Advancing Sustainability Through Partnership

Together 2017: Partnerships for the UN SDGs

UN Sustainable Development Goals

2

SDG 17.17: To encourage and promote effective public, public-private, and civil society partnerships

3

CORE OPERATING AREAS

AUSTRALIA

EUROPE

NORTH AMERICA

Vermilion Energy – Globally and In France

• Vermilion is a public company, operating in Europe, North America and Australia

• Vermilion has a 20-year history in France

• We produce three-quarters of France’s domestic oil

• Vermilion was named to the CDP Climate “A” List, one of only five energy companies in the world to receive this designation 3

4

Co-Location of Oil Field and Greenhouse

• Parentis Lake is the second largest onshore oil field in Europe

• Our office and battery in Parentis are in the foreground

• In the background, there are 15 hectares of tomato-producing greenhouses

– Geothermally heated water is produced in our operation

– Tom D’Aquigreenhouses use this heat for their growing environment

Creating Shared Value with a New Industry

5

• 7,500 tonnes of tomatoes annually

• 10,000 tonnes of greenhouse gases avoided directly each year

• 250 direct jobs

• Locally grown tomatoes available to the community at the same price as tomatoes that would otherwise have to be transported long distances

• Makes productive use of our operational byproduct

• A new sustainable and growing industry in a region in need of investment

Our partnership has led to additional economic activity in the area that, including our partnership, now totals 27 hectares of tomato-producing greenhouses representing 350 jobs and 35

million euros of investment.

6

How It Works - Operationally

• Vermilion's petroleum extraction process in the Parentis field produces a mix of oil, gas and water, which comes out of the ground naturally heated to around 60°C

• We send the heated water through a closed-loop heat exchanger with the Tom D’Aquigreenhouse heating system

• We reuse our water by pumping it back underground in an enhanced oil-recovery project

How It Works - In Partnership

7

• In the mid-2000s, the local government recognized a potential synergy, and introduced us to four young agricultural entrepreneurs

• Together with what became Tom D’Aqui, we established a 25-year partnership

• The municipal government supported us by re-zoning land

8

We’re Expanding the Concept

• Our operations near La Teste, France now support an eco-neighbourhood of 450 homes that are heated the same way as the tomato greenhouses

• 30% of the units are reserved for social housing

• We are currently developing a project in The Netherlands to heat pepper-growing greenhouses using geothermal heat from a gas field that is no longer under production

9

Impact Beyond SDG 17

• UN SDGs rarely operate in isolation

• Our partnerships incorporate government, business and civil society partners, working together

• Driving positive change in at least five other SDGs

• We’re working nationally in France and The Netherlands to advance this model

• Recognized by the French government with the Circular Economy Award for Industrial and Regional Ecology

10

Advancing Sustainability Through Partnership

Vermilion Energy