We believe that good corporate governance creates a business environment conducive to sustained economic growth, promotes the long-term interests of our stakeholders, and helps build trust in our company. As responsible stewards, we are committed to positively affecting the communities where we live and operate. We also encourage our employees to be agents of change and seek to partner with organizations in our communities and support them in meaningful ways.
By prioritising local employment and procurement we create shared prosperity, and growth in the areas where we operate.
Health and wellness are integral to our Health, Safety, Security, and Environment (HSS&E).
We are committed to the economic growth and infrastructural development of the areas where we operate.
Our Social Performance function aims to raise the quality of life of local communities.
Our Social Performance function aims to raise the quality of life of local communities.
We partner with community organisations to enhance the impact of our Social Performance activities, and with local suppliers to support local talents and economies.
Our Board of Directors, along with our Executive Committee, also monitor all operational, commercial, technological, and compliance related risks across our business and projects. The Board meets every quarter to review the company’s strategy and evaluate business, financial performance, and operational risks.
Crescent Petroleum has five standing committees with a variety of responsibilities, as outlined below.
The Executive Committee (ExCom) oversees the implementation of policies at Crescent Petroleum. The Committee is responsible for strategic oversight, decision making, reviewing the strategic plan and mission, developing guidelines for management of capital, and for setting company policy.
An Operational Scorecard is used by the ExCom to set and actively monitor ESG-related targets and key performance indicators (KPIs) for Crescent Petroleum. Each year, the ExCom reviews these KPIs and revises them based on actual performance and Crescent Petroleum’s strategic direction.
In early 2021, Crescent Petroleum, under the direction of the ExCom, commissioned EY and IHS Markit (IHSM) to conduct a performance benchmarking study of Pearl Petroleum’s operations at the Khor Mor facility in KRI. The objective of the report is to provide a comprehensive, fact-based narrative to describe the operational performance of the Khor Mor asset and associated activities between 2016 and 2020 in comparison to our peers and to relevant industry benchmarks, and in the context of corporate strategic objectives. The ExCom used the results of the study to improve Pearl Petroleum’s performance and guide its actions moving forward.
The Human Resources Review Committee is responsible for developing and maintaining all employee policies at Crescent Petroleum. They review and revise the compensation and benefits policies annually and regularly amend the recruitment and performance evaluation guidelines.
The Business Development Investment Committee oversees Crescent Petroleum’s business development decisions, monitors investment opportunities, and recommends final investment decisions.
The Kurdistan Operations Joint Operating Committee facilitates and monitors key operational matters in the KRI. The committee is comprised of nominated representatives from Crescent Petroleum and Dana Gas.
The Kurdistan Operations Training and Development Committee provides guidance and support regarding the implementation and monitoring of learning and development activities in the KRI. They regularly evaluate the quality of in-house and external training programs.
The fusion of technology into our daily operations necessitates unwavering reliability in our IT applications and systems, while safeguarding all corporate data. The pivotal role of digital security in our business, spanning from data protection to avoiding breaches and theft, is prioritized by our IT department.
Our primary focus areas in digital security are:
Upholding data privacy is a paramount commitment for our organization. In an era where data is the lifeblood of business, we acknowledge the inherent trust placed in us to manage and protect this vital asset.
Security awareness forms an essential cornerstone of our cybersecurity strategy. Recognizing that our employees play a critical role in maintaining the integrity of our systems and data, we are committed to providing them with the necessary tools and knowledge.
We deliver tailored programs that highlight the importance of information security. These programs seek to empower our staff, making them aware of the potential cyber threats and enabling them to act as effective safeguards of our digital landscape.
Our training programs cover a broad array of topics, including phishing, social media security, ransomware, cloud applications, device security, identification of malicious websites, physical security, baiting, and the creation of strong passwords.
In short, our mission is to foster a culture of cybersecurity awareness and vigilance, empowering every individual within our organization to contribute actively to our collective security.
Our commitment to digital security extends beyond mere precautionary measures. Recognizing the need for continuous vigilance, we’ve established a comprehensive cybersecurity monitoring system. This system operates around the clock, tirelessly safeguarding our digital infrastructure and protecting our operations from potential threats.
Central to this effort is our Security Operations Centre (SOC), the nerve center of our cybersecurity efforts. The SOC’s primary function is to analyze, assess, and respond to cybersecurity risks, ensuring a rapid and effective response to any perceived threats. Augmenting the efforts of the SOC, we have implemented a Security Orchestration, Automation, and Response (SOAR) platform. This innovative system allows us to streamline our security operations, combining human and machine power for optimal efficiency.
In addition, we routinely conduct vulnerability and security assessments. These exercises allow us to identify any potential weaknesses in our systems, which we quickly address with targeted remedial measures. This proactive approach helps us stay ahead of potential threats, continually strengthening our cybersecurity defenses.
In conclusion, our relentless focus on cybersecurity monitoring ensures the continual safeguarding of our digital landscape, affirming our commitment to secure operations and the trust of our stakeholders.
Corruption in all its forms impacts both individuals and corporations and is a large obstacle for sustainable development. Crescent Petroleum takes compliance and corporate governance extremely seriously and has a zero-tolerance policy towards all forms of corruption and money laundering. As joint operator with Dana Gas of Pearl Petroleum’s assets, Crescent led the way in drafting and implementing ‘anti-bribery and corruption’ and ‘anti-money laundering’ policies (“ABC/AML”) for Pearl, which hold every employee operating for Pearl to the highest ethical standards.
That is particularly important in Iraq, which ranks 157th out of 180 countries in terms of corruption levels according to Transparency International’s corruption perceptions index (2021).
The best defence to any breach of ABC and AML is to have solid policies in place and to ensure employees understand and implement these policies and ensure good record keeping habits.
Crescent Petroleum has also engaged third party supplier training materials to deliver training to all relevant employees on this issue. Employees will be able to undergo video-based training from the convenience of any device, at their own pace, and over as many sittings as they would like. An easy to access system, hosted by a third party, allows employees to confidentially report any breaches of policy they witness without fear of repercussion. In addition, employees can access online gift and hospitality record keeping, automated reminders to carry out annual training, digital copies of the policies, online background checks for corporate counterparties, and all accessible from a newly launched, bespoke intranet page. A dedicated compliance team provides oversight and support on implementing best practices.
Gifts, entertainment, and hospitality are acceptable only if they are reasonable, justifiable, and made in good faith. Each employee at Crescent Petroleum is responsible for declaring or reporting any gifts, entertainment, and/or hospitality received to his or her line manager or the Human Resources Department. In addition, employees are not permitted, without the consent of a member of the Executive Committee, to undertake additional paid or unpaid employment, part time or full time.
We prioritise compliance with all relevant regulations, and carefully manage compliance-related risks associated with our business.
In 2021, we incurred no fines for non-compliance with environmental laws and/or regulations and we had no instances of corruption. During 2023 we will focus on enhancing our systems and processes for HSSE compliance-related matters, including establishing a HSSE legal register, developing a process for monitoring Iraq and Kurdistan legal developments, and establishing a documented means for storing and retrieving legislative developments with clear references to the legal register.
In 2022, we aim to establish a Crescent Petroleum HSSE and Operational Risk Management Standard, including defined roles, and to implement a risk platform that effectively identifies, communicates and provides a structured mechanism to mitigate potential risks.
We seek to prioritize local suppliers to help generate economic opportunity in the communities where we operate. Our Management Team recognizes and embraces the responsibility to deliver shared prosperity from all our projects, with the creation of a stable workforce and enabling a local supply chain. Despite a challenging year in 2020, in which local spending decreased overall, we significantly boosted local procurement across all indicators in 2021, as shown below.
Crescent Petroleum requires all contractors and their employees, whether local or international, to participate in a social performance briefing as a prerequisite for commencing work. In addition, we include requirements related to business ethics and anti-corruption, among other things, in all procurement contracts. We are also in the process of formulating procurement related performance indicators for 2022.
Our procurement policy covers a variety of topics, including:
In the more than 13 years since production operations commenced in the Kurdistan of Iraq in 2008, Pearl Petroleum has invested significant resources into the local community, and into developing a local workforce and supply chain. When coupled with high staff retention and repeated utilization of local contractors, our efforts have increased the capacity of local talent, cultivated a high-performing operational team, increased business continuity, and nurtured a culture of safety.
The KRG’s Ministry of Natural Resources (MNR) has explicit requirements regarding local contracting, which is regulated through an MNR portal in which all contractors and procurement orders must be registered and reported. To find qualified local contractors, Pearl Petroleum utilizes the MNR’s list of approved vendors and narrows the search based on the specific skillsets required for each project.
Pearl Petroleum then evaluates the suppliers based on their technical, commercial, and local content requirements. Any supplier not on the MNR pre-approved vendor list must be evaluated and approved by the MNR before they can work with us.
The MNR also has specific requirements for procurement of goods and services from Community Centered Contractors (3Cs), which are defined as companies in proximity to the asset and are eligible to receive a maximum of $250,000 per year in business. By the end of 2021, Pearl Petroleum had contracted nearly 30 3Cs, with an estimated local spend forecasted at $3-$4 million per year in the next few years, compared to $1 million per year in the past.
Crescent Petroleum offered me an opportunity to explore the energy industry along with an experience to build up my skills and knowledge. The company's ongoing support is what I appreciate the most; it is more than a work place to me as it gave me a chance to meet amazing people that I can learn from.
Mariam Omar Almazmi, Junior Petroleum Engineer, UAE
Local hiring is a core priority and we actively seek talent and operators from within our communities. Major construction projects like the gas expansion works currently underway at the Khor Mor gas plant present both challenges and opportunities in this regard. To manage the challenges, we are actively working with contractors and sub-contractors to ensure they bring in local workers and equipmen
To manage the challenges, we are actively working with contractors and sub-contractors to ensure they bring in local workers and equipment whenever possible, to ensure we include the local community in the benefits of the project and create common value.
Several months prior to the commencement of KM250 activities, Crescent Petroleum identified the potential challenges and opportunities, particularly related to local employment. Together with the MNR, local authorities, and major contractors, Crescent Petroleum held extensive information sessions and discussions regarding the key requirements.
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Crescent Petroleum has collaborated with KESK, a woman-led start-up solar company based in the KRI to implement a number of sustainable energy projects starting with a solar power upgrade at our remote motorised valve stations. KESK, which means green in the Kurdish language, leverages novel solar solutions to enable green design and construction in the region.
Following a power outage at a remote motorised valve station that impacted the visibility of the SCADA system and security CCTV camera from the Khormor control system, Crescent Petroleum implemented a pilot project with KESK to use solar power as an upgrade solution. KESK has completed the upgrade's design, installation, and commissioning with great success.
Accordingly, Crescent Petroleum has hired KESK to complete solar upgrades at some of the remote motorised valve stations. The upgrades will save energy and are projected to further reduce CO2 emissions. Throughout the project, KESK has followed Crescent Petroleum’s high-performance standards, adhered to our safety guidelines, met project deadlines, and provided all requested documents.
Read MoreThe opportunity to work with Crescent Petroleum has helped the KESK team acquire new skills to make this partnership a success. Combining Crescent’s carbon neutrality agenda with an innovative, locally made solution has proved to be a winning combination for us. It has also opened doors for KESK to work with other companies in Iraq that have similar sustainability goals.
Basima Abdulrahman, KESK, Founder & CEO
We prioritize developing and strengthening relationships with communities where we operate, both as a responsible corporate citizen and a good neighbour. We actively engage with a variety of community stakeholders, from local business owners and community leaders to public officials and NGOs.
We are also committed to strengthening the communities where we operate by listening to their needs and supporting strategic initiatives that make a difference in their lives. As a result, we focus our community investments in four key areas; agriculture, education, environment, and health.
In 2021, our social contributions to local communities exceeded US$2.3 million, including social investment contributions and the provision of power to local villages.
| Key Performance Indicator (KPI) | Units | 2019 | 2020 | 2021 |
|---|---|---|---|---|
| Social Investments | USD 000’s | 705 | 569 | 996 |
| Power Supply to Villages | USD 000’s | 1,235 | 1,655 | 1,342 |
| Total Social Contributions to Local Communities | USD 000’s | 1,940 | 2,224 | 2,338 |
Through the Kurdistan Gas Project (‘Project’), significant investments have been made to provide the KRI with cleaner burning natural gas for its electricity generation needs. Pearl Petroleum has invested ~$2.3 billion in the Kurdistan Region of Iraq over the last 14 years, which created multiple and significant impacts.
With KM 250 expansion project and future investment plans, these economic and social impact on Kurdistan Region will only grow
multi-fold.
Every day I get to work with a diverse group of people from across the region and the world whose pursuit of excellence in their work is a central driver that is reflected in outstanding results. I am grateful for the opportunity this enables to progress and make a positive impact on the world.
Tripta Khatwani, Lead Contracts Specialist, UAE