Highlights of EGM 2019: Kuala Lumpur
This year’s Extraordinary General Meeting (EGM), kindly hosted by PETRONAS, was held in Kuala Lumpur, Malaysia’s vibrant capital and a prime example of how oil and gas have helped to transform the Asia Pacific region into an industrial and financial powerhouse.
In the lead up to the EGM, six side events were organised: The Engineering Leadership Council, Safety, Decommissioning and Management Committees held meetings; the Standards Committee ran a workshop, and JIP33 held its third Industry Day.
The opening keynote speech, delivered by Firouz Asnan, Senior Vice President of Malaysia Petroleum Management, covered the history of PETRONAS, Kuala Lumpur and the iconic PETRONAS Twin Towers.
Gordon Ballard presented a review of IOGP’s accomplishments over the past year: over forty reports were published; Memorandums of Understanding were signed with API and SPE; seven new Members joined; and a new Joint Industry Project, E&P Environmental Genomics Research Programme, was created.
Following the Executive Director’s Annual Review, the EGM guests had the opportunity to get to know the work of IOGP’s 14 Committees. In small groups, the participants learned from Committee chairs and Managers about each committee’s tasks, the work accomplished, and the plans for the coming year. The sessions were illustrated with posters for each of the committees. Ed Walsingham, IOGP Business and Strategy Manager, said “The committees and their members certainly are the heart of IOGP. It was a pleasure to see how captivated the attendees were and how much they appreciate the exceptional work that is being done across the breadth of our committees.”
In the afternoon, Ritva Westendorf-Lahouse, the recently appointed Communications Director, moderated a panel discussing communication challenges and outreach in the Asia Pacific region. The panel, which included Sukiman Mohamed, General Manager Public Affairs, ExxonMobil Malaysia, Vincent Soetedja, Vice President Human Resources and Business Support, ENI Indonesia, and Wafik Beydoun, IOGP Director Americas, examined the characteristics of the region’s energy debate, the key stakeholders to engage with, and how to make the case for oil and gas more effectively. With Asia Pacific being the world’s biggest oil consumer while facing declining production, security of supply and affordability are the key drivers of the energy debate. Unlike in other areas of the world, governments still enjoy a high level of trust, which significantly shapes the industry’s strategies: engaging with governmental officials remains the key focus, while on the other hand, the broader public is becoming more and more engaged and requires the industry to reach out to this audience as well. In this context, employees play a key role as potential ambassadors for the industry, as relationships between employer and employees are exceptionally strong in this region.
In the second part of the panel discussion, John McDonald, CEO of OPITO, the global, nonprofit skills body for the energy industry, joined the panel and outlined the challenges for the industry to attract, train, and keep the workforce.
The first day ended with a PETRONAS-hosted dinner and Skybridge tour at the Malaysian Petroleum Club on the 41st floor of Tower 2 of the Petronas Twin Towers.
The IOGP Chair, Fawaz Bitar, opened the second day with his keynote speech on climate change and the role of the oil and gas industry. He asked guests to consider if the industry’s arguments are always cutting through to people outside the industry. He gave a personal example, a debate between him and his daughter.
Fawaz concluded by arguing that not only can the energy transition take place with a strong oil and gas sector, it must, and the industry is uniquely placed to help shape how the transition unfolds. It can help by reducing operational emissions and by investing in Carbon Capture Usage and Storage and hydrogen.
The full speech is available here.
The second panel, moderated by IOGP’s Environment Director Wendy Brown, was focussed on ‘Our Lower Emissions Future’ with a particular focus on the Asia Pacific region. The three distinguished panellists were invited to address four key questions: what is your organisation doing to develop resilience to severe weather and potential climate change impacts? What is your organisation doing to lower emissions? Where does the industry need to improve? Is there a regional context to the challenges?
The first panellist was Oliver Jones, BP’s Metocean Team Lead and also Vice Chair of IOGP’s Metocean Committee and Co-Chair of IOGP’s Climate Change Workshop Taskforce. Oli’s presentation was based on material provided by academics at the IOGP Conference on Climate Change in 2018 as well as his views on severe weather resilience. His key messages were that some coastal assets may be vulnerable to storm surge, whilst for offshore facilities, existing weather risk is generally much greater than climate change risk. Oli recommended opportunities to improve management of extreme weather risk, through quantification of extreme weather uncertainty and frequent review of weather risk at all facilities (offshore, coastal and onshore) to include the latest physical understanding, statistics, and sea level rise effects.
Next was Thirupathi Rao Narayanamoorthy, PETRONAS’ Head of Climate Change, Sustainable Development, Environment & Social Performance in Group HSSE. Thiru explained how PETRONAS has introduced a new ‘Statement of Purpose’ this year to align with the global Sustainable Development Goals (SDGs) and PETRONAS’ transition from an oil and gas company to an energy company: “A progressive energy and solutions partner enriching lives for a sustainable future”. He also shared how PETRONAS has reduced GHG emission reductions cumulatively by 12 Million tCO2e since 2012, and have set GHG emissions targets for the first time this year and developed a midterm GHG emission reduction roadmap.
Finally, Jim Herbertson, IPIECA’s Technical Director for Climate & Energy, spoke about the work that IPIECA are doing to help their members with energy transitions and low-emissions pathways, energy efficiency, methane emissions, flaring and venting reduction, transparency and reporting, adaptation, and resilience. He explained the multiple possible low emissions pathways to meet the Paris goal, including carbon capture and storage, and low-emission pathways for transport.
Wendy moderated a lively discussion including how companies should prioritise their budget in this space, what role individuals can play to make a difference, what role IOGP should play with regard to transfer of older assets to late life specialist companies, and the value of electrification of transport and how its benefits will vary according to electricity grid power source.
The formalities of the 2019 Extraordinary General Meeting concluded the Kuala Lumpur event. Members voted on four resolutions, and all were passed.
The first approved the Minutes of the previous year’s EGM.
The second increased the Unit of Account to £15,000 for 2020 and increased the Production Multiplier to 1, 1.25, 1.5, and 2 for production tiers 4, 3, 2, and 1 respectively, in order to cover the activities planned by the IOGP Committees.
The third increased the European Supplement to €68,000 in order to strengthen IOGP’s Brussels office, EU Committee, and advocacy offering. This supplement is also subject to the Production Multiplier based on global production.
The fourth and final resolution approved the budget and draft business plan for 2020.
Gordon closed the EGM and thanked Members for attending and showing their support for IOGP.
Thanks for your Feedback!
We received some great feedback on our Kuala Lumpur EGM; over 95% of attendees were satisfied or very satisfied with the event. Many praised PETRONAS for being such great hosts – the dinner at the Malaysian Petroleum Club and the Skybridge tour were particular highlights for attendees.
The Poster sessions and panel discussions were also popular, with plenty of suggestions on ways to tweak the logistics of viewing 14 poster talks, including extending the sessions to two days rather than one. We will consider all feedback to make our next EGM even more enjoyable for our Members.