Emissions reported in SBM Offshore’s records include:
- Scope 1 – Direct Emissions
- Scope 2 – Purchased Electricity
- Scope 3 – Business Travel
- Scope 3 – Purchased Goods and Services
- Scope 3 – Downstream Leased Assets
For all reported emissions goes that CO2 equivalency is a quantity that describes, for a given mixture and amount of greenhouse gas, the amount of CO2 that would have the same Global Warming Potential (GWP), when measured over a specified timescale (generally, 100 years).
Scope 1 – Direct Emissions
For the Natural Gas consumed in offices, SBM Offshore takes an operational control view and uses conversion factors from the Dutch Emission Authority and the website Co2emissiefactoren.nl.
Scope 2 – Purchased Electricity
Scope 2 comprisesemissions from energy purchased for offices (market-based and location-based).
The reporting scope includes all locations where the headcount is over 10 and yards over which SBM Offshore has full operational control. SBM Offshore reports onshore emissions data for the following locations: Amsterdam, Houston, Kuala Lumpur, Marly, Monaco, Rio de Janeiro, Schiedam, Shanghai, Carros lab, Georgetown, Bangalore, Brazil Shorebases, Luanda Shorebase and Malabo Shorebase. The Singapore office is excluded as SBM Offshore has no visibility on energy breakdown usages as the energy is included in the lease.
For the purchased electricity usage, SBM Offshore uses conversion factors to calculate CO2 equivalents from energy consumed (kWh). Sources used for these conversion factors are, amongst others, the European Environmental Agency, the European Investment Bank and the Association of Issuing Bodies.
Scope 3 – Business Travel
This scope entails SBM Offshore’s standard travel system in 2022 and the data covers all operating companies. Data accuracy increased due to better information from travel agencies for multi-legged flights. Business travel is determined based on flight data communicated by travel agencies, including mileage per invoice date and a calculated extrapolation of data for the last two weeks of the year. In a few cases where mileage data is missing, it is completed with mileage from a similar route. The emissions relating to business flights are based on third-party documentation on distances and the conversion to CO2-equivalent is based on CO2emissiefactoren.nl.emissions from flights invoiced and paid for via
Scope 3 – Purchased Goods and Services
This category consists of SBM Offshore is executing on behalf of its clients. The following parts of an are considered in the calculations of the emissions for this category:emissions associated with the procurement of (capital) goods and services for projects (hereafter ‘projects’) that
- Hull (in Fast4ward® this is ) – the marine structure of an .
- Topsides – the processing facility of an . Other parts of the (mooring structure, integration etc.) are not accounted for in this initial calculation due to the data limitations and the limited percentage they add in weight as-build.
SBM Offshore calculates the SBM Offshore has chosen a pragmatic approach to assess which components and materials used in projects contribute most to emissions. The outcome of the analysis is initially focused on identifying hot spots. Once these hotspots are identified, SBM Offshore can increase the accuracy of the inventory via supplier engagement and, with that, abate emissions.emissions of its projects via the protocol’s average data method. In this phase of raising understanding of emissions during project ( ) stage,
Estimated weight topside
For Topsides the breakdown in materials is based on proposal estimates and not actuals. SBM Offshore used two variants, one for the Guyana and one for the Brazil field, as the basis for calculation for all topsides.
Estimated weight MPF
For, the breakdown in materials is based on latest actuals. The ’s are, based on the Fast4Ward®, sister hulls and are similar in design and weight. Since the hulls are based on the same design the same material weights are assumed for each project that uses the .
To derive the total SBM Offshore uses the completion rates in a given year. The percentage completed in a given year determines the total allocated emissions in that year.emission related to projects under construction,
Calculations forand Topside were done as follows:
- Break down /Topside into their components.
- Analyze materials and weights for each component.
- Retrieve conversion factors of the materials for each component.
- Apply the following calculations:
- SUM emissions for all Item types – Total emissions for scope 3.1 Procured (Capital) Goods and Services.
SBM Offshore applies the following standards and sources for the above calculations:
- Protocol – Scope 3 Corporate Value Chain Accounting & Reporting Standard.
- Conversion factors from the ecoinvent Database to convert volumes and weights to emissions for the various procured (capital) goods and services.
- SBM Offshore Project Weight Control Reports for the various Items.
Scope 3 – Downstream Leased Assets
SBM Offshore reports on emission from assets producing and/or storing hydrocarbons under lease contracts.emissions come from the energy consumed (steam boilers, gas turbines and diesel engines) and from gas flared.
The environmental performance of SBM Offshore is reported by region or management area: Brazil, Angola, North America & Caribbean, Asia & Equatorial Guinea. Based on the criteria stated above, SBM Offshore reports on the environmental performance for the following 15 units:
- Brazil – FPSO Espirito Santo, FPSO Capixaba, FPSO Cidade de Paraty, FPSO Cidade de Anchieta, FPSO Cidade de Ilhabela, FPSO Cidade de Marica, FPSO Cidade de Saquarema
- Angola – FPSO Mondo, FPSO Saxi Batuque and N’Goma FPSO
- North America & Caribbean – FPSO Liza Destiny, FPSO Liza Unity, Thunder Hawk (*Note that SBM Offshore does not provide operation and maintenance services to Thunder Hawk, hence the annual flare target mentioned in section 2.1.7 and the water discharge target mentioned in section 2 .2. do not apply)
- Asia & Equatorial Guinea – FPSO Kikeh, FPSO Aseng
The environmental offshore performance reporting methodology was chosen according to the performance indicators relative to Greenhouse Gas Protocol,Standards, and guidelines. This includes:
- Greenhouse Gases, referred to as which are N2O (Nitrous Oxide), CH4 (Methane) and CO2 (Carbon Dioxide).
- emissions per hydrocarbon production from flaring and energy generation.
- Non-Greenhouse Gases which are CO (Carbon Monoxide), NOx (Nitrogen Oxides), SO2 (Sulphur Dioxide) and VOCs (Volatile Organic Compounds).
- Gas flared per hydrocarbon production.
- Energy consumption per hydrocarbon production.
- Oil in Produced Water per hydrocarbon production.
The calculation of air emissions from offshore operations units uses the method as described in the EEMS-Atmospheric Emissions Calculations (Issue 1.810a) recommended by Oil & Gas UK. SBM Offshore reports some of its indicators as a weighted average, calculated pro rata over the volume of hydrocarbon production per region. This is in line with the Environmental Performance Indicators. The GHG-intensity figures in sections 2.1.7. and 5.3.2. use hydrocarbon production as a denominator, being the standard metric used in the industry.
OFFSHORE ENERGY CONSUMPTION
The energy used to produce oil and gas covers a range of activities, including:
- Driving pumps producing the hydrocarbons or reinjecting produced water.
- Heating produced oil for separation.
- Producing steam.
- Powering compressors to reinject produced gas.
- Driving turbines to generate electricity needed for operational activities.
The main source of energy consumption of offshore units is fuel gas and marine gas oil: the calculation of their volumes in Gigajoules being a function of calorific values and conversion factors from Oil and Gas UK. The energy intensity figures in section 5.3.2. use hydrocarbon production as a denominator, being the standard metric used in the industry.
OIL IN PRODUCED WATER DISCHARGES
Produced water is a high volume liquid discharge generated during the production of oil and gas. After extraction, produced water is separated and treated (de-oiled) before discharge to surface water. The quality of produced water is most widely expressed in terms of its oil content. Limits are imposed on the concentration of oil in the effluent discharge stream or discharge is limited where reinjection back into the reservoir is permitted.
The overall efficiency of the oil in water treatment and, as applicable, reinjection can be expressed as tonnes of oil discharged per million tonnes of hydrocarbon produced.
Incidental environmental releases to air, water or land from the offshore operations units are reported using the data recorded in theSBM Offshore Incident Management tool. SBM Offshore has embedded a methodology for calculating the estimated discharge and subsequent classification within the Incident Management tool.
CHANGES IN REPORTING
As part of continuous improvement, SBM offshore regularly reviews and updates as required its environmental emissions calculations methodology. In 2022, the following updates were made which are contributing to increased accuracy in emissions monitoring:
- Gas density updates for each vessel’s gas stream, where available.
- Fuel Gas Calorific Value update (required for energy consumption calculation in ).
- Global Warming Potential updates (GWP) to align with ’s Sixth Assessment Report (2022).