Policy highlights

Salamander Energy operates in accordance with the following principles:

• We are committed to protecting and conserving the environment in which we work
   
• We will adhere to the International Finance Corporation’s Performance Standards on Social and Environmental Sustainability
   
• We strive to meet the challenges presented to the oil and gas industry by climate change matters
   
• We strive for viable ways to minimise the environmental impact of our operations, reduce waste generation, conserve resources and respect biodiversity
   
• We will comply with applicable laws and regulations and apply recognised international standards where laws and regulations are not in place

Performance

As a result of a reduction in flaring at the Kambuna field, total CO2 emissions fell during the year. However, as a consequence of the reduction in the Group’s production, and with drilling campaigns in Thailand and Indonesia that resulted in increased diesel usage, emissions increased on a unit basis but were still well below the OGP average. With production expected to grow materially in 2013 the unit metrics should improve during the year. As we look further ahead to 2014, with the installation of crude fired power generators on the Bualuang field, the diesel requirement should be significantly reduced further improving the metrics.

All produced water at Bualuang is already re-injected into the reservoir so there is no surface disposal of produced water. Cuttings generated during drilling operations are recovered and sent ashore for incineration. With these measures in place and the use of produced gas planned our target is for Bualuang to be a minimal emissions installation in 2014.

The Group’s performance on flaring and venting, oil spilt to the environment and oil in produced water is well within the Group’s goal of being under the OGP averages.

The Group is committed to minimising the environmental impact of its operations. We obtain all the relevant environmental permits prior to commencement of our operations and procedures are in place to monitor on-going operations. Examples include monitoring sea water quality at our sites in the Gulf of Thailand and soil quality and mineral levels in our onshore locations in Indonesia.

Targets for 2013

• Keep CO2 and GHG emissions below OGP average
   
• Continue to seek ways of pollution prevention, emission reduction and improving the environmental performance of our operations
   
• Continue to work towards making our operations at Bualuang minimal emission in 2014