Sustainability Continued Environmentally responsible operations Karoon is committed to spending Karoon uses several environmental indicators to monitor nearly US$1.8 million in federal and environmental performance in operations. These include produced water discharge, oily water discharge, unplanned releases and state government environmental flaring volumes. Environmental contributions to support and Indicator Performance protect marine reserves and Produced No occurrences of produced water discharge water discharge exceeding the maximum allowable monthlyaverage limit (29 ppm oil in water per day)national parks in Brazil. occurred, with all monthly averages below 15 ppm. Social-Environmental Projects Oily water There were three oily water discharges in the Karoon has risen to the challenge of transitioning from an explorer discharge period, all well below the maximum daily limit to an oil producer and embraced the social and environmental of 15 ppm. opportunities of responsible operations. Unplanned There was one unplanned release from the releases FPSO in April 2021 totalling approximately Karoon is currently committed to more than 12 social and 30L, conservatively classified as minor environmental projects related to our Baúna operations and will (code 1 incident – sheen)1 look for opportunities to expand our commitments to communities Flaring There were three incidences of flaring volumes in Brazil through our new sustainability strategy. volumes above the daily limit of 27% of produced associated gas, due to start-up/shutdown Through its current projects Karoon undertakes a range processes, which is allowable for safety of stakeholder engagement, environmental monitoring reasons. The monthly average volumes were and environmental protection activities.These are carefully well below 20%, with all but one month implemented with appreciation and respect for local communities, below 10%. our people and for the biodiversity of the areas in and around our operations, all within our commitment to safe, reliable and The Karoon operations team have been investigating ways in sustainable operations. which flaring can be further reduced, with plans to replace the low-pressure flare blower to improve flaring efficiency and reduce Set out on the following page is information summarising three of potential fugitive methane emissions. our current projects, being Project Rumo (a social and environmental project), the Sun Coral Project (an environmental project) and an Karoon takes its environmental obligations very seriously and has environmental education project. This project, aimed at workers, a target of zero environmental incidents. We are working with ensures all involved in Baúna operations understand and respect Altera & Ocyan to take action to prevent any future incidents, the importance of protecting the local environment and minimising including preventative pipeline maintenance and replacement and any impacts from operations. a thorough integrity audit of the FPSO which will commence in quarter three of the 2021 calendar year. In addition to these projects Karoon has committed nearly US$1.8 million in federal and state government environmental contributions to support and protect marine reserves and national parks in Brazil. 1. Code 1 refers to “Sheen” (40-300L) under the Bonn Agreement Oil Appearance Code (BAOAC). Mouth of the Itajaí-Açu river Karoon Energy Ltd 28 Annual Report 2021