CARBON FOOTPRINT REPORT

UNDER ISO 14064-1:2018

ASSET
EXPLORATION & PRODUCTION
RKF ARGELIA

REPORTING YEAR 2021

www.cepsa.com
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Carbon Footprint Report

ISO 14064-1:2018
2021

00.

INDEX

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ÍNDICE

01. GOAL 5

02. REPORTING BOUNDARIES 7

03. SCOPE 8

04. EMISSIONS DATA AND METHODOLOGY 10

4.1. Emisssions Data 10
4.2. Methodolgoy 11

05. EXCLUSIONS AND UNCERTAINTTY 14

5.1. Exclusions 14
5.2. Uncertainty 14

06. BASE YEAR 16

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Carbon Footprint Report

ISO 14064-1:2018
2021

01.

GOAL

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01. Goal
Cepsa continues this year 2021 with its in-
ventory verification plan at the organiza-
tional level of Greenhouse Gas (GHG) emis-
sions under the framework of ISO 14064:
1:2018 in line with its Carbon Strategy. The
verification includes the emissions of the fol-
lowing GHGs: carbon dioxide (CO2), me-
thane (CH4) and nitrous oxide (N2O), as well
as the fugitive emissions from transportation
and fugitive emissions as of hydrofluorocar-
bons (HFCs) or others from the refills of refrig-
eration systems.
The process of inventory verification has
been carried out in HSE&SE EP and Carbon
Cycle with the accreditation of AENOR with
a limited level of assurance and a threshold
of maximum relative importance of 5%.
With this report:
• Under our strategy and commitment to
reduce our CO2 emissions, we adopt rig-
orous monitoring and volunteer audit of
these emissions to enhance our transpar-
ency and rigor in communication of
emissions.
• With the aim of meeting the targets set in
the United Nations’ Sustainable Develop-
ment Goals for 2030, Cepsa has identi-
fied four priority objectives that it can
maximize with its contribution as a global
energy company. Climate Action is one
of them, aware of climate change, aim
to minimize the carbon footprint.
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Goal
Cepas has updated its policy framework and
new climate action policy is available in
www.cepsa.com
This Policy aims to establish a framework to
articulate the Company’s strategy and
business model in a manner consistent with
its commitment to carry out the necessary
climate actions, aligned with the energy
transition and a low-carbon economy
Our Commitments
• Establish, monitor and validate by a
third-party CO2 emissions and abate-
ment plan targets as well as in terms of
the carbon intensity of its product portfo-
lio.
• Integrate climate change in the com-
pany strategy and in all businesses deci-
sion-making processes. Analyze risk and
opportunity management and climate
financial reporting under different cli-
mate scenarios.
• Design carbon mitigation and adapta-
tion plan considering the entire value
chain and low carbon products growing
demand.
• Keep climate-related objectives as mon-
etary reward parameter.
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Goal

Carbon Footprint Report

ISO 14064-1:2018
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02.

REPORTING BOUNDARIES

03.

SCOPE

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02. Reporting boun-
daries
Following emissions are reported under
this report.
• This report groups direct GHG emissions
(CO2, CH4, N2O and refrigerant gases)
from the facilities, including combustion,
process, fugitive emissions and emissions
from mobile sources, (Category 1)
• And indirect emissions by purchased en-
ergy of the facilities included in the
scope of this verification. (Category 2)
• Likewise, this 2021 report includes the in-
direct emissions of the value chain cor-
responding to scope 3 under the GHG
Protocol Methodology and under ISO
14.064. (Categories 3-6)
Greenhouse gas emissions sources have
been identified and grouped in accord-
ance with the ISO 14064-1:2018 standard.
This standard lists six categories of emissions
and differs somewhat from earlier categori-
sation in line with the Greenhouse Gas Pro-
tocol’s Scopes 1 through 3.
• Category 1: Direct GHG emissions and
removals
• Category 2: Indirect GHG emissions from
imported energy
• Category 3: Indirect GHG emissions from
transportation
• Category 4: Indirect GHG emissions from
products used by the organization
• Category 5: Indirect GHG emissions asso-
ciated with the use of products from the
organization
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Reporting boundaries
• Category 6: Indirect GHG emissions from
other sources (not applicable in this re-
port)
This report, although drawn up in parallel, is
developed within the framework of the prin-
ciples established by Cepsa regarding the
quantification of GHG and the establish-
ment of objectives to reduce GHG emis-
sions.
Significance and Materiality
It is necessary to define and explain own
pre-determined criteria for the significance
of indirect emissions, considering the in-
tended use of the inventory.
Factors for consideration in assessing signifi-
cance and materiality include:
• Magnitud or Size of the emissions
• Level of Influence on the emission
source
• Difficulty in obtaining data
• Poor validity in available estimation
approaches
Whilst all of the above would be considered
in materiality assessments, the criteria that
would mandate disclosure of emissions
sources as significant is:
a) Where there is a single source with esti-
mated emissions likely to be at least 1% of
total emissions. In this case, that emissions
source must be included.
b) Where the total of ‘insignificant’ sources
has estimated emissions likely to be at least
5% of total emissions. In this case, enough of
the ‘insignificant’ emissions must be in-
cluded until the estimate of excluded emis-
sions is below 5%.
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Scope

03. Scope
Exploration & Production Operation
Cepsa EP participates in the process of ex-
ploration, development and production of
oil and natural gas, both onshore and off-
shore fields. Our exploration and production
activities are mainly located in South Amer-
ica, Middle East, Africa and Southeast Asia,
with a crude oil production of 73 thousand
barrels per day in year 2021.

• Asset E&P RKFArgelia

This crude oil field is located in the Berkine

basin in Algeria. In year 2021, Cepsa EP has
a 49% working interest in this onshore field,
which is operated by Sonatrach-Cepsa As-
sociation. This asset has seventeen pro-
ducer wells and thirteen gas reinjection
wells, three of them WAG (water alternating
gas). The crude oil production of about 9,4
thousand barrels per day. 100% GHG emis-
sions are calculated and reported accord-
ing to IOGP criteria report.

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Scope

Carbon Footprint Report

ISO 14064-1:2018
2021

04.

EMISSIONS DATA AND

METHODOLOGY

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Emissions Data and Methodology

Tonnes GHG (CO 2eq)

04. Emissions Data

Total direct
and Methodology 93,192
emissions

Total
indirect
93,609 emissions
4.1. Emisssions Data
The general distribution of emissions among
the above mentioned iso 14064-1:2018 for
the year 2021 categories is shown in the The breakdown of these direct emissions is
following graph: shown in the following table where, in
addition to the contributions from
combustion, fugitive and refrigerants, the
Emissions (tCO2e) by Category
equivalent tons of CO2 are broken down.
93,192
64,015 Emissions sources CO2 CH4 as N2O as
tonnes tCO2eq tCO2eq
Gas consumed 53,916 24 23
13,291 12,374
3,929 Gas Flare 12,597 2,541 0
Diesel 8,847 7 123
Category 1 Category 2 Category 3 Category 4 Category 5
Fugitive transport 19 14,750 0
Direct Indirect Indirect Indirect Indirect
emissions emissions from emissions from emissions from emissions Fugitive Refrigerants 345 0 0
imported transportation products used associated with
energy by organisation the use of
products from
de organisation Finally, the contribution of each category of
indirect emissions is shown below.
Direct and indirect emissions at this site are
of the same order of magnitude. The Total Indirect emission, % shares
distribution of indirect emissions reflects the
highest contribution of category 5 Category 2 14%
specifically the processing of the products
sold and their use, followed by categories 2 Category 3
and 3, while the contribution of category 4 13%
is the lowest. Total emissions account to
186,801 tonnes of CO2eq. 4%
Category 4
The percentage distribution graphs for Category 5
carbon foot print by scope show that 69%
indirect emissions account for the largest
percentage of emissions calculated.

Zero emissions from biogenic origin.

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4.2. Methodolgoy
Direct emissions
• Gas Combustion emissions in
stationary sources: CO2 is reported
according to C content calculated
from analysis of gases in the
facilities. CH4 and N2O are reported
according IOGP methodology
emission factors. Produced gas
activity data are reported
according to the equipment
operating hours and consumption
associated with the equipment
design.
• Gas Flaring emissions: CO2 and CH4
are reported according to C
content calculated from analysis
ofgases in the facilities according to
IOGP methodology. N2O is reported
also according to IOGP emission
factors. Activity data of flared gas
are reported according to an
internal measurement Equipment.
• Diesel Combustion emissions in
stationary and mobile sources in
facilities; CO2eq is reported
according to IOGP methodology for
stationary and for mobile. Activity
data are reported according to
direct measurement of diesel
consumption in the facility..
• Fugitive emissions of refrigerant
gases; CO2eq are referred to IPCC
AR5 emission factors and DEFRA.
Activity data reported under SAP
transactions on refrigerants outlets
and stocks.
• Fugitive emissions of transport and
distribution; CO2eq are referred to
IOGP methodology emission
factors. Activity data of produced
and reinjected gas are considered
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Emissions Data and Methodology
according to fololowing
explanation. Activity data of
produced gas is calculated daily by
sum balance of the three gases
(flaring, consumed and reinjected).
Gas reinjected, activity data of this
gas is reported according to the
records of a measurement
equipment.
Indirect emissions from energy
• Associated emissions to purchased
electricity in facilities under scope.
Activity data are reported under
invoices. Report of indirect emissions
are made under location-based
criteria and use of emissions factor
at national level.
Indirect emissions from value chain
Following subcategories as energy
and purchased fuels (category 4),
downstream transportation and dis-
tribution (category 3), processing
products sold and use of products
sold (category 5) have consistent
activity data for their calculation as
they are verified in other categories
to carry out emission calculations
Category 3: GHG from transporta-
tion
Subcategory Indirect emissions by
transport and distribution down-
stream.
The quantification methodology
used for calculating emissions is
based on the activity data (crude
produced) and the emission factors
published by JRC v5 report by
Concawe.

Category 4; GHG from used
products
Subcategory Indirect emissions from
purchased products as upstream
emissions of purcharsed fuels and
electricity and transimissions and
distribution losses.
The quantification methodology
used for calculating emissions is
based on the activity (electricity
and diesel consumption) data and
the emission factors published by
DEFRA 2021. In the case of electricity
involve losses by generation trans-
mission and distribution.
Category 5 ; GHG from use of
products
Subcategory Emissions from the use
stage of the product
The quantification methodology
used for calculating emissions is
based on the activity data (crude
produced) and the ratio of direct
(category 1) and indirect emissions
(category 2) per ton of crude oil pro-
cessed in our refineries published in
our annual management report.
Here we have the following subcategories
Subcategory Indirect emissions
caused by services used by the or-
ganization, such as wastes gener-
ated in operations. (category 4)
The quantification methodology
used for calculating emissions is
based on the activity data (wastes)
and the emission factors published
by DEFRA 2021
Subcategory Indirect emissions
caused by employees commuting
to work. (category 3)
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Emissions Data and Methodology
The emissions associated with trips
made by employees between their
homes and their worksites using dif-
ferent means of transport (car, air-
craft or train), hotel, etc for which
the distances travelled, or hotel
nights are multiplied by DEFRA emis-
sion factors.
Subcategory Indirect emissions
caused by business travel ,cate-
gory 3)
The emissions associated with the
business trips made by employees
using different means of transport
(car, aircraft or train), hotel, etc for
which the distances travelled, or ho-
tel nights are multiplied by DEFRA
emission factors
These last three categories described have
been calculated based on the above de-
scription and found not to meet the materi-
ality requirements (lower than 5%).
So that they have not been included in the
current report, nevertheless with the aim of
to improve the robustness and traceability
of the activity data as well as to incorporate
new categories not reported in this report
due to the difficulty of accessing the data,
action plans are being developed.
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Emissions Data and Methodology

Carbon Footprint Report

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05.

EXCLUSIONS AND
UNCERTAINTY

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Exclusions and Uncertaintty

05. Exclusions and

Uncertaintty

5.1. Exclusions

No exclusions.

5.2. Uncertainty
The estimated uncertainty of the emissions
is a combination of the uncertainty of the
emission factors and the activity data.

For the calculated emissions, a controlled

and minimized relative importance is estab-
lished, since they are calculated based on
the activity data of the facilities and emis-
sion factors. These data are subject to con-
trol by the competent administration, there-
fore, they are measured and controlled to
manage their amount. The uncertainty of
the activity data of gas and diesel quanti-
ties is very low due to the validation of the
daily data through the process data soft-
ware and the measurement equipment
which are validated and accredited by
third party.

As for the emission factors used, they come

from contrasted and specific sources, so
their level of uncertainty is known and con-
trolled. The emission factors calculated in-
ternally are based on measurements of cal-
ibrated and externally verified analytical
equipment or analysis of the gases accord-
ing to IOGP methodology.

The application of these considerations

makes it possible to minimize as far as pos-
sible the uncertainty of the data provided
in this Carbon Footprint.

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Exclusions and Uncertaintty

Carbon Footprint Report

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06.

BASE YEAR

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Base Year

06. Base Year

Due to the review of the reported data, as

part of our continuous improvement in the
accuracy of calculation process, an
inconsistency was detected when applying
the formula; that result in a significant
change in the quantified GHG emissions
data.

It was decided to establish the base year

once the correction had been
implemented.

The base year was established in the year

2021.

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Base Year

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