Jadestone announces 2040 Net Zero target
1 June 2022 – Singapore: Jadestone Energy plc (AIM:JSE) (the “Company”), an independent oil and gas production company focused on the Asia-Pacific region, is pleased to announce that it is committing to Net Zero Scope 1 and 2 greenhouse gas (“GHG”) emissions from its operated assets by 2040.
Paul Blakeley, President and CEO commented:
“Today, we are announcing a firm commitment to achieve Net Zero Scope 1 and Scope 2 GHG emissions from our operated assets by 2040. Our Net Zero target underscores the principle that sustainability is a key value in Jadestone’s business.
We recognise that action is needed to arrest the impact of rising temperatures as a result of human activities and that the upstream oil & gas industry has an important role to play in the energy transition. We support the view that the world’s energy mix must diversify towards a low-carbon future, but oil and gas will continue to play a role in providing essential energy until the low-carbon energy system is sufficiently developed.
We believe that our existing corporate strategy is fit for this energy transition, as we are focused on maximising the life of existing fields through performance optimisation and selective investment, whilst further diversifying into gas which, over time, will increase its weighting in our portfolio. We are not explorers, and so are committed to avoiding the life-cycle emissions associated with opening new geological basins and greenfield developments – complementing a key finding of the IEA’s report on Net Zero Emissions by 2050. While the upstream GHG emissions intensity of maturing assets may be relatively high, under Jadestone’s ownership, we plan to improve the environmental performance of acquired assets so they can continue to operate with a reduced GHG footprint. We will work to support these claims with clear quantifiable evidence, across key areas of impact.”
The full detail of Jadestone’s Net Zero GHG commitment and climate strategy statement are included below. Both documents can also be found on Jadestone’s website at www.jadestone-energy.com. The Company will discuss the Net Zero target during its FY21 results conference call on 6 June 2022, details of which can also be found on Jadestone’s website.
For further information, please contact:
|Jadestone Energy plc|
|Paul Blakeley, President and CEO||+65 6324 0359 (Singapore)|
|Phil Corbett, Investor Relations Manager||+44 7713 687467 (UK)|
|Stifel Nicolaus Europe Limited (Nomad, Joint Broker)||+44 (0) 20 7710 7600 (UK)|
|Jefferies International Limited (Joint Broker)||+44 (0) 20 7029 8000 (UK)|
|Camarco (Public Relations Advisor)||+44 (0) 203 757 4980 (UK)|
NET ZERO COMMITMENT
● Jadestone is committed to achieve Net Zero Scope 1 and 2 GHG emissions for its operated assets by no later than 2040.
○ This commitment covers Scope 1 direct emissions from the Company’s existing operated assets as well as Scope 2 emissions from electricity purchased for its facilities.
○ The commitment also covers Scope 1 and 2 GHG emissions from future acquisitions, where Jadestone becomes operator.
● Jadestone defines Net Zero as the state reached when its GHG emissions are reduced in line with the goals of the Paris agreement, and any remaining emissions that cannot be reduced further, are fully neutralised by like-for-like permanent removals. Jadestone will achieve this target through a combination of the following:
○ A focus on operational efficiencies;
○ A reduction of flaring where Jadestone has operational control;
○ An increasing share of gas in the production mix of Jadestone’s portfolio over time;
○ A focus on mitigating GHG emissions in the planning stage and in the development of new production streams;
○ For those emissions which are economically or technically difficult to eliminate, Jadestone will employ nature-based solutions and offsets, and where offsets are used, will ensure they are properly measured, verified, and represent permanent removal of carbon from the atmosphere.
● While not covered by the Net Zero commitment, Jadestone pledges to work with its partners to reduce the Scope 1 and 2 GHG emissions on its non-operated assets, either existing or acquired in the future.
● In order to ensure that future assets make a contribution towards the Net Zero target, Jadestone will:
○ Identify ways to mitigate GHG emissions as a factor when screening new business development opportunities;
○ Consider diversification into businesses that stand to benefit from the energy transition where they provide comparable returns to Jadestone’s current core upstream activities
● Jadestone will expand its emissions reporting in the future to include Scope 3 GHGs, seeking opportunities to reduce Scope 3 emissions where the Company has direct control and/or influence.
● A key element of Jadestone’s Net Zero commitment will be the development of detailed emissions reduction roadmaps for its operated assets. Jadestone will publish a Net Zero roadmap in 2023 outlining the following:
○ Scope, baseline and methodology of the Net Zero target
○ Interim time-bound targets over the short and medium-term
○ Implementation plans and specific strategies informed by asset-level emission reduction frameworks over the short and medium-term
○ An estimate of the capital expenditures needed to deliver short-term goals
● Jadestone intends to review its Net Zero commitment over time to align with best practice methodologies informed by climate science.
CLIMATE STRATEGY STATEMENT
● Jadestone recognises the need for action to arrest the impact of rising temperatures caused by human activities, and specifically greenhouse gas emissions derived from the production and use of fossil fuels. We support the view that, as a result, the world’s energy mix must diversify towards a low-carbon future.
● In order to facilitate an orderly and just transition, we recognise that oil and gas continues to play a role in providing essential energy until the low-carbon energy system is sufficiently developed.
● In line with the fossil fuel sectoral pathway in the 2021 IEA report on Net Zero Emissions (NZE) by 2050, Jadestone sees itself playing an important role in the energy transition, focused on maximising recovery from existing producing and discovered resource, rather than engaging in new exploration and major greenfield development activity.
● Jadestone will provide responsible stewardship, deploying additional capital to maximise reserves recovery, improve operating performance and reduce GHG emissions and other environmental impacts, while maintaining a robust financial framework in order to safely decommission assets in line with regulatory requirements.
● While the upstream GHG emissions intensity of maturing assets may be relatively high, once under Jadestone’s ownership we plan to improve the environmental performance of acquired assets so they operate with a reduced GHG footprint.. We will work to support these claims with clear quantifiable evidence, across key areas of impact.
● Through the development of domestic gas resource in South-East Asia, such as our gas projects in Vietnam and Indonesia, Jadestone will support the energy transition by displacing coal and/or other high-cost/high-emission alternatives while supplying the region with local, affordable energy and contributing to economic growth in the wider Asia-Pacific region.
● Over time, gas will play an ever-increasing role in Jadestone’s portfolio, underpinned by sound ESG credentials and with a clear focus on measuring and minimising fugitive emissions. Mitigating GHG emissions from our upstream operations will be a key pillar of Jadestone’s strategy and underlines our approach to managing the climate risk exposure to the business.
● In taking this approach, Jadestone believes that it can continue to execute on its strategy and expand its production base, even in scenarios of declining global oil and gas demand, as maturing upstream assets are released by the majors.
● Frontier exploration has always been explicitly excluded from our corporate strategy – complementing a key finding of the IEA’s Net Zero Emissions by 2050 report. However, in order to prolong the life of existing infrastructure and/or existing producing fields, Jadestone will continue to assess the potential for near-field tie-back opportunities across its licences.
● In summary, Jadestone will play a role in promoting a just and orderly energy transition, supporting economic growth in the Asia-Pacific region, while reducing the GHG footprint of its oil and gas production in support of climate goals and a target of net zero GHG emissions by 2040.
About Jadestone Energy
Jadestone Energy plc is an independent oil and gas company focused on the Asia-Pacific region. It has a balanced, low risk, full cycle portfolio of development, production and exploration assets in Australia, Malaysia, Indonesia and Vietnam.
The Company has a 100% operated working interest in the Stag oilfield and in the Montara project, both offshore Australia. Both the Stag and Montara assets include oil producing fields, with further development and exploration potential. The Company also has interests in four oil producing licences offshore Peninsular Malaysia; two operated and two non-operated positions. Further, the Company has a 100% operated working interest in two gas development blocks in Southwest Vietnam, and an operated 100% interest (assuming completion of the Hexindo stake acquisition, as announced in November 2021) in the Lemang PSC, onshore Sumatra, Indonesia, which includes the Akatara gas field development.
In addition, the Company has executed a sale and purchase agreement to acquire a 69% operated working interest in the Maari Project, shallow water offshore New Zealand, and is working with the seller to obtain final New Zealand government approvals.
Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman’s business in Asia, the Company is pursuing an acquisition strategy focused on growth and creating value through identifying, acquiring, developing and operating assets in the Asia-Pacific region.
Jadestone Energy plc is listed on the AIM market of the London Stock Exchange. The Company is headquartered in Singapore. For further information on the Company please visit www.jadestone-energy.com.
This announcement does not contain inside information.