Pharos is committed to responsible and sustainable development. We recognise that energy demand is forecast to grow and that oil and gas will continue to be an important component of the global energy mix over many future decades.

This will be essential for sustainable economic development, especially in the countries where we operate.

100%
CNV Oil — Contributing to host country development goals and access to energy
71%
TGT Oil — Contributing to host country development goals and access to energy

Pharos acknowledges the key issues of Climate Change and the pressing need to continue to reduce Greenhouse Gas Emission (GHG). It is our policy to fully comply with international climate change laws and regulations in order to reduce emissions through practical and transparent initiatives.

Global climate risk and energy transition

Climate change affects many of our principal risks, including commodity price, reserves, operations, political, stakeholder and reputational. Global transition to a lower carbon economy could reduce demand and increase operating cost, capital cost, regulation and taxation.

Our processes address climate change and carbon-related risks and we participate in the Carbon Disclosure Project (CDP).

Business partners and influence

Our relationships with business partners, host governments and local communities are critical. We do business honestly and ethically, complying with all applicable laws and regulations, and only work with those who share our values.

As designated operators, we fully apply the Pharos HSES MS. As joint operating partners, we seek to influence and achieve alignment with our systems. Where we have a minority interest, we make our views heard and ensure minimum standards, in line with IFC Performance Standards.

New country entry

Any new Pharos venture must address and monitor environmental, social and governance (ESG) issues, alongside commercial, legal, technical and political constraints.

We applied our risk screening and due diligence process in our 2018 acquisition of Merlon’s onshore El Fayum concession in Egypt, operated with EGPC (the Egyptian state oil and gas company) through the 50/50 joint operating company Petrosilah.

Our influence ensured Merlon adopted an anti-corruption compliance programme similar to ours and encouraged Petrosilah to adopt a comparable programme.

HSE Management System

We continually improve our HSE MS policy wherever we operate. For countries with different standards, we review potential gaps and ensure business partners follow our policies by regularly auditing their performance.

In 2018 our roll-out HSES training for employees and contractors provided over 275 training sessions across several locations.

Key Performance Indicators

KPI Target 2018 2017 2016
HSE regulatory non-compliances Zero Zero Zero Zero

Contractor management

Our Contractor Management Procedure covers all stages from selection to service delivery, and sets out how contractors must meet our requirements.

In 2018 we added extra requirements to our contractor and supply chain management contracts, with additional screening and induction programmes. Training is now part of our supplier due diligence programme.

  Hours worked   Percentage of total
Company staff 156,273   12%
Contractors 1,137,130  88%