Transition Risks Description Risk Mitigation Resilience Reputation Decline in reputation and brand • There is increasing societal pressure on the oil & gas sector to minimise damage to the environment in the context of climate change and the energy transition. • This could negatively impact Rex’s brand, reputation and licence to operate, which in turn may restrict access to capital markets or attract staff. Financial impact: Increase in operational cost as there could be an increase in turnover rate. Value Chain and Impact Region(s): Oil & Gas segment, Non-Oil & Gas segment, Corporate segment Likelihood and Time period: • Possible • Short, Medium, Long In 2024, LPA was awarded with a 30% interest in a CCS licence in Norway; Rex also signed an agreement to do a hydrogen study in Oman, which is ongoing. The Group actively engages with stakeholders to address growing societal expectations on environmental responsibility. Through its participation in low-carbon transition initiatives, the Group is taking practical steps towards the energy transition. This approach ensures alignment with evolving industry standards to preserve its reputation. Physical Risks Description Risk Mitigation Acute and Chronic The Group is exposed to several types of physical climate risks, such as: • Sea storms may affect offshore oil & gas operations. • Changes in seasons (e.g. prolonged monsoon season). • Decrease in natural resources worldwide. Financial impact: • Reduced revenue if operations were to be impacted. • Increased operating costs and/or capital expenditure incurred to mitigate our infrastructure against the impacts of climate change. • Higher insurance premiums. Value Chain and Impact Region(s): Oil & Gas segment, Non-Oil & Gas segment Likelihood and Time period: • Likely • Short, Medium, Long Even though the IEA scenarios exclude modelling of impacts of physical risks, the Group is committed to monitoring market trends and reviewing the technologies that can address these risks. Drilling and major operations are timed around the monsoon seasons in Oman. 78 Annual Report 2025
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