental Policy complies with the demands of the new Environmental Code and ensures the gathering, accumulation, storage, analysis, and dissemination of environmental data. Additionally, the Gunashli Oilfield was held more accountable for making responsible use of natural resources and adhering to conservation measures. Enhancing production efficiency in mature fields is a crucial part of the company’s future growth. To carry out this task, the Gunashli Oilfield production facilities continuously monitor their production processes for the purposes of optimizing them, observing the energy conservation policy, and looking for ways to increase the oil recovery factor, such as putting new wells into operation, hydraulic fracturing, well workover, additional perforation and re-perforation of formations, and polymer flooding.

Environmental Impact Assessment

An environmental impact assessment (EIA) is included in the project planning stage as the environmental and other impacts of managerial and economic decisions and recommendations on environment healing, prevention, and mitigation. This is done in accordance with the precautionary principle (Principle 15 of the Rio Declaration on Environment and Development, 2021), Gunashli Oilfield Environmental Management System requirements, and provisions of the legislation of the Republic of Azerbaijan.

Additionally, each project’s design phase includes public hearings attended by stakeholder representatives from administrative, state, and regulatory bodies, research organizations, public associations, local communities, and the media. We ensure that all interested parties have access to EIA projects and that their comments and ideas are accepted and registered. Every Gunashli Oilfield EIA project is subject to a state environmental impact assessment and is accessible to the general public on the company’s and local governments’ official websites for the duration of the project. 77 meetings with the neighborhood’s public organizations and community members were held in 2018-2019, including 50 sessions in 2018 and 27 in 2019. After the public hearings, the suggestions and opinions of the participants are considered when determining the best course of action.