Two Kerogen controlled oil players outline net-zero strategies

North Sea private equity investor Kerogen Capital has launched its net-zero carbon strategy. Kerogen has already reached carbon neutrality across the fund and its two largest controlled portfolio companies, Zennor Petroleum and Pandion Energy.

According to Kerogen’s statement on Friday, Zennor and Pandion are one of the first E&P companies to become carbon neutral in the UK and Norway, respectively.

The strategy includes Kerogen’s commitment to carbon neutrality across its operations for Scope 1 and 2 emissions. In addition, Kerogen has committed to making all future fund vintages and investments carbon neutral.

Separately, Pandion and Zennor on Friday also announced the launch of their net-zero strategies.

Pandion recognized that climate change is of critical importance to the future of the planet and supports the goal of the Paris Agreement to achieve a carbon-neutral global economy.

The Norwegian company said that despite its carbon intensity per produced barrel being one of the lowest in the global E&P industry – ranging from 1.2 – 3.4 CO2e/boe for its net production – it recognises the importance of minimising its carbon impact as swiftly as possible.

Pandion Energy’s approach to maintaining its low carbon impact position, set out in its Strategy to Net Zero Carbon document, includes pursuing exploration and appraisal opportunities only in areas with existing or plausible future access to renewable energy sources.

It also includes incorporating GHG emissions and the potential for future carbon reduction as a new investment criterion for development and production assets and incorporating the cost of carbon in evaluating new investments.

CEO of Pandion Energy, Jan Christian Ellefsen, said: “A carbon light strategy has always been an imperative for Pandion Energy and our ongoing commitment to carbon neutrality alongside our new investment criteria represents a further positive step in our ambition to achieve Net-Zero”.

He added: “As the rest of the world starts to move closer to Norway’s leading position on carbon emission reduction, we will continue our work to minimise our footprint and support other players in the sector to do the same”.

Zennor recognized that carbon offsetting is not the long-term solution to climate change and needs to be combined with a comprehensive decarbonisation strategy including efforts to reduce carbon emissions from operations.

Zennor said that, together with its operating partners, it is working to identify emissions reductions opportunities which include a review of the potential for platform electrification and future repurposing of offshore oil and gas facilities to support new technology developments such as hydrogen and carbon capture and storage.

Further opportunities include the use of Scope 1 and 2 GHG emissions as a key metric in project decisions, for instance, in selecting third-party equipment or vessel suppliers, and assessment of whether floating offshore wind technology can be incorporated into subsea oil and gas developments.

These initiatives will ensure that Zennor delivers year-on-year improvements to reach our emissions reduction targets in the near and longer-term, the company explained.

Martin Rowe, Zennor’s Managing Director, said: “If our industry is to play its part in addressing climate change, we have to accept responsibility for the impact we have on the environment and to take advantage of every opportunity to reduce that impact as swiftly as possible.

“We support the requirement for a just energy transition, and we see ourselves playing a significant role in helping to deliver the UK’s Net Zero commitments within the energy mix outlined by the UK Committee on Climate Change”.