Net Zero commitment 

In September 2022, we formalised a commitment to achieve Net Zero GHG emissions from all our assets by no later than 2050.

Our Net Zero target includes Scope 1 (direct) and Scope 2 (indirect) emissions from all our assets. In addition, our Net Zero target applies to our existing as well as our future assets. As we evaluate any potential development of our business, such as licence extensions and acquisitions, we will take this commitment into account in our decision-making and it will fall under our Net Zero target.

We will look to advance our Net Zero target date which will depend on achieving operational efficiencies, reducing flaring and venting, replacing the power consumption of our facilities with less impactful energy sources and eventually procuring nature-based carbon offset projects for hard-to-abate, residual emissions. This will require investment by Pharos and its operational partners, which is why we established an Emissions Management Fund. For every barrel sold at an oil price above $75, we will set aside $0.25 into this Fund. The intended purpose of the fund is to provide support for emissions management projects for Pharos and our operational partners in line with our climate goals.

We also pledge to publish a detailed Net Zero roadmap in 2023.

Greenhouse Gas Emissions (GHGs)

GHGs associated with energy use and flaring are a key area of potential impact. We monitor and report our GHG emissions from our operated projects, joint operated projects and corporate/administrative activities, on an equity share basis, in accordance with industry requirements and standards. We also participate in the Carbon Disclosure Project (CDP), with further work to be done to continuously align with TCFD recommendations.

GHGs reported

Pharos Energy counts emissions of carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) combined into carbon dioxide equivalent (CO₂e) based on the gases’ 100-year Global Warming Potential (GWP). These three gases are produced through combustion, although N₂O quantities produced via combustion is relatively small.

The other greenhouse gases, HFCs, PFCs and SF6, are not closely associated with the petroleum industry. Their respective emitting activities are not core parts of Pharos operations. The total emission of these gases is therefore expected to be small and has not been calculated.

Biodiversity

Our Biodiversity and Conservation Policy commits us to meet the objectives of the Convention on Biological Diversity (1992). We identify whether a project is located in modified, natural or critical habitats, or a legally protected or internationally recognised area; and whether the project may potentially impact on, or be dependent on, ecosystems services over which Pharos has direct management control or significant influence. 

In Egypt, the El Fayum Concession borders the multiple-use management area and the natural protectorate area of Lake Qarun which includes important bird areas. It is adjacent to the Wadi El Rayan protected area which includes the Wadi Al-Hitan World Heritage Site.

In Vietnam, Blocks 125 & 126 are approximately 50km offshore to the Nha Trang Bay Protected Area and the Thuy Trieu Marine Protected Area. As per our policy, Pharos does not operate in any UNESCO designated World Heritage Site and ensures that activities in buffer zones around these sites do not jeopardise the Outstanding Universal Value of these sites.

Comprehensive Environmental and Social Impact Assessments (“ESIAs”) are undertaken for any new project prior to any operational activities using international standards and in consultation with local stakeholders. We are committed to developing site-specific biodiversity action plans (“BAPs”) in the event that operational sites are within sensitive areas, incorporating country-specific strategies and action plans and working in association with external advisers to ensure that best practice conservation priorities are achieved.