Letter from the Managing Director

Dear shareholders,

In this year of the Pandemic, the question of sustainability broadened its reach and increased its urgency. The drop in economic activity decreased levels of pollution and traffic congestion. We welcomed the increase in air quality and return to nature offered by the lock downs. But the response to fight the Pandemic could not have been mustered without strong economies. The need for concerted action and resources to fight the Pandemic underscored the importance to society of resilience, economic reserves and not least – access to energy.

Access to energy is an absolutely essential part of economic activity, which in turn is crucial for progress, affluence and good health. But unfettered use of natural resources, unlimited pollution of the environment where we live and decreasing biodiversity because of human expansion will counteract any progress achieved. The paradox of 2020 illustrated so well the two sides of this equation.

Previously we measured and accounted only the economic activity with focus on Letter from the Managing Director profit and growth, but said nothing of the implicit cost to the environment, the health and well-being of our employees and our impact on society. As this report so aptly illustrates, focus is now also directed at the other side of the equation – the costs that are not immediately obvious.

We provide a product for energy generation that when used has an impact on the overall environment that is measurable and sustainable in the short to medium term. There are any number of energy generating technologies, but they all have trade-offs. In the longer term though the continued growth in oil consumption is unlikely to be sustainable by any counts and more long-term sustainable ways of generating energy must be applied. For Tethys Oil as a Company and for you as investors in an oil producer the task is twofold: supply the product as long as there is demand and do this in an optimally sustainable way.

As this report shows, in 2020 the effects of the pandemic resulted in a lower carbon footprint and while carbon intensity remained unchanged planning for reduced flaring and reduced emissions has continued unabated. As we have increased our operated acreage, Tethys Oil has and will rise to the opportunity of expanding our brand of sustainability to all operated areas including community relations, low emission vehicles and all health and safety related areas. All in line with our Mission, Vision and Values.

So please take some time to at least browse through our sustainability report for 2020. And if you read it in detail and have comments so much the better. Tethys is in the oil business to stay and we will welcome any feedback to make our presence more sustainable.

Magnus Nordin
Managing Director