SEAAOC, 27 August 2015
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1 West Arnhem Land Fire Abatement Project Kayleen Ewin ConocoPhillips VP Sustainable Development, Communication & External Affairs Dr Jeremy Russell-Smith, Darwin Centre for Bushfire Research, Charles Darwin University Image courtesy David Handcock SEAAOC, 27 August 2015
2 Cautionary Statement The following presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results or the industries or markets in which we operate or participate in general. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that may prove to be incorrect and are difficult to predict such as oil and gas prices; operational hazards and drilling risks; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects; unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining or modifying company facilities; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations or from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions, as well as changes in tax, environmental and other laws applicable to ConocoPhillips business and other economic, business, competitive and/or regulatory factors affecting ConocoPhillips business generally as set forth in ConocoPhillips filings with the Securities and Exchange Commission (SEC). We caution you not to place undue reliance on our forwardlooking statements, which are only as of the date of this presentation or as otherwise indicated, and we expressly disclaim any responsibility for updating such information. Use of non-gaap financial information This presentation may include non-gaap financial measures, which help facilitate comparison of company operating performance across periods and with peer companies. Any non-gaap measures included herein will be accompanied by a reconciliation to the nearest corresponding GAAP measure in an appendix. Cautionary Note to U.S. Investors The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We use the term "resource" in this presentation that the SEC s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website. 2 SEAOOC 2015
3 Presentation Outline Savanna burning program overview and Darwin LNG involvement Environmental, community and cultural basis of fire management Program scientific methodology and emissions reduction outcomes A sustainable future for the program 3 SEAAOC 2015
4 Setting The Scene Committed to sustainability in how we conduct our core business We pride ourselves on Accountability + Performance Promote economic growth, healthy environments and vibrant communities where we operate Original Darwin LNG environmental licence condition included offsets Design phase strategy to minimise our environmental impact Investigated options such as forestry, pastoral de-stocking and geo-sequestration 4 SEAAOC 2015
5 Setting The Scene Darwin LNG selected WALFA program Strategic fire management Collaborative program led by local Indigenous ranger groups Administrative support from NT Bushfires Scientifically supported by Charles Darwin University Benefits beyond fire management Employment, economic, social and cultural 5 SEAAOC 2015
6 WALFA Program Fast Facts SEAAOC 2015
7 Dr Jeremy Russell-Smith Darwin Centre for Bushfire Research Charles Darwin University Image courtesy David Handcock
8 8 Fire Frequency
9 Fire Frequency , Derived From MODIS Imagery Early dry season Late dry season
10 NT Greenhouse Gas Inventory GHG emissions MTonnes Savanna burning Total Mean = 37.6% Year
11 Controlled Burn
12 Uncontrolled Burn
13 Damage From Uncontrolled Burn
14 GHG Accounting
15 WALFA Area 28,000 km2 WALFA
16 Project Planning
17 Protection of Cultural Assets
18 Aerial Fire Management
19 Contrasting Burnt Areas - September 2014 KAKADU NP WALFA
20 WALFA Program a) Seasonality of burning b) GHG Emissions Source: Frontiers in Ecology & Environment (2013) 11: e55 e63.
21 WALFA Employment Outcomes Employment hours People employed 5000 hours of employment people employed
22 Current Savanna Burning Projects Carbon credits earned from savanna burning projects, as at March 2015 Note: 1 carbon credit = 1 t.co2e = AUD15 (as of May 2015)
23 Kayleen Ewin ConocoPhillips VP Sustainable Development, Communication & External Affairs Image courtesy David Handcock
24 Sustainable Future For The Program Proud of a Territory developed project Delivered a new model for a sustainable, commercial development in Indigenous communities Approved offsets projects under Federal Government s Carbon Farming Initiative (CFI) Considered internationally as a model for sustainable development This experience (WALFA) is the best example in the world of indigenous and local communities using the emerging carbon market to develop culturally appropriate lively-hoods Konrad Osterwalder, United Nations Under Secretary-General & Rector of UN University, UN Climate Change Conference SEAAOC 2015
25 Summary What We Do We maintained our long term commitment to WALFA How We Do It Territory teamwork respectfully brought together 10+ stakeholder groups to administer and operate the program The program delivers required offsets plus additional environmental, cultural, economic and social benefits Backed an innovative program founded on sound scientific evidence The outcome: a world class sustainable Indigenous enterprise that delivers environmental, cultural, economic and social benefits 25 SEAAOC 2015
26 WALFA video coming soon to our website: conocophillips.com.au/walfa Image courtesy David Handcock Connect with us:
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