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Through the course of our operations and throughout our value chain, greenhouse gases (GHG) are emitted. The GHG emissions are predominantly carbon dioxide (CO2) and methane (CH4). We are committed to playing our part in addressing climate change by decarbonising our operations in line with our Low Carbon Transition Plan (LCTP) and the North Sea Transition Deal (NSTD). We aim to produce oil and gas in the most efficient way possible.
In 2022, the carbon intensity of our portfolio decreased as a result of continued improvements in emission reduction, such as investing in zero flaring systems and upgrading turbines, production optimisation and an acquisition strategy which considers the impact on the portfolio’s carbon intensity.
We have integrated continuous improvement of environmental performance into our processes for tracking, reporting and forecasting carbon emissions. NEO monitors and reports emissions on a quarterly basis to our owners and the Board. We have implemented a digital dashboard solution to track and interpret our emissions performance further increasing our transparency. We have increased our transparency on Scope 3 emissions reporting through improved travel tracking; reporting Category 11 sale of product; and engaging our supply chain. Looking ahead, we will further engage our supply chain to encourage Scope 3 emission reduction and synergies with other operators, such as vessel sharing.
In 2022 we also achieved ISO14001 across our corporate organisation and is a clear commitment to continually improving our environmental performance.
Our 2022 environmental performance on our operated assets (GPIII and Babbage) was positive and we delivered against all our consents and permits. Any non-conformances were reported, fully investigated and clear actions were developed to ensure learning and continual improvement.
NEO’s Low Carbon Transition Plan focuses on how we will reduce carbon emissions today and put net zero at the heart of our future growth strategy, without compromising value creation or the role we play in employing and investing in people and the communities in which they live.
NEO will seek to reduce the carbon intensity per barrel of oil equivalent produced by NEO’s portfolio by 50 per cent from a base year of 2020 by 2030. To achieve this, NEO will invest in technology and systems, such as the full or partial electrification of our operations, required to reduce carbon output.
NEO is aligned with the UK’s net zero by 2050 target and is proactively working with partners, regulators, and industry bodies to play its part in achieving this goal. In line with The OGA Strategy, a key aspect of NEO’s approach will be to maximise economic recovery from its assets, bringing down the carbon impact per barrel of production.
