Commitment to Net Zero from 2021

RNS Number : 4770H

IOG PLC

04 August 2021

 

4 August 2021

IOG plc

Commitment to Net Zero from 2021

IOG plc ("IOG", or "the Company"), (AIM: IOG.L), the UK gas company targeting growth and high returns via an infrastructure-led hub strategy, is pleased to announce its completion of a comprehensive Emissions Assessment (EA), undertaken by its internal Environmental, Social and Governance (ESG) Taskforce in collaboration with Genesis. On the basis of the EA the Company has committed to Scope 1 & 2 Net Zero status as of 2021.

The summary report of the EA, which encompassed the Phase 1 development and corporate activities, can be found here: https://bit.ly/3rPRhmt . Key highlights are as follows:

· IOG is expected to have one of the lowest emissions profiles in the industry throughout this decade

· Over their economic life, the projected cumulative average intensity of the Phase 1 Blythe and Southwark platforms is just 0.4 kgCO₂e/boe

· IOG's estimated Phase 1 lifetime Scope 1 and 2 average emissions intensity is estimated at 3.97 kgCO₂e/boe, compared to the North Sea average of 20.2 kgCO₂e/boe¹

· Phase 1 alone could generate a lifetime saving of close to 1 million tonnes of CO₂e emissions versus a weighted average of UK gas imports²

· IOG has committed to Scope 1 and 2 Net Zero status as of 2021, via investment in appropriate accredited voluntary offsets

· In parallel, the Company has recognised the importance of its ESG work, led since 2020 by James Chance, by appointing him to a new role as Head of Capital Markets and ESG

· IOG has set suitable internal targets for annual actual emissions, to which employee remuneration is linked

· The emissions model will also be used as a planning tool to optimise the design of future developments to engineer out emissions at source as far as reasonably possible

Andrew Hockey, CEO of IOG, commented:  

"As our industry transforms in light of climate challenges, IOG's ambition remains constant: to be a safe, efficient and low-carbon developer and producer of high-value gas. We know how important it is to all our stakeholders that IOG's contribution to UK gas supply is consistent with a successful UK energy transition and the Paris Accord objectives. That is why we have committed to Scope 1 and 2 Net Zero, not as a future pledge but starting right now in 2021.

In our 2020 Climate Change and Sustainability policy we committed to a detailed Emissions Assessment as our primary ESG objective for 2021 and I'm pleased that it confirms our very low carbon intensity operating model. Maximising the value of domestic energy resources with this Net Zero policy makes IOG a leading exponent of the OGA's revised strategy, which should be an important differentiator as we look to scale up the business."

Christophe Malaurie, Senior Vice President at Genesis, said:

"Genesis has been extremely pleased to work with IOG to help bring practical implementation of their ESG commitments. Genesis' mission is to be a trusted adviser to its clients to help accelerate the journey towards a more sustainable future and it is especially heartening to have our class leading environment, technical and commercial skills utilised by IOG as an integral part of their low carbon journey".

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

1) Based on Phase 1 proportionate share of Field Development Plan base case of gas-fuelled compression from 2026; UK North Sea emissions intensity figure quoted in OGA Annual Report published 9 July 2021: www.ogauthority.co.uk/media/7685/oga-annual-report-and-accounts-2020-21.pdf  

2) Weighted average of pipeline and LNG imports based on same OGA data, assuming constant intensity levels over time

Enquiries:

IOG plc Andrew Hockey (CEO) Rupert Newall (CFO) James Chance (Head of Capital Markets and ESG)	[phone]
finnCap Ltd Christopher Raggett / Simon Hicks	[phone]
Peel Hunt LLP Richard Crichton / David McKeown	[phone]
Vigo Consulting Patrick d'Ancona / Chris McMahon / Oliver Clark	[phone]

About IOG:

IOG owns and operates a 50% stake in substantial low risk, high value gas reserves in the UK Southern North Sea. The Company's Core Project targets a gross 2P peak production rate of 140 MMcfe/d (c. 24,000 Boe/d) from gross 2P gas reserves of 302 Bcfe¹ and management estimated 2C gas Contingent Resources of 132 Bcfe, via an efficient hub strategy based on co-owned infrastructure. In addition to its 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C contingent resources at Goddard, it has management estimated gross 2C contingent resources of 23 Bcfe at Abbeydale and unrisked mid-case prospective resources of 66 Bcfe at Thornbridge, 31 Bcfe at Southsea, 31 Bcfe at Kelham, 27 Bcfe and 16 Bcfe in the two Goddard flank structures, and 21 Bcfe at Harvey. In December 2020 IOG also accepted a 50% operated stake in Licence P2589, containing the Panther and Grafton gas discoveries with management estimated gross mid-case contingent resources of 46 Bcfe and 35 Bcfe respectively. In addition IOG continues to pursue value accretive acquisitions to help generate significant shareholder returns.

¹ ERC Equipoise Competent Persons Report: October 2017, adjusted by Management to account for updated project timing and compression

 

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