Corporate social responsibility (CSR), ethics and anti-corruption

Aker BP ASA developed a strategy for 2016 for the company’s work on corporate social responsibility. Effort was put into clarifying the company’s responsibility and role, and areas were selected for targeted efforts in the 2016 operating year.  Work was initiated in 2016 on systemising the company’s corporate social responsibility efforts. This work will continue in 2017. The work will be carried out in a way that ensures that corporate social responsibility is fully integrated with the company’s activities and business model, and the company’s values will be manifested in planned and implemented activities.

Targeted and systematic work

In the HSE field, particular emphasis has been placed on improving safety, ensuring a safe working environment, strengthening the emergency response organisation, avoiding discharges to sea, reducing the use of substances hazardous to health and the environment, and reducing emissions to air. A new management system has been established, as well as a new model for managing risk.

The working environment is taken very seriously

Aker BP has had safe and stable operations throughout the year, with a low frequency of incidents.  There have been no serious incidents involving personal injuries during the period. The company makes continuous targeted efforts to monitor operations, and to report and analyse incidents with a view to reducing risk and safeguarding employees and the environment. The working environment is a consequence of several factors, and it is a requirement in the company that employees are safe when performing their work. The company reviews its procedures at regular intervals, and monitor RNNP (the risk level in the Norwegian petroleum activities) in order to learn from the industry as a whole.  Sickness absence in the company is 2.4% for offshore personnel and 1.6% for onshore personnel.

Systematic work to reduce emissions/discharges to air and sea

Aker BP makes continuous endeavours to reduce the company’s impact on the natural environment. The company complies with laws and regulations, and our goal is to avoid orders being issued by the authorities against the company. The company also keeps a close eye on relevant research in order to continuously improve operations and reduce our environmental footprint.

Flaring and cold ventilation are a source of greenhouse gas emissions that will remain on the agenda in coming years. Aker BP has reported CDP in accordance with the prescribed reporting procedures, and the company makes active efforts to reduce flaring, cold ventilation and other emissions of greenhouse gases from its operations. Best practice from energy management systems will help us to achieve our targets in all areas.

Aker BP has worked to reduce discharges to sea throughout 2016. The company has also implemented procedures to investigate and evaluate discharges in order to learn and improve.

In 2016, the average emission of CO2 per produced unit was 7.3 kg/boe for fields operated by Aker BP. That is below the average on the Norwegian continental shelf, which was 9.2 kg/boe in 2015. The average for the sector internationally (represented by IOGP) is 17.5 kg/boe.

Environmental measures implemented to reduce emissions (CO2, NOX) and environmental risk:

  • The Valhall field has electrical power from shore. The Ivar Aasen field is supplied with power from Edvard Grieg and it will be supplied with power from shore as part of the development of the Utsira Height.
  • Tambar is supplied with power from the Ula field, and Valhall Flank South and North are supplied with power from the Valhall field centre. Of the company’s total production, 16% is produced using power from shore.
  • The drilling rig Maersk Invincible, which will drill on the Valhall field, will use electric power. The rig has been under construction in South Korea and it is designed so that it can operate using electric power from Valhall. The project has received up to NOK 42 million in financial support from the NOX fund.
  • On the Valhall field, the LP flare was closed on 17 November 2015, thereby putting an end to continuous flaring. Closed flaring (high-pressure and low-pressure flares) was the basis for the design of the new production platform (PH), thereby contributing to reducing CO2 emissions by roughly 60 % in 2016 compared with 2015 (15,700 tonnes of CO2 in 2015 compared with 5,900 tonnes in 2016)
  • Both Skarv and Alvheim have closed flaring and low-NOX turbines with heat recovery. On Skarv, more stable production and the implementation of lessons learned from operations have helped to reduce CO2 and NOX emissions by around 25% in 2016 compared with 2015.
  • All Aker BP’s fields have reviewed sources and methods for calculating direct methane and nmVOC emissions in 2016. This has resulted in more accurate and reduced estimated emissions to air of uncombusted HC gas.
Valhall Ula Skarv Alvheim Ivar Aasen Total (avg)
Produced water oil concentration, mg/ltr 9.7 13.6 14.2 42.8 0 19.4
Acute discharges to sea (number  > 1 bbl) 0 0 1 0 1 2
Produced water reinjection % 0 12 0 84 NA 56
CO2 per produced b.o.e. 1.1 30.5 6.9 5.7 144.1 7.3
Gas flaring mill. Sm3 2.2 6.7 6.4 10.1 0.3 25.7
Waste segregation % 74 77 85 87 * 56

* Number from September – December. 100% Waste segregation from January to August

Corporate social responsibility also applies to our suppliers and our relations with them

In 2016, Aker BP has worked methodically and given priority to supplier relations in order to implement CSR more clearly in this part of our business as well. The work has consisted of establishing procedures for supplier management, categorising contracts and classifying all existing contracts.  New procedures have been established and 50% of the contracts are now classified.

Ethical guidelines have also been incorporated into our contracts and employees have completed web-based training in anti-corruption.

We take responsibility for society around us

Aker BP’s goal is to have good relations with society around us. This applies both at the national level and in the local communities where the company operates. The company spends substantial amounts on supporting schools and education, and on sponsorship projects such as Det Norske Teatret, the football club Viking, ice hockey team Stavanger Oilers, the Nidaros Cathedral Boys Choir, the Bakgårdsfestivalen festival and several other local events.

Our collaboration with the Department of Mathematics at the University of Oslo and the website continued in 2016 and will also be continued in 2017. Motivating school pupils, and girls in particular, to choose an education in the fields of science and technology is an important task that the company will continue with.  The company has a multi-year cooperation agreement with Helgeland Knowledge Park to which it contributes financially and by participating in career fairs, career days and by providing information for school career advisers etc. The company has also collaborated with various voluntary organisations that help people in need in Norway and abroad.

The company has emphasised providing accurate information in interim reports, capital market days and through direct dialogue with relevant authorities.

Responsibility for research and development

With regards to participation in research and development projects (R&D), 2016 proved to be a record year. The company has emphasised that growth and development should benefit society as a whole through active participation. Aker BP spent around NOK 160 million on R&D projects in 2016. The projects range from small-scale technical analyses to large area studies on health, safety and the environment in the Far North. Aker BP is one of the biggest contributors to the Arctic Research Centre and the Centre for Integrated Monitoring of the Far North.

The company also participates actively in R&D initiatives aimed at increasing our knowledge of the environmental impact of emissions/discharges, and the company is a partner in the Seatrack project, which is managed by the Norwegian Institute for Nature Research.

There is still great potential for improvement in geoscience and reservoir disciplines, among other things by using advanced seismic data collection and processing.  Projects carried out in collaboration with the oil service industry and universities have produced results in the form of new exploration opportunities, and Aker BP will step up its efforts in this area going forward. In collaboration with universities in Norway and the UK, progress has been made in our understanding of the extent of reservoirs and source rock, including through extensive fieldwork on Svalbard. Based on this, Aker BP has a project in the field of basin understanding whose vision is to achieve a leading role in basin integration. R&D projects are also being conducted in seabed geochemistry, including the testing of new collection equipment that has resulted in more and better analyses at a significantly lower price.

Aker BP is making endeavours to ensure that corporate social responsibility is further integrated in our operations, and in 2017, a new, forward-looking R&D portfolio will be established that is aligned with the company’s business strategy and the technological challenges that have been identified.

Corporate governance

Aker BP believes that good corporate governance with a clear distribution of roles and responsibility between the owners, the Board and executive personnel is crucial in order to deliver value to its shareholders.

The Board of Aker BP is responsible for maintaining good corporate governance standards. The Board carries out an annual review of the company’s principles. The company complies with relevant rules and regulations for corporate governance, including the most recent version of the Norwegian Code of Conduct for Corporate Governance, published on 30 October 2014, unless otherwise specified.

An account of corporate governance is provided in a separate section of the annual report and on the company’s website

Reporting of payments to governments

Aker BP has prepared a report on government payments in accordance with the Norwegian Accounting Act § 3-3 d) and the Norwegian Securities Trading Act § 5-5a. It states that companies engaged in activities within the extractive industries shall annually prepare and publish a report containing information about their payments to governments at country and project level.

The report is later in this annual report and on the company’s website