PERTH (miningweekly.com) – ASX-listed Karoon Energy’s Brazilian subsidiary Karoon Petróleo e Gás, has entered into an agreement with Shell Western Supply and Trading (SWST) to purchase more than 480 000 verified emission reductions (VERs), or carbon credits, between 2022 and 2030, to offset an estimated 60% of total Baúna-Patola Scope 1 and 2 greenhouse-gas (GHG) emissions.

This agreement, which includes the purchase of VERs to offset 60% of Karoon’s 2021 Baúna emissions, complements Karoon’s purchase of 19 810 VERs in November 2021, and will result in Karoon’s Baúna operations being carbon neutral for 2021, the company said on Tuesday.

This marked a significant milestone in the implementation of Karoon’s carbon management action plan, and the agreement will ensure Karoon has access to a supply of VERs at fixed prices to offset the majority of Baúna-Patola’s estimated Scope 1 and 2 emissions.

“Entering this VER agreement is a major milestone for Karoon on our sustainability journey and demonstrates our commitment to achieving our GHG emissions goals,” said Karoon CEO and MD Dr Julian Fowles.

“Karoon has set ambitious targets to be carbon neutral for Scope 1 and 2 emissions in Baúna-Patola from 2021 onwards, while working toward a net-zero target for Scope 1 and 2 emissions by 2035. These VERs, together with the VERs purchased in November 2021, enable us to achieve carbon neutrality for 2021, and take us towards reaching our longer-term objectives.

“We are delighted to have entered into this agreement with SWST which, together with other Shell affiliates, has significant experience in carbon markets and with nature-based carbon credits. Shell exercises a high level of due diligence in selecting projects, consistent with Karoon’s commitment to using high-quality VERs. The agreement provides both supply of VERs and price certainty for the majority of our estimated Baúna-Patola Scope 1 and 2 emissions.

“As an oil producer, Karoon recognises the importance of facing the global challenge of climate change. We are committed to continuing to look for ways to avoid and reduce emissions within our operations, such as the recent mooring buoy project which enables vessels to anchor safely when not in use, reducing the need to burn fuel and mitigating substantial GHG emissions. In addition, we are pursuing opportunities for investment in carbon offset projects in Brazil that can provide both climate-related and social benefits in line with Karoon’s strategy,” said Fowles.

The company is also continuing to work toward avoiding and reducing emissions in operations where possible and is actively pursuing opportunities to invest in projects to offset residual emissions.