Our Value Chain

Vermilion’s operations influence an extensive value chain that connects energy resources with activities that are essential to our daily lives, including transportation, manufacturing and heating, thus contributing to the strength and resilience of the global economy, and supporting energy security for people and organizations in many areas where we have operations. 102-9

Our Value Chain: Definitions
Exploration
Supply
Production
Transportation
Product Use
How we identify, analyze and develop new energy opportunities
The external contractors, suppliers, materials and expertise we leverage throughout our processes for both traditional and alternative energy production, including geothermal and biogas
How we extract oil, gas, associated byproducts and geothermal heat from our operating properties, through the lifecycle from drilling & completion to production, cogeneration and reclamation
How Vermilion transports and markets our products and byproducts, along with the subsequent transportation of those products to the end consumer
The midstream and downstream refiners who are our customers, the manufacturers and consumers who use the resulting products, and the partners who benefit from our geothermal cogeneration projects

Exploration

Supply

Production

Transportation

Product Use

Value, Impact or Influence
Exploration
Supply
Production
Transportation
Product Use
Our decisions about where to operate and how best to source energy offer job creation and economic assets for communities, while requiring strong safety and environmental protection and community capacity analysis
Our purchasing decisions, including our performance expectations of suppliers, have a strong influence on company and community safety, environmental impacts and economic success
We focus on the operational excellence of our people, processes and technology to maximize safety and environmental management and economic value; this includes the land reclamation stage of well life cycle management
This supports local energy security, job creation and economic success while potentially involving safety and environmental impacts, including pipeline, road and rail transport safety, waste transportation and disposal safety
The economic value, and the potential safety and environmental impacts, of our products are important to industrial, financial and consumer sectors, all of which rely on a stable and secure energy supply
Focus of Operational Activity & Decision Making
Exploration
Supply
Production
Transportation
Product Use
Internal to Vermilion, with external consultation
Both internal and external to Vermilion
Primarily internal to Vermilion, with external consultation
Primarily external to Vermilion
Primarily external to Vermilion
Key Stakeholders, Listed by Degree of Impact 102-40
Exploration
Supply
Production
Transportation
Product Use
Communities
Suppliers
Communities
Communities
Customer/end users
Government
Employees
Investors
Partners
Investors
Investors
Investors
Employees
Customers/end users
Government
Employees
Communities
Partners
Investors
NGOs
Partners
Government
Government
Media
NGOs
NGOs
NGOs
Media
Primary issues 102-44

(top three to five identified through stakeholder engagement and issues monitoring)

Exploration
Supply
Production
Transportation
Product Use
Safety
Safety
Safety
Transport Safety
Safety
Environment
Environment
Environment, including GHG Emissions
GHG Emissions
Stable Supply
Community Relations
Efficiency
Community / Government Relations
Spills
Cost
Regulation
Supply Chain Management
Staff Relations
Ethics
Regulation
Governance
Efficiency
Stable Supply

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