About the Report
A new brand was born and is already found in Brazilian waters, exploring and producing oil and gas to generate energy for all of society. Enauta is the name of the Company that brings us together around the goal of blazing trails in the energy universe and continuing to develop the energy sources that society needs, with responsibility, experience and courage. The Annual Sustainability Report is one of the ways we describe the challenges that we have overcome and the achievements we attained.
The publication follows the standards of the Global Reporting Initiative (GRI) and shows the alignment between our management model and the Global Compact and Sustainable Development Goals (SDGs), initiatives that are coordinated by the United Nations (UN).
The goal of our Annual Sustainability Report is to transparently and clearly provide all stakeholders with relevant information on our Company's business model, risk management and the capacity to generate and share value. In order to set the direction of content reported, we therefore carried out an active consultation and dialog process with our stakeholders in 2018, as well as assessment of the context in the sector in relation to the biggest demands and trends related to the topic of sustainability.
We identified eight material themes for communicating our sustainability management. These themes cover the topics indicated by our stakeholders as relevant to decision-making and guided prioritization of indicators that show how we manage risks and opportunities within our business model. See on the right our Materiality Matrix and know how these themes are connected to SDGs and the principles of the Global Compact.
Learn about the material themes identified in our updating process
and their relation to the SDGs and Global Compact principles.
Operational and personnel safety
The safety of our operations, of our employees and of our partners comes first at Enauta. Continual enhancement of safety conditions and prevention of occupational accidents and diseases are the focus of training, work procedures and campaigns, among other activities. Moreover, audits of equipment suppliers or suppliers of critical services periodically assess compliance with all health, safety and environment (HSE) requirements.
Management of the environmental impacts of production
Protection and conservation of coastal ecosystems using good environmental management practices can help to mitigate a series of environmental, social and economic risks to business. At Enauta, management is committed to working transparently and minimizing environmental impacts, with actions to prevent, mitigate and control the adverse impacts of our activities on the environment.
Oil and gas exploration and production are highly complex activities that require technology, experience and precision. This means that mapping and mitigating risks is fundamental to Enauta's activities and covers various areas, such as those related to financial, environmental, reputational, regulatory and operational safety risks.
Governance and compliance
Good corporate governance practices and upstanding management are the premises for appropriate and transparent conduction of business. Enauta continually enhances these practices by being an increasingly active participant in governance bodies and at organization's spreading a culture of compliance in operations. Combating corruption furthermore includes employee training, due diligence processes and mechanisms to receive and investigate grievances.
Enauta's business model presupposes work done in partnership. This premise is translated into formation of strategic partnerships to develop operations and engage other stakeholders relevant to operations, from regulatory agencies and local communities to fishing and industry organizations. This method of operating strengthens innovation and the sustainability of activities, contributing to generating shared value.
Climate change and energy transition
The oil and natural gas industry is confronting the challenge of responsibly fulfilling the growing energy demands in the world, including in regards to climate change. Enauta is aware that the share of oil in the world's energy mix will decline in the long-term, based on a desire for a less carbon-intensive society and development of new technologies, while natural gas should experience exponential growth. The Company sees a future that continues to be long and promising for this sector, which is fundamental for generating energy and maintaining societal well-being.
Community relations and impacts
Oil and gas always have social, environmental and economic impacts on the communities where they operate. To guarantee long-term success, Enauta respects local cultural values and processes for involving communities and vulnerable groups. The system for managing local impacts and engaging communities is integrated and systemic, assuring transparency in these relationships and the generation of positive socio-cultural impacts in these territories.
Financial health and wealth generation
Enauta is one of Brazil's largest privately-owned exploration and production companies. Its operations require significant investments and long-term vision, with discipline in cash generation and efficient portfolio management. The dimension of operations is also seen in the generation of wealth in locations, through payments of suppliers, taxes and royalties.
barrels of oil produced in the Atlanta Field
barrels of oil equivalent (boe) produced in the Manati Field
barrels of oil equivalent (boe) produced in total
R$ 797 million
R$ 425 million
in net earnings
growth in EBITDAX
US$ 73 million
invested in the Company
We are committed to preserving and protecting life, always putting the safety of people in first place. At our operations, we care for our employees and contractors and use firm action to minimize every risk, especially accidents that could impact people and biodiversity.
In the cities located in the areas of influence of exploration and production assets, we value local customs and culture, joining forces to preserve the environment and for territorial socio-economic development.
Knowledge and conservation
The investments we make in research projects, whether voluntary or in compliance with the requirements of regulatory agencies, contribute to increasing knowledge on marine and coastal biomes, in addition to production activities along the Brazilian shoreline, helping cities to create public policies and benefitting society as a whole.
invested in Research & Development projects
and research institutions are partners at R&D projects
Parcerias e Conhecimento em Prol do Mar Brasileiro
Our Parcerias e Conhecimento em Prol do Mar Brasileiro Program was created with the purpose of identifying, preventing and mitigating any damage to coastal ecosystems and to the people living in these areas in the event of incidents involving oil spills. It includes the JAPI, Costa Norte, PCAP and Marem projects, in which we have invested over R$ 25 million.
In 2018, the Program was highlighted at the "SDGs in Brazil: The Role of the Private Sector" event, promoted by the Global Compact Network Brazil at the 73rd United Nations General Assembly, in New York (USA). At that time, Enauta's CEO was able to show the benefits of integrated action to promote scientific knowledge, environmental protection and development of populations.
Click to learn more about the projects
This initiative, which started in 2016 and is set to end in 2020, is aimed at identifying efficiency in the use of computer technologies to represent hydrodynamics and the spread of oil in coastal and estuary regions of the Brazil's Equatorial Margin.
In 2018, one of the project's activities was the launch of 144 surface and depth drifters that were released during monthly campaigns to simulate how pollutants are carried by currents. For each campaign, we note any birdlife, marine mammals and fishing vessels present, in order to enrich knowledge of the region. We also collect physical and chemical data on water in coastal areas.
The first R&D investment we made, the JAPI Project characterized and monitored the sensitivity of coastal ecosystems on Bahia's southern shore. The initiative was developed in partnership with two universities (UFRJ and UFBA) and was finalized in 2014, with significant results for improving environmental management, conservation and appreciation of fishing activities in the cities of Una, Canavieiras and Belmonte.
In this region, we operate through the BM-J-2 Block concession, which was returned to the ANP in 2015. During our exploration activities, we worked alongside the community to develop compensation initiatives and build an innovative and participatory model of action which values local culture and traditions.
Developed by the IBP in partnership with IBAMA, the Marem Project is an initiative aimed to improve assessment of environmental impacts and enhancing environmental management. Data collected include, among other things, information on the physical and socio-environmental features of the Brazilian coast.
We participate in this initiative along with other companies in the sector, in an effort to contribute to strengthening actions and plans to protect and clean the Brazilian coast in the event of incidents involving oil spills. We also work on the subsequent project phases, which map coastal islands and vulnerable species that should be a priority for protection in the case of incidents.
Our team is made up of specialists with a command of different areas of knowledge, allowing for exploration and use of basins according to the country's geophysical characteristics. With vast experience in the sector, our team is capable of finding the best solutions to make production feasible in different reservoir types. This characteristic adds competitive advantages for the Company, insofar as it drives the search for innovative solutions for the operation.
Our employees enhance their knowledge continually through internal training or by participating in outside courses. In 2018, we had over 9,000 hours of training, an average of 81.5 hours per person – approximately 30% more than in 2017.
of our employees
Having a diverse portfolio is one of our competitive advantages. We mix assets in production with exploration areas in different stages of maturity. There are blocks with a high chance of discoveries, such as those in the Sergipe-Alagoas Basin, and others in border regions, such as the Foz do Amazonas Basin, which have a higher exploratory risk and, consequently, increase our opportunities.
We are qualified as an A Operator by the ANP, which means we are able to operate in fields located on land and at sea (in shallow, deep and ultradeep waters). We are the operator in four of the total concessions we hold.
Geographic diversification and the stage of development of our assets, as well as the partnerships we establish with major players, strengthen the resilience of our portfolio.
Local knowledge is one differential at Enauta to establish diversified partnerships, including with global players
(mllions of boe)
Located in the BS-4 Block, in the Santos Basin, the Atlanta Field is the most recent Enauta asset to start up operations. Initiation of the Early Production System (EPS) in May 2018 represents a milestone in the Company’s history, rewarding the bold move of becoming a national operator in one of the most challenging fields there is in ultradeep waters in Brazil. In the last year, average production was 12,000 barrels (bbl) per day.
Start-up on the EPS operation is important because the technical solutions used to access and elevate the oil are innovative and unique. The reserve’s geological conditions, the acidity and the reological conditions (such as viscosity, for instance) of the oil, along with other natural factors, require that a robust production project be built for a safe operation.
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Deep water oil reserves are those with at a depth of between 401 and 1,500 meters of water to the surface. Reservoirs located at depths in excess of 1,500 meters are in ultradeep waters.
Solutions in the Atlanta Field
To overcome challenges, technologies used followed six main concepts
To learn more
FPSO is an acronym of Floating Production Storage Offloading. It designates the special type of vessel used to receive, separate, process and store oil removed from offshore fields. The Petrojarl I is the first FPSO chartered by Enauta.
The Manati Field is one of the largest producers of natural gas not associated with Brazilian oil reserves. Its production fulfills demand for this fuel in the Northeast region and contributes to overcoming supply challenges during drought periods in the region, when hydroelectric plants are unable to generate power.
Located in the Camamu-Almada Basin and operated by Petrobras, Manati is very relevant. Because it was the only productive asset for over ten years, its production allowed the Company to strengthen its cash and helped to drive investments in exploring the other basins in which we are present.
4.9 million m³ of daily production, on average, in 2018
These are exploration assets that hold opportunities for our business to grow. The Sergipe-Alagoas Basin, where we hold shares in six blocks, has the potential to produce excellent quality light oil in ultradeep waters, based on recent discoveries in areas near the areas we are exploring.
We also have blocks in new frontier regions for the sector, such as the equatorial margin region, which includes the Foz do Amazonas and Pará-Maranhão basins. Preliminary activities conducted indicate that there are light oil and associated gas reserves.
In the BS-4 Block, where we began Atlanta Field production in 2018, we also have the Oliva Field, located 17 kilometers from our production asset.
This combination of assets in different stages of exploration, with the potential for discovery and production of light and heavy oils, diversifies risks to our business and allows for better distribution of investments, lowering financial exposure and the need to raise third-party funding.
Safety in operations
Guaranteeing the safety of people and the environment are fundamental premises for conducting our business and our activities. Our management model was structured to mitigate operational risks and trigger action plans in an integrated manner to minimize impacts in the event that accidents and incidents occur.
The main risks related to safety are in exploration and production activities, which are mostly done by suppliers who are under contract. Bridging documents are drafted with companies considered to have critical risk, so that activities may be executed in compliance with our HSE standards.
Incident monitoring in the Atlanta Field operation is done monthly and controlled through a Pyramid of Indicators. With this tool, we monitor the evolution of key reactive safety indicators, such as total number of incidents and seriousness of occurrences, and we discuss plans for improvements with our suppliers.
Our Integrated Management System (or Sistema de Gestão Integrado/SGI, in Portuguese) standardizes the way we operate to ensure the safety and excellence in SMS performance in our business.
• ISO 14001 (environmental management)
• OHSAS 18001 (occupational health and safety management)
In 2018, we expanded the scope of these certifications to production in the Atlanta Field; and, starting in 2019, we will begin an internal process to obtain ISO 45001 certification, an ISO standard in the area of Occupational Health and Safety Management
These manuals establish procedures to be adapted in different activities so that they may be performed in a standardized manner, meeting Health, Safety and Environment standards and preventing occurrence of incidents
Assessment of operational risks
We use the main methodologies recognized by the industry to identify and evaluate risks and implement recommendations in order to keep conditions at ALARP (As low as reasonably possible) levels, such as APR, HAZID, HAZOP, BowTie, and others, depending on the phase the venture is in
Supported by the SGI, we monitor performance in relation to the relevant environmental impacts of our business. With the stat-up of Atlanta Field operations, some aspects became even more relevant for our management, especially the treatment and disposal of waste and effluents, the search of energy efficiency and the consequent reduction in greenhouse gas (GHG) emissions.
Before starting the Early Production System (EPS) in the Santos Basin, we were already managing these environmental aspects. For example, we take part in the Carbon Disclosure Program (CPD), an international
initiative that engages companies in providing accountability on emissions management, in order to provide more transparency to investors. Since 2015, we have published our GHG emissions inventory annually on the Programa Brasileiro GHG Protocol platform.
Environmental management of our business also includes execution and assessment of the conditions required by regulatory agencies in the licenses authorizing our operations. Various projects are implemented under this scope, such as the Projeto de Monitoramento de Impactos sobre a Avifauna (PMAVE), monitoring birds, and the Programa de Comunicação Social (PCS), communicating with fishing communities.
The main factor of GHG emissions in the Atlanta Field operation is the consumption of marine diesel. In 2018, the use of this fuel doubled compared to the previous year, mostly as a result of the start of the FPSO operation.
Generation, treatment and appropriate disposal of waste and effluents is another topic that we continually manage in our operations. Oversight of these indicators is done monthly with the goal of guaranteeing compliance with the parameters established by environmental laws and identifying opportunities for improvement.
Our corporate governance structure, supported by policies approved by the Board of Directors and by the Code of Ethical Conduct, provides guidance for conducting business with the goal of maximizing generation of value for all stakeholders.
Our highest decision-making body is the Board of Directors, comprised of six members (including two independent members).The activities of the Board of Directors are supported by three informational and advisory committees.
Our Executive Board, which is responsible for leadership in managing the business and assets, contains three members, one of which is the CEO. Aligned with the values of our brand, these leaders direct execution of strategy and of the development of business so that we are able to make our purpose a reality.
Ethics and compliance
At Enauta, the business we carry out and the conduct we use in stakeholder relations are in line with ethics, in compliance with laws and regulations applicable to our sector and are aligned with our corporate values. The Code of Ethical Conduct, freely available on the Company’s website, establishes the standards of behavior we expect from employees and suppliers.
The Compliance Program, in place for the last four years, is the tool we use to monitor compliance of our Code of Ethical Conduct and internal standards aimed at assuring the integrity of our operations.
The Confidential Channel supplements the initiatives we have to mitigate risks related to conduct that is not aligned with our principles. This platform is an independent and confidential environment.
To engage employees in the Compliance Program and reinforce ethics and transparency at our Company, we hold training, campaigns and annual meetings where compliance and integrity are discussed.