Our target is zero environmental incidents and a progressive reduction in greenhouse gas emissions.
As an oilfield services company that designs, develops and operates large-scale facilities, Petrofac’s business is directly linked to environmental considerations. This includes energy and climate change concerns and the risk of environmental incidents, as well as the environmental performance of our own operations.
We conduct comprehensive environmental risk assessments and reviews in all stages of our new projects. We also follow a systematic approach to environmental management, even in places where this is not required by local regulations. In addition, during the design phase, our value engineering process enables us to optimise resources and project footprints, and minimise environmental impacts.
We have been monitoring and reporting our carbon emissions since 2008 and we participate in the Carbon Disclosure Project (CDP) that is now aligned to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations to publicly disclose our performance and approach towards climate related issues.This project provides a global disclosure system for companies to report their environmental impacts and strategies on greenhouse gas emissions. In 2018 we achieved a rating of 'C', which is in line with the average for our direct competitors.
For all of our business lines, we aim to achieve a 2% year-on-year reduction in greenhouse gas emission intensity over the baseline year of 2015, with a 20% reduction by 2030. These targets are supported by strategies and actions to optimise energy consumption, implement technical solutions, and encourage employee-led initiatives.
Overall the trend was generally positive for 2018, with a reduction in our GHG intensity, and a reduced volume of oil spilled from operational incidents. However, there was a 2% increase in absolute GHG emissions, due to a change in reporting boundaries and the addition of emissions from the FPF1 (UK) and Santuario (Mexico) assets, which now fall under our reporting responsibilities and account for 15% of total emissions.
In terms of intensity of emissions, we again improved our performance. Over 2018, we achieved a 55% reduction in GHG intensity in Integrated Energy Services and an 13% reduction in Engineering & Construction.
In terms of spills due to operations, we achieved fewer spills compared to the previous year, with only one reportable operational spill above one barrel: a pipe burst released two barrels of hydraulic oil into the sea.
However, there has been an increase in overall spill incidents and volumes. The largest proportion of these spills continue to take place onshore in Mexico, often the result of deliberate sabotage. Having entered into a Production Sharing Contract in 2018 with Pemex in Santuario, such incidents are now recorded in our reported total oil spilled. This year alone, there were six reportable spills due to vandalism in the Santuario field, releasing 968 barrels of crude oil to the surroundings.
To address the situation, we continue to invest in physical-safety measures, tamper-proof components, remote-sensing systems, and improved surveillance.
Investigation and clean-up of contamination is carried out for each spill. In addition, we continue to work with Pemex, our client, as well as local communities and government authorities to address the root causes.
Our teams often go beyond client requirements as they seek to optimise energy efficiency and save natural resources. In doing so, they consider the entire life cycle of a project, and are often able to propose solutions that can have significant long-term environmental benefits.
Achieving significant power savings in Kuwait
In an LPG plant, the propane chiller tendso be a big consumer of power. So, when designing a new facility in Kuwait, the engineering team proposed a new approach. Rather than having the variable frequency drives running the whole time, they are periodically isolated when the motor reaches its normal operating speed. This innovative approach will bring a significant reduction in power consumption – adding up to 753MWh per year.
In another Kuwaiti project, the engineering team found a way to eliminate 98 agitators from the asset’s design. As well as reducing the construction costs, this will save the client 2,200MWh of energy consumption each year, and avoid 34,400 tonnes of carbon dioxide emissions over the lifetime of the asset.
Minimising fresh water consumption in Mexico
The Magallanes compression station is a mature asset, and its eight compressor engines have traditionally been cooled with fresh water – adding up to some 263 thousand litres a day.
To reduce consumption, the local operations team decided to introduce a closed-loop cooling system. After a successful pilot project, the solution was implemented across the entire station, and is set to save 95 million litres of fresh water annually.
Reducing GHG emissions across our operations
Several initiatives enabled us to reduce GHG emissions across the Group. Examples include:
In Malaysia, a plan was developed to relocate our helicopter base from Kota Bharu to Kerteh. As part of this, we have been able to increase the use of 12-seat aircraft, which has reduced the number of flights by around 25%.
At our El Golpe facility in Mexico, we upgraded the flare stack gas venting system with a new type of inlet gas system – and this has been successful in reducing gas flaring by around 1 million standard cubic feet per day.
We believe our stakeholders play a key role in protecting the environment wherever we operate. Petrofac actively engages with its clients, subcontractors, communities and local agencies to create awareness, build capacity and implement programmes that create a long term positive impact on the environment
Sandeep Tomar, Head of Environment
We're committed to limiting the environmental impact of our operations around the globe
We've implemented a conservation programme to protect the endangered Lora Turtle
Our Sharjah office saved around 3,400 tonnes in annual greenhouse gas emissions, earning an energy management award