Water Resources Management

Importance and Mission

Water management is important for PTTEP as it aligns with the company's commitment to environmental stewardship and sustainable practices across its operations. PTTEP recognizes that effective management of water resources is essential for ensuring the responsible use of this vital natural asset. By implementing rigorous water management strategies, PTTEP aims to minimize its environmental footprint and reduce both direct and indirect impacts on water resources, such as pollution and depletion. Additionally, sound water management practices contribute to PTTEP's efforts to uphold regulatory compliance and build trust among stakeholders. By prioritizing the sustainable management of water resources, PTTEP not only safeguards the environment but also supports its long-term business objectives and corporate values. PTTEP also emphasizes the importance and linkage of nature (land, sea, freshwater, and atmosphere), business and society in alignment with the Taskforce on Nature-related Financial Disclosure (TNFD) framework.

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 Zero produced water discharge to the environment

Management Approach

To achieve the water management goal, PTTEP focuses on management of both water resources and reuse/recycle of water. PTTEP commits to avoid the operations in the area at risk from water scarcity, as well as develop the water management program for the operations in the water stress area. 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 the 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 (adopted by IPIECA), monitoring and reporting of its performance and the best practices against the target, and establishing governance and review process, as well as engaging with stakeholder to support the efficient water management for both company and communities.

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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, supply chain, product use 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 the efficiency opportunities.

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 3 production operation assets located in areas with water stress: S1 & L22/43 Assets, PTTEP 1 and Sinphuhorm (SPH) assets in Thailand. The assessment result is summarized as follows:

Assessment of dependency-related and Impact-related water risks

Based on the WWF Water Risk Filter and Biodiversity Risk Filter results, SPH faces water scarcity risks, but PTTEP operations are not highly dependent on water. Both assessments indicate vulnerability to natural hazards and biodiversity pressures, with SHP additionally at risk from floods and land use changes. According to the WRI Aqueduct, three operation assets are located in areas with high water stress: S1 & L22, PTTEP 1 and SPH assets.

Assessment of future water quantities and quality-related risks

PTTEP forecasts stable water availability based on previous assessments and anticipates freshwater demand using production and consumption rates. No significant changes in water availability to operating assets and petroleum development support were noted since 2020.

Assessment of impacts on local stakeholders

Future stakeholder conflict assessments show no material impact on PTTEP assets through 2030, indicating low risk of conflicts over water use.

Assessment of future potential regulatory changes at a local level

PTTEP assets in Thailand, Myanmar, and Malaysia may face increased regulatory control, but the assessments predict that these changes will pose a non-material threat to operations through 2030.

As the results of water use and return and water related-risk assessment, PTTEP implements the water management programs according to water efficiency hierarchy, for example; to reusing such as 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 by initiating water resources conservation and water bank projects with local communities in the water stress area and maintains the operations continually.

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.

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.

By employing advanced treatment technologies, PTTEP has improved the quality of produced water (water produced along with petroleum production) to meet the standards for a broader range of uses, thereby significantly reducing our dependency on freshwater resources. This initiative will include the exploration of opportunities for using treated produced water in operation, where permissible.