(Corrects company mentioned in paragraph 5 to London-based
Natural Capital Partners (not Amsterdam-based reforestation
company Land Life), after Lundin makes clarification)
* Oil cargo certified as carbon neutral
* Italian refiner Saras to buy first cargo
* Final use of oil still causes emissions
OSLO, April 26 (Reuters) - Sweden's Lundin Energy
has sold to Italian refiner Saras what it said is the
world's first oil cargo certified as carbon neutral at the point
of production, the two companies said on Monday.
Oil companies are increasingly trying to market their
products as cleaner in an effort to secure a future for the
fossil fuel industry in a world where investors, activists and
regulators are demanding action to halt climate change.
While Lundin's crude from the Norwegian Edvard Grieg field
was certified as carbon neutral from exploration, development
and so-called scope 1 and 2 emissions, the major emissions
caused by the oil's final use, or scope 3 emissions, are not
The North Sea Grieg field causes only 3.8 kilograms of CO2
emissions per barrel of oil equivalent, five times less than the
global average, Lundin said.
Residual emissions from producing the 600,000 barrel cargo
amount to 2,302 tonnes of CO2, an equivalent of which will be
captured by a tree-planting project in Mexico by London-based
Natural Capital Partners, Lundin said.
Lundin has previously said it would invest $39 million in a
project to plant eight million trees in northern Spain and Ghana
as part of the company's wider $750 million programme to
decarbonise its output.
The project conducted by Amsterdam-based reforestation
company Land Life should help the company to achieve carbon
neutrality from all of its production in 2025, it has previously
"Selling the 'world's first ever certified carbon neutrally
produced oil' is a milestone that few, if any, producers will be
able to replicate any time soon," Jefferies analysts said in a
note to clients.
A Lundin spokesman said that while the Grieg cargo was sold
at the regular market price, without attracting a premium, the
company still believes the carbon certification allows it to
stand out from the crowd when presenting itself to buyers.
"This was a one-off sale, but we intend to sell more carbon
neutral cargos from Edvard Grieg and from (the) Johan Sverdrup
(field) once it is certified," he added.
Lundin holds a 20% stake in Equinor-operated Johan
Sverdrup, western Europe's largest oilfield.
The certification of the Lundin cargo was provided by
Intertek Group, which tests, inspects and certifies
that products meet quality, safety, environmental and other
standards for clients including Carrefour,
ConocoPhillips and Unilever.
"This sale will carry the Intertek CarbonZero Verified mark
and details of this and all traceable certifications are
publicly listed for investors, traders, regulators and other
stakeholders," Intertek said in a separate statement.
Texas-based Occidental Petroleum said in January
that it had sold the first 100% carbon neutral crude cargo,
offsetting emissions by buying carbon credits on the market.
However, the transaction has not been certified as carbon
neutral by a third party, unlike Lundin's deal with Saras.
(Reporting by Terje Solsvik and Nerijus Adomaitis
Editing by David Goodman)