Water Resources Management
Importance and Mission
PTTEP recognizes that effective management of water resources is essential and remains committed to the responsible, appropriate, and efficient use of natural resources. The Company promotes sustainable water resource management through strict compliance with applicable laws and standards, while fostering trust and actively listening to concerns regarding potential operational impacts among stakeholders and water-use communities. These efforts support PTTEP’s long-term business objectives and sustainable value creation.
Goals
- 1 Avoid operating in areas at risk from water scarcity and ensure that there is no impact on the community and water users
- 2 Achieve Zero produced water discharge to the environment*
* In compliance with applicable laws and regulations in each country where PTTEP operates
Management Approach
To achieve the water management goals, PTTEP focuses on management of both water resources and reuse/recycle of water. PTTEP commits to avoid operations in the areas at risk from water scarcity, develop the water management program for the operations in the water stress area, including seek the opportunities to reduce or replace freshwater withdrawal as much as possible. Moreover, the mitigation of the impact from large volume of produced water is priority by setting the target of 100% of produced water injection for Thailand operations where the facility is safely allowed. Otherwise, the compliance with the regulation in the country where the operating assets located is adhered to.
For sustainable water management, PTTEP water management framework is defined as a risk-based and continuous improvement process, which comprises the implementation of integrated water management approach through the recognition of water use and return and water-related risk assessment, development of water efficiency opportunities by using water efficiency hierarchy which adopted from Ipieca, monitoring and reporting of its performance and the best practices against the goals, and establishing governance and review process, as well as engaging with stakeholder to support the efficient water management for both the Company and communities.
Water Risk Assessment
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, supply chain, product use to prevent the issues on water quality and water scarcity in neighboring communities. The Company also improves water efficiency and water conservation and emphasizes 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 management cost, laws and regulations related to water consumption, as well as possible conflicts with stakeholders. The water risk assessment was conducted using both project-specific data and site-specific information obtained from internationally recognized tools, including the Aqueduct Water Risk Atlas developed by the World Resources Institute (WRI). The assessment results are used to establish water efficiency targets and management approaches. In addition, PTTEP considers alignment with the Taskforce on Nature-related Financial Disclosures (TNFD), which addresses interdependencies with nature, including biodiversity importance, ecosystem integrity, water stress, ecosystem service delivery importance, as well as other relevant international frameworks and standards.
The assessment identified four operational areas located in regions with high water stress risk, comprising three operating projects and one petroleum support base, S1 and L22/43, Sinphuhorm, PTTEP 1, and Songkhla Petroleum Support Base (PSB). However, further evaluation of PTTEP’s operational activities indicated limited dependence on shared public water sources used by local communities. When integrating water stress considerations into the Company’s Corporate Risk Profile to define corporate strategies and operational approaches, the overall water-related risk level was assessed as low to moderate, with no significant impacts identified under all assessed scenarios for all projects. Therefore, PTTEP has established collaborative action plans with local communities to support water resource conservation in the operational areas, as further detailed in the section on Collaboration, Research and Development for Water Resource Conservation.
Water Management within the Organization
PTTEP implements water management measures in accordance with the Water Efficiency Hierarchy to reduce impacts associated with water use from the Company’s operational activities, particularly in operational areas identified as having high water stress risk, all of which are onshore projects. The Company has established mitigation measures related to freshwater use in collaboration with local communities, particularly regarding water availability, accessibility, and water quality for enhancing petroleum production efficiency while supporting water resource conservation.
For the effective produced water management, PTTEP's projects located in Thailand have achieved zero produced water discharge since 2010 by injecting of produced water back into depleted petroleum reservoirs. In addition, produced water is reinjected into dedicated injection wells at the same depth as the petroleum reservoir to enhance reservoir pressure and improve oil recovery through water flooding, particularly in the S1 Project. This approach enhances petroleum production efficiency while maximizing resource utilization. Although the volume of produced water tends to increase in line with production rates and reservoir age. PTTEP has consistently maintained the efficiency of its produced water reinjection system to manage all produced water generated from operations. For the Sinphuhorm Project, produced water is managed and treated in accordance with the mitigation measures specified in the Environmental Impact Assessment (EIA) report, without discharge to the environment. In addition, all projects in Thailand conduct water quality monitoring according to the mitigation measures specified in the Environmental Impact Assessment (EIA) report. For overseas projects, PTTEP fully complies with the applicable legal and regulatory requirements. This includes treating produced water to meet regulatory standards prior to environmental discharge, as well as reinjecting produced water into depleted petroleum reservoirs where appropriate.
Furthermore, PTTEP equips our employees with essential training to enhance water conservation across all operations. Employees share lesson learns to implement practical solutions within their operations, such as optimizing water use in drilling processes and improving water recycling systems. This training also incorporates case studies demonstrating successful produced water management practices, equipping our team with the skills and knowledge to actively contribute to our water sustainability initiatives.
The Company continuously monitors and records the water-related performance, both quantitative and qualitative data. Moreover, PTTEP demonstrates its commitment to transparency and trustworthiness by disclosing water performance in annual reports and participates in external assessments on water management and climate change performance, including CDP. These assessments enable PTTEP to monitor emerging trends and benchmark its practices against international best practices and industry peers, while continuously improving the effectiveness of its water management approach.
Collaboration and Research and Development for Water Resource Conservation
PTTEP emphasizes the application of technologies to improve the quality of produced water to meet standards for reuse in various activities, resulting in reduced freshwater consumption across operations. These initiatives include feasibility studies on the reuse of treated produced water within PTTEP’s operational processes, conducted in collaboration with regulatory authorities and in compliance with relevant approval requirements.
Furthermore, PTTEP places importance on collaboration with local government agencies and communities, particularly in areas identified as having high water stress areas, to prevent and mitigate impacts arising from climate change and increasing climate adaptation, which may further affect water resources in the future. Examples include:
- PTTEP has collaborated with government agencies, including the Agricultural Land Reform Office (ALRO), and local communities surrounding the S1 and L22/43 Project areas to implement groundwater bank projects in Kamphaeng Phet and Sukhothai provinces. The projects support His Majesty King Bhumibol Adulyadej The Great’s Sufficiency Economy Philosophy by strengthening community resilience to environmental changes. The initiatives aim to manage water resources through groundwater recharge systems, helping reduce water scarcity risks and enhance community adaptation to extreme weather conditions. The projects replenish aquifers using available surface water sources, such as river overflow and runoff from heavy rainfall. In addition, the groundwater bank projects help mitigate flooding during the rainy season while increasing water availability for agricultural use during the dry season.
- PTTEP has collaborated with Kasetsart University on the “Mini Farm” project to promote safe vegetable cultivation under a low-water-use concept. The initiative aims to enhance water-use efficiency, reduce water scarcity risks during certain seasons, and improve agricultural productivity for communities surrounding the Sinphuhorm Project operations in Khon Kaen and Udon Thani provinces. The project successfully reduced water consumption by up to ten times compared with conventional farming practices.
- PTTEP has collaborated with the Protected Areas Regional Office 10 (Udon Thani) to implement a wildfire prevention and control program surrounding petroleum production wells of the Sinphuhorm Project. The initiative aims to preserve the integrity of watershed forests and replenish natural water sources within national parks in Nong Saeng District, Udon Thani Province, covering approximately 78,125 rai (around 12,500 hectares). The project has been continuously implemented since 2008 through support for the establishment of wildfire control centers and networks, firebreak construction, and wildfire patrol activities. These efforts contribute to the sustainable conservation of forests, watershed areas, biodiversity, and ecosystem services within the national park areas.