Environment We recognize that managing environmental impacts is an essential part of what it means to responsibly produce oil and gas.

What we are doing Environmental management 27 Advancing low carbon 27 Discharges and waste management 29 Environmental monitoring 31

26 in Sustainability Report 2019 Overview Our operations Our people Safety Environment Society Our Performance

Environmental management bp works to avoid, minimize and mitigate environmental impacts wherever we do business.

In 2019, we continued to maintain the certification of our operations in accordance with the ISO14001 A crew worker checks gas pipes with hand-held Environmental Management Systems infrared camera to detect leak on board the Shah Deniz Alpha platform. standard and our Compliance Management System. We also further Gross flaring by asset Gross GHG emissions expanded our certification scope (thousand tonnes) 3,699 to cover a number of newly built 4,000 3,830 3,543 3,399 3,331 9.77 operational facilities of the new gas 3,500 300 9.60 export chain. These included Shah 3,000 9.60 9.54 Deniz Bravo platforms, Shah Deniz 2 2,500 250 area of the Sangachal terminal and the 2,000 15.4 1,500 SCPX gas export pipeline. 11.9 8.89 200 1,000 15.8 56.6

3.1 500 Our environmental self-verification 42.4 5.2 3.6 9.9 28.0 2015 2016 2017 2018 2019 processes help us control actual 160 20.4 18.2 17.4 19.4 39.0 21.5 7.8 10.7 16.9 operational activities and identify 12.6 Gross direct GHG, thousand tonnes 9.1 9.3 53.1 33.5 5.8 100 28.7 61.5 areas for improvement. These 20.5 Normalized operational GHG emissions 24.7 11.4 (tonnes per thousand barrels of oil equivalent) include external and internal 36.6 18.5 34.7 42.8 (starting from 2018 normalized operational GHG emissions are 29.0 50 81.6 calculated using gross production number) environmental and compliance audits, 42.9 9.6 55.1 31.8 24.6 site environmental inspections 14.8 9.0 5.6 6.8 5.8 Gross non-GHG emissions (tonnes) and management reviews. 203.7 195.9 153.4 241.9 287.7 2019 120 10,131 2015 2016 2017 2018 2019 2018 121 10,117 140 154 Advancing low 150 carbon bp recognizes the urgency of the energy transition and is playing an active role in meeting the dual challenge to provide In Azerbaijan, we have conducted a bp-Equinor workshop in May 2018, as more energy to the world but with number of events to contribute to the well as ‘Keep advancing’ and ‘Meeting fewer carbon emissions. low carbon agenda. These include an the dual challenge’ events in 2019. energy efficiency workshop in 2014 In addition to being a founding member These events contributed to bp’s based on the outcome of our energy of the Global Gas Flaring Reduction target under our ‘Reduce-Improve- efficiency surveys, a joint partnership public-private partnership, bp has signed Create’ framework and generated programme with SOCAR on flaring up to the World Bank’s Zero Routine several documents for tracking the reduction in 2014-2015, a climate Flaring by 2030 initiative, joined the implementation of agreed actions change agenda workshop in 2017, Climate and Clean Air Coalition’s Oil and and communication of results. ‘Advancing low carbon’ awareness Gas Methane Partnership, as well as the These documents include the energy campaign launched in December 2017, Oil and Gas Climate initiative. efficiency roadmap, a 10-year GHG

bp in Azerbaijan Sustainability Report 2019 27 sustainable emissions reduction plan, GHG sustainable emissions reduction CO2e, Methane intensity in 2019, a five-year routine flaring reduction/ gross (thousand tonnes) bp Azerbaijan vs bp external target (%) elimination plan and a methane 95.59 monitoring programme. Starting from 2016, we have achieved 256,792 CO2 equivalent tonnes of greenhouse gas (GHG) sustainable emissions reduction, out of which about 37,672 tonnes were achieved 37.67 in 2019. All projects contributing 0.03% to this achievement are accredited through bp’s Advancing Low Carbon 2017 2018 2019 External target bp Azerbaijan accreditation programme. methane intensity The methane intensity for bp Azerbaijan in 2019 was 0.03%, compared with the the year, which contributed to the Energy consumption bp group target of 0.2%. Visit bp.com/ increase of GHG volumes as well. 2018 2019 energy transition for more information. The largest contributors to our GHG Fuel gas 1,013.5 995.5 Our emissions to air originate from emissions remained the Central Azeri (thousand tonnes) platform (20%), the Deepwater Gunashli Diesel 59.6 60.2 internal combustion of fuels (gas and (thousand tonnes) platform (15%) and the Sangachal terminal diesel), gas flaring and cold venting. Electricity Also, there are indirect emissions Azeri-Chirag-Gunashli (ACG) and Shah import 31,238 10,593 (megawatt hours) resulting from the use of electricity from Deniz sites (19% and 10% respectively). municipal grids. In 2019, we emitted Despite a substantial reduction in flaring about 3.8 million tonnes of gross GHGs, from Central Azeri, Shah Deniz Bravo which was 3.7% higher than in 2018. and the Sangachal terminal Shah Deniz Deepwater Gunashli platforms as a result The major reason for the increase site, the volume of gas we flared at our of the planned turnaround activities. was the new Shah Deniz 2 facilities operational facilities increased from 241.9 Oil spills becoming operational in mid-2018 kilotonnes in 2018 to 287.7 kilotonnes and thus, contributing to the full-year in 2019 mainly due to the significant In 2019, there were three oil spills of results in 2019. In addition, there was flaring from the Sangachal terminal ACG over one barrel in volume. All oil spills substantial flaring and cold vent during plant, the West Azeri, East Azeri and were contained and fully recovered.

bp plants thousands of trees as part of SCPX offset project

In October 2019, we successfully handed over the expansion (SCPX) offset project – more than 11,000 trees, planted two years ago along the pipeline right of way in Yevlakh – to the Ministry of Ecology and Natural Resources of Azerbaijan (MENR). This offset project was designed to make up for the vegetation removed from the right of way (RoW) section in Yevlakh, during the SCPX construction phase. The ratio and species type of the saplings were agreed pest control and daily care of the saplings. part of the DIS, we installed an electrical with the MENR taking into consideration In addition, a drip irrigation system (DIS) transformer at the site to support the their survival rate and suitability for the was installed in the area, that significantly intention of the MENR to run the irrigation conditions of the Yevlakh zone. contributed to the survival and well- system with cleaner energy in the future Throughout the project, a group of being of the saplings adding value to the when the site will be connected to the qualified specialists provided irrigation, sustainability of the project. Moreover, as national power grid.

28 bp in Azerbaijan Sustainability Report 2019 Overview Our operations Our people Safety Environment Society Our Performance

Fate of drilled cuttings in 2019 Discharges Generated waste quantities (tonnes) 2018 2019 Hazardous and waste waste (excluding 103,504 62,163 produced water management and sewage) Non- hazardous 27,131 17,226 waste Waste management We adopt a life cycle approach to waste management, with a goal of avoiding, reducing and reusing the waste that is created by our operations. of the total hazardous waste was sent 15,836.1 for reuse and recycling. The largest 15,992.4 Hazardous waste (excluding recycled streams were cement and 25,663.0 produced water and sewage) oils. In 2019, we generated 40% less total hazardous waste than in the previous Non-hazardous waste Drill cuttings year. The hazardous waste streams In 2019, we generated 37% less non- In 2019, we continued our drilling generated in a less quantity were hazardous waste than in 2018. This was activity in the , generating water oily and those generated from mainly due to less construction debris about 57,500 tonnes of drilling muds our drilling activities. The reduction produced throughout the year compared and cuttings - about 15% more than in was mainly due to the restoration of to 2018 when the Shah Deniz 2 site 2018. We also continued to reinject drill the cutting reinjection wells on the expansion project at the Sangachal cuttings to subsurface with the total West Chirag platform in 2019 and terminal was executed. volume 15% less than in the previous the further reinjection of a major year. About 48% of all drilling fluids We achieved 60% reuse and recycling part of hazardous waste into those shipped to the shore was recovered rate of non-hazardous waste in 2019, wells from this offshore installation. in the form of base oil and water, which is slightly less than in 2018. The Another reason for the reduction in compared to 36% in 2018. recycled non-hazardous waste streams total hazardous waste were fewer mainly included metal scraps, plastics, The permitted discharges of muds, drilling activities in 2019 compared to paper, cardboard and wood. including other drilling fluids and the previous year. Almost a half - 43%

Plastic waste minimization at • started to serve packed lunch in paper Sangachal terminal bags as opposed to plastic bags. • changed our bottled water provider in At the Sangachal terminal, we ran a pilot order to improve water quality aiming to project in 2019 to reduce our single-use encourage our employees to reduce the plastic in several ways. As part of this use of plastic water bottles. Achieving project we took the following steps: 50% reduction may result in avoiding the use of around eight tonnes of plastic per • eliminated the use of plastic bags for annum. catering purposes. This allowed us to save around 16 kg of plastic per day. • increased the awareness about the danger of plastic waste through placing • stopped provision of plastic plates to posters in our Sangachal offices and tea/coffee points. including plastic waste minimization • merged the industrial and non-industrial topic in the agenda of the general sections of our canteen facilities. This environmental awareness sessions. resulted in the reduced consumption Once we get the quantifiable results from of single-use plastic dishes and cutlery these actions, we plan to share the best items previously used in the industrial practice for plastic waste minimization canteen. with our other facilities.

bp in Azerbaijan Sustainability Report 2019 29 A lab specialist carries out testing as part of sewage treatment monitoring activities.

cuttings, to the sea as a result of the throughout the year, maintaining Produced water routine drilling activities in 2019 were compliant sewage treatment As oil reservoirs naturally deplete every equal to 25,663 tonnes. These were performance across our facilities in year, the share of water extracted with mainly discharged from the Chirag Azerbaijan. The sewage treatment at our the oil increases. Produced water from platform, the Istiglal and Maersk midstream facilities was in compliance the Azeri-Chirag-Deepwater Gunashli Explorer mobile drilling units. This with the national discharge standards (ACG) field is separated both offshore volume also included mud and cuttings throughout the year. However, there and at the Sangachal terminal. discharges associated with the pilot were minor off-spec results observed The ACG and Shah Deniz fields hole drilling as part of the Azeri-Central- at some offshore facilities, which were generated and treated 8 million East (ACE) project. addressed and resolved. For instance, tonnes of produced water in 2019. we continued to observe the results of The separated produced water was Sewage the sewage treatment monitoring at reinjected offshore through dedicated We regularly monitor and analyse the Shah Deniz Alpha platform and put wells to sustain pressure in the oil sewage treatment performance and the a plan in place to install an additional reservoir. quality of discharged water. treatment unit. We maintained the injection efficiency We continued implementing improved of produced water at a maximum level maintenance and monitoring practices of 99.6%, slightly higher than in 2018.

30 bp in Azerbaijan Sustainability Report 2019 Overview Our operations Our people Safety Environment Society Our Performance

Environmental monitoring We have been conducting environmental monitoring surveys around our operational facilities and on the regional contract areas since 1995. These surveys are focused on revealing ambient environmental health around bp-operated facilities.

Through these monitoring studies we aim to understand the potential impacts of our activities to the marine, shoreline and terrestrial ambient environment in the bp-operated contract areas in Azerbaijan. In 2019, we conducted 19 complex ambient environmental monitoring studies. These included offshore, inshore and onshore surveys. Offshore, we carried out environmental monitoring surveys around the Chirag, West Azeri, Deepwater Gunashli and Shah Deniz Alpha platforms. In addition, we conducted a post-drilling survey at the Shah Deniz 2 East South manifold area, and a regional survey in the Azeri-Chirag-Deepwater Gunashli (ACG) contract area. We also undertook three environmental monitoring surveys in inshore waters. Out of them, two baseline monitoring surveys were conducted in the Shallow Water Absheron Peninsula (SWAP) contract area, and one survey in the Sangachal bay. The scope of these surveys included a study of the distribution and abundance of macrobenthic and planktonic populations in the area, as well as physical and chemical characteristics of the local ambient environment. According to the results of the surveys, the ambient environment around the An expert conducts a soil and vegetation offshore platforms showed no signs of survey around the Sangachal terminal.

bp in Azerbaijan Sustainability Report 2019 31 increasing levels of contamination. The concentrations of drilling discharges related contaminants - water-based mud and hole-cleaning drilling fluid compounds - had reduced at the survey locations compared with the previous survey levels. The survey carried out around the Shah Deniz Bravo platform indicated the presence of a physical disturbance in one station and this was related to the installation of the adjacent seabed infrastructure. There were no widespread physical impacts or contamination observed within this survey area. Onshore we conducted 10 ambient environmental surveys (ACG and Shah Deniz production sharing agreements scope) around the bp-operated onshore facilities covering the Sangachal terminal, Experts collect samples during onshore the export pipelines and the Serenja environmental monitoring activities. hazardous waste management facility (HWMF). The monitoring surveys included ambient air quality, ambient noise, groundwater quality at all facilities, In addition, within the non-ACG and Shah along the -Tbilisi-Ceyhan pipeline. surface water quality at Sangachal, soil Deniz PSA scope, we carried out the Our operational environmental stability and vegetation cover monitoring following ambient monitoring activities monitoring focused on emissions, around the Serenja HWMF. There was in 2019: noise measurement, invasive discharges, consumption of fuel, no evidence of persistent impact on the species survey, landscape monitoring, power and water, waste streams, noise ecosystems quality or environmental bio-restoration study along the SCPX emissions associated with the activities health around the Sangachal terminal, pipeline; air quality, ground-surface water at our operational facilities. Serenja HWMF or the export pipelines. quality, noise and bio-restoration surveys

Building oiled wildlife response The experts designed the project capability considering the species, concentration and distribution of wildlife (marine and terrestrial) so that it would cover all bp We continuously work to improve our operations in Azerbaijan - offshore and capability to respond to oiled wildlife onshore. All aspects of oiled wildlife cases in line with our goal to minimize response and rehabilitation (plant, negative impacts of our activities on the process, people) were identified and environment wherever we do business. included. In Azerbaijan, we completed an oiled With this project, we developed a wildlife response capability-building sustainable capability for our own project in 2019 to be prepared for operations as well as for the country. The a potential oiled wildlife situation. project outcomes include a validated addition, the newly developed capability The project brought together the response plan, an oiled wildlife responder includes a functional mobile oiled wildlife representatives of the relevant local pool (nearly 150 experts from various response and rehabilitation unit, which government authorities, oil companies organizations registered as potential oiled can be mobilized and deployed in almost operating in the region, universities and wildlife responders in our pool), as well as any location, as well as associated tools other educational institutions, as well as an exercise and training programme. In and a set of equipment. non-governmental organizations.

32 bp in Azerbaijan Sustainability Report 2019