The Board has collectively reviewed and approved the climate risks and opportunities identified by the Management. In mitigating the impact of climate change, the Board endeavours to implement and continuously finetune the Company's sustainability governance structure by engaging the assistance of Management and operational leadership teams to oversee our climate mitigation strategies. The Board will be updated on the progress of the Group’s mitigation and strategy against the identified climate risks and opportunities at least once a year or whenever necessary. The climate-related targets are also overseen by the Board through regular reviews and are monitored through the Risk Management Committee (RMC). Adopting a phased approach, more formalised processes for monitoring the progress of targets are still being developed. Management Responsibilities The identification of climate related risks and opportunities was undertaken by the management team. The Management will be supporting the Board to implement the identified climate-related strategies, together with the support of the operational leadership teams across the oil exploration and production process. The operational leaders and the Group’s Management will regularly review the progress and strategies within the Group’s operations to ensure that the strategies are implemented accordingly. For critical decisions pertaining to sustainability that might present risks or opportunities to the Group’s operations, the Management and operational leaders will oversee the decision making. Climate Strategy and Business Resilience The Group engaged an independent ESG consultant to facilitate the assessment of climate-related risks and opportunities. Time horizons are defined as such: Shortterm (less than five years), Medium-term (five to 10 years), and Long-term (more than 10 years). • Likelihood levels: Rare, Unlikely, Moderate, Likely, Almost Certain • Severity of financial impact: Insignificant, Minor, Significant, Major, or Severe. We note that climate-related risks occur on vastly different timescales and will periodically review our risks and opportunities and the respective mitigating initiatives to ensure that our responses remain appropriate and relevant. In line with the IFRS S2 standards, the assessment also took into account relevant IFRS S2 industry-based guidance ("IBGs”) specifically, Volume B11 on Oil & Gas - Exploration & Production and peer analyses as part of the risk identification process. Once identified, the risks and opportunities were further evaluated for their current and potential impacts on the Group’s business model and value chain, including all relevant direct and indirect mitigation and adaptation efforts. Quantification of these effects will be disclosed in subsequent years. We have also reviewed the IBGs and will assess their applicability in line with SGX’s phased implementation of IFRS S2. The Group uses Network for Greening the Financial System (“NGFS”) climate scenarios, tailored to the Group’s business context, to evaluate climate-related risks and opportunities. Climate-related scenario analysis is performed to assess the resilience of the Group’s strategy and business model under different climate-related pathways and uncertainties. The selected scenarios, including key assumptions and the basis for selection, are summarised in the table below. Scenario Assumptions Justification NGFS Orderly Net Zero by 2050: Limit temperature rise to 1.5°C • Earlier adoption of climate policies, with gradual tightening. • Reach net-zero emissions by 2050. • Low physical risk but high transition risk. Aligned with the latest international climate agreement and national commitments. NGFS Hothouse world Current Policies: Temperature rise exceeding 3°C. • Preserve currently implemented policies without additional climate policies. • Variations in climate policies across different jurisdictions. • Emissions increasing until 2080. • High physical risk but low transition risk. Unfavourable outcome and conservative approach. 72 Annual Report 2025
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