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Also, the SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us, and our filings are available on the Internet at www.sec.gov and free of charge upon written request to our corporate secretary at the address shown on the cover page of this annual report.
−Removed: We provide hospitality services to the natural resources industry in Canada, Australia and the United States (U.S.) We provide a full suite of services for our guests, including lodging, catering and food service, housekeeping and maintenance at accommodation facilities that we or our customers own.
−Removed: In many cases, we also provide services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics.
−Removed: We also offer development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management and site construction, along with providing hospitality services once the facility is constructed.
−Removed: We primarily operate in some of the world’s most active oil, metallurgical (met) coal, liquefied natural gas (LNG) and iron ore producing regions, and our customers include major and independent oil companies, mining companies, engineering companies and oilfield and mining service companies.
+Added: We provide a suite of hospitality services for our guests in the natural resources industry, including lodging, catering and food service, housekeeping and maintenance at accommodation facilities that we or our customers own.
+Added: In many cases, we provide services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics.
+Added: We also manage development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management and site construction, along with providing hospitality services once the facility is constructed.
+Added: We primarily operate in some of the world’s most active oil, metallurgical (met) coal, liquefied natural gas (LNG) and iron ore producing regions, where, in many cases, traditional accommodations and related infrastructure often are not accessible, sufficient or cost effective.
+Added: Our customers include major and independent oil companies, mining companies, engineering companies and oilfield and mining service companies.
Our extensive suite of services enables us to meet the unique needs of each of our customers, while providing comfortable accommodations for their employees.
+Added: Our customers are able to outsource their accommodations needs to a single supplier, maintaining employee welfare and satisfaction while focusing their investment on their core resource production efforts.
Our Company is built on the foundation of the following core values:
−Removed: Safety, Care, Excellence, Integrity and Collaboration.
+Added: Safety, Respect, Care, Excellence, Integrity and Collaboration.
We put the safety of our employees and guests above all other concerns.
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In our Australian villages, we utilize passive-solar-design principles and smart-switching systems to reduce the need for electricity related to heating and cooling.
−Removed: We provide hospitality services that span the lifecycle of customer projects, from the initial exploration and resource delineation to long-term production.
+Added: Our hospitality services span the lifecycle of customer projects, from the initial exploration and resource delineation to long-term production.
Initially, as customers assess the resource potential and determine how they will develop it, they typically need our hospitality services for a limited number of employees for an uncertain duration of time.
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As development of the resource begins, we are able to serve their needs through either:
−Removed: (1) our fleet of mobile assets, particularly for shorter term projects such as pipeline construction and seasonal drilling programs;
−Removed: (2) our scalable lodge or village model;
−Removed: or (3) our service of guests in customer-owned facilities.
+Added: (i) our fleet of mobile assets, particularly for shorter term projects such as pipeline construction and seasonal drilling programs, (ii) our scalable lodge or village model, or (iii) our integrated services model in customer-owned facilities.
As projects grow and headcount needs increase, we are able to meet our customers growing needs at our accommodation facilities or with our hospitality services.
By providing infrastructure support and hospitality services early in the project lifecycle, we are well positioned to continue to service our customers throughout the production phase, which typically lasts decades.
−Removed: Our scalable facilities provide workforce accommodations where, in many cases, traditional accommodations or housing are not accessible, sufficient or cost effective.
−Removed: Our customers are able to outsource their accommodations needs to a single supplier, maintaining employee welfare and satisfaction while focusing their investment on their core resource production efforts.
−Removed: Our primary focus is on providing these hospitality services to leading natural resource companies at our major properties, which we refer to as lodges in Canada and the U.S.
−Removed: and villages in Australia, or at facilities owned by our customers.
We own and operate 24 lodges and villages with approximately 26,000 rooms.
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We have long-standing relationships with many of our customers, many of whom are, or are affiliates of, large, investment-grade energy and mining companies.
−Removed: Demand for our hospitality services is influenced by five primary factors:
−Removed: (1) commodity prices, (2) customers' capital spending, (3) available infrastructure, (4) headcount requirements and (5) competition.
−Removed: Current commodity prices, and our customers’ expectations for future commodity prices, influence customers’ spending and maintenance on current productive assets, expansion of existing assets and greenfield development of new assets.
−Removed: In addition to commodity prices, different types of customer activity require varying workforce sizes, influencing the demand for our services.
−Removed: Competing locations, infrastructure and services will also influence demand for our rooms and services.
−Removed: In the Canadian oil sands region, demand for our hospitality services is primarily influenced by the longer-term outlook for oil prices.
−Removed: Spending on the construction and development of new projects has historically decreased as the outlook for oil prices decreases.
−Removed: However, spending on current operations and maintenance has historically reacted less quickly and less severely to changes in oil prices, as customers consider their cash operating costs, rather than overall full-cycle returns.
−Removed: Likewise, construction and expansion projects already underway have also been less sensitive to commodity price decreases, as customers generally focus on completion and incremental costs.
−Removed: Depressed oil price levels of both West Texas Intermediate (WTI) and Western Canadian Select (WCS) resulting from the initial spread of COVID-19 materially impacted 2020 maintenance and production spending and activity by Canadian operators and, therefore, demand for our hospitality services.
−Removed: Customers began restoring production in the fourth quarter of 2020, reaching pre-pandemic levels in 2022.
−Removed: Although oil prices reached multi-year highs in the first half of 2022 and fluctuated in the second half of 2022, there is continued uncertainty around commodity price levels, including the ongoing impact of COVID-19, inflationary pressures, actions taken by OPEC+ to adjust production levels, geopolitical events such as the ongoing Russia/Ukraine conflict, and regulatory implications on such prices, which could cause our Canadian oil sands and pipeline customers to reduce production, delay expansionary and maintenance spending and defer additional investments in their oil sands assets.
−Removed: Natural gas prices also influence oil sands activity as an input cost:
−Removed: as natural gas prices fluctuate, a significant component of our customers’ operating costs fluctuate as well.
−Removed: Another factor that influences demand for our hospitality services is the type of customer project we are supporting.
−Removed: Generally, Canadian customers require larger workforces during construction and expansionary periods, and therefore have higher demand for our rooms and services.
−Removed: Operational and maintenance headcounts are typically a fraction, 20% to 25%, of the headcounts experienced during construction.
−Removed: In addition, proximity to customer activity and availability of customer-owned and competitor-owned rooms influences the rental demand of our rooms.
−Removed: Typically, customers prefer to first utilize their own rooms on location, and if such customer-owned rooms are insufficient, customers prefer to avoid busing their workforces to housing more than 45 kilometers away.
−Removed: A number of multinational energy companies believe there is a potential to export LNG from Canada to meet the increasing global LNG demand, particularly in Asia.
−Removed: We expect that LNG investment and activity in Western Canada will be influenced by the global prices for LNG, which are largely tied to global oil prices, global supply/demand dynamics for LNG and Western Canadian wellhead prices for natural gas.
−Removed: Currently, Western Canada does not have any operational LNG export facilities.
−Removed: LNG Canada (LNGC), a joint venture among Shell Canada Energy, an affiliate of Shell plc (40 percent), and affiliates of PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25 percent), PetroChina (15 percent), Mitsubishi Corporation (15 percent) and Korea Gas Corporation (5 percent), is currently constructing a liquefaction and export facility in Kitimat, British Columbia (Kitimat LNG Facility).
−Removed: British Columbia LNG activity and related pipeline projects are a material driver of activity for our Sitka Lodge, as well as for our mobile assets, which are contracted to serve several portions of the related pipeline construction activity.
−Removed: The actual timing of when revenue is realized from the Coastal GasLink (CGL) pipeline and Sitka Lodge contracts could be impacted by any delays in the construction of the Kitimat LNG Facility or the pipeline, such as protest blockades and COVID-19.
−Removed: Our current expectation is that our contracted commitments associated with the CGL pipeline project will be completed in 2023.
−Removed: Any new delays in facility or pipeline construction may result in extensions to these dates.
−Removed: See "Canada-Canadian British Columbia Lodge" for more information.
−Removed: Our Australian villages support similar activities as our Canadian lodges for the natural resources industry in Australia.
−Removed: Our customers are typically developing and producing met coal, iron ore and other minerals which have resource lives that are measured in decades.
−Removed: As such, their spending levels tend to react similarly to commodity prices as the spending levels of our Canadian customers.
−Removed: Spending on producing assets is less sensitive to commodity price decreases in the short and medium term, assuming the projects remain cash flow positive.
−Removed: However, new construction projects and expansionary projects are typically canceled or deferred during periods of lower met coal and iron ore prices.
−Removed: Similar to the Canadian market, new project construction activity typically requires larger workforces than day-to-day operations, where proximity and availability of customer-owned rooms influences the demand for our rooms and services.
−Removed: Our customer service requirements are primarily driven by production, maintenance and operational activities.
−Removed: Through 2022, we saw increased activity from both new and
−Removed: existing customers.
−Removed: With sustained met coal pricing above $200 per tonne, customers have committed to new projects and expansion projects and recommenced operations which were previously put on-hold.
−Removed: Current met coal prices continue to support an optimistic outlook for the sector, though exploration and future investment in Australia could be impacted with the recent increases to the Queensland royalty scheme introduced in mid-2022.
−Removed: Met coal prices have faced downward pressure in early 2023 due to falling steel demand, global economic weakness, and expected improvement in Australian supply as weather patterns and mining conditions improve.
−Removed: Iron ore prices fluctuated in the second half of 2022, with prices recovering from a low of $78 per tonne to over $100 per tonne with renewed support in the Chinese property sector.
−Removed: With stronger supply and a slow recovery in Chinese construction, downside pressure on current prices remains.
−Removed: In the last half of 2022, we sold both our wellsite services and our offshore businesses in the U.S.
−Removed: Our remaining U.S.
−Removed: business supports completion activity in the Bakken and construction and turnaround work in the Louisiana industrial area.
−Removed: oil completion activity will continue to be impacted by oil prices, pipeline capacity, federal energy policies and availability of capital to support exploration and production completion plans.
−Removed: For the years ended December 31, 2022, 2021 and 2020, we generated $697.1 million, $594.5 million and $529.7 million in revenues and $17.0 million, $6.1 million and $(147.2) million in operating income (loss), respectively.
+Added: For the years ended December 31, 2023, 2022 and 2021, we generated $700.8 million, $697.1 million and $594.5 million in revenues and $39.5 million, $17.0 million and $6.1 million in operating income, respectively.
The majority of our operations, assets and income are derived from the hospitality services provided at lodges and villages we own that have historically been contracted by our customers under multi-year, take-or-pay or exclusivity contracts.
The hospitality services we provide at these facilities generated 63% of our revenue for the year ended December 31, 2023.
−Removed: Important performance metrics include revenue related to our major properties, average daily rate and aggregate billed rooms.
+Added: Important performance metrics include revenue related to our major properties, average daily rates and aggregate billed rooms.
The table below summarizes these key statistics for the periods presented in this annual report.
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Australia 177,834 152,714 145,335
−Removed: 3,058 5,437 2,451
+Added: Other 11,205 3,058 5,437
Total Accommodation Revenue $ 455,965 $ 435,227 $ 390,298
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Canada $ 61,899 $ 96,400 $ 62,856
−Removed: 18,367 14,486 16,837
+Added: Other — 18,367 14,486
Total Mobile Facility Rental Revenue $ 61,899 $ 114,767 $ 77,342
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Australia 158,929 125,538 105,739
+Added: Other 42 90 50
Total Food Service and Other Services Revenue $ 182,941 $ 145,770 $ 124,785
Manufacturing Revenue (4)
−Removed: $ 1,288 $ 2,038 $ 6,200
+Added: Other $ — $ 1,288 $ 2,038
Total Manufacturing Revenue $ — $ 1,288 $ 2,038
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(6) Billed rooms represents total billed days for Civeo owned rooms for the periods presented.
+Added: Our history is one of identifying customer and market needs and developing economic solutions.
+Added: Our historical experience in Canada began in small, mobile camps and evolved into owning and managing large scale remote accommodations.
+Added: In Australia, our operations originated with a similar build-own-operate model as we operate in our Canadian lodges, growing up to our current eight owned villages.
+Added: Since then and with the addition of an acquisition, we have evolved our service delivery to include operating customer-owned locations with the same hospitality services that we provide at our owned villages.
Our Canadian operations, founded in 1977, began by providing modular rental housing to energy customers, primarily supporting drilling rig crews in the Western Canadian Sedimentary Basin.
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Pursuing this strategy, we opened PTI Lodge in 1998, one of the first independent lodging facilities in the region.
−Removed: Through our wide range of hospitality services, we are able to identify, solve and implement solutions and services that enhance the guest experience and reduce the customer’s total cost of housing a workforce in a remote operating location.
−Removed: Using our experiences and service delivery model, our hospitality services have evolved to include fitness centers, water and wastewater treatment, laundry service and many other enhancements.
In 2018, we acquired Noralta Lodge Ltd.
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During 2015, we entered the Canadian LNG market with the construction of our Sitka Lodge.
−Removed: In 2018, LNGC's partners announced that a positive FID had been reached on the Kitimat LNG Facility.
−Removed: British Columbia LNG activity and related pipeline projects are a material driver of activity for our Sitka Lodge, as well as for our mobile assets, which are contracted to serve several portions of the related pipeline construction activity.
+Added: LNG Canada (LNGC), a joint venture among Shell Canada Energy, an affiliate of Shell plc (40 percent), and affiliates of PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25 percent), PetroChina (15 percent), Mitsubishi Corporation (15 percent) and Korea Gas Corporation (5 percent), is currently constructing a liquefaction and export facility in Kitimat, British Columbia (Kitimat LNG Facility).
+Added: The Kitimat LNG Facility is nearing completion and expected to be operational in 2024.
+Added: Our Sitka Lodge is well positioned to serve construction activity at the Kitimat LNG facility, as well as portions of the related pipeline construction activity.
With the acquisition of our Australian business in December 2010, we began providing hospitality services to support the Australian natural resources industry through our villages located in Queensland, New South Wales and Western Australia.
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In 2019, we acquired Action Industrial Catering (Action), a provider of catering and managed services (which we refer to as our integrated services business) to the mining industry in Western Australia.
−Removed: The Action acquisition enhanced our service offering, geographic footprint and exposure to new commodities in Australia and underlines our focus on pursuing growth opportunities that fit within our core competencies and strategic direction.
−Removed: In all our operating regions, our business is built on a culture of continuous service improvement to enhance the guest experience and reduce customers' workforce housing costs.
−Removed: We provide hospitality services to the natural resource industry.
−Removed: Our scalable facilities provide long-term and temporary workforce accommodations where traditional accommodations and related infrastructure often are not accessible, sufficient or cost effective.
−Removed: Once facilities are deployed in the field, we also provide services such as lodging, catering and food service, housekeeping and maintenance, as well as operations of these facilities, including laundry, water and wastewater treatment, power generation, communication systems, security and logistics.
−Removed: Our hospitality services can be provided at accommodation facilities we own or at facilities owned by our customers.
−Removed: Demand for our services is cyclical and substantially dependent upon activity levels, particularly our customers’ willingness to spend capital on the exploration for, development and production of oil, met coal, LNG, iron ore and other natural resources.
−Removed: Our customers’ spending plans generally are based on their view of commodity supply and demand dynamics, as well as the outlook for near-term and long-term commodity prices.
−Removed: As a result, the demand for our services is sensitive to current and expected commodity prices.
−Removed: We serve multiple projects and multiple customers at most of our sites, which allows those customers to share some of the costs associated with their peak accommodations needs, including infrastructure (power, water, sewer and information technology) and central dining and recreation facilities.
−Removed: Our business is significantly influenced by:
−Removed: (1) the level of production of oil sands deposits and associated maintenance and turnaround activities in Alberta, Canada;
−Removed: met coal production in Australia's Bowen Basin and iron ore production in Western Australia;
−Removed: (2) activity levels in support of extractive industries in Australia;
−Removed: (3) LNG and related pipeline activity in Canada;
−Removed: and (4) oil production in the U.S.
+Added: The Action acquisition enhanced our service offering, expanded our geographic footprint, added exposure to new commodities in Australia and underlines our focus on pursuing growth opportunities that fit within our core competencies and strategic direction.
+Added: Our Customers
+Added: We provide our hospitality services to customers in the natural resources industry.
+Added: Our scalable facilities provide long-term and temporary workforce accommodations where, in many cases, traditional accommodations and related infrastructure often are not accessible, sufficient or cost effective.
+Added: Through our wide range of hospitality services offerings, we are able to identify, solve and implement solutions and services that enhance the guest experience and reduce the customer’s total cost of housing a workforce in a remote operating location.
+Added: In addition to lodging, catering and food service, housekeeping and maintenance at accommodation facilities that we or our customers own, our hospitality services have evolved to include fitness centers, water and wastewater treatment, laundry service and many other enhancements.
+Added: Our customers either own their accommodations assets or outsource them.
+Added: Customers may choose to own their accommodations assets because (i) their natural resource project is the only source of demand for rooms in the region;
+Added: (ii) they believe in the long-term nature of their resource project;
+Added: and/or (iii) they desire to maintain control over the supply of rooms for their project.
+Added: Where customers have chosen to own their accommodations assets, customers usually subcontract the
+Added: management of the facility and the provision of the hospitality services to a third-party provider, such as Civeo through our integrated services model in customer-owned facilities.
Historically, Canadian oil sands developers and Australian mining companies built and owned the accommodations necessary to house their personnel in these remote regions because local labor and third-party owned rooms were not available.
−Removed: Over the past 20 years, and increasingly over the past 10 years, some customers have moved away from the in sourcing business model for some of their accommodation needs as they recognize that owning accommodations and providing the hospitality services are non-core investments for their business.
+Added: Over the past 20 years, and increasingly over the past 10 years, some customers have moved away from the insourcing business model for a portion of their accommodation needs as they recognize that owning accommodations and providing the related hospitality services are non-core investments for their business.
+Added: The accommodations outsourcing model is effective in regions in which multiple customers have on-going or prospective projects where third-party owned and operated accommodations assets can service multiple customers.
+Added: This allows those customers to share some of the costs associated with their peak accommodations needs, including infrastructure (power, water, sewer and information technology) and central dining and recreation facilities.
+Added: The Canadian oil sands region and the Queensland Bowen Basin region are two geographic areas that fit this market dynamic.
+Added: Initial demand for our hospitality services has historically been driven by our customers’ capital spending programs related to the construction and development of natural resource projects and associated infrastructure, as well as the exploration for oil and natural gas.
+Added: Long-term demand for our services has been driven by natural resource production, maintenance and operation of those facilities as well as expansion of those sites.
+Added: In general, industry capital spending programs are based on the outlook for commodity prices, production costs, economic growth, global commodity supply/demand, estimates of resource production and the expectations of our customers' shareholders.
+Added: As a result, demand for our hospitality services is largely sensitive to expected commodity prices, principally related to oil, met coal, LNG and iron ore, and the resultant impact of these commodity price expectations on our customers’ spending.
+Added: Other factors that can affect our business and financial results include the general global economic environment, including inflationary pressures, supply chain disruptions and labor shortages, volatility affecting the banking system and financial markets, availability of capital to the natural resource industry and regulatory changes in Canada, Australia and other markets, including governmental measures introduced to fight climate change.
We believe that our existing industry divides accommodations into two primary types:
−Removed: (1) lodges and villages and (2) mobile assets.
+Added: (i) lodges and villages and (ii) mobile assets.
Civeo is principally focused on hospitality services at lodges and villages.
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Mobile asset projects can be dedicated and committed to a single customer or project or can serve multiple customers.
+Added: Our Competitors
The accommodation facilities market supporting the natural resource industry is segmented into competitors that serve components of the overall value chain, but very few offer the entire suite of hospitality services to customers.
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Facility service companies, such as Aramark Corporation (Aramark), Sodexo Inc.
−Removed: (Sodexo), Compass Group PLC (Compass Group), or Cater Care typically do not invest in and own the accommodations assets, but will provide hospitality services at third-party or customer-owned facilities.
+Added: (Sodexo), Compass Group PLC (Compass Group) and Cater Care, typically do not invest in and own the accommodations assets, but will provide hospitality services at third-party or customer-owned facilities.
During the year ended December 31, 2023, we generated approximately 50% of our revenue from our Canadian operations.
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We provide our services through our lodges and mobile assets and at customer-owned locations.
−Removed: Our hospitality services support workforces in the Canadian LNG and oil sands markets and in a variety of oil and natural gas drilling, mining, pipeline and related natural resource applications.
+Added: Our hospitality services support
+Added: workforces in the Canadian LNG and oil sands markets and in a variety of oil and natural gas drilling, mining, pipeline and related natural resource applications.
Canadian Market
−Removed: Demand for our hospitality services in the Canadian market is largely commodity price driven.
−Removed: In the Canadian oil sands region, demand is primarily influenced by the longer-term outlook for crude oil prices rather than current energy prices, given the multi-year production life of oil sands projects and the capital investment associated with development of such large-scale projects.
−Removed: Demand for our Canadian lodges is secondarily impacted by oil takeaway capacity.
−Removed: Demand for hospitality services related to LNG is influenced by the global prices for LNG.
−Removed: Utilization of our existing Canadian capacity and any future expansions will largely depend on continued LNG and oil sands spending related to existing production, maintenance activities and potential future expansion of existing projects.
+Added: Demand for our hospitality services in the Canadian market is largely driven by customer capital spending, which is greatly influenced by current and future commodity prices.
+Added: In the Canadian oil sands region, demand is primarily influenced by the longer-term outlook for oil prices rather than current energy prices, given the multi-year production life of oil sands projects and the capital investment associated with development of such large-scale projects.
+Added: Demand for our Canadian lodges is secondarily impacted by oil takeaway capacity which influences the net price our customers receive for their oil production.
+Added: Spending on the construction and development of new projects generally decreases as the outlook for oil prices decreases.
+Added: However, spending on current operations and maintenance has historically reacted less quickly and less severely to changes in oil prices, as customers consider their cash operating costs, rather than overall full-cycle returns.
+Added: Likewise, construction and expansion projects already underway have also been less sensitive to commodity price decreases, as customers generally focus on completion and incremental costs.
+Added: Natural gas prices also influence oil sands activity as an input cost:
+Added: as natural gas prices fluctuate, a significant component of our customers’ operating costs fluctuate as well.
+Added: Another factor that influences demand for our hospitality services in the Canadian oil sands region is the type of customer project we are supporting.
+Added: Generally, Canadian customers require larger workforces during construction and expansionary periods, and therefore have higher demand for our rooms and services.
+Added: Operational and maintenance headcounts are typically a fraction, 20% to 25%, of the headcounts experienced during construction.
+Added: In addition, proximity to customer activity and availability of customer-owned and competitor-owned rooms influences the rental demand of our rooms in the Canadian oil sands region.
+Added: Typically, customers prefer to first utilize their own rooms on location, and if such customer-owned rooms are insufficient, customers prefer to avoid busing their workforces to housing more than 45 kilometers away.
The Athabasca oil sands are located in northern Alberta, an area that is very remote, with a limited local labor supply.
−Removed: Of Canada’s approximately 39 million residents, nearly half of the population lives in ten cities, while approximately 12% of the population lives in Alberta and less than 1% of the population lives within 100 kilometers of the oil sands activity.
+Added: Of Canada’s approximately 40 million residents, approximately half of the population lives in ten cities, while approximately 12% of the population lives in Alberta and less than 1% of the population lives within 100 kilometers of the oil sands activity.
The local municipalities, of which Fort McMurray is the largest, have limited infrastructure to respond to workforce accommodation demands and are a significant driving distance from many of the oil sands projects.
As such, the workforce accommodations market provides a cost-effective solution to the challenge of staffing large oil sands projects by sourcing labor largely throughout Canada to work on a rotational basis.
−Removed: Similarly, the LNGC project located in Kitimat, British Columbia, is expected to need as many as 7,500 workers to construct the liquefaction facilities.
−Removed: The population of Kitimat and the surrounding area is approximately 9,000.
+Added: With respect to LNG and related pipeline activity in Canada, a number of multinational energy companies believe there is a potential to export LNG from Canada to meet the increasing global LNG demand, particularly in Asia.
+Added: Currently, Western Canada does not have any operational LNG export facilities.
+Added: The Kitimat LNG Facility is nearing completion and expected to be operational in 2024.
+Added: The population of Kitimat and the surrounding area is approximately 9,000 people, whereas the LNGC project had almost 7,500 workers at its peak to construct the Kitimat LNG Facility.
+Added: Accordingly, British Columbia LNG activity and related pipeline projects are a material driver of activity for our Sitka Lodge, as well as for our mobile assets, which are contracted to serve designated portions of the related pipeline construction activity.
+Added: The majority of our contracted commitments associated with the Coastal GasLink Pipeline (CGL), the pipeline constructed to transport natural gas feedstock to LNGC, were completed in the fourth quarter of 2023.
+Added: See "Canada-Canadian British Columbia Lodge" for more information.
+Added: LNG investment and activity in Western Canada, and related demand for hospitality services, is influenced by the global prices for LNG, which are largely tied to global oil prices, global supply/demand dynamics for LNG and Western Canadian wellhead prices for natural gas.
+Added: Utilization of our existing Canadian capacity and any future expansions will largely depend on continued LNG and oil sands spending related to existing production, maintenance activities and potential future expansion of existing projects.
Canadian Oil Sands Lodges
−Removed: During the year ended December 31, 2022, activity in the Athabasca oil sands region generated approximately 62% of our Canadian revenue.
+Added: During the year ended December 31, 2023, activity in the Athabasca oil sands region generated approximately 67% of our Canadian revenue, or 34% of our consolidated revenue.
The oil sands region continues to represent one of the world’s largest reserves for heavy oil.
−Removed: Our McClelland Lake, Wapasu Creek, Athabasca, Beaver River, Fort McMurray Village, Grey Wolf, Hudson, and Borealis lodges are focused on the northern region of the Athabasca oil sands, where customers primarily utilize surface mining to extract bitumen.
−Removed: Oil sands mining operations are characterized by large capital requirements, large reserves, large personnel requirements, long-term reserve lives, very low exploration or reserve risk and relatively lower cash operating costs per barrel of bitumen produced.
−Removed: Our Conklin, Anzac, Red Earth and Wabasca lodges, as well as a portion of our mobile assets, are focused in the southern portion of the region where we primarily serve in-situ operations and pipeline expansion and maintenance activity.
+Added: Our Wapasu Creek, Athabasca, Beaver River, Fort McMurray Village, Grey Wolf, Hudson, and Borealis lodges are focused on the northern region of the Athabasca oil sands, where customers primarily utilize surface mining to extract bitumen.
+Added: Oil sands mining operations are characterized by large capital requirements, large reserves, larger personnel requirements, long-term reserve lives, very low exploration or reserve risk and relatively lower cash operating costs per barrel of bitumen produced.
+Added: Our Conklin, Anzac, Red Earth and Wabasca lodges are focused in the southern portion of the region where we primarily serve in-situ operations and pipeline expansion and maintenance activity.
In-situ methods are used on reserves that are too deep for traditional mining methods.
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Reserves requiring in-situ techniques of extraction represent 80% of the established recoverable reserves in Alberta.
−Removed: In-situ operations generally require less capital and personnel and produce lower volumes of bitumen per development, with higher ongoing operating expense per barrel of bitumen produced.
+Added: In comparison to surface mining operations, in-situ operations generally require lower initial capital investment, fewer personnel but produce lower volumes of bitumen per development, with higher ongoing operating expense per barrel of bitumen produced.
Our oil sands lodges primarily support personnel for ongoing operations associated with surface mining and in-situ oil sands projects, as well as maintenance, turnaround and expansionary personnel, generally under short- and medium-term contracts.
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In recent years, we have successfully renewed or extended all expiring land leases which we have requested to renew or extend.
+Added: We did not renew an expiring land lease associated with our McClelland Lake Lodge in Alberta, Canada, which expired in June 2023, in order to support our customer’s intent to mine the land where the lodge was located.
Two of our oil sands properties are located on land which we own.
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We provide a range of hospitality services at our lodges, including reservation management, check in and check out, food service, housekeeping and facilities management.
−Removed: Our lodge guests receive amenities similar to a full-service hotel plus three meals a day.
+Added: Our lodge guests receive amenities similar to a full-service, urban hotel with our service offering a room and three meals a day.
Our Wapasu Creek Lodge, with more than 5,000 rooms, is equivalent in size to the largest hotels in North America.
−Removed: We provide our hospitality services at the lodges we own on a day rate or monthly rental basis, and our customers typically commit for short to medium-term contracts (from several months up to several years).
+Added: We provide our hospitality services at the lodges we own on a day rate or monthly rental basis, and our customers typically commit for short to long-term contracts (from several months up to several years).
Most customers make a minimum nightly or monthly room commitment or an aggregate total room night commitment for the term of the contract, and the multi-year contracts typically provide for inflationary escalations in rates for increased food, labor and utilities costs.
1 unchanged sentence
As previously discussed, LNGC is currently constructing the Kitimat LNG Facility.
−Removed: British Columbia LNG activity and related CGL pipeline projects are a material driver of activity for our Sitka Lodge, as well as for our mobile assets, which are contracted to serve several portions of the related pipeline construction activity.
−Removed: The actual timing of when revenue is realized from the CGL pipeline and Sitka Lodge contracts could be impacted by any delays in the construction of the Kitimat LNG Facility or the pipeline, such as protest blockades or COVID-19.
−Removed: Our current expectation is that our contracted commitments associated with the CGL pipeline project will be completed in 2023.
+Added: British Columbia LNG activity and related pipeline projects are a material driver of activity for our Sitka Lodge, as well as for our mobile assets, which are contracted to serve designated portions of the related CGL pipeline construction activity.
+Added: The majority of our contracted commitments associated with the CGL pipeline project were completed in the fourth quarter of 2023.
Canadian Lodge Locations
5 unchanged sentences
Athabasca mining/in-situ 5,174 5,174 5,174
−Removed: Athabasca (1)
Athabasca mining 2,005 2,005 2,005
1 unchanged sentence
Athabasca mining — 1,997 1,997
−Removed: Beaver River (1)
+Added: Beaver River N.
Athabasca mining 1,094 1,094 1,094
Fort McMurray Village:
−Removed: Black Bear (1)
Athabasca mining 531 531 531
14 unchanged sentences
(1) Currently closed as of December 31, 2023, due to lodge loading strategy, seasonal activity fluctuations or low activity level in the region.
−Removed: All closed lodges are periodically assessed for impairment at an asset group level, in accordance with U.S.
−Removed: generally accepted accounting principles.
+Added: All closed lodges are periodically assessed for impairment at an asset group level, in accordance with United States (U.S.) generally accepted accounting principles.
See Note 4 - Impairment Charges to the notes to the consolidated financial statements in Item 8 of this annual report for further discussion.
−Removed: (2) The land lease associated with the asset expires in June 2023.
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview and Macroeconomic Environment - Capital Expenditures” of this annual report for additional information.
+Added: (2) The land lease associated with the asset expired in June 2023 and was not renewed.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview and Macroeconomic Environment -McClelland Lake Lodge” of this annual report for additional information.
Hospitality Services at Third-Party Owned Facilities
−Removed: We also provide hospitality services at facilities owned by our customers.
+Added: We also provide hospitality services at customer-owned facilities.
Historically, this has been focused around natural resource production-related housing facilities that are owned by oil production companies.
1 unchanged sentence
We customize our service offerings depending on our customer’s needs.
−Removed: Hospitality services can be performed on an end-to-end basis with catering and food service, housekeeping, maintenance and utility services included or in segments such as food service only.
+Added: Hospitality services can be performed on an end-to-end basis with food service, housekeeping, maintenance and utility services included or in segments such as food service only.
Our focus on hospitality service contracts has allowed us to successfully pursue food service only opportunities.
13 unchanged sentences
As of December 31, 2023, we owned 8,910 rooms across eight villages, of which 7,488 rooms service the Bowen Basin of central Queensland, one of the premier met coal basins in the world.
−Removed: We provide hospitality services on a day rate basis to mining and related service companies (including construction contractors), typically under short and medium-term contracts (one to three years) with minimum nightly room commitments.
−Removed: In addition, we provide integrated services to the mining industry in Western Australia.
+Added: We provide hospitality services on a day rate basis to mining and related service companies (including construction contractors), typically under short- and medium-term contracts (one to five years) with minimum nightly room commitments.
+Added: In addition, we provide integrated services to the mining industry in Western Australia and South Australia.
Australian Market
As the largest contributor to exports and a major contributor to the country’s gross domestic product and government revenue, the Australian natural resources industry plays a vital role in the Australian economy.
−Removed: Australia has broad natural resources, including met and thermal coal, conventional and coal seam gas, base metals, iron ore, copper and precious metals such as gold.
−Removed: Australia is the largest exporter of met coal and iron ore in the world, in addition to being in close proximity to the largest steel producing countries in the world.
+Added: Australia has broad natural resources, including met and thermal coal, conventional and coal seam gas, base metals, iron ore, copper, lithium and precious metals such as gold.
+Added: Australia is the largest exporter of met coal and iron ore in the world, in addition to being in close proximity to the largest steel producing countries in the world, primarily in Southeast Asia.
The growth of Australian natural resource commodity exports over the last decade has been largely driven by strong Asian demand for met coal, iron ore and LNG.
4 unchanged sentences
Since 1996, our Australian business has sought to change the insourcing business model through its hospitality services offering, allowing customers to outsource their accommodations needs and focus their investments on resource production operations.
−Removed: Our Australian villages are strategically located in proximity to long-lived, low-cost mines operated by investment-grade, international mining companies.
+Added: Our Australian villages are strategically located in proximity to long-lived, low-cost mines operated by multiple investment-grade, international mining companies.
+Added: Our Australian villages support similar activities as our Canadian lodges for the natural resources industry in Australia.
+Added: Our customers are typically developing and producing met coal, iron ore and other minerals which have resource lives that are measured in decades.
+Added: As such, their spending levels tend to react similarly to commodity prices as the spending levels of our Canadian customers.
+Added: Spending on producing assets is less sensitive to commodity price decreases in the short and medium term, assuming the projects remain cash flow positive.
+Added: However, new construction projects and expansionary projects are typically canceled or deferred during periods of lower met coal and iron ore prices.
+Added: New project construction activity typically requires larger workforces than day-to-day operations, where proximity and availability of customer-owned rooms influences the demand for our rooms and services.
+Added: Demand for rooms at our Australian villages is primarily driven by production, maintenance and operational activities.
Our Australian operations primarily serve the Bowen Basin of Queensland and the Pilbara region in Western Australia.
−Removed: During the year ended December 31, 2022, our five villages in the Bowen Basin generated 49% of our Australian revenue.
+Added: During the year ended December 31, 2023, our five villages in the Bowen Basin generated 47% of our Australian revenue, or 23% of our consolidated revenue.
The Bowen Basin contains one of the largest coal deposits in Australia and is renowned for its premium met coal.
−Removed: In addition, we provide village operation and mine site cleaning services at six customer locations in the Pilbara region, which is renowned for high grade iron ore production.
−Removed: Our villages and customer-based locations are focused on the mines in the central portion of the Pilbara and Bowen Basins and are well positioned for the active mines in the region.
−Removed: The Chinese placed an embargo on several Australian products, including coal, in the fall of 2020.
−Removed: During the embargo, Australian met coal producers found new markets, including India and Europe, for their premium product.
−Removed: This led to a rebalancing of the market globally with China relying on domestic production along with increased met coal imports from the U.S., Canada and Mongolia.
−Removed: With the backdrop of continuing strong steel demand and met coal supply constraints, the spot price for met coal surged to record highs through the second half of 2021 into early 2022.
−Removed: The embargo was recently lifted during the first quarter of 2023.
−Removed: While met coal prices have receded from their all-time highs, they still remain over $350 per tonne as of February 24, 2023.
−Removed: Analysts forecast met coal prices to face downward pressure in early 2023 but to moderate during the year with supply improvement and weaker demand impacting prices.
−Removed: Downward pressure on prices could accelerate in the short term if demand in China worsens.
−Removed: Beyond the Pilbara and Bowen Basins, we serve several other markets with four additional villages and three customer-owned villages.
+Added: In addition, we provide village operation and mine site cleaning services at eight customer locations in the Pilbara region, which is renowned for high grade iron ore production.
+Added: Our villages and customer-owned locations are focused on the mines in the central portion of the Pilbara and Bowen Basins and are well positioned for the active mines in the region.
+Added: Beyond met coal and iron ore markets served in the Pilbara and Bowen Basins, we serve several other markets with three additional villages and ten customer-owned villages.
At the end of 2023, we had two villages with over 1,000 combined rooms in the Gunnedah Basin, a thermal and met coal region in New South Wales.
In Western Australia, we serve workforces related to LNG facilities operations on the Northwest Shelf through our Karratha village.
−Removed: In addition, we provide hospitality services in Western Australia and Southern Australia at seven customer-owned villages which support workforces related to nickel, copper, zinc, silver and gold production in the Goldfields-Esperance region, lithium production in the Pilbara region and copper, silver and gold in Western Australia and South Australia.
+Added: In addition, we provide hospitality services in Western Australia and South Australia at ten customer-owned villages which support workforces related to nickel, copper, zinc, silver and gold production in the Goldfields-Esperance region, lithium production in the Pilbara region and copper, silver and gold in Western Australia and South Australia.
Australian Village Locations
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Nebo Bowen met coal 490 490 490
−Removed: - gold, lithium — 232 232
Karratha Pilbara LNG, iron ore 298 298 298
+Added: - gold, lithium — — 232
Total Rooms 8,910 8,814 9,046
6 unchanged sentences
Each of these villages supports both operational workforce needs and contractor needs with resort style amenities, including swimming pools, gyms, a walking track and a tavern.
−Removed: Our Narrabri and Boggabri villages in New South Wales service met and thermal coal mines and coal seam gas in the Gunnedah Basin.
−Removed: Our Karratha village, in Western Australia, services workforces related to LNG facilities operations on the
−Removed: Northwest Shelf.
−Removed: Our Kambalda village was sold in the third quarter of 2022 to a customer, and we continue to operate the village as a customer-owned location.
+Added: Our Narrabri and Boggabri villages in New South Wales provide rooms and related hospitality services to met and thermal coal mines and coal seam gas in the Gunnedah Basin.
+Added: Our Karratha village, in Western Australia, services workforces related to LNG facilities operations on the Northwest Shelf.
Hospitality Services at Third-Party Owned Facilities
1 unchanged sentence
Historically, this has been focused around natural resource production-related village facilities that are primarily owned by iron ore production companies.
−Removed: We provide village operation services at 13 customer-owned locations, which represent over 10,000 rooms, primarily in the Pilbara region of Western Australia, one of the premier iron ore bodies in the world, and in the Goldfields-Esperance region of Western Australia.
+Added: We provide village hospitality services at 18 customer-owned locations, which represent over 12,600 rooms, primarily in the Pilbara region of Western Australia, one of the premier iron ore bodies in the world, and in the Goldfields-Esperance region of Western Australia.
The facilities we manage range anywhere from 200 to over 1,900 rooms.
2 unchanged sentences
Mine site cleaning services are also provided at some of our customer-owned locations.
−Removed: During the year ended December 31, 2022, our U.S.
−Removed: business generated 3% of our revenue.
−Removed: In the last half of 2022, we sold both our wellsite services and our offshore businesses.
+Added: In the first quarter of 2023, we sold our accommodation assets in Louisiana.
+Added: In addition, in the second half of 2022, we sold both our U.S.
+Added: wellsite services and offshore businesses.
Our remaining U.S.
−Removed: business consists of two lodges - one in the Bakken region and one in Louisiana.
−Removed: As of December 31,
−Removed: State 2022 2021 2020
−Removed: West Permian (1)
−Removed: Acadian Acres LA 300 300 300
−Removed: Killdeer ND 235 235 235
−Removed: Total Rooms 535 535 925
−Removed: (1) Sold in October 2021.
−Removed: Our Killdeer Lodge provides rooms to the Bakken Shale region in North Dakota.
−Removed: Our Acadian Acres Lodge provides rooms near Lake Charles, Louisiana to support the Louisiana downstream market.
+Added: business consists of 235 rooms at our Killdeer Lodge, which supports completion activity in the Bakken.
+Added: oil completion activity will continue to be impacted by oil prices, pipeline capacity, federal energy policies and availability of capital to support exploration and production completion plans.
Community Engagement
3 unchanged sentences
Beyond these services, this partnership provided a business incubator environment for a number of Metis business ventures.
−Removed: Our Canadian operations also procure services from a number of other First Nations-owned, Metis-owned and member-owned businesses including water hauling, snow removal and security services.
−Removed: In 2022, we purchased more than C$66.2 million in goods and services from the Indigenous business community, representing 30% of our total Canadian local spending.
+Added: Our Canadian operations also procure services from a number
+Added: of other First Nations-owned, Metis-owned and member-owned businesses including water hauling, snow removal and security services.
+Added: In 2023, we purchased more than C$64.0 million in goods and services from the Indigenous business community, representing 27% of our total Canadian local spending, compared to C$66.2 million in goods and services from the Indigenous business community, representing 30% of our total Canadian local spending in 2022.
In 2021, the Fort McKay Metis community awarded Civeo with the inaugural 2020 Fort McKay Metis National President's Award.
This award recognizes people or organizations who make a positive contribution to the well-being of the Metis community.
−Removed: In 2019, our Indigenous partnership initiatives earned Civeo a Gold level Progressive Aboriginal Relations (PAR) certification, by a jury comprised of Indigenous business people, which was supported by an unbiased, independent, third-party verification of our performance.
+Added: In 2023 and in 2019, our Indigenous partnership initiatives earned Civeo a Gold level Progressive Aboriginal Relations (PAR) certification, by a jury comprised of Indigenous business people, which was supported by an unbiased, independent, third-party verification of our performance.
In 2016, Civeo was awarded a Silver level PAR certification by the Canadian Council for Aboriginal Business (CCAB), demonstrating our commitment to the principles and practices established by the CCAB.
In addition, in 2011 and 2012, we were recognized with awards from the Alberta Chamber of Commerce.
−Removed: In 2018, Civeo entered into three new Indigenous partnerships in the oil sands region and two new partnerships in British Columbia and in 2021 entered into a new partnership in British Columbia.
−Removed: Our partnerships in British Columbia are tied to accommodations contracts secured by Civeo for the Kitimat LNG Facility, the CGL pipeline project that originates in the North Montney region of north-east British Columbia and the Trans Mountain expansion project that twins an existing pipeline
−Removed: between Edmonton, Alberta and Burnaby, British Columbia.
+Added: In 2018, Civeo entered into three new Indigenous partnerships in the oil sands region and two new partnerships in British Columbia and, in 2021, Civeo entered into a new partnership in British Columbia.
+Added: Our partnerships in British Columbia are tied to accommodations contracts secured by Civeo for the Kitimat LNG Facility, the CGL pipeline project that originates in the North Montney region of north-east British Columbia and the Trans Mountain expansion project that twins an existing pipeline between Edmonton, Alberta and Burnaby, British Columbia.
Beyond revenue sharing, these arrangements provide procurement, employment, training, and ancillary business opportunities for Indigenous owned businesses.
6 unchanged sentences
In addition, all of our food suppliers are Australian companies and, where possible, are based locally.
−Removed: Through our membership with Supply Nation, a non-profit organization committed to supplier diversity and Indigenous business development, we have been able to direct approximately A$9.5 million in 2022 into Indigenous-owned and operated companies, and we are always looking for more opportunities to partner with these businesses.
−Removed: In addition, we have three unincorporated joint venture partnerships with Indigenous landowners in Western Australia.
+Added: Through our membership with Supply Nation, a non-profit organization committed to supplier diversity and Indigenous business development, we directed approximately A$12.3 million in 2023, compared to A$9.5 million in 2022, into Indigenous-owned and operated companies, and we are always looking for more opportunities to partner with these businesses.
+Added: In addition, we have four unincorporated joint venture partnerships with Indigenous landowners in Western Australia.
Under these agreements, we strive to develop the business capacity, project management skills and expertise of the Indigenous joint venture members and also provide local employment opportunities and training.
−Removed: Two of the three unincorporated joint venture partnerships entitle Indigenous landowners to a profit distribution calculated in accordance with the unincorporated joint venture deeds.
−Removed: Additionally, two of the three remaining agreements incentivize the joint venture members via milestone payments for business objectives achieved.
+Added: One of the four unincorporated joint venture partnerships entitles Indigenous landowners to a profit distribution calculated in accordance with the unincorporated joint venture deeds.
+Added: Additionally, three of the four remaining agreements incentivize the joint venture members via milestone payments for business objectives achieved.
Customers and Competitors
1 unchanged sentence
To a lesser extent, we also support other activities, including pipeline construction, forestry and humanitarian aid.
−Removed: Our largest customers in 2022 were Suncor Energy Inc, Imperial Oil Limited (a company controlled by ExxonMobil Corporation) and Fortescue Metals Group Ltd who each accounted for more than 10% of our 2022 revenues.
+Added: Our largest customers in 2023 were Suncor Energy and Fortescue Metals Group Ltd., who each accounted for more than 10% of our 2023 revenues.
Our primary competitors in Canada in lodge and mobile asset hospitality services include ATCO, Black Diamond, Dexterra and Clean Harbors, Inc.
3 unchanged sentences
Our primary competitors in Australia for our village hospitality services are customer-owned and operated villages as well as Ausco Modular (a subsidiary of Modulaire Group), Fleetwood Corporation and smaller independent village operators.
−Removed: We compete against ISS, Sodexo, Compass Group, Northern Rise (as a division of Delaware North) and Cater Care for third-party facility management services.
−Removed: In the U.S., we primarily offer our lodge hospitality services and compete against Target Hospitality, hotels, and local mobile home and RV parks.
+Added: We compete against ISS, Sodexo, Compass Group, Northern Rise (as a division of Sirrom Corporation) and Cater Care for third-party facility management services.
Historically, many customers have invested in their own accommodations.
−Removed: We estimate that our existing and potential customers own approximately 50% of the rooms available in the Canadian oil sands and 50% of the rooms in the Australian coal mining regions.
+Added: We estimate that our existing and potential customers own approximately 50% of the rooms available in both the Canadian oil sands and the Australian coal mining regions.
Our Lodge and Village Contracts
During the year ended December 31, 2023, revenues from our lodges and villages represented over 63% of our consolidated revenues.
−Removed: Our contract terms generally provide for a rental rate for a reserved room and an occupied room rate that compensates us for hospitality services, including meals, housekeeping, utilities and maintenance for workers staying in the lodges and villages.
−Removed: In most multi-year contracts, our rates typically have annual escalation provisions to cover expected increases in labor and consumables costs over the contract term.
+Added: Our contract terms generally provide for a daily rate for a reserved room and an occupied room rate that compensates us for hospitality services, including food service, housekeeping, utilities and maintenance for workers staying in the lodges and villages.
+Added: In most multi-year contracts, our rates typically have annual escalation provisions to cover increases in labor and consumables costs over the contract term.
In some contracts, customers have a contractual right to terminate, for reasons other than a breach, in exchange for a termination fee.
Our customers typically contract for hospitality services under contracts with terms that most often range from several months to twelve years.
−Removed: The contracts expire throughout
−Removed: the year, and for many of the near-term expirations, we are in the process of negotiating extensions or new commitments.
+Added: The contracts expire throughout the year, and for many of the near-term expirations, we are in the process of negotiating extensions or new commitments.
We cannot assure that we can renew existing contracts or obtain new business on the same or better terms, if at all.
16 unchanged sentences
During the year ended December 31, 2023, revenues from our customer-owned locations represented 26% of our consolidated revenues.
−Removed: Our contract terms generally provide for a per guest per day rate for hospitality services, including meals and housekeeping.
−Removed: Similar to our owned lodge and villages contracts, in most multi-year contracts, our rates typically have annual escalation provisions to cover expected increases in labor and consumables costs over the contract term.
+Added: Our contract terms generally provide for a per guest per day rate for hospitality services, including food service and housekeeping.
+Added: Similar to our owned lodge and villages contracts, in most multi-year contracts, our rates typically have annual escalation provisions to cover increases in labor and consumables costs over the contract term.
Our customers typically contract for hospitality services under exclusivity contracts with terms that most often range from several months to five years.
7 unchanged sentences
During the Australian rainy season between November and April, our operations in Queensland and the northern parts of Western Australia can be affected by cyclones, monsoons and resultant flooding.
−Removed: In the U.S., winter weather in the first quarter and the resulting spring break up in the second quarter have historically negatively impacted our Bakken operations.
Human Capital Resources
We believe that our employees are one of our greatest resources.
−Removed: As of December 31, 2022, we had approximately 1,400 full-time employees and approximately 1,400 hourly employees on a consolidated basis, 59% of whom are located in Canada, 39% of whom are located in Australia and 2% of whom are located in the U.S.
+Added: As of December 31, 2023, we had approximately 1,600 full-time employees and approximately 1,000 hourly employees on a consolidated basis, 47% of whom are located in Canada,
+Added: 52% of whom are located in Australia and 1% of whom are located in the U.S.
We were party to collective bargaining agreements covering 798 employees located in Canada and 1,020 employees located in Australia as of December 31, 2023.
−Removed: As a company, we recognize the importance of a diverse workforce represented by people from different backgrounds, experiences and ways of looking at the world.
−Removed: We endeavor to hire Indigenous Peoples and expand our Indigenous workforce, excluding corporate staff, to 10% in Canada.
−Removed: In 2022, we reached 7% Indigenous employment, excluding corporate staff, in Canada despite challenging market conditions that resulted in reduced hiring across the region.
+Added: As a company, we acknowledge the significance of a diverse workforce composed of individuals from various backgrounds, experiences, and perspectives.
+Added: As many of our projects in Canada and Australia operate in traditional territories, we work closely with Indigenous communities to actively explore mutually beneficial investment, employment, and business opportunities.
+Added: Our ability to cultivate and strengthen relationships with Indigenous communities is vital to the success of our business.
+Added: In Canada, we are committed to expanding our Indigenous workforce to 10%.
+Added: In 2023, we reached 7% Indigenous employment in Canada, excluding corporate staff.
Approximately 6% of our total new hires in Canada were of Indigenous background during 2023.
−Removed: Civeo strives to offer competitive compensation, benefits and services that meet the needs of its employees, including short and long-term incentive packages, various defined contribution plans, healthcare benefits, and wellness and employee assistance programs.
+Added: We strive to offer competitive compensation, benefits and services that meet the needs of our employees, including short- and long-term incentive packages, various defined contribution plans, healthcare benefits, and wellness and employee assistance programs.
Management monitors market compensation and benefits in order to attract, retain, and promote employees and reduce turnover and its associated costs.
−Removed: Civeo is committed to operating in a safe, secure and responsible manner for the benefit of its employees, customers and the communities Civeo serves in Canada, Australia and the U.S.
−Removed: Because we are committed to protecting the health and safety of our people, we operate in accordance with rigorous standards documented in our Making Zero Count initiative, which recognizes the importance of zero harm, while focusing on the process to achieve excellent performance.
−Removed: We continue to monitor the COVID-19 pandemic to help ensure the health and well-being of our employees, guests and contractors.
−Removed: Most of our previously implemented measures have been revised to reflect improved conditions, and are currently being integrated into a more comprehensive communicable illness plan.
−Removed: Our safety culture is driven by our leaders, in conjunction with active employee engagement.
−Removed: At Civeo, we believe that investing in our people is an investment in our own success.
+Added: Safety is a foundational pillar of Civeo’s corporate culture.
+Added: We are committed to operating in a safe, secure and responsible manner for the benefit of our employees, customers and the communities we serve.
+Added: Our commitment to safeguarding employees, contractors, and guests is demonstrated through our employee-named Making Zero Count initiative, which emphasizes the importance of eliminating harm and focuses on the processes required to achieve exceptional performance.
+Added: At Civeo, we believe that investing in our employees is fundamental to our success.
Our commitment to training and career development enables employees to grow and advance in their careers while supporting our industry-leadership position.
−Removed: Committed to the continuous improvement of our team, we provide training in the technical and managerial skills needed for employees' current and future roles, with a specific focus on safety, customer service and leadership development.
−Removed: Our learning and development program includes a mix of e-learning modules, face-to-face training and nationally certified programs as well as licensing training offered by external providers.
+Added: Committed to the continuous improvement of our team, we prioritize the development of our workforce’s technical and managerial competencies, with an emphasis on safety, customer service, and leadership development.
+Added: Our learning and development program encompasses a range of learning modalities, including e-learning modules, in-person training sessions, nationally certified programs and licensed training provided by external partners.
Government Regulation
13 unchanged sentences
Numerous governmental agencies issue regulations to implement and enforce these laws, for which compliance is often costly yet critical.
−Removed: The violation of these laws and regulations may result in the denial or revocation of permits, issuance of corrective action orders, modification or cessation of operations, assessment of administrative and civil penalties, and even criminal prosecution.
+Added: The violation of these laws and regulations may result in the denial or revocation of permits, issuance of corrective action orders, modification or cessation of operations,
+Added: assessment of administrative and civil penalties, and even criminal prosecution.
Although we do not anticipate that future compliance with existing environmental laws and regulations will have a material effect on our financial condition, results of operations or cash flows over the short term, there can be no assurance that substantial costs for compliance or penalties for non-compliance with these existing requirements will not be incurred in the future by us or our customers.
8 unchanged sentences
At the federal level, the Reduction in the Release of Volatile Organic Compounds Regulations (Petroleum Sector) were published in 2020.
−Removed: Certain leak detection and repair provisions of that regulation took effect beginning in 2021 and the regulation sets additional monitoring and requirements for operators beginning in 2022 and 2023.
−Removed: These regulations will require the implementation of comprehensive leak detection and repair (LDAR) programs as well as design and operating standards that prevent leaks at Canadian petroleum refineries, upgraders and certain petrochemical facilities and may affect our customers’ operations.
+Added: Certain leak detection and repair provisions of the regulations took effect beginning in 2021 and the regulations set additional monitoring and requirements for operators in 2022 and 2023.
+Added: These regulations require the implementation of comprehensive leak detection and repair (LDAR) programs as well as design and operating standards that prevent leaks at Canadian petroleum refineries, upgraders and certain petrochemical facilities and may affect our customers’ operations.
In addition to federal requirements, emissions from facilities in Alberta are subject to provincial regulation.
9 unchanged sentences
Similarly, emissions from facilities in British Columbia are also subject to provincial regulation.
−Removed: The British Columbia Oil and Gas Commission (BCOGC) is responsible for regulating oil and gas activity in British Columbia.
−Removed: BCOGC oversees compliance with the Drilling and Production Regulation, which is one of British Columbia's primary regulatory instruments governing all aspects of oil and natural gas drilling and production.
+Added: The British Columbia Energy Regulator (BCER) is responsible for regulating oil and gas activity in British Columbia.
+Added: BCER oversees compliance with the Drilling and Production Regulation, which is one of British Columbia's primary regulatory instruments governing all aspects of oil and natural gas drilling and production.
Effective January 1, 2020, that regulation was amended to require operators to eliminate or reduce natural gas leaking or venting associated with a wide variety of equipment and activities in energy development.
−Removed: Under this regulation, new requirements are imposed for facilities detecting leaks and inspecting seals as well as restrictions or prohibitions on the types of equipment used for energy development.
+Added: Under this regulation, requirements are imposed for facilities detecting leaks and inspecting seals as well as restrictions or prohibitions on the types of equipment used for energy development.
Some of these requirements took effect in 2022 and further requirements took effect on January 1, 2023.
−Removed: In addition, the BCOGC completed consultation in 2022 on proposed amendments to the Drilling and Production Regulation to maintain equivalency with federal requirements.
−Removed: Those amendments are expected to be finalized in 2023.
+Added: In addition, the BCER completed consultation in 2023 on proposed amendments to the Drilling and Production Regulation to maintain equivalency with federal requirements.
+Added: Regulations designed to achieve a 45% reduction in methane emissions relative to 2014 levels are now in place.
+Added: The BCER is currently conducting a regulatory review and engagement on the development of new regulations designed to achieve a 75% reduction in methane emissions from the oil and gas sector by 2030.
Meeting these regulatory requirements may result in additional costs or liabilities for our customers’ operations.
Environmental Assessment of Major Projects
−Removed: Following a review process that began in January of 2016, Canada introduced new legislation to "rebuild public trust" in Canada's environmental review process.
In August 2019, the Canadian Environmental Impact Assessment Act, 2012 (CEAA 2012) was repealed and replaced with the federal Impact Assessment Act.
3 unchanged sentences
Our customers operate in the aforementioned industries and could be considering future projects that would be subject to the Impact Assessment Act.
−Removed: To the extent our customers are required to comply with this legislation, it is possible that the uncertainty regarding cost and timelines for navigating the
−Removed: planning, assessment, and decision-making processes may negatively impact our customers' decisions on whether to proceed with those projects.
+Added: To the extent our customers are required to comply with this legislation, it is possible that the uncertainty regarding cost and timelines for navigating the planning, assessment, and decision-making processes may negatively impact our customers' decisions on whether to proceed with those projects.
The Government of Alberta, supported by the governments of Ontario and Saskatchewan, has challenged the constitutionality of the Impact Assessment Act.
−Removed: In May of 2022, the Alberta Court of Appeal released its opinion on that challenge (Opinion), with a majority concluding that the Impact Assessment Act is beyond the constitutional authority of the federal government on the basis that it encroaches too far into areas of exclusive provincial authority.
−Removed: The opinion is not binding and does not invalidate the Impact Assessment Act.
−Removed: The federal government has appealed the ruling to the Supreme Court of Canada.
−Removed: A decision on that appeal is expected in mid-late 2023.
+Added: In October of 2023, a majority of the Supreme Court of Canada (Court) concluded that a large portion of the regime created by the Impact Assessment Act was unconstitutional.
+Added: The federal government subsequently issued interim guidance on the administration of the Impact Assessment Act and advised that it intended to amend the Impact Assessment Act to align with the Court's ruling.
+Added: The federal government is expected to introduce legislation amending the Impact Assessment Act in 2024.
As a result, there is significant uncertainty about the future application of Canada's federal environmental assessment legislation to our customers.
15 unchanged sentences
Certain requirements of the Federal Methane Regulations came into effect January 1, 2020, and other emissions limits are now in place for certain equipment installed on or after January 1, 2023.
−Removed: Further, in March 2022, the federal government began consultation on a proposed strategy to expand coverage and increase stringency of methane reduction obligations in the oil and gas sector specifically, and is expected to issue draft regulations in 2023.
+Added: In March 2022, the federal government began consultation on a proposed strategy to expand coverage and increase stringency of methane reduction obligations in the oil and gas sector specifically, and is expected to issue draft regulations in 2023.
+Added: In December 2023, the federal government published proposed amendments to the Federal Methane Regulations for public comment.
+Added: The proposed amendments are intended to reduce methane emissions in Canada's upstream oil and gas sector by at least 75% below 2012 levels by 2030.
+Added: To achieve that objective, the proposed amendments would prohibit venting natural gas to the environment, subject to limited exceptions.
+Added: They would also impose requirements on hydrocarbon combustion systems and measures to reduce fugitive methane emissions.
+Added: Draft regulations are expected to be published in 2024.
These requirements may result in additional costs or liabilities for our customers’ operations.
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As of January 1, 2024, the backstop price is $65 per tonne of CO2e.
−Removed: The current government plan is to continue increasing that price by $15 per year until it reaches $170/tonne of CO2e in 2030.
+Added: That price will increase to $80 in April 2024 and the current government plan is to continue increasing that price by $15 each year until it reaches $170/tonne of CO2e in 2030.
On November 19, 2020, the federal government introduced the Canadian Net-Zero Emissions Accountability Act in Parliament.
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Following a 2021 federal election, the Government of Canada delivered a new Throne Speech in November 2021 which reiterated its intent to take action that would "go further, faster" to fight climate change.
−Removed: Among other things, the federal government pledged to cap and cut oil and gas sector emissions while accelerating on
−Removed: the path to 100 percent net zero electricity.
−Removed: In July 2022, the federal government published a discussion paper on options to “cap and cut oil and gas sector greenhouse gas emissions” to achieve its emissions targets and solicited feedback on different regulatory options.
−Removed: It is expected to publish draft regulations to implement the emissions cap in 2023.
+Added: Among other things, the federal government pledged to cap and cut oil and gas sector emissions while accelerating on the path to 100 percent net zero electricity.
+Added: In December 2023, the federal government announced that it intended to implement a national cap-and-trade system for oil and gas emissions in Canada and published a draft regulatory framework for public comment.
+Added: Draft regulations are expected to be published in 2024.
+Added: As currently proposed, the cap-and-trade system would apply to liquified natural gas producers as well as producers in the conventional oil, offshore, oil sands and natural gas production and processing subsectors.
+Added: The proposed cap-and-trade system would set oil and gas sector emissions limits, to be phased in between 2026 and 2030.
+Added: Producers would be required to reduce their emissions or purchase "allowances" from other facilities that have reduced their emissions.
These requirements, if implemented, may result in additional costs or liabilities for our customers’ operations.
−Removed: In July 2022, Canada finalized Clean Fuel Regulations (CFR), which form part of its plan to reduce emissions, accelerate the use of clean technologies and fuels, and create good jobs in a diversified economy.
−Removed: The CFR requires liquid fuel suppliers to gradually reduce the carbon intensity of the fuels they produce and sell for use in Canada over time.
−Removed: Compliance with this new regulation is expected to increase the price of liquid fuels which, in turn, could increase operating costs for our customers while potentially lowering demand for some of their products.
+Added: In addition, the federal government amended the Canadian Environmental Protection Act, 1999 (“CEPA”) in 2023.
+Added: In particular, the preamble to CEPA now recognizes that every individual in Canada has a right to a healthy environment.
+Added: The Government of Canada must now take into consideration this right, including the principles of environmental justice, when making decisions under CEPA, including its regulation of greenhouse gas emissions in Canada.
+Added: Within two years, the Government of Canada must develop an implementation framework on how this right will be upheld while administering CEPA.
+Added: Until that framework is developed, there is significant uncertainty regarding how these changes to CEPA will be implemented, and their potential to affect our customers' operations.
In Alberta, GHGs are regulated pursuant to the Emissions Management and Climate Resilience Act and the Technology Innovation and Emissions Reduction Regulation (TIER Regulation).
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The Alberta government issues an order every year setting the price to acquire credits, which effectively dictates compliance costs.
−Removed: In December 2022, the Alberta government announced changes to the administration of the TIER Regulation, including planned increases to the carbon price and increases to annual benchmark tightening rates.
−Removed: These changes were announced in order to ensure that the TIER Regulation maintains equivalency with the framework established by GGPPA.
−Removed: Planned increases to the cost of TIER Regulation credits and annual benchmark tightening rates may result in additional costs or liabilities for our customers’ operations.
+Added: In January 2023, the Alberta government published amendments to the TIER Regulation, including increases to the carbon price and increases to annual benchmark tightening rates.
+Added: These changes were implemented in order to ensure that the TIER Regulation maintains equivalency with the framework established by GGPPA.
+Added: Increases to the cost of TIER Regulation credits and annual benchmark tightening rates may result in additional costs or liabilities for our customers’ operations.
In addition, similar increases in stringency of provincial GHG regulatory frameworks within British Columbia and Saskatchewan may result in additional costs or liabilities for our customers’ operations.
−Removed: Finally, it should be noted that some scientists have concluded that increasing concentrations of GHGs in the Earth’s atmosphere may produce climate changes that have significant physical effects, such as higher sea levels, increased frequency and severity of storms, droughts, floods and other climatic events.
−Removed: If any such effects were to occur, they could have an adverse effect on our operations and our financial condition.
The Canadian Species at Risk Act is intended to prevent wildlife species in Canada from disappearing and to provide for the recovery of wildlife species that no longer exist in the wild in Canada, or that are endangered or threatened as a result of human activity, and to manage species of special concern to prevent them from becoming endangered or threatened.
−Removed: The designation of previously unprotected species as threatened or endangered in areas of Canada where our customers’ oil and natural gas exploration and production operations are conducted could cause them to incur increased costs arising from species protection measures or could result in limitations on their exploration and production activities, which could have an adverse impact on demand for our services.
+Added: The designation of previously unprotected species as threatened or endangered in areas of Canada where our customers’ oil and natural gas exploration and production operations are conducted could cause them to incur increased costs arising from species
+Added: protection measures or could result in limitations on their exploration and production activities, which could have an adverse impact on demand for our services.
Woodland caribou habitat covers large portions of several Canadian provinces including British Columbia, Alberta, and Saskatchewan.
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In recent years, it became clear that the LMR Program needed to be updated to reflect declining production and aging infrastructure.
−Removed: As a result of the Supreme Court of Canada's decision in Orphan Well Association v Grant Thornton (also known as the Redwater decision), receivers and trustees can no longer avoid the AER's legislated authority to impose abandonment orders
−Removed: against licensees or to require a licensee to pay a security deposit before approving a license transfer when any such licensee is subject to formal insolvency proceedings.
+Added: As a result of the Supreme Court of Canada's decision in Orphan Well Association v Grant Thornton (also known as the Redwater decision), receivers and trustees can no longer avoid the AER's legislated authority to impose abandonment orders against licensees or to require a licensee to pay a security deposit before approving a license transfer when any such licensee is subject to formal insolvency proceedings.
This means that insolvent estates can no longer disclaim assets that have reached the end of their productive lives (and therefore represent a net liability) in order to deal primarily with the remaining productive and valuable assets without first satisfying any abandonment and reclamation obligations associated with the insolvent estate's assets.
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Licensee Life-Cycle Management (Directive 88) and supporting guidance information to further support implementing the AB LMF.
−Removed: Among other things, Directive 88 establishes the AER's authority to conduct a holistic licensee assessment to inform regulatory decisions about a given licensee, including by conducting a "Licensee Capability Assessment." Directive 88 also establishes the Licensee Management Program contemplated in the AB LMF which enables the AER to proactively monitor licensees to identify those at risk of not meeting their regulatory obligations and to use appropriate regulatory tools to address that risk.
+Added: Among other things, Directive 88 establishes the AER's authority to conduct a holistic licensee assessment to inform regulatory decisions about a given licensee, including by conducting a "Licensee Capability Assessment." Directive 88 also establishes the Licensee Management Program contemplated in the AB LMF which enables the AER to proactively monitor licensees to identify those at risk of not meeting
+Added: their regulatory obligations and to use appropriate regulatory tools to address that risk.
Finally, Directive 88 establishes the Inventory Reduction Program and allows the AER to set licensee-specific and industry-wide closure targets.
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The Orphan Fund was originally conceived to be bankrolled by licensees in the AB LMR Program who contribute to a levy administered by the AER.
−Removed: However, given the increase in orphaned oil and natural gas assets, the Government of Alberta has loaned the Orphan Fund approximately $335 million to carry out abandonment and reclamation work.
+Added: However, given the increase in orphaned oil and natural gas assets, the Government of Alberta has loaned the Orphan Fund approximately $335 million to carry out abandonment and reclamation work, of which, $121 million had been paid as of May 2023.
In response to the COVID-19 pandemic, the Government of Alberta also covered $113 million in levy payments that licensees would otherwise have owed to the Orphan Fund, corresponding to the levy payments due for the first six months of the AER's fiscal year.
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These and any other changes to the AER's approach to manages closure requirements for energy resource activities may result in additional costs or liabilities for our customers’ operations.
+Added: In British Columbia the BCER’s Comprehensive Liability Management Plan addresses liability management, improving the rate of inactive site restoration, and addressing orphan sites.
+Added: The BCER uses a Liability Management Rating (LMR) program to evaluate each company’s ability to pay for site restoration.
+Added: The BCER addresses dormant sites through the Dormancy and Shutdown Regulation, which ensures oil and natural gas producers responsibly bring their energy resource activities to regulatory closure within a reasonable time frame.
+Added: The Dormant Sites Program is used to identify permit holders that are subject to the dormant site provisions of the Energy Resource Activities Act and the Dormancy and Shutdown Regulation.
+Added: The regulation sets timelines for restoration and imposes requirements for decommissioning, site assessment, remediation and restoration.
+Added: Like in Alberta, British Columbia’s Orphan Site Reclamation Fund is a levy on oil and natural gas producers that is used to pay the cost of restoring orphan sites in BC.
+Added: If or when applicable to operations, any changes to the BCER’s approach to managing dormancy and closure requirements for energy resource activities may result in additional costs or liabilities for our customers’ operations.
Australian Environmental Regulations
−Removed: Our Australian segment is regulated by general statutory environmental controls at the federal, state and territory and local government levels which may result in land use approval, regulation of operations and compliance risk.
+Added: Our Australian segment is regulated by statutory environmental and land use controls at the federal, state and territory and local government levels which may result in land use approval, regulation of operations and compliance risk.
These controls include:
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Koalas), migratory species, Ramsar wetlands and world heritage properties.
−Removed: Activities that have the potential to impact matters protected by the EPBC Act trigger referral to the federal government for Environmental Impact Assessment (EIA).
−Removed: In October 2020, the findings of an independent review recommended reforms of the EPBC Act including (but not limited to) introduction of legally binding ‘National Environmental Standards’ and a ‘climate change’ referral trigger, stronger compliance and enforcement powers and proposals for new bilateral agreements with the States and Territories to streamline the EPBC Act approval process.
−Removed: Bills to effect many of the recommended reforms are currently before Parliament.
−Removed: Notably, the recommended climate change referral trigger will ensure Australia fulfills its obligations under the Paris Agreement by triggering EIA of emissions-intensive activities.
−Removed: It will also introduce criminal penalties for offenses relating to emissions-intensive actions.
−Removed: In December 2022 the federal government announced further major reforms to the EPBC Act (in response to the October 2020 review and with similar proposed reforms) and foreshadowed that a draft bill will be released mid 2023.
−Removed: If any of these bills are assented to, our obligations under and compliance with the EPBC Act ought to be reviewed.
+Added: Activities that have the potential to impact matters protected by the EPBC Act trigger referral to the federal government for assessment and approval.
+Added: In October 2020, the findings of an independent review of the EPBC Act (Independent Review) recommended significant reforms including (but not limited to) introduction of legally binding ‘National Environmental Standards’, a ‘climate change’ referral trigger, measures to harness and recognize the importance of indigenous knowledge, stronger compliance and enforcement powers, proposals for revised bilateral agreements with the States and Territories to streamline the assessment and approval process of some activities regulated by the EPBC Act and criminal penalties for offenses relating to emissions-intensive actions.
+Added: In December 2022 the federal government announced its response to the Independent Review.
+Added: This response proposes various changes to the EPBC Act in line with the Independent Review, for example, the introduction of ‘National Environmental Standards’, creation of a federal Environmental Protection Agency and the introduction of a requirement to
+Added: achieve ‘net positive’ outcomes.
+Added: Several bills to effect some of the recommended reforms are currently before Parliament and a comprehensive draft bill is expected to be introduced in 2024 together with a draft of the proposed National Environmental Standards.
+Added: Notably, the federal government is not presently proposing to introduce the climate change referral trigger recommended by the Independent Review.
+Added: If any of the recommended reforms take effect, our obligations under, and compliance with, the EPBC Act ought to be reviewed.
However, its implications for our Australian operations are not anticipated to be significant.
−Removed: Ongoing awareness of these reforms is important as the policy and legislative changes may affect our customers’ operations and have impacts on the non-renewable resources sector generally.
+Added: Ongoing awareness of these reforms is important as the legislative and policy changes may affect our customers’ operations and have impacts on the non-renewable resources sector generally.
+Added: There is an increasing emphasis from regulators on sustainability and energy efficiency in business operations.
+Added: Federal requirements are now in place for the mandatory disclosure of energy performance under building rating schemes.
+Added: These schemes require the tracking of specific environmental performance factors.
+Added: Carbon reporting requirements currently exist for corporations which meet a reporting threshold for greenhouse gases or energy use or production for a reporting (financial) year under federal legislation.
+Added: From July 1, 2023, new obligations and reporting requirements took effect with respect to the ‘Safeguard Mechanism’ – Australia’s policy for reducing emissions from facilities that emit more than 100,000t CO2-e per financial year that has been in place since 2016.
+Added: These reforms are intended to assist Australia meet its emissions reduction targets of 43% below 2005 levels by 2030 and may affect large scale industry customers.
+Added: The federal government has also proposed further climate-related disclosure requirements that are anticipated to take effect (for some companies) from mid-2024.
+Added: These proposed disclosure requirements will oblige companies to disclose various climate-related information, including information about their greenhouse gas emissions, climate-related targets, offset contributions, transition plans, and information about strategies, plans and governance procedures/controls in place to monitor and manage climate-related risks and opportunities.
+Added: If these reforms become law, we will have corporate reporting requirements in relation to these climate related matters, likely to commence in 2026.
State and Territory Controls
At a State and Territory level, our operations are authorized and regulated by layers of planning and environmental approvals.
−Removed: Queensland, New South Wales and Western Australia all have multiple acts regulating matters of the environment, conservation, vegetation management and protection of aboriginal and Torres Strait island use rights which are administered by each States’ independent environment protection regulator (e.g.
−Removed: Queensland’s Environmental Protection Agency).
−Removed: If Parliament assents to the bill proposing to effect new bilateral agreements under EPBC Act, the States and Territories will be given further power to assess and approve actions under the EPBC Act.
+Added: Queensland, New South Wales and Western Australia all have multiple acts regulating matters of the environment, conservation, vegetation management and protection of aboriginal and Torres Strait Islander use rights which are administered by each States’ independent environment protection regulator (e.g.
+Added: Queensland’s Department of Environment, Science and Innovation).
+Added: If amendments are made to the EPBC Act to effect new bilateral agreements, the States and Territories will likely be given further power to assess and approve certain actions regulated the EPBC Act.
Under state law, some specified activities, for example, sewage treatment works at our sites, may require regulation by way of environmental approvals.
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We must ensure that all necessary approvals, permits and licenses are in place to authorize our operations and that the conditions of those approvals, permits and licenses are complied with until the relevant operations cease (and are cleaned-up if necessary).
−Removed: Where approvals are not held and/or complied with, the operation may be unlawful and subject to penalties, including stop-work orders, remediation and financial penalties.
+Added: Where approvals are not held and/or complied with, the operation may be unlawful and subject to penalties, including stop-work orders, remediation orders and financial penalties.
Our Australian operations continue to comply with our existing approvals, permits and licenses.
−Removed: We have a positive obligation under state legislation to notify of an incident causing (or threatening) material environmental harm.
−Removed: Examples of material environment harm include effluent overflow, chemical leaks and chemical fires.
−Removed: Failure to discharge this obligation can attract significant financial penalties.
−Removed: There is an increasing emphasis from state and federal regulators on sustainability and energy efficiency in business operations.
−Removed: Federal requirements are now in place for the mandatory disclosure of energy performance under building rating
−Removed: These schemes require the tracking of specific environmental performance factors.
−Removed: Carbon reporting requirements currently exist for corporations which meet a reporting threshold for greenhouse gases or energy use or production for a reporting (financial) year under national legislation.
+Added: We have a positive obligation under state legislation to notify of an incident causing (or threatening) serious or material environmental harm.
+Added: Examples of notifiable environment harm include effluent overflow, chemical leaks and chemical fires.
+Added: Failure to discharge this obligation can attract significant sanctions and financial penalties.
Local Government
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Environmental Protection Agency (EPA) or authorized state agencies.
−Removed: The EPA published a final rule outlining its position on the federal jurisdictional reach over waters of the U.S.
−Removed: in June 2015.
−Removed: However, the EPA rescinded this rule in 2019 and promulgated the Navigable Waters Protection Rule in 2020.
−Removed: The Navigable Waters Protection Rule defined what waters qualify as navigable waters of the United States and are under Clean Water Act jurisdiction and has generally been viewed as narrowing the scope of waters of the United States as compared to the 2015 rule.
−Removed: Litigation in multiple federal district courts is currently challenging the rescission of the 2015 rule and the promulgation of the Navigable Waters Protection Rule.
−Removed: On December 7, 2021, the U.S.
−Removed: EPA and the Department of the Army (the agencies) announced a proposed rule to revise the definition of “waters of the United States.” The agencies propose to put back into place the pre-2015 definition of “waters of the United States,” updated to reflect consideration of Supreme Court decisions.
−Removed: The public comment period on the proposed rule closed on February 7, 2022.
−Removed: On January 24, 2022, the Supreme Court agreed to consider the jurisdictional reach of the Clean Water Act again in Sackett v.
−Removed: Many of our U.S.
−Removed: properties and operations require permits for discharges of wastewater and/or storm water, and we have developed a system for securing and maintaining these permits.
−Removed: In April 2020, a Montana federal judge vacated the U.S.
−Removed: Army Corps of Engineers (Corps) Nationwide Permit (NWP) 12 and enjoined the Corps from authorizing any dredge or fill activities under NWP 12 until the agency completed formal consultation with U.S.
−Removed: Fish and Wildlife Service (USFWS) under Endangered Species Act (ESA) regarding NWP 12 generally.
−Removed: The court later revised its order to vacate NWP 12 only as it relates to the construction of new oil and gas pipelines, and that order was partially vacated by the Ninth Circuit Court of Appeals as moot based on the Corps’ re-issuance of NWPs in 2021.
−Removed: In re-issuing NWP-12 in 2021, the Corps again elected not to consult with USFWS.
−Removed: Environmental groups have already challenged the re-issued NWP-12 in federal court.
−Removed: On March 28, 2022, the Corps published notice that it is undertaking formal review of NWP-12.
−Removed: The public comment period ended on May 27, 2022.
−Removed: The Clean Water Act and analogous state laws provide for administrative, civil and criminal penalties for unauthorized discharges and, together with the Oil Pollution Act of 1999, as amended, require the development and implementation of spill prevention and response plans and impose liability for the remedial costs and associated damages arising out of any unauthorized discharges.
+Added: In addition, the Clean Water Act and analogous state laws provide for administrative, civil and criminal penalties for unauthorized discharges and, together with the Oil Pollution Act of 1999, as amended, require the development and implementation of spill prevention and response plans and impose liability for the remedial costs and associated damages arising out of any unauthorized discharges.
GHG Emissions
The EPA has adopted rules requiring the monitoring and reporting of GHG emissions from specified large GHG emission sources in the U.S., including, offshore and onshore oil and natural gas production facilities, on an annual basis.
−Removed: In October 2015, the EPA finalized rules that added new sources to the scope of the GHG monitoring and reporting requirements.
−Removed: These new sources include gathering and boosting facilities as well as completions and workovers from hydraulically fractured oil wells.
−Removed: In addition, in June 2016 the EPA published new regulations to further restrict GHG emissions, such as new standards for methane and volatile organic compound (VOC) emissions from new and modified oil and gas sources.
−Removed: On September 11, 2018, the EPA proposed targeted improvements to the rule, including amendments to the rule’s fugitive emissions monitoring requirements, which were finalized in August 2020.
−Removed: Separately, in 2020, the EPA rescinded methane and volatile organic compound emissions standards for new and modified oil and gas transmission and storage infrastructure, as well as methane limits for new and modified oil and gas production and processing equipment.
−Removed: The EPA also relaxed requirements for oil and gas operators to monitor emissions leaks.
−Removed: In November 2021, the EPA proposed New Source Performance Standards (NSPS) updates and emission guidelines to reduce methane and other pollutants from the oil and gas industry.
−Removed: In December 2022, the EPA issued a supplemental proposal to update, strengthen, and expand the November 2021 proposed standards and further reduce methane and volatile organic compound emissions from oil and natural gas facilities.
−Removed: The public comment period on the proposed rule ended on January 5, 2023.
−Removed: Additionally, in November 2016, the Bureau of Land Management (BLM) issued new regulations to reduce “waste” of natural gas, of which methane is a primary constituent, from venting, flaring and leaks during oil and natural gas production activities on onshore federal and Indian lands.
−Removed: In 2018, the BLM announced a revised rule which scaled back the waste-prevention requirements of the 2016 rule.
−Removed: This revised rule was vacated by a California federal district court in 2020, a decision which BLM has appealed to the Ninth Circuit Court of Appeals.
−Removed: Furthermore, separately, in October 2020, the federal district court of Wyoming vacated the original 2016 rule, a decision which BLM has appealed to the Tenth Circuit Court of Appeals.
−Removed: In November 2022, the BLM proposed a new iteration of the regulations.
−Removed: The public comment period on the proposed rule ended on January 30, 2023.
−Removed: Litigation is ongoing and future implementation of the BLM rules, and the Biden Administration’s reaction, is uncertain at this time.
−Removed: In October 2015, the EPA finalized the Clean Power Plan (CPP), which imposes additional obligations on the power generation sector to reduce GHG emissions.
−Removed: In August 2019, the EPA finalized the repeal of the 2015 regulations and replaced them with the Affordable Clean Energy rule (ACE), which designates heat rate improvement, or efficiency improvement, as the best system of emissions reduction for carbon dioxide from existing coal-fired electric utility generating units.
−Removed: In 2021, the U.S.
−Removed: Court of Appeals for the District of Columbia struck down the ACE rule but did not reinstate the former CPP regulation.
−Removed: In June 2022, the Supreme Court struck down the CPP, holding that Congress did not grant EPA the authority to devise emissions caps based on the generation-shifting approach the EPA took in the CPP.
−Removed: While our operations are not directly affected by these actions, their impact on our oil and natural gas exploration and production customers could result in a decreased demand for the services that we provide.
+Added: In December 2023, the EPA issued a final rule updating New Source Performance Standards (NSPS) and providing emission guidelines to reduce methane and other pollutants from the oil and gas industry.
While the U.S.
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into the agreement in February 2021.
−Removed: In addition, the Biden Administration has issued multiple executive orders pertaining to environmental regulations and climate change, including the Executive Order on Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis and Executive Order on Tackling the Climate Crisis at Home and Abroad.
−Removed: In the latter executive order, President Biden established climate change as a primary foreign policy and national security consideration, affirmed that achieving net-zero greenhouse gas emissions by or before midcentury is a critical priority, affirmed the Biden Administration’s desire to establish the U.S.
−Removed: as a leader in addressing climate change, generally further integrated climate change and environmental justice considerations into government agencies’ decision making, and eliminated fossil fuel subsidies, among other measures.
Under the Paris Agreement, the Biden Administration has committed the U.S.
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Other Environmental Regulations
−Removed: Our operations as well as the operations of our customers are also subject to various laws and regulations addressing the management, disposal and releases of regulated substances.
−Removed: For example, in the U.S., the federal Resource Conservation and Recovery Act, as amended (RCRA) and comparable state statutes regulate the generation, storage, treatment, transportation, disposal and cleanup of hazardous and non-hazardous solid wastes.
−Removed: Under the auspices of the EPA, most states administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent requirements.
−Removed: Federal and state regulatory agencies can seek to impose administrative, civil and criminal penalties for alleged non-compliance with RCRA and analogous state requirements.
−Removed: In the course of our operations, we generate some amounts of ordinary industrial wastes, such as paint wastes, waste solvents and waste oils that may be regulated as hazardous wastes.
−Removed: Moreover, the federal Comprehensive Environmental Response, Compensation and Liability Act, as amended (CERCLA), also known as the Superfund law, and
−Removed: comparable state laws impose liability, without regard to fault or legality of conduct, on classes of persons considered to be responsible for the release of a “hazardous substance” into the environment.
−Removed: These persons include the current and past owner or operator of the site where the release occurred and anyone who transported, disposed or arranged for the transport or disposal of a hazardous substance released at the site.
−Removed: Under CERCLA, such persons may be subject to joint and several strict liability for the costs of cleaning up the hazardous substances that have been released into the environment, for damages to natural resources and for the costs of certain health studies.
−Removed: CERCLA also authorizes the EPA and, in some instances, third parties to act in response to threats to the public health or the environment and to seek to recover from the responsible classes of persons the costs they incur.
−Removed: In addition, neighboring landowners and other third parties may file claims for personal injury and property damage allegedly caused by the hazardous substances released into the environment.
−Removed: We generate materials in the course of our operations that may qualify as hazardous substances.
−Removed: In the event of mismanagement or release of regulated substances upon properties where we conduct operations, we could become subject to liability and/or obligations under CERCLA, RCRA and/or analogous state laws.
+Added: Our operations, as well as the operations of our customers, are also subject to various laws and regulations addressing the management, disposal and releases of regulated substances, including the federal Resource Conservation and Recovery Act, as amended (RCRA), the federal Comprehensive Environmental Response, Compensation and Liability Act, as amended (CERCLA), also known as the Superfund law, and comparable state laws.
Under such laws, we could be required to undertake response or corrective measures, which could include removal of previously disposed substances and wastes, cleanup of contaminated property or performance of remedial operations to prevent future contamination.
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The process involves the injection of water, sand and chemicals under pressure into a formation to fracture the surrounding rock and stimulate production of hydrocarbons.
−Removed: Certain environmental advocacy groups and regulatory agencies have suggested that additional federal, state and local laws and regulations may be needed to more closely regulate the hydraulic fracturing process, and have made claims that hydraulic fracturing techniques are harmful to surface water and drinking water resources and may cause earthquakes.
+Added: Certain environmental advocacy groups and regulatory agencies have suggested that additional federal, state and local laws and regulations may be needed to more closely regulate the hydraulic fracturing process, and have made claims that
+Added: hydraulic fracturing techniques are harmful to surface water and drinking water resources and may cause earthquakes.
Various governmental entities (within and outside the U.S.) are in the process of studying, restricting, regulating or preparing to regulate hydraulic fracturing, directly or indirectly.
In the U.S., the EPA already regulates certain hydraulic fracturing operations involving diesel under the Underground Injection Control program of the federal Safe Drinking Water Act.
−Removed: Additionally, in 2016, the federal Bureau of Land Management (BLM) under the Obama Administration published a final rule imposing more stringent standards on hydraulic fracturing activities on federal lands, including requirements for chemical disclosure, well bore integrity, and handling of flowback water.
−Removed: However, in late 2018, the BLM under the Trump Administration published a final rule rescinding the 2016 final rule.
−Removed: While the 2016 rule has been rescinded, new or more stringent regulations may be promulgated by the Biden administration.
In January 2021, President Biden announced a moratorium on new oil and gas leasing on federal lands and offshore waters pending completion of a comprehensive review and reconsideration of federal oil and gas permitting and leasing practices.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.