XP, formerly known as Expert Petroleum, has more than 18 years of operations focused on redeveloping mature oil and gas fields to make them safer, greener, and more productive. As its expertise over the years has evolved from not only production enhancement but also operations decarbonization, the company has rebranded itself in 2022 to “XP” and supported its partners even further towards sustainable upstream operations. XP shares its knowledge and expertise in both production enhancement under its “XP Uplift” division and operations decarbonization solutions under its “XP Upgreen” division. We spoke to David Martinon, CEO and one of the co-founders of Expert Petroleum since the company’s inception in 2006.

 

Dear Mr. David Martinon, can you please start with an overview of XP’s initiatives and achievements in methane emission reduction, and how these efforts will contribute to sustainability in the oil and gas sector?

Historically, our core business has been to optimize oil and gas operations and enhance the production of fields that have reached a plateau. To enhance gas deliveries, we had to go, among other things, after every single molecule of gas that was wasted through leaks, vents, flares, and instead put it back in the delivery pipe to sell it. This is how we have built over the years our expertise in methane emissions reduction.

As climate change has become an increasingly pressing concern for society, we strongly believe that reducing methane emissions from oil and gas operations is one of the best short-term opportunities to advance the goals of the Paris Agreement. In the last 5 years, we have already achieved a 38 % reduction in methane intensity.

To lead this effort in May 2022, XP became the first Romanian company to join the Oil and Gas Methane Partnership (OGMP) 2.0, with a target to reach 0.2% methane intensity by 2025. Also, in November, in a strive to reach near zero methane emissions from oil and gas assets that we operate by 2030, XP joined the Aiming for Zero Methane Emissions Initiative of the Oil & Gas Climate Initiative (OGCI).

 

What specific technologies or practises has XP implemented or will implement to reduce methane emissions in mature fields? Can you share any measurable results in terms of emission reductions and safety improvements?

We have a deep data-driven culture at XP. We strongly believe that to improve something, you first need to gather a lot of data, analyze it then implement fit-for-purpose efficient solutions.

For example, for methane emissions, we have made this year a detailed inventory of around 140,000 emissions sources in our operations aligned with the best practises recommended by OGMP. We went down to make an inventory of each valve and bolts on these valves. Then we can measure with a high-precision camera each emission source to see if it leaks or not and fix it.

This is just an example of the level of detail with which we gather data for our work, but we have implemented in the last 5 years larger-scale technologies such as gas-to-power for stranded gas, mobile well test separators to avoid flaring or venting during well clean-up, automatic separator drains to avoid venting, and real-time pipeline leak detection systems to remediate quickly on an incident. The list is long.

In the last 5 years, we have reduced the number of liquid spills by 73% and the volumes spilled by 87%. Since 2013, in Romania, we have succeeded in reducing our Greenhouse Gas intensity (tCO2eq/toe) by 87%, our Energy intensity (%) by 77%.

 

As one of the first companies in Romania to be recognized for methane emission reduction, what role does XP envision playing in setting industry standards and influencing other E&P companies to follow suit?

Indeed, XP is proud to be the first Romanian company to have been awarded the Gold Standard Pathway by the Oil & Gas Methane Partnership 2.0, which is internationally the highest standard you can get for methane emissions reduction targets and credible plans to reach these targets.

We are a services company that takes over operations management and investment for a group of mature fields in partnership with the previous operator and owner of the fields. Therefore, our performance is always seen as a benchmark for the rest of the operations still being operated by our Partner. So yes, our efforts in methane emission reduction are raising the bar for everyone, and we are pleased to share what we are learning in the process.

 

Could you elaborate on XP’s plans for further reducing methane emissions in the coming years? Are there any specific targets or goals you aim to achieve?

We will continue with our ambitious target to achieve a near-zero methane intensity of 0.2% by 2025, according to our engagement with OGMP.

As part of the pathway, we will perform more advanced leak detection and repair (LDAR) programs to reduce methane leaks, aligned with the upcoming EU methane regulation for the Energy Sector. On top of that, our teams are continuously focusing on process optimization and decarbonization solutions for our day-to-day operations.

 

Methane emissions have significant environmental implications. Can you discuss how XP’s efforts align with broader sustainability and climate goals, both nationally and globally?

XP’s efforts are aligned with the OGMP initiative that we have mentioned before and signatory to the Aiming for Zero Methane Emissions Initiative of the Oil & Gas Climate Initiative (OGCI). These programs are the most recognized programs internationally in our industry. Our internal processes are also already aligned with the upcoming EU Methane Regulation.

 

In the transition to green energy, what role does XP see for natural gas as a cleaner alternative to other fossil fuels?

Natural gas is indeed the better alternative compared to coal and oil during the transition to renewable energy sources. However, this is only valid if methane emissions during the whole gas value chain stay reduced and come close to zero. Methane emissions have an 84-times stronger impact on Global Warming compared to carbon dioxide in a 20-year time span. Therefore, a sustained focus on emission management and reduction is mandatory when producing natural gas to stay ahead of the environmental footprint of oil or coal.

 

XP has rebranded itself as a company focusing on safety, green operations, and productivity. Could you describe the key elements of your pathway towards a more sustainable, green energy-oriented future and how you plan to support your partners in this transition?

First of all, Safety has always been our priority from day one; there is no operational excellence in the oil and gas industry without a proper safety management system. As a company that provides operations management services, we have always focused on safety first, as it sets the tone for the quality of our operations. This is clearly explained in the sustainability reports we have produced every year over the last six years. Our new branding from Expert Petroleum to XP, towards sustainable upstream operations is indeed purposed to express our vision that for oil and gas fields to be sustainable in time, they need to be safer, more efficient, more productive for longer (by increasing production and reserves), and last but not least, greener.

 

Given the evolving energy landscape, can you provide insights into any investments or initiatives XP is exploring in renewable energy (geothermal) or other sustainable ventures that complement your expertise in mature oil and gas fields?

We have our eyes opened to geothermal energy, where there are a lot of synergies with our existing subsurface and production facility expertise. We are actually producing much more hot water than oil because of the high water cut of the mature oil field where we operate. Our team of experts is already conducting analyses in our area of operations, but this is at an early stage.