Water Resources Management

Strategy and Targets for Water Resource Management

PTTEP commits to avoid operating in areas at risk from water scarcity and ensure that there is no impact on the community and water users. The Company also targets zero-produced water discharge to the environment. PTTEP commits to reusing produced water as non-fresh water to improve oil recovery capacity and reduce consumption of limited freshwater, preserving the freshwater resource for the community's consumption.

For effective implementation of water management, PTTEP has established water management guideline (in line with international standard), which identified recommendations on water-related risk assessment, performance reporting, targeting, and water and wastewater management best practices.

In addition, PTTEP has developed an action plan to control water consumption, by engaging with local stakeholders for their opinions and clearly communicating the Company's water management measures to relevant suppliers and contractors.

The Company demonstrates its commitment to transparency and trustworthiness by disclosing water performance in annual reports and sustainability reports. Water performance has also been reported to CDP since 2017 and PTTEP has been ranked at "Leadership Level" in 2017 and has ranked at "Management Level" since 2018 as a reflection of the Company's environment stewardship compared to its peers.

Water Risk Management

Water is crucial resource to petroleum exploration and production activities. PTTEP thus conducts an assessment on risks related to water resources management in all operating areas, to prevent the issues on water quality and water scarcity in neighboring communities. The Company also improves the water efficiency and water conservation and emphasize on the importance of leakage detection programs, maintenance, and the reduction of water losses from unnecessary activities.

PTTEP developed the water risk assessment tool in 2013 and keeps it up to date in accordance with the updated internationally recognized tools, for evaluating and managing the water related risk at all operating sites. The assessment was aimed at extending the risks to cover those related to water scarcity, increase in water fees, laws and regulations related to water consumption, as well as possible conflicts with stakeholders. The assessment utilizes actual data gathered onsite and forecasts from internationally recognized tools such as WRI Aqueduct, and WWF Water Risk Filter. Notably, the assessment focused on present and future risks (for 2020 and 2030, respectively), and the results were used to define risk management targets and approaches.

The Company assessed the water risk assessment and updated the analysis on possible impacts from water scarcity, increase in water fees, legal and regulatory amendments, water demands, and conflicts with stakeholders. The results showed that the Company is not currently at risk or facing significant impacts in any scenario at all assessed operations. However, the assessment of the water stress area by the WRI Aqueduct water risk atlas indicates the 2 operation assets located in areas with water stress: S1 & L22/43 Assets and PTTEP 1 Assets in Thailand. The Company has initiated water resources conservation and water bank projects with local communities in the water stress area and maintains the operations continually.

Produced Water Management

PTTEP's projects located in Thailand have achieved zero produced water discharge since 2010, through injection of produced water back into depleted petroleum reservoirs. Though produced water volume tends to increase in line with production activities and reservoir age, PTTEP has effectively maintained the water injection capacity. Sinphuhorm Asset in Thailand was the exception as it resorts to another technique, as described in its EIA, which also results in zero discharge.