Sustainability Report
2014
About the Sustainability Report 2014
Through this report, we account SINCE 2008 WE HAVE PUBLISHED OUR ANNUAL SUSTAINABILITY for the way the Company manages its REPORT (SR) WHERE WE SUMMARIZE THE MAIN RESULTS AND ACTIVITIES CONCERNING OUR ECONOMIC, ENVIRONMENTAL activities, offering transparency and AND SOCIAL PERFORMANCE. THIS REPORT IS BASED ON THE compliance with best practices and GRI GUIDE 3.1 GUIDELINES, WITH ITS OIL AND GAS SECTOR operational excellence, which nowadays SUPPLEMENT, AND ON THE REPORT GUIDE “OIL AND GAS are critical to share with and communicate INDUSTRY GUIDANCE ON VOLUNTARY REPORTING”, JOINTLY to all our stakeholders. DRAWN UP BY IPIECA, API AND IOGP IN ITS SECOND VERSION.
THE SR 2014 SCOPE COMPRISES THE AREAS OPERATED BY PLUSPETROL, WITH A DESCRIPTION OF THE ACTIVITIES CONDUCTED IN ANGOLA, ARGENTINA, BOLIVIA, COLOMBIA, PERU AND VENEZUELA. IT SHOULD BE NOTED THAT THE The Sustainability Report REPORTED QUANTITATIVE PERFORMANCE INDICATORS INCLUDE contributes with knowledge and statistic, INFORMATION FROM AREAS CURRENTLY IN THE PRODUCTION PHASE, MAINLY OPERATIONS IN ARGENTINA, BOLIVIA AND PERU. which are very useful for day-to-day AS FROM THIS YEAR, ALSO THE RESULTS FOR ANGOLA HAVE business. For the company’s employees, it BEEN INCORPORATED FOR SOME INDICATORS. is a permanent consultation document, an accurate source of data. IN ADDITION TO THE ABOVE, THIS YEAR WE MADE PROGRESS IN THE DEVELOPMENT OF AN INTEGRAL PROCESS OF ANALYSIS FOR THE IDENTIFICATION AND PRIORITIZATION OF OUR STAKEHOLDERS, AS WELL AS IN THE MATERIALITY ANALYSIS. LIKEWISE, WE MANAGED TO IMPROVE OUR PERFORMANCE INDICATORS BOTH IN QUANTITY AND QUALITY, REACHING 49 The chapters I’m more interested INDICATORS IN THE GRI GUIDE 3.1. THE PROGRESS RELATED TO in are those related to the Environment and THE MATERIALITY ANALYSIS AND THE NUMBER OF INDICATORS Community, which show how we can work REPORTED ARE EVIDENCE OF OUR COMMITMENT WITH SUSTAINABLE MANAGEMENT AND ITS COMMUNICATION TO OUR in a responsible way, protecting the STAKEHOLDERS. environment and people.
DURING THE PREPARATION OF THIS REPORT SEVERAL AREAS AND COLLABORATORS PARTICIPATED WITHOUT WHICH ITS PUBLICATION WOULD NOT HAVE BEEN POSSIBLE. WE ARE ESPECIALLY GRATEFUL TO EVERYONE FOR THEIR EFFORT AND Our people’s opinion in the disclosure process of the 2013 Sustainability Report COMMITMENT.
1. Global Reporting Initiative. https://www.globalreporting.org/ 2. International Petroleum Industry Environmental Conservation Association. http://www.ipieca.org/ 3. American Petroleum Institute. http://www.api.org/ 4. International Association Oil & Gas Producers. http://www.ogp.org.uk/ LETTER FROM THE CEO
THE INCREASING ENERGY DEMAND ADDED TO THE COMPLEX SOCIAL, POLITICAL AND ENVIRONMENTAL SETTINGS IN WHICH THE OIL AND GAS BUSINESS ARE DEVELOPED AND THE GROWING INTEREST OF STAKEHOLDERS REQUIRE AN IMPORTANT COMMITMENT WITH THE RESPONSIBLE DEVELOPMENT OF THE ACTIVITIES FROM OUR INDUSTRY.
AND IT IS NOT AN EASY COMMITMENT. WE WORK IN AN INDUSTRY AT THE CENTER OF SOCIAL ATTENTION, WHICH REQUIRES THAT WE IMPLEMENT BETTER PRACTICES EVERY DAY, WHILE OBSERVING RULES THAT HAVE BECOME MORE RESTRICTIVE, WHICH HAS CIVIL SOCIAL ORGANIZATIONS MONITORING OUR PERFORMANCE, AND WHICH IS HIGHLY COMPETITIVE DUE TO THE ACCESS TO RESERVES.
NOTWITHSTANDING, FOR MORE THAN 35 YEARS, PLUSPETROL HAS BEEN ABLE TO ADDRESS THOSE CHALLENGES WHILE CONTINUING TO GROW. AND WE ARE CONVINCED THAT WE WILL CONTINUE ON THIS TRACK, HELPING COVER THE INCREASING ENERGY NEEDS, AND ACTING IN AN ECONOMIC, SOCIAL AND ENVIRONMENTALLY RESPONSIBLE WAY, INTEGRATING ALL THESE ASPECTS IN THE BUSINESS DECISION-MAKING.
WITH THIS SPIRIT, PLUSPETROL PRESENTS ITS SEVENTH SUSTAINABILITY REPORT, IN WHICH WE DESCRIBE OUR PERFORMANCE DURING 2014 IN DETAIL. IN THIS PERIOD, WE HAVE DECIDED TO CONSOLIDATE AND BOOST OUR SUSTAINABILITY AND OPERATIONAL EXCELLENCE CORPORATE LETTER FROM THE CEO
STRATEGIES, WITH THE HOPE OF BEING ACKNOWLEDGED REGION-WIDE FOR OUR HIGH OPERATING STANDARDS AND A STRONG COMMITMENT TO RESPONSIBLE DEVELOPMENT.
A HIGHLIGHT DURING THIS YEAR HAS BEEN THE 10-YEAR CELEBRATION FOR OUR ACTIVITIES IN CAMISEA, THE PERU’S MOST IMPORTANT ENERGY PROJECT, WHICH HAS DRIVEN THE COUNTRY´S GROWTH THROUGH THE INCORPORATION OF NATURAL GAS AS ALTERNATIVE CLEANER FUEL IN THE DOMESTIC MARKET. ALL THIS LED TO CHANGES IN THE COUNTRY´S ENERGY MATRIX, THUS REDUCING EMISSIONS AS A CONSEQUENCE OF ITS USE.
FINALLY, I’D LIKE TO UNDERLINE THAT IN THIS NEW EDITION OF THE SUSTAINABILITY REPORT, WE HAVE IMPROVED THE DATA RECORD SYSTEM FOR THE PRESENTED INDICATORS, THUS OPTIMIZING THE DATA COLLECTION FILES AND TRAINING THE STAFF RESPONSIBLE FOR THE INFORMATION IN THE DIFFERENT OPERATION UNITS.
WE INVITE YOU TO LOOK OVER THE PAGES OF THIS SEVENTH SUSTAINABILITY REPORT, WHICH DESCRIBES THE 2014´S MOST OUTSTANDING MILESTONES OF 2014 REGARDING SOCIAL, ENVIRONMENT AND ECONOMIC MATTERS WHICH HAVE AN IMPACT ON OUR OPERATIONS AND OUR MAIN STAKEHOLDERS.
Steven G. Crowell President and CEO 01 02 06 26
ABOUT THE LETTER FROM ABOUT OUR SUSTAINABILITY THE CEO PLUSPETROL PEOPLE REPORT 2014 Company Profile Human Capital Management Governance Training and Our Corporate Strategy Development
Stakeholders Benefits
Supply Chain Health
Activities Communication
Highligths 34 64 88 98
ENVIRONMENT COMMUNITY SAFETY GRI INDEX
Environmental Management with Safety and Operations Opinion Poll Management the Communities Integrity Management
Environmental Social Investment Safety Performance in Numbers Participatory Other Actions Performed Processes Energy Efficiency & Climate Change Indigenous Communities Environmental Impact Management Community and Value Chain Natural Resources Management ABOUT PLUSPETROL
PLUSPETROL IS COMMITTED TO DEVELOPING ITS ACTIVITIES PERMANENTLY IMPROVING ITS PRACTICES, PURSUING EXCELLENCE IN EACH OF ITS PROCESSES TO MEET ITS LONG-TERM GROWTH AND SUSTAINABILITY GOALS. TO THIS END, IT INTEGRATES ECONOMIC, SOCIAL AND ENVIRONMENTAL ASPECTS FOR DECISION MAKING, COMPANY TOGETHER WITH ETHICAL MANAGEMENT, SEARCHING TO BALANCE PROFILE SHORT- AND LONG-TERM INTERESTS IN ORDER TO GENERATE SHARED VALUE FOR THE COMPANY AND ITS STAKEHOLDERS.
GOVERNANCE ABOUT PLUSPETROL
CORPORATE STRATEGY
HIGHLIGHTS
ACTIVITIES STAKEHOLDERS
SUPPLY CHAIN
06 • Pluspetrol Malvinas Gas Plant Camisea, Peru.
Sustainability Report 2014 • 07 USA HOUSTON BUSINESS OFFICE
VENEZUELA COMPANY PROFILE5 COLOMBIA PLUSPETROL IS A PRIVATE ENERGY COMPANY WITH OVER 35 YEARS OF EXPERIENCE IN HYDROCARBON EXPLORATION AND PRODUCTION. PERU
+35 6 BOLIVIA YEARS IN COUNTRIES WHERE PLUSPETROL THE INDUSTRY CARRIES OUT OPERATIONS, IN SOUTH AMERICA AND AFRICA +2,200 190.8
DIRECTLY MMBOE OF TOTAL ARGENTINA HIRED PEOPLE OPERATED PRODUCTION
URUGUAY 163,903 1,921 MONTEVIDEO CORPORATE BBL/D OF LIQUIDS MMSCF/D OF GAS OFFICES AND PRODUCTION PRODUCTION ASSISTANCE IN COMMERCIAL OVERSIGHT
13 73 6 References
EXPLORATION PRODUCTION WELLS DRILLED WELLS DRILLED Offices Exploration Production 5. December 2014 data. NGLFP Sub Andean Bases
6. Points are not geographically referenced.
08 • Pluspetrol Production Exploration
Oil and gas production is conducted in Oil and gas reserve exploration is one diverse geographical environments, of the company’s strategic activities, which range from the Patagonia region as it determines its projection into the OPERATING in Argentina to the Peruvian Amazon future. The permanent search for new AREAS rainforest, including urban areas as well opportunities runs from current areas in as territories inhabited by indigenous operation to new regions in countries communities. The quantitative where the company has not yet performance indicators presented in developed any activities. This Report PLUSPETROL DEVELOPS this Report only include results from provides detail on the qualitative aspects EXPLORATION AND PRODUCTION the production areas. related to the activities performed in ACTIVITIES OF OIL AND GAS exploration areas.
RESERVES IN VERY COMPLEX Operated Areas Non-Operated Areas ENVIRONMENTS. It refers to the geographical areas Non-operated areas include zones where Pluspetrol holds a controlling where Pluspetrol does not hold IN ITS OPERATIONS IT EMPLOYS interest over its operations. The scope controlling interest to date: Chile, THE HIGHEST OPERATIONAL of this Report includes all the areas Argentina, Peru and Colombia. Also operated by the Company in Angola, included here are those areas operated STANDARDS AND MAKES USE Argentina, Bolivia and Peru. by Pluspetrol but which are in an OF THE BEST TECHNOLOGIES, exploration phase: Colombia and PRIORITIZING RESPECT FOR THE Venezuela. This Report does not include data on non-operated areas without a ENVIRONMENT, LOCAL controlling interest. CULTURE AND ARCHEOLOGICAL HERITAGE, IN A SAFE AND RESPONSIBLE WAY. AREAS OF OPERATION (DETAILS) Name Location
COLOMBIA
- CPE-7 Block Department of Guaviare - CPO-3 Block Department of Meta - CPO-2 Block Department of Vichada
VENEZUELA
- Tiznado Guárico State NETHERLANDS - Barbacoas Guárico State AMSTERDAM PPN, PERU HEADQUARTERS - Block 8 Department of Loreto - Block 1AB Department of Loreto CAMISEA, PERU
- Block56 Lower Urubamba region, Department of Cusco - Block 88 Lower Urubamba region, Department of Cusco - Natural Gas Liquids Fractionation Plant Province of Pisco, Department of Ica and Marine Terminal
PLUSPETROL E&P, PERU
- Block 108 Basin of rivers Ene and Apurimac - Block 115 Department of Loreto - Block 102 Department of Loreto
BOLIVIA
- Tacobo Field Department of Santa Cruz - Curiche Field Department of Santa Cruz - Tajibo Field Department of Santa Cruz - Río Seco Field Department of Santa Cruz - Bermejo-Toro Field Department of Tarija - Huaico Field Department of Tarija ARGENTINA
ANGOLA - Neuquén Area Provinces of Neuquén and Río Negro - Río Colorado Area Province of La Pampa, Neuquén and Mendoza - Northern Area Province of Salta and Formosa ANGOLA
- South Cabinda Block Province of Cabinda
NON-OPERATED AREAS Name Location
ARGENTINA
- Río Colorado Province of Salta
CHILE
- El Tranquilo Magallanes XII Region COLOMBIA
- Putumayo 12 Block Urabá Antioqueño - SN 1 Block Putumayo
PERU
- Block 76 Department of Madre de Dios
Sustainability Report 2014 • 09 GOVERNANCE
Comité Ejecutivo
CORPORATE GOVERNANCE PROVIDES THE INCENTIVES Led by Pluspetrol’s CEO, it consists of four members. Its creation TO PROTECT THE COMPANY’S INTERESTS, PROMOTE favored a better project coordination and a greater focus on the VALUE CREATION AND THE EFFICIENT USE OF RESOURCES, Company’s growth strategy and communication between the WHILE PROVIDING TRANSPARENCY IN INFORMATION different sectors, and with collaborators. MANAGEMENT. IN THIS WAY, THE TRANSPARENCY IN THE GOVERNANCE STRUCTURE AND THE COMPOSITION COMITÉ EJECUTIVO OF THE ORGANIZATION ARE VITAL TO ENSURE ACCOUNTABILITY TO OUR STAKEHOLDERS. BELOW WE CEO y Presidente DESCRIBE OUR COMPANY’S GOVERNANCE AND ETHICS Senior VP Producción Global de Activos REGULATION CODES AND POLICIES. Senior VP Servicios Corporativos y CFO
Senior VP Desarrollo Corporativo THE COMPANY’S GOVERNANCE
The organization for decision-making, the policies that regulate our management and the transparency in our relations with stakeholders are key dimensions that feed and strengthen our Global Assets Corporate Corporate Production Services Development governance. Responsible for Responsible for Responsible for optimizing the providing the best projecting the Additionally, there are different executive bodies within the Company’s assets cost-effective balance Company’s future production. support for the whole development. company which are assigned specific roles and responsibilities company. for their performance.
Board of Directors Crisis Committee
Pluspetrol’s Board of Directors represents the company’s top Pluspetrol has an internal crisis management procedure, under managing organ and is comprised of three independent which the formation of a committee to face any crisis is members appointed by the Shareholders’ Meeting. It is in charge considered, in order to respond in a coordinated way among the of defining the Company’s objectives and strategic pillars, different sectors of the Organization; providing strategy supervising and controlling internal management, and assessing management, support, resources and the appropriate attention organizational performance. to the stakeholders’ concerns both inside and outside of the Company, related to the event.
10 • Pluspetrol ABOUT PLUSPETROL
ETHICAL BEHAVIOR PERU TRANSPARENCY IN THE The set of policies and codes that today rule our operations constitute a common framework for all the Business Units, as RELATIONSHIP WITH THE they set general corporate guidelines based on which each of GOVERNMENT them draws specific action plans and programs, appropriate to their local context. During 2014, two valuable ethical behavior Regarding our operations in Peru, we initiatives materialized: the creation of an Ethics Committee continue participating in the Extractive and the implementation of a new whistleblower channel called Industries Transparency Initiative (EITI) “Ethics Line”. as a mechanism that favors transparency and strengthens our stakeholders’ trust. Pluspetrol voluntarily participated, Code of Ethics together with other 58 extractive companies, in the Third National Since 2008, Pluspetrol has had a Code of Ethics in force that Conciliation Study, corresponding to 2011 establishes the attitude of integrity, criterion and moderation and 2012. Through this study, data was that all personnel must assume in front of our clients, suppliers made available on the revenue of the and other persons who may or not be part of the Company, in Peruvian State and the payments made order to prevent situations that may compromise the Company by the 59 voluntary member companies, or its employees with respect to their subjectivity and freedom on income tax; mining, gas and oil to decide. royalties; special mining tax; special mining obligations and validity rights. All Pluspetrol collaborators subscribe to this code through its signature upon joining the company.
Ethics Committee
Excellence and sustainability are achieved by means of honest and transparent behaviors. With this vision, the Company’s Management created the Ethics Committee made up by the Directors of the Legal Affairs, Human Resources and Internal Audit areas, whose responsibility is to analyze the complaints submitted concerning ethics or law violations through any of the channels available. 2,093.67 Ethics Line 2013 MILLIONS OF S/. In 2014, a new contact channel was added to report unethical behaviors. Besides the usual communication with their immediate superior or the Human Resources department, now 7 employees can make use of the Pluspetrol Ethics Line, a tool designed to facilitate reporting behaviors that may be contrary 2012 2,084.6 to the Company’s Best Business Practices. MILLIONS OF S/.
This new tool is available 24/7, through intranet and internet. Notifications may be sent by email ([email protected]), or filling in the form on the web www.ethicsline.pluspetrol.net. 7 Also, in some countries, contact telephone lines have been set 2011 2,132.9 up, too. MILLIONS OF S/.
Pluspetrol Ethics Line is managed by the KPMG company, so as to ensure confidentiality throughout the process. This company receives the different cases and channels them to Pluspetrol’s Ethics Committee for their analysis.
7. Pluspetrol’s contributions to the Peruvian Government in terms of oil and gas Royalties and Revenue; information submitted to EITI. In Peruvian nuevos soles (S /.)
Sustainability Report 2014 • 11 PURPOSE, VISION AND VALUES CORPORATE STRATEGY
THE DEVELOPMENT OF OUR OPERATIONS POSES THE CONSTANT CHALLENGE OF RECONCILING TECHNICAL, SOCIAL, ENVIRONMENTAL AND SAFETY ASPECTS. TO FACE IT IN A SUCCESSFUL WAY, WE HAVE Think beyond DESIGNED A STRATEGY THAT possibilities; act despite uncertainty ENABLES US TO MAINTAIN THE EXCELLENCE OF OUR OPERATIONS AND BE CREATIVE REGARDING THE EXPLORATION OF DIVERSE AS WELL AS COMPLEX REGIONS, WHILE WORKING ON REDUCING IMPACTS ON THE ENVIRONMENT AND NEIGHBORING Be persistent COMMUNITIES. PLUSPETROL’S CORPORATE STRATEGY CONSIDERS THREE MAIN AXES: SUSTAINABILITY MANAGEMENT, SUSTAINABLE GROWTH AND OPERATIONAL EXCELLENCE.
Team work as a way of setting free our imagination VISION and creativity Stand out as a benchmark company among international energy companies.
Develop our human resources’ talents
PURPOSE Satisfy all of our stakeholders’ (shareholders, employees, their families, partners, suppliers, clients, governments, and the communities in the countries Use resources where we operate) needs efficiently, and expectations maintaining bearing in mind our own identity. the low cost concept
Capitalize on opportunities
Preserve the environment
12 • Pluspetrol ABOUT PLUSPETROL
OUR SUSTAINABILITY MANAGEMENT INTERVIEW WITH ENVIRONMENT AND COMMUNITY AFFAIRS DIRECTOR, We understand Sustainability as the path to achieve our vision CHRISTIAN DÖBEREINER of becoming an international benchmark company in hydrocarbons exploration and production. Along this path, in What challenges as the new leader of order to create shared value, we search to integrate and balance environmental and community affairs of the short and long-term interests of our stakeholders, including Pluspetrol did you pose yourself? employees, shareholders, suppliers, clients, governments and communities from the countries where we operate. We are My first action was to listen, listen, listen… aware that our activities are a source for employment and and try to understand the Company’s Culture income generation for governments and local communities, and our main challenges. I soon realized we a local economic growth and investment driver. This is why we had a great team with highly qualified and are responsible for ensuring the business’s continuity, and experienced social and environmental sustainability is the strategy to achieve it. personnel, which needed only to prioritize and focus a bit more on building the The sustainability framework that we have defined directs us corporate systems and processes, while to conduct our activities in pursuit of excellence in the aligning to standards and preparing the management of each of the processes, focused on a rational, company for growth. efficient use of resources, preserving the environment and operating safely and responsibly, while we capitalize opportunities in a permanent cycle of continuous improvement. What company achievements would you highlight? Our approach maintains environmental, social and safety aspects as a priority. An important tool to meet company A very good example of the Company sustainability objectives, and which allow us to address the competence and achievement is the Camisea abovementioned aspects, is risk management. All our operations Gas Project in the Peruvian Amazon, where are developed in complex regions and environmentally and the social and environmental aspects are an socially sensitive environments, such as the Amazon rainforest in example of a world class operation, showing Peru, or the Bolivian blocks located in native community areas. us that we can do it. We need only to capture In order to respond to these situations properly, we continue these leanings and apply them in the rest of improving our management systems, including the way we our operations. identify, assess and manage risks associated with our activities and projects. In this sense, during 2014, the Environment and Community Affairs Directorate has started the process of What are Pluspetrol’s challenges and design and implementation of a Corporate Environmental and opportunities in sustainability for the coming Social Management System (SGASC, for its Spanish acronym), years? establishing environmental and social criteria and guidelines as minimum baseline requirements for all our operations. Our short term challenge is to finalize and implement our Social & Environmental Although Sustainability crosses the whole Company, its Management System aligned with Operational management is carried out by the Environment and Community Excellence. The Management system will Affairs Directorate which, in turn, reports directly to the enable us to better manage our social and Corporate Development Vice-Presidency. environmental risks that will be reflected in our continuously improving performance.
Sustainability Report 2014 • 13 New Sustainability Policy THREE KEYS TO SUSTAINED GROWTH During 2014, our sustainability policy was drawn up. Pluspetrol understands it as a commitment to the continuous improvement Our Exploration Department has designed a five-year of its processes to meet its long-term growth and sustainability growth strategy. For its progress to be efficient, it goals. has considered the operations that the company currently develops in different operational areas, its operational capacity and the expertise of the corporation’s technical and geoscientists team and the various business units.
Diversify. The current production pace forces us to have a reasonable reserve replacement enabling long-term economic support. For this reason, we PLUSPETROL SUSTAINABILITY are working on building an opportunity portfolio POLICY that includes different alternatives in terms of value
It is organized around nine and risk. principles that seek excellence in each of the Company’s APPROVAL processes; it proposes business Explore. The easy oil era is over. For the future, Management ethical management, integrating confirms its we are directing a search towards more complex economic, social and enactment environmental aspects balanced geographies, which we carry out successfully thanks with short and long-term to the deployment of advanced technologies. interests, in order to create SOCIALIZATION shared value for the Company Analysis with and its stakeholders. Adapt. We must be prepared to adapt our business Country Managers to the evolution of an uncertain market, and be capable of offering fast and efficient answers.
VALIDATION START Discussion with Management different Decision THE SUCCESS OF THE INTERNATIONAL corporate areas EXPLORATORY PROGRAM MAINLY LIES IN REMAINING FOCUSED, WELL PREPARED AND
PILLARS BENCHMARKING ATTENTIVE TO MAKE A GOOD SELECTION OF Pluspetrol’s Analysis of other THE AREAS. MAINTAINING THE FOCUS AND values as policy companies’ best foundations practices and PERSEVERANCE IS CRUCIAL, PARTICULARLY background DURING HIGHLY UNCERTAIN PERIODS, WHEN MANY TIMES CRISES TURN INTO EXCELLENT OPPORTUNITIES.
Geographical Expansion
Our strategy is based on maintaining two focus regions: Latin America and Western Africa. Through geological studies, we have defined the areas of more prospective interest. WHY A A SUSTAINABILITY POLICY IN PLUSPETROL? High priority. Areas where we will concentrate our resources and the necessary funds to carry out the • BECAUSE GUIDELINES ARE NEEDED TO ENABLE THE works. Here is where we could obtain E&P areas, COMPANY TO THINK IN THE LONG TERM, CONSIDERING outline prospects, start farm-in processes (with ALL ITS STAKEHOLDERS AND CREATING SHARED VALUE limited exploratory cycles), discover and produce WITH THEM. hydrocarbons, activate the search for opportunities through engagement in biddings or strategic • BECAUSE BECOMING A GLOBAL COMPANY EXPOSES US associations. TO GREATER RISKS AND FACING THEM INVOLVES HAVING NEW SYSTEMS AND PROCESSES THAT WILL LEAD US TO Watching basins. Basins that require more complex BE A WORLD- CLASS COMPANY IN THE INDUSTRY. regional geological analysis to complement the information that Pluspetrol already has in its records. These basins do not have the appropriate conditions to access the markets in the short term, and they do not have available areas.
14 • Pluspetrol ABOUT PLUSPETROL
ALIGNED WITH THE BEST INTERNATIONAL PRACTICES
During 2014, Pluspetrol joined the International Oil and Gas Producers Association (IOGP), a prestigious global forum whose members relate and share the best practices associated to Health, Safety, the Environment, Social Responsibility, Engineering and Operations. Formed in 1974 to develop efficient communications among industry members in a complex context with growing international regulations, the IOGP stands out for the publication of standards, guidelines, indicators reports and useful information for the industry.
Since 2006, we have been members of the Regional Association of Oil, Gas and Biofuels Sector Companies in Latin America and the Caribbean (ARPEL). This association brings together public and private companies, and oil and gas sector institutions. Its main goal is to promote the industry integration and growth, and maximize its contribution to sustainable energy development in the region. Pluspetrol is a member of ARPEL’s Board of Directors, and is also actively engaged in six technical committees that support the association’s activities.
In 2014, it should be noted that Pluspetrol was re-elected as President of the Social Responsibility Committee. In addition, and like every year, we participated in the Environmental Benchmarking project, through which member companies report a series of key environmental performance indicators. This allows, among other things, to identify the trends of specific environmental aspects like the use of resources, and to foster environmental management enhancement.
Sustainability Report 2014 • 15 OPERATIONAL EXCELLENCE
Operational Excellence is the strategy to ensure, work mode is much better than the sum of individual from the Operations VP, the growth, value creation efforts. Following this work line, focus was placed and long-term sustainability objectives. With on two main processes: Capital Excellence Process this strategy, we seek to impact on different areas (CEP) and Contractors Performance Management connected with the management of our business, (CPM). In the first case, we have extended such as safety and integrity, production efficiency, and deepened the CEP implementation in Peru and reserve replacement, operational costs optimization, Argentina. Opportunities and projects channeled capital productivity enhancement and ensuring our under CEP nowadays reach around 30% of the license to operate. investment amount planned for the next three years in GPA. On the other hand, with the implementation Operational Excellence is a concept and work mode of the Contractors Performance Management that allows us to capture a vision of how we want to Process (CPM) we achieved another step towards perform in all our operations. This vision is supported excellence. Management of our contractors on the following value drivers: standards and and the contracts that connect us with them are key processes, technology, organizational capacity, and elements to ensure more efficient and safer performance & learning. operations.
Operational Excellence – 2014 Highlights: WE MUST POINT OUT THAT ON SEPTEMBER 4, During 2014 we worked on the implementation of THE COMPANY HELD THE “FIRST CONTRACTORS this strategy in each of the value drivers. Managing FORUM, TOWARDS OPERATIONAL EXCELLENCE” through defined processes helps us consolidate IN MONTEVIDEO, URUGUAY, WHERE IT GLOBALLY collaborative team work, aligned with one of SHARED ITS GROWTH AND EXCELLENCE VISION Pluspetrol’s core values. We are certain that this WITH OVER 50 CONTRACTORS.
SUSTAINABLE GROWTH Standards and Processes
Technology ● Safety and EFFICIENCY Integrity ● Production efficiency ● Reserves Operational replacement Excellence ● Cost optimization ● Capital productivity License ● CONFIDENTIALITY to operate
Organizational Capacity
Performance SAFETY & Learning
16 • Pluspetrol ABOUT PLUSPETROL
From a technological point of view, each of the Operations VP management areas has put in place a plan to assess and incorporate the appropriate technology to meet the challenges our business needs to face. Such plan involves, among others, the development and exploration of non-conventional resources, heavy oils and assisted recovery, digitalization of our fields’ operation, and the application of Process Safety Management (PSM) concepts, in order to ensure the appropriate management of operational risk.
Organizational capacity is another essential pillar for our growth and sustainability. In this regard, we have worked on the definition of technical competences of diverse operational disciplines, as well as geology and geophysics, which will let us improve our competence and training management in the future. In search for assurance of the technical competencies required for our collaborators, during November and December, Pluspetrol invited its staff from the operational areas to participate in the “Foundations of Process Safety” course, in order to strengthen their knowledge in this subject. Likewise, in December, a training session on Well Integrity was held in Peru, attended by members from different business units responsible for ensuring wells’ integrity.
Lastly, Performance & learning is a crucial driver to understand the roles we must perform and what is expected from us. To this end, we have worked hard on devising the tools that will help us measure our performance, such as the GPA Operations Dashboard, the Well Construction Dashboard and other boards to follow-up projects, as well as on the practices or processes for goal planning, results review and actions definition to support ongoing improvements.
During 2015, we will continue with the implementation of our Operational Excellence strategy, strengthening our model with the incorporation of planning as an axis for integration, with a permanent focus on improving our operations performance. The 2015 performance objectives need to be aligned with our excellence and continuous improvement vision to achieve safe, reliable and efficient operations.
OUR PATH TO EXCELLENCE IS A COLLECTIVE CONSTRUCTION THAT DEMANDS COMMITMENT, PERSEVERANCE, TENACITY AND THE ABILITY TO LEARN FROM OUR OWN MISTAKES AS WELL AS OUR ACCOMPLISHMENTS.
Sustainability Report 2014 • 17 STAKEHOLDERS Together with our collaborators we seek to preserve occupational health and safety, respect EACH YEAR WE WORK TO IDENTIFY for human rights, and THOSE STAKEHOLDERS MORE LINKED to maintain assets and NGOs represent a process safety We work with TO OUR BUSINESS, INCORPORATING valuable ally with governmental THOSE WHO EMERGE DUE TO THE respect to human rights; organizations, bearing the community and in mind transparency of DYNAMICS OF THE ENVIRONMENTS stakeholders’ payments made, and WHERE WE OPERATE, AS WELL AS engagement; and the contributing to the environmental protection countries’ economic and THE DEVELOPMENT OF NEW AREAS and responsible use of social development OF OPERATION. WE SEEK MAINLY TO natural resources ENGAGE WITH OUR STAKEHOLDERS
SO AS TO CREATE SHARED VALUE FOR We encourage local THE COMPANY AND FOR THESE communities’ engagement Our work with the media PLUSPETROL in the different outreach GROUPS; BESIDES, OUR OBJECTIVE IS and opinion leaders is instances and spaces, TO IMPROVE THE MATERIALITY IN based on honesty and and we prioritize respect transparency of the for human rights, the OUR REPORT, ACCOUNTING FOR THE messages broadcasted, environment -including the TOPICS THAT STAKEHOLDERS ARE as well as the consistency use and disposal of water and uniformity of the and chemical substances-, INTERESTED IN, OURSELVES BEING information and land control, use and THE SOURCE OF TRANSPARENT AND communicated management DIRECT INFORMATION ABOUT “WHAT DO WE DO?” AND “HOW DO We provide our clients Procurement of suppliers WE DO IT?”. with the development of includes their health low-carbon energy and safety, respect for sources, mitigating climate human rights. change and contributing to the energy market IDENTIFYING transformation STAKEHOLDERS
During the reported period, an identification and prioritization of stakeholders work was carried out, to later establish outreach strategies. Further, it is a relevant precedent that is providing us with tools to design a IDENTIFICATION process which will regularly identify For the identification of the material stakeholders and contribute to the matters to be included in our report’s materiality analysis. Report, we analyzed: • International reporting standards: IPIECA8 and the oil and gas sector supplement of the GRI9 Guide • Analysis of reports of other the MATERIALITY sector companies ANALYSIS • Participatory dialogue processes • Surveys • Meetings Together with our dialogue channels and communication tools, we have initiated a systematic materiality analysis process to strengthen the relevance and MATERIALITY transparency of the topics described in The topics identified as material are: • Liaison with local communities PRIORITIZATION our reports. Topics are relevant (or • Occupational health and safety “material”) when they may be reasonably • Indigenous peoples’ rights Once the material topics were • Regulatory compliance identified we proceeded to their important, as they manifest economic, • Asset integrity and process safety prioritization in accordance with the environmental and social impacts of the • Proven Reserves (volume and type) following criteria: • Water Management • Degree of importance of the topics organization, or else, because they • Energy in the standards consulted substantially influence stakeholders. • Emissions, effluents and wastes • Strategic significance for Pluspetrol • Company/employee relations • Importance for our consulted • Products and services (mitigation of stakeholders (weighting and their environmental impact) prioritization exercise) • Biodiversity • Employment • Corruption
8. International Petroleum Industry Environmental Conservation Association. 9. Global Reporting Initiative.
18 • Pluspetrol ABOUT PLUSPETROL
SUPPLY CHAIN
OIL AND GAS COMPANIES DEVELOP AND WAREHOUSES; THE FOCUS IS THEIR BUSINESS IN A DYNAMIC AND PUT ON ADDING VALUE BY MEANS OF GLOBALIZED ENVIRONMENT, THIS PROCURING MATERIALS, EQUIPMENT CREATES A NEED IN COMPANIES TO AND SERVICES SUPPORTED ON REDESIGN THE TRADITIONAL WAY THE FOLLOWING PILLARS: SAFETY, OF DOING BUSINESS. WITHIN THIS PLANNING AND EXECUTION FRAMEWORK, SUPPLY CHAIN DEPENDING ON NEEDS; LONG-TERM MANAGEMENT ARISES AS A KEY VISION AND DECISION-MAKING; SUPPORT TOOL FOR OPERATIONS. SUPPLIERS DEVELOPMENT; AND CONTRIBUTION TO THE DEVELOPMENT IN PLUSPETROL, THE SUPPLY CHAIN OF LOCAL ECONOMIES IN THE PLACES IS MADE UP OF THREE FUNCTIONAL WHERE WE OPERATE. SECTORS: PROCUREMENT, LOGISTICS
Sustainability Report 2014 • 19 GLOBAL SUPPLY STRATEGY DEVELOPING LOCAL ECONOMIES
Pluspetrol has developed a series of guidelines We align our interests with those of local economies within the Strategic Supply conception, whose by promoting and hiring local suppliers and general objectives are: to improve expense and purchases, contributing in the development of new procurement management, and ensure performance capacities in the communities who live in the based on best practices. Within this framework, environments where we operate. a series of management programs and approaches have been designed since 2010, continuing with their We create shared value with these communities by implementation and development to date. accompanying the gradual and organized growth of local suppliers who provide us with goods and services, ensuring, at the same time, an efficient use SUPPLIER MANAGEMENT PROGRAM of local resources.
Its main objective is to develop a planned process Perú of continuous work with suppliers. Within this context a key factor is to strengthen relationships In our operations in Peru the relationship with local with this stakeholder group related to: supply of suppliers is carried out mainly by contracting materials, equipment and services, the application companies created and managed by local people. of environmental, safety and sustainability standards, These companies offer different services such as as well as the efficient management of supply costs, river transport for passengers and smaller loads. and the definition of specific conduct conditions with Under this form of communal enterprises we a regional scope. promote the generation of new employment opportunities for local people, while the degree of organization and training they acquire allows them to access service contracts with Pluspetrol and with TOPICS SUPPLIER MANAGEMENT PROGRAM other companies also operating in the area.
A process to formalize incorporation SELECTION of suppliers who comply with minimum predefined standards.
2014 A performance follow-up tool ASSESSMENT whose objective is to continue, UPDATE promote or end relationships with suppliers. The tool to be used was defined, in the Assessment A selective program aimed at line, whose OUTREACH developing relationships with implementation specific suppliers, based on their will be carried strategic level and criticality. out during 2015 and 2016.
A customized management TECHNOLOGY platform with corporate scope, and internal (governance) and external (suppliers) application scope.
CONTRACT MANAGEMENT
Oil and gas companies require “best in class” solutions to address contract management, considering that these regulate an essential part in what refers to the organization of a company’s operations.
This is why we are taking the first steps towards the implementation of actions aimed at strengthening Contract Management. Therefore, we pursue to actively advance not only in the generation of standard contracts, but also in relation to their follow-up during the execution phase and level of response, completing a better control of potential risks and maximizing the business operability and financial performance.
20 • Pluspetrol ABOUT PLUSPETROL
ACTIVITIES
PLUSPETROL CONDUCTS OIL AND GAS EXPLORATION AND PRODUCTION WITH A DUAL CONVICTION: THAT IT IS POSSIBLE TO OPERATE IN HIGHLY COMPLEX ENVIRONMENTS BY MAKING USE OF THE BEST PROVEN TECHNOLOGIES; AND THAT THIS MAY BE DONE RESPECTING THE ENVIRONMENT, THE LOCAL CULTURE AND ARCHEOLOGICAL HERITAGE IN EACH OPERATION.
EXPLORATION
NUMBER OF WELLS DRILLED
2011/2014 Evolution
30
25 25
20 21 EXPLORATION 15 13 10 During 2014, exploration activities were Angola 8 performed in Argentina, Bolivia, Peru and Two exploratory wells were drilled on 5 Angola. 11 wells were drilled with a total prospects in Cabinda Sur block, with 0 25,000 m drilled and seismic activities conventional productive objectives in were advanced with a total 751 km of 2D Castanha field, both wells resulting 2011 2012 2013 2014 seismic and 715 km2 of 3D seismic. non-productive due to the lack of 2011 2012 appropriate reservoirs. To continue the PRODUCCIÓN Argentina exploration, reprocessing of the existing Five exploratory wells were drilled with 3D seismic was performed. NUMBER OF conventional objectives, out of which two WELLS DRILLED discovered oil from the Mulichinco Peru 2011/2014 Evolution Formation (Southeast Barda Cortada x-1 Exploratory activities in this country and North La Junta x-1), in Río Colorado were focused on the acquisition of 2D areas. On the other hand, a horizontal well seismic data in Block 88, in Camisea, and 160 154 was installed in the area of Puesto Silva in Block 108, of the Ene River basin, both 140 (Puesto Silva x-1009 h) with an with exploratory objectives in rainforest unconventional objective on Vaca Muerta regions and irregular landscapes. 120 113
110 Fm, by drilling 750 m inside the 100 96 formation. In the case of Block 88, 200 km of 2D 88 80 85 seismic data were gathered to acquire 75 73 Bolivia information on possible prospects 60 Four exploratory wells were drilled in situated in the remaining areas of the 40 the Tacobo area, with shallow (< 2,000 block.
20 m) and deep (> 5,000 m) objectives. The deep Tacobo x1003 well, one of the In the case of Block 108, by late 2014, 180 0 deepest wells in Bolivia and of Pluspetrol, km of 2D seismic were recorded, with the Santa Rosa Fm exploratory distributed in two zones within the area 2011 2012 2013 2014 2010 2011 2012 2013 objective, reached 6308 m depth (200 m (north and center). • DRILLING above the objective), and due to strong • WORKOVER gasification and an increase in the formation pressure, it was temporarily abandoned until the appropriate equipment to continue its exploratory drilling is procured.
Sustainability Report 2014 • 21 22 RESULTS • Pluspetrol (MMscf/d) Gas production (Bbl/d) Liquids production 2011/2014 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2011/2014 OPERATED PRODUCTION 0 500 1,000 1,500 2,000 2,500
290 40,458 Argentina Argentina EVOLUTION EVOLUTION 242 39,802
215 41,570
193 39,442
95 634 Bolivia Bolivia 92 695
81 643
59 627 Camisea Camisea 1,268 79,524
1,377 82,369 | |
Peru Peru 1,723 101,014
1,663 95,584 PPN PPN 31,704 8 28,826 | |
8 Peru Peru 28,015 0 26,338 Angola Angola 7 2,453
6 1,912
1,652 Pluspetrol Pluspetrol 152,320
1,712 151,692
2,034 173,695
1,921 163,903 (Bcf) Gas reserves (MMBbl) Liquids reserves 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2011/2014 0 200 400 600 800 1,000 1,200 2011/2014 PROVEN RESERVES
93
575 Argentina Argentina EVOLUTION EVOLUTION 446 86
323 84
344 77
1
Bolivia 2
0
142 1 Bolivia
176 Camisea 660 84 728 64 |
650 Peru
585
PPN 63
Camisea 54
11,990 |
Peru 13,240 46
| 31
Peru 11,866
11,160 Angola 8
Sustainability Report2014• 1 ABOUT PLUSPETROL 12,707 Pluspetrol
Pluspetrol 817 13,862 870 12,273 787 11,567 694 23 HIGHLIGHTS 10 YEARS OF CAMISEA IN FIGURES
BELOW WE HIGHLIGHT TWO 2014 MILESTONES US$ 3,700/ THAT WE PARTICULARLY VALUE: THE CAMISEA 1,600 MMSCFD10 PROJECT COMPLETED 10 YEARS OF OPERATION, 4,000 MILLION AND WITH IT, OUR COMPANY ACHIEVED THE DEVELOPMENT OF THE MOST IMPORTANT IS THE CURRENT PRODUCTION OF WAS THE INVESTMENT FOR THE NATURAL GAS IN CAMISEA. IT PROJECT IMPLEMENTATION, ENERGY PROJECT IN PERU; FURTHERMORE, THE STARTED ITS OPERATIONS WITH EXPLORATION AND EXPLOITATION COMPANY ENDS THE PERIOD WITH A STRONG A 400 MMSCFD PRODUCTION. PHASES, AND THE TWO EXPANSIONS OF THEIR PLANTS SITUATED IN BET ON THE DEVELOPMENT OF CUSCO AND PISCO. UNCONVENTIONAL HYDROCARBONS IN ARGENTINA. + US$ 10,000 95% 10 YEARS OF CAMISEA - PERU MILLION
In August 2014, the Camisea Consortium SUM OF INVESTMENT DERIVED OF SUPPLY OF INTERNAL FROM THE PROJECT (TRANSPORT, NATURAL GAS DEMAND reached its 10th year of operation in Peru. DISTRIBUTION AND THERMOELECTRIC IN PERU. Camisea represents the most important energy INDUSTRY) BETWEEN 2001 AND 2013. project in Peru, driving the country’s growth through the creation of income, which translates into sustainable development indexes and quality of life improvement for society as a whole. US$ 6,300 Camisea’s operations develop the national +360,000 production of natural gas and derived liquids, VEHICLES MILLION completely changing the energy matrix and TURNED INTO LPG OR NGV11, PAID AS ROYALTIES TO THE contributing to the country’s industrial development. THANKS TO THE DEVELOPMENT PERUVIAN STATE, BETWEEN The use of Camisea’s natural gas makes it possible OF THESE LESS EXPENSIVE AND 2004 AND 2013. CONTAMINATING FUELS. to reduce global emissions of CO2 as it allows the replacement of more polluting fossil fuels in the energy matrix of Peru, besides it enables significant savings year after year, mainly due to energy costs US$ 500 reductions in households, retail shops, industries, 41% transport and power generation. MILLION
CAMISEA PLANS TO INVEST IN OF THE ELECTRIC GENERATION THE EXPLORATION AND IN PERU IS PRODUCED BASED DEVELOPMENT OF BLOCK 88 IN ON CAMISEA’S NATURAL GAS. THE COMING YEARS. WHAT DOES CAMISEA WELLS
CAMISEA GAS AND CONSIST OF? CONDENSATES PRODUCTION
MALVINAS PLANT
DRY NATURAL GAS AND DERIVED LIQUIDS SEPARATION PROCESS
NATURAL NATURAL GAS GAS LIQUIDS
As part of the celebrations for Camisea’s ten years, a central ceremony was held on August 4 in the Malvinas Plant. The President of the Republic, Ollanta Humala Tasso, the Minister of Energy and Mines, Eleodoro Mayorga, the president of the Cusco Region, René Concha Lezama, the president of the Camisea Consortium and Pluspetrol CEO, Steve Crowell, Pluspetrol Country Manager in Peru, Germán Jiménez Vega, LIMA PISCO the presidents of the companies associated in the Camisea
FRACTIONATION Consortium, national, legislative, regional authorities, PLANT. DIESEL, representatives from the native communities in the region GASOLINE AND LPG SEPARATION PROCESS. and reporters, among others, attended the celebration.
24 • Pluspetrol ABOUT PLUSPETROL
The socio-environmental challenges of drilling unconventional wells.
The hydrocarbon industry is continuously experiencing new developments to increase its hydrocarbon resources. As of late, the possibility to develop unconventional resources in Argentina has arisen. Mostly, the success of such development will depend on how the social and environmental issues of said projects are managed. Therefore, Pluspetrol undertakes a series of actions with the aim of managing the exploitation of these unconventional resources in accordance with the Company’s sustainability guidelines.
• We are part of the Argentine Oil and Gas Institute through our engagement in technical commissions, working days and meetings aimed at suggesting and agreeing on the internationally recommended best practices locally applicable, as well as sharing experiences among the Companies in this sector for the development of unconventional resources.
• We defined an internal ad hoc inter-disciplinary group in order to outline action strategies for the development of these resources. As part of this UNCONVENTIONAL HYDROCARBONS group, reference people from the environmental and social area engage in the search of international Since early 2011, Pluspetrol started implementing a plan for the and local experiences in order to generate development of unconventional oil and gas resources in the recommendations related to best practices, to Neuquén basin. Today Pluspetrol is positioned as one of the manage the potential environmental impacts, and main players in the development of this strategic resource. Vaca new technologies applicable to the local conditions Muerta is the main unconventional gas and oil formation in of developing unconventional areas. In this regard, Argentina, and one of the most important on the planet. the work lines being followed are focused on
Betting on this kind of hydrocarbons represents a challenge and Preventing impacts on drinking water aquifers’ commitment with the future by Pluspetrol. This ambitious quality. project includes the assessment of resources of both tight gas Minimizing the use of water resources suitable for and tight oil as well as shale gas and shale oil, and the human consumption or irrigation. implementation of new drilling, completion and production Making land use compatible with other economic technologies. activities. Disclosure processes with the surrounding population. The main objectives of this plan are as follows: Implementing safe treatment alternatives for the disposal of flowback water. Safely managing the chemicals used during hydraulic 1 2 stimulation.
TO DETERMINE THE TO DEFINE THE POTENTIAL AMOUNT OF CONDITIONS NECESSARY RESOURCES TO BE FOR THESE RESOURCES PRODUCED. TO BE CONSIDERED AS RESERVES. In March, 2014, the acquisition of hydrocarbon assets in the province of Neuquén was completed, incorporating 1,240 square kilometers of the Vaca Muerta formation. So far, Pluspetrol has drilled 13 Liquids/Condensate wells, distributed in Loma Jarillosa, Puesto Silva Oeste, Cinco Saltos, Centenario, Aguada Baguales and Apon. Over the next years, we plan to make several investments focused on the research and development of the acquired assets’ potential.
10. MMSCFD: millons of standard cubic feet daily. 11. NGV: Natural Gas Vehicle.
Sustainability Report 2014 • 25 OUR PEOPLE
WE CREATE AND MAINTAIN RELATIONSHIPS OF TRUST WITH OUR EMPLOYEES, CONTRACTORS, SUPPLIERS AND OUR STAKEHOLDERS, CONSIDERING THEIR NEEDS AND EXPECTATIONS WHILE LOOKING FOR THE GENERATION OF SHARED VALUE.
HR IN FIGURES
BENEFITS
HUMAN CAPITAL MANAGEMENT
COMMUNICATION
HEALTH
OUR TRAINING AND PEOPLE DEVELOPMENT
26 • Pluspetrol In our Company we believe in an ethical, diverse, inclusive and collaborative working environment, with alignment between the values of the people and the Company.
Verónica James Human Resources Corporate Director
Malvinas Plant, Camisea, Peru.
Sustainability Report 2014 • 27 HUMAN CAPITAL MANAGEMENT
IN PLUSPETROL, THE GROWTH OBJECTIVE IS GLOBAL: IT IS A COMPANY WITH AN EXCELLENCE AND LEARNING AGENDA VISION, WHERE COOPERATION AND CHALLENGE ARE KEY ELEMENTS.
WITHIN THIS FRAMEWORK, WE DEVELOP PROFESSIONALS WITH AN INTEGRATING MINDSET, BY MEANS OF INTERNATIONAL WORK EXPERIENCES AND ENGAGEMENT IN INTERDISCIPLINARY AND MULTICULTURAL TEAMS.
IN THIS SENSE, HUMAN CAPITAL MANAGEMENT ALSO AIMS AT PROMOTING THE BEST WORK PRACTICES IN A SAFE, HEALTHY AND ENVIRONMENTALLY- FRIENDLY ATMOSPHERE FOR ALL THE COMPANY COLLABORATORS IN THE DIFFERENT BUSINESS UNITS.
TO THIS END, WE OPERATE IN A SAFE AND RESPONSIBLE MANNER. OUR RELATIONSHIP WITH OUR EMPLOYEES IS BASED ON A SHARED COMMITMENT WITH ETHICS AND CONSTANT LEARNING THROUGH DIVERSE TRAINING MECHANISMS. +2,000 COLLABORATORS
COLLABORATIVE SHARED TRUST WORK DIVERSITY EXCELLENCE VALUE ENVIRONMENT
ANGOLA ARGENTINA BOLIVIA CAMISEA | PERU PPN | PERU PLUSPETROL
2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 201312 2014
Total 76 71 767 756 150 148 479 518 729 766 2,201 2,259 Employees:
Employees 9 10 183 182 20 21 44 54 92 108 348 375 by gender: Female
Employees 67 61 584 574 130 127 435 464 637 658 1,853 1,884 by gender: Male
Employees 18 30 139 127 34 31 78 223 56 249 325 660 by gender: Aged 30 or under
Employees 51 33 469 467 75 73 334 257 387 414 1,316 1,244 by gender: 31 to 50 years old
Employees 7 8 159 162 41 44 67 38 286 103 560 355 by gender: Aged 51 or over
12. The value reported in 2013 was 2,228, and that included 7 employees of Venezuela and 20 of Colombia. In the 2014 Report, these business units were not included in the indicator and therefore the value of 2013 was modified to maintain consistency.
28 • Pluspetrol OUR PEOPLE
DISTRIBUTION DISTRIBUTION DISTRIBUTION BY BUSINESS UNIT BY AGE BY SENIORITY
• 34% ARGENTINA • 55% FROM 31 TO • 41% BETWEEN 5 • 33% PPN, PERU 50 YEARS OLD AND 15 YEARS • 23% CAMISEA, PERU • 29% AGED 30 • 28% 2 YEARS OR LESS • 7% BOLIVIA OR UNDER • 17% BETWEEN 2 • 3% ANGOLA • 16% AGED 51 AND 5 YEARS OR OVER • 14% 15 YEARS OR OVER
DISTRIBUTION BY GENDER, 2014
EMPLOYEES POSITIONS IN SENIOR BY GENDER MANAGEMENT
• 83% MALE • 84% MALE • 17% FEMALE • 16% FEMALE
TURNOVER RATE BY GENDER, AGE AND TOTAL PLUSPETROL
5.6% 7.5% TOTAL FEMALE
5.1% TURNOVER 4.4% RATE OVER 51 MALE YEARS OLD
6.0% 5.2% 31 TO 50 UNDER 30 YEARS OLD YEARS OLD
Sustainability Report 2014 • 29 TRAINING AND DEVELOPMENT
Pluspetrol considers professional development TRAINING PROGRAMS globally, mindful of opportunities to perform in multiple areas of the company. Understanding that the industry and its technologies are ever changing, the offer of training is a Industry professionals that join the Company find permanent ally for the company’s management different growth paths, in accordance to their and accomplishment of its challenges. profile. To this end, they receive support, training and counseling. In this way, improvement of the collaborators’ preparation is multiple (including classroom, our Being Pluspetrol a reference company in the energy own and specialized trainers in the industry, and sector, professional development is considered a international trainers). Its aim is to cover technical basic step to achieve business management aspects in each discipline, software management excellence. and leadership.
We focus on diverse learning and/or training experiences: technical courses, development TRAINING programs, on the job trainings and scholarship COURSES OFFERED COLLABORATORS agreements for postgraduate courses for those 801 1,596 TRAINED profiles that require so.
TRAINING HOURS ON AVERAGE PER MASTERS & POSTGRADUATE STUDIES 56 EMPLOYEE In 2014, 20 collaborators were granted scholarships to take master and postgraduate courses. According Our environment and context demand ongoing to the general policy, established in 2012, their training and specialization in the tasks each sector selection was based on business needs, their carries out. Every year, we carry out an Annual work performance excellence based on performance Training Plan (PAC, its Spanish acronym), whose assessments and an analysis of the development objective is to align training tools with the profile; and proficiency in English. The programs current and future business needs. It includes general developed are directed to technical subjects training (industry-specific or Company-related (specializations, master studies, diplomas), as well as topics); technical training (related to the subjects related to management skills development development of new skills and updating topics (MBA / EMBA, for example). specific to the function performed); and development training (in order to prepare employees to face future challenges, developing new skills, capacities and knowledge).
30 • Pluspetrol OUR PEOPLE
2,000 BENEFITS 1,596 1,500 In Pluspetrol, we consolidate diverse benefits offers to accompany the wellbeing of our collaborators, 1,000 within the legal framework and pursuant to internal 801 policies. 569 450
500 429 375 Consequently, we offer differential medical insurance, 189 171 148 66 facilitating access to special plans for all employees 0 and their immediate family members. During 2014,
Argentina Bolivia Camisea | Peru PPN | Peru Pluspetrol 632 collaborators from Argentina accessed this benefit, and 1,292 collaborators from Peru obtained • TRAINING COURSES DELIVERED13 their EPS (Healthcare Provider Entities) health NUMBER OF EMPLOYEES TRAINED • insurance.
During 2014, 801 training courses were delivered, Further in this sense, we offer additional maternity reaching 1,596 collaborators in accordance with their leave days to those established by law. During 2014, expectations and needs. Out of all the employees 22 collaborators from Argentina and Peru made trained, 13% were women and 87% were men. use of this benefit, in addition to their corresponding leave. Out of the total employees who took said Among the activities performed, 83% were technical maternity leave, 93% returned to their work. courses, and 17% were development and leadership activities. To accompany our collaborators both in their professional and personal life, we offer gifts for weddings and births. During the current report year 37 collaborators in Argentina and 86 in Peru ON THE JOB TRAINING received this benefit. Furthermore, we provide reimbursement for day care or school bonus, DURING 2014, ELEVEN COLLABORATORS depending on the policy defined in the different TOOK ON THE JOB TRAININGS. THIS business units; during this year the following had TRAINING SEEKS TO FACILITATE BUILDING access to this benefit: 24 employees in Argentina, COMPANY AND BUSINESS AWARENESS 722 in Peru and 62 in Argentina. (OR OF A PARTICULAR AREA) THROUGH HANDS-ON FIELD EXPERIENCE, Lastly, in some of our facilities we offer transport INCORPORATING BOTH THEORETICAL AND passes and the opportunity to do physical activities PRACTICAL KNOWLEDGE. in a gymnasium.
In September, the IX edition of the Olimpíadas Plusdeporte (PlusSport Olympics) were organized in LANGUAGE PROGRAM PPN and Camisea, where Pluspetrol collaborators participated alongside employees from contractor With the vision of becoming a global company, companies, in football, volleyball and ping-pong we offer our employees the opportunity to access tournaments, among others. a language program, which comprises English, Portuguese and French classes.
This program consists of group, face-to-face classes, WEDDING GIFTS with a total duration of 3 hours per week.
In addition, and as a way of evaluation, students BIRTH must take mid-year and end-of-year exams. GIFTS During 2014, 278 collaborators made use of this benefit. TUITION BONUSES
PERFORMANCE ASSESSMENT REIMBURSEMENTS FOR DAY CARE Systematically, collaborators are invited to complete performance assessments. This process enables the alignment of objectives, as well as discussions TRANSPORT PASSES with leaders to find room for development, share perspectives and challenges.
13. General training data, language program and safety and health training, are included in the chart.
Sustainability Report 2014 • 31 HEALTH ARGENTINA FOR OUR COMPANY THE HEALTH OF OUR In 2014, diverse activities were offered, including first COLLABORATORS IS A PRIORITY. THEREFORE, aid and CPR talks for 41 people, training on electrical WE FOCUS ON CARRYING OUT DIFFERENT risks for 10 people and several talks on preventive TRAINING, PREVENTION AND CONTROL occupational health for 425 collaborators. CAMPAIGNS, ARTICULATED WITH ONE ANOTHER. 2,181 OCCUPATIONAL MEDICAL EXAMINATIONS, At a preventive level, 446 people were immunized 931 FIRST AID TALKS, AND 1,149 INFLUENZA against influenza. The Frequent Flyer Program VACCINES WERE PART OF OUR HEALTHCARE continued, which enables to access enquiries, ACTIVITIES. counseling and vaccination at the Dr. Stamboulian Infections Center for those collaborators who are heading for areas with risk; 40 people were assisted through this program. Also, 217 of our collaborators had a medical check up.
OCCUPATIONAL Finally, our Buenos Aires office has in-company HEALTH 2,181 EXAMINATIONS health care assistance, where a doctor provides counseling to employees once a week and performs consultations with doctors from other districts in FIRST the country. 931 AID TALKS
BOLIVIA INFLUENZA VACCINES As a preventive measure, 148 people were 1,149 immunized against influenza, typhoid fever, tetanus, and hepatitis B.
On the other hand, the business unit has a functional Occupational Health Management System (SIGES, its Spanish acronym), which carries out health control tasks. In this way during 2014 nutritional controls, exercise at work, ergonomics controls, occupational health training, drug control and prevention services, a working atmosphere and healthcare program were put into practice. Like every year, job entry, intra- occupational and termination medical examinations were performed.
32 • Pluspetrol OUR PEOPLE
COMMUNICATION
Our Company is growing with respect to challenges and work spaces. For this reason we search to improve communication at different levels, such as the media available, the information shared, and collaborators’ knowledge. Promoting dialog, appropriate and transparent information, and change management are some of the area’s work objectives.
We have different mass communication channels for employees in the various Business Units: intranet, digital newsletters, news bulletins, boards and institutional mailing. In addition, for new staff, an 8 hour organizational induction session is carried out, whose aim is to provide knowledge and understanding of the organization.
During 2014, several mass campaigns related to different business and company initiatives were implemented. Many of the campaigns have graphic PLUSPETROL NORTE AND CAMISEA, PERU pieces associated (posters, signs, banners, videos), Several health-related actions with were conducted. as well as briefing talks and/or training. This year, In this way 740 employees participated in first aid one of the most outstanding was Environment Day talks and 96 collaborators participated in Drug at Camisea, Peru, where environmental awareness Control (DEA) management training. 244 people talks were delivered at educational centers of the received external trainings on spirometry, audiometry Native Communities, an environmental marathon and X-rays. Lastly, we delivered training on was run with the unit’s collaborators, children dyslipidemia -attended by 124 people-, and diabetes participated with drawings and a contest was held mellitus -for 62 collaborators. for the best motto related to “Responsible Work, Healthy Environment.” Further, environmental As a preventive measure, we continued making awareness sessions were delivered in Pisco, together occupational health examinations and vaccination with a beach cleaning and bird watching contest in campaigns against influenza, benefitting 2,165 Paracas bay and Lobería beach. people. We also applied various programs to monitor vectors causing Leishmaniasis; nutritional counseling, office gym, hearing health, and occupational health.
Further, The Annual Obesity Eradication Program was implemented, attended by 108 people, which MASS COMMUNICATION CHANNELS included beach-volley, water-polo and triathlon activities. Also, a nutritional health program was implemented including counseling and office gym. (DIGITAL) INTRANET, WHICH CONTAINS THE COMPANY’S COMPILED INFORMATION To continue with control and monitoring operations, visual acuity exams and dental assessment charts were performed on 306 collaborators; and health LOCAL (DIGITAL) recovery medicine for 148 people. Additionally, NEWSLETTERS. health controls were conducted on people belonging to sectors where food, diners and groceries are handled. BOARDS IN OILFIELDS AND OFFICES
EXCELLENCE BULLETIN
Sustainability Report 2014 • 33 ENVIRONMENT
WE LEAD OUR ENVIRONMENTAL MANAGEMENT IN A PREVENTIVE MANNER, SEEKING TO AVOID ALL KINDS OF INCIDENTS AND TO MINIMIZE POTENCIAL IMPACTS, TOGETHER WITH AN EFFICIENT USE OF ENERGY AND NATURAL RESOURCES, WE ASSESS AND MANAGE RISKS INHERENT TO OUR ACTIVITY, AND IMPLEMENT MANAGEMENT SYSTEMS MANAGEMENT SYSTEM WITHIN A CONTINUOUS IMPROVEMENT FRAMEWORK.
ENVIRONMENT
NATURAL RESOURCES MANAGEMENT
ENERGY AND CLIMATE CHANGE
IMPACT MANAGEMENT
Biodiversity Monitoring Program (Camisea, Peru). Photograph: André Liberoff.
34 • PluspetrolPluspetrol To achieve success and sustainability in the projects we develop, it is crucial to appropriately manage the environmental aspects in every phase involved in a hydrocarbon project, considering management measures and tools, specific management strategies and technologies adjusting to environmental and social sensitivity in every environment where we operate.
Sandra Martínez Environmental Corporate Manager
Sustainability Report 2014 • 35 ENVIRONMENTAL MANAGEMENT
Our environmental management is aimed at enabling that the activities we perform contribute to the BIODIVERSITY PRESERVATION sustainability of both the Company and our surroundings; therefore, we analyze and manage the risks inherent to our activity and the environment where it is set, minimizing the negative impacts and 01 optimizing the benefits and opportunities offered by the environment.
We take up the challenge of operating in complex, remote areas with high biodiversity, sensitive ecosystems and, in many cases, with the presence of indigenous communities or rural and urban populations. That is why the management of ENVIRONMENTAL MANAGEMENT environmental aspects during the entire lifecylce of our activities is not an option, but a key and essential element to the success of our projects. We develop and implement environmental management standards, processes and tools that favor continuous improvement in the different phases of our projects’ lifetimes, from the assessment stage to the selection 02 03 of areas and ending with their abandonment. These elements of the Corporate Environmental Management System are reproduced and adaptedd in each of the Business Units; in this way, we promote the development of standardized processes and RATIONAL USE CONTAMINATION OF ENERGY AND ADVERSE practices throughout the Company. AND NATURAL IMPACTS RESOURCES PREVENTION
• Early Environmental Assestment • Indentification, dissemination and consultation in sensitive areas • Assessment of the applicable regulatory framework • Environmental and social due diligence • Identification of best practices in the industry • Internal information to areas involved and authorities ASSESS AND SELECT • Execution of Environmental and Social Impact Assessment Studies • Obtain the complementary environmental permits • Strenghten relationships with the stakeholders
• Implement Environmental Management Plans (EMPs) DEFINE • Biodiversity management • Waste management • Energy efficiency • Environmental monitoring and reporting • Supervision and audits • Non Conformities, Preventive and Corrective Actions EXECUTE • Implement environmental investment plans AND OPERATE • Environmental risk analysis • Readiness and response to environmental emergencies • Remediation • Restoration of intervened sites • Research and assessment of potentially impacted
ABANDON sites
36 • Pluspetrol ENVIRONMENT
In this regard, the CESMS has a direct link with the management systems implemented by the BUs, setting corporate guidelines while it feeds back from local lessons and experiences in a permanent continuous improvement cycle. In turn, the CESMS ENVIRONMENTAL AND SOCIAL interrelates with other corporate management MANAGEMENT SYSTEMS systems, all of them within the framework of our Sustainability Policy guidelines. Appropriate environmental and social management is required to achieve Sustainability and, for this reason, we strive to perform in our operations with respect to these two key areas. Their management is addressed in a comprehensive and transversal way throughout SUSTAINABILITY the organization. To this end, the Corporate POLICY Environmental and Community Affairs Office has started a process for the design and implementation CORPORATE of a Corporate Environmental and Social MANAGEMENT SYSTEM Management System (CESMS), establishing baseline environmental and social criteria and guidelines which represent minimum requirements for all of the Company’s operations. ENVIRONMENTAL OTHER AND SOCIAL MANAGEMENT MANAGEMENT SYSTEMS For the system’s design a two-level approach was SYSTEM considered, establishing both strategic and practical objectives. BUs’ BUs’ MANAGEMENT MANAGEMENT SYSTEMS SYSTEMS
BUs’ BUs’ MANAGEMENT MANAGEMENT SYSTEMS SYSTEMS Strategic Approach • Constitute a key element to position Pluspetrol as a reference company regarding environmental and social management, under the guidance of the the Company’s Vision. • Ensure sustainability, based on sound environmental 2014 NEWS ON THE MANAGEMENT and social risks and impacts management. SYSTEMS IN THE BUs • Deepen the incorporation of environmental and social aspects as a core element of the business, Argentina: The Integrated Management System (IMS) promoting efficiency in the entire productive cycle. in the North Area is certified under ISO 14001 since • Reflect the company’s Purpose with actions 2007; and under OHSAS 18001 since 2012. During at all levels, keeping to its identity and especially 2014, the corresponding internal IMS monitoring considering its Values. audits were performed.
Camisea, Peru: The IMS is certified under ISO 14001 and OHSAS 18001 since 2008. During 2014, the corresponding IMS recertification audit was conduc- ted for both standards.
Practical Approach Bolivia: The BU has a management system certified • Constitute a useful and baseline tool for new under standard OHSAS 18001 since 2012; likewise, operations or emerging activities in new areas and the same year, an environmental management in the different stages of the industry. system under ISO 14001 was incorporated, although • Set responsibilities at all levels of the organization. not yet certified. During 2014, the corresponding • Prevent/minimize environmental and social risks internal IMS monitoring audits were made. and impacts. PPN, Peru: During 2014, a review process of the • Be aligned with the company’s organizational existing environmental and social management docu- structure. mentation was initiated, in order to work on an • Set environmental and social performance objectives Integrated Environmental and Social Management and standardize practices. System for the BU.
Sustainability Report 2014 • 37 ENVIRONMENTAL PERFORMANCE IN NUMBERS
Any set of indicators constitutes a signal system diagnosis of the environmental management that guides us in relation to the progress we make performance in every Business Unit, and to conduct, concerning the achievement of certain goals and where necessary, adjustment or improvement objectives. Thus, environmental indicators let us measures based on this traceable and comparable identify the main trends in environmental dynamics. information.
Since 2008, in every Pluspetrol area of operation a These tools contribute to the sustainability strategy continuous follow-up and monitoring of a set of design, as they allow us to assess Pluspetrol’s environmental indicators is carried out. These have environmental performance and compare it with the been defined in order enable an accurate annual industry’s international and regional standards.
Camisea, Peru.
38 • Pluspetrol Biodiversity Monitoring Program (Camisea, Peru). Photograph: Daniel Silva.
ANNUAL EVOLUTION 2014 PERFORMANCE
PLUSPETROL ARGENTINA BOLIVIA CAMISEA, PERU PPN, PERU ANGOLA
INDICADOR 2011 2012 2013 2014 2014 2014 2014 2014 2014
Electric energy consumed 4713 4688.1 4416 4487 922.8 60.6 691.8 2805.7 6.2 (TJ) Vented and flared gas (MMscf) 1062 1885.3 2492.4 2159.5 314.1 32.6 1432.2 378.6 2.1 GHG emissions
(CO2 eq. MTn) 4201.5 4787.9 2645.4 2607.7 380.8 23.73 1583.5 641.4 - VOC emissions (t) 6.5 12.4 35.1 30.5 - 0.5 30 0 -
SOx emissions (t) 2184.5 1210.1 2782.4 1110.3 37 0 148 925.3 -
NOx emissions (t) 14,087 16,823.1 10,971.1 11,179.8 1518 0.6 2314 7347.2 -
PM emissions (t) 627.4 379.1 441.1 566.9 1 0 112 453.9 - Number of hydrocarbon spills 20 16 21 12 2 0 0 7 3 Volume of hydrocarbon spills (barrels) 233 356 57.6 276.6 5 0 0 263.7 7.9 Volume of HC spilt due to vandalism (barrels) 3007 115 1190 645.9 0 0 0 645.9 0 Number of water/oil mixture spills 30 43 47 48 44 0 0 1 3 Volume of water/oil mixture spills (barrels) 1466.3 827.3 2224.4 1340.6 1295.7 0 0 37 7.9 Number of spills of other substances 45 32 21 19 15 0 0 2 2 Volume of spills of other substances (barrels) 3241.4 466 1094 744.7 654.7 0 0 47 43 Generated hazardous waste (t) 2065 1966.2 2212 3887.1 308 13.1 1830 1724 12 Generated non-hazardous waste (t) 4097.4 5910.5 4469.5 4347.4 600 83.4 1664 192114 79 Water consumed (millions of barrels) 95.5 86.8 46.4 37.3 23.8 0.5 2.6 10.4 0.04
14. Unlike past years, in PPN, Peru, wastes from drilling projects have been included as part of operational management
Sustainability Report 2014 • 39 ENERGY EFFICIENCY & CLIMATE CHANGE
The climate change directly or indirectly originated
OIL TRANSPORT from human activity constitutes one of the major TO ITS environmental challenges in the path towards TREATMENT POINT sustainable development.
This phenomenon impacts through multiple and OIL AND evident transformations in the climate system, GAS TREATMENT EXTRACTION FACILITIES determined by ever increasing greenhouse gases (GHG) concentrations in the atmosphere. Climate change, due to the relevance of the activities that create it and its scope and consequences, not only constitutes an environmental issue, but also a development issue with deep impact on society, the economy and ecosystems. Mitigating climate change involves limiting and reducing GHG emissions into the atmosphere.
Through emissions measurements, monitoring and ENERGY CONSUMPTION eventual reduction, Pluspetrol pursues to improve - GHG the environmental conditions of its surroundings. EMISSIONS
GHG EMISSIONS TREATMENT AND OTHER One of the main management tools for this kind RE-INJECTION OF MINOR USES PRODUCTION WATER of emissions that Pluspetrol developed and has implemented since 2010, is the Corporate GHG Emissions Inventory.
OF THE ELECTRIC ENERGY CONSUMED IS CORPORATE GHG EMISSIONS INVENTORY: 98% SELF GENERATED IN ORDER TO HAVE ACCURATE DATA ON GHG EMISSIONS, AND TO BE ABLE TO DEFINE FUTURE Pluspetrol operations consume a total of 4,486,996.7 IMPROVEMENT OBJECTIVES BASED ON GJ of electric energy, out of which it only imports TRACEABLE AND COMPARABLE INFORMATION, 74,427.62 GJ from the grid, producing with its own SINCE 2010 WE CALCULATE DIRECT EMISSIONS on-site power plants 4,412,569.10 GJ. OF THESE GASES THROUGH THE IMPLEMENTATION OF THE CORPORATE INVENTORY.
How do we manage energy efficiency and IN EVERY BUSINESS UNIT CARBON DIOXIDE (CO2),
climate change projects? METHANE (CH4) AND NITROUS OXIDE (N2O) EMISSIONS FROM ALL COMBUSTION SOURCES
The implementation of certifiable energy efficiency ARE CALCULATED, AS WELL AS CH4 FLASH and/or GHG emissions reduction projects comprises EMISSIONS IN TANKS. four stages: THIS IS A CATEGORY 3 INVENTORY, ACCORDING 1. Identification of project alternatives TO IOGP15 GUIDELINES. 2. Assessment of project alternatives 3. Project Execution 4. Results Disclosure Every year, through the use of the inventory, a These stages are addressed through an review of the methodology and the sources interdisciplinary work group where people considered for the calculations is carried out. Thus, responsible for different areas in the Company we increasingly achieve better data quality. This are engaged. assures a reliable data base for the definition of the Company’s action strategies regarding the management and reduction of GHG emissions.
15. The International Oil and Gas Producers (IOGP) Association has an Atmospheric Emissions Inventory Categorization, as per this guideline, Pluspetrol’s Corporate Inventory is a Level 3 of 5 that contemplates IOGP.
40 • Pluspetrol ENVIRONMENT
GHG EMISSIONS PER PRODUCTION UNIT, The strategies we develop in order to reduce our
MTNCO2E/MBOE– 2013/ 2014 EVOLUTION GHG emissions are associated to the following guidelines: 80 • Energy Efficiency in our operations • Incorporation of the energy efficiency concept in our 67 projects’ design 60 61 • Identifying and developing technological and processes improvements to register new projects in 40 the framework of the United Nations Clean Development Mechanism (CDM). • Gas Flaring and Venting Reduction 20 15.31 13.9 13.2 13.82 11 10 0.2 5.6 0 PLUSPETROL HAS A CDM PROJECT REGISTERED ARGENTINA BOLIVIA CAMISEA PPN PLUSPETROL SINCE 2012, WHICH IS PART OF THE NATIONAL PERU PERU PORTFOLIO OF CARBON PROJECTS OF PERU, • 2013 • 2014 LED BY THE NATIONAL ENVIRONMENTAL FUND (FONAM).
IT IS THE FIRST CDM PROJECT IN LATIN AMERICA FOR THE UPSTREAM SECTOR.
Sustainability Report 2014 • 41 ENERGY EFFICIENCY
Under the energy efficiency concept we search to optimize and reduce the use of energy in those processes and operational projects where feasible. This strategy also involves incorporating the consideration of a lower use of energy in the Company’s new projects.
Direct and indirect consumption of energy Direct consumption of energy makes reference to fuel consumption (primary energy) used for energy self-generation, the development of activities, vehicle fleet, among others. On the other hand, indirect consumption refers to electric energy bought from an external source of generation. Below we include, on the one hand, the primary energy consumed PRIMARY ENERGY CONSUMED PER PRODUCTION UNIT16, (direct consumption) by type of fuel, and the PER OPERATION IN GJ/MBOE - 2014 total electrical energy consumed (self-generated and Gas oil 26.61 compared to an external source of generation) by operation. Natural Gas 183.18 Gasoline 0.20
37% of these fuels are used to generate electricity
TOTAL ELECTRIC ENERGY CONSUMED PER PRODUCTION UNIT, PER OPERATION IN GJ/MBOE - 2011-2014 EVOLUTION
300 291.85 270.52 268.0 262.0 250
200
150
100
50 33.5 30.6 30.2 27.6 27.2 26.7 23.5 22.0 12.5 14.3 9.7 3.4 7.3 7.4 4.8 4.7 5.6 0
Argentina Bolivia Camisea | Peru PPN | Peru Angola Pluspetrol
Camisea, Peru.
42 • Pluspetrol ENVIRONMENT
GAS FLARING AND VENTING
In some cases during hydrocarbon production, besides oil, associated gas coming from the same reservoir is extracted. A big part of this gas is used or preserved for its use; however, part of the gas is flared and, in some cases, released into the environment (venting) due to technical, regulatory or economic constraints.
FLARED AND VENTED GAS17 PER PRODUCTION UNIT IN SCF/BOE18 – 2011-2014 EVOLUTION
2011 2012 2013 2014
Argentina 19.7 21.5 12.96 11.4 Bolivia 0.7 6.6 1.0 7.7 Camisea, Peru 1.8 4.8 10.8 9.7 PPN, Peru 33.1 46.5 39.8 39.4 Angola - - - 1.9 Total Pluspetrol 6.7 10.9 12.4 11.3 NEUQUÉN AREA, ARGENTINA ANNULAR GAS CAPTURE PROJECT IN AGUADA BAGUALES FIELD OTHER EMISSIONS Objective: to reduce the amount of vented gas in Besides greenhouse gas emissions, hydrocarbon productive oil wells, in order to recover andexploit it. combustion generates other emissions, such as volatile organic compounds (VOCs), sulfur oxides The project is conducted in the well cluster situated (SOx), nitrogen oxides (NOx) and particulate matter in the Aguada Baguales Field, which produce oil by (PM). Emissions of these substances are monitored means of mechanical extraction and annular gas, regularly in order to check that the they are within which is vented into the atmosphere. After the the limits of the applicable legal framework, so as analysis of different gas recovery alternatives, we to prevent negative impacts on the environment chose to proceed with a capture technique based on immediate to our operations. applying a pressure lower than the atmosphere. This technique involves construction of a HDPE pipeline network that withdraws annular gas from a series of wells to then transfer it through pipelines network to OTHER EMISSIONS PER PRODUCTION UNIT IN TON/YEAR. a compressor with an 18,000 m3/d gas operational PLUSPETROL TOTAL, 2013/2014 COMPARISON. TOTAL BUs 2014 capacity, which feeds an electric power generator.
PLUSPETROL ARGENTINA BOLIVIA CAMISEA PPN Project progress: in 2014, work was done on the 2013 2014 2014 2014 2014 2014 project’s design and environmental permits were VOC obtained for the construction and assembly of the Emissions (t) 35.1 30.5 - 0.5 30.0 0.0 different facilities required. Its construction and
SOx gradual implementation is expected throughout 2015. Emissions (t) 2782.4 1110.3 37.0 0.0 148.0 925.3
NOx It’s worth mentioning that based on this project, Emissions (t) 10,971.1 11,179.8 1518.0 0.6 2314.0 7347.2 new low pressure gas extraction and marketing
PM possibilities open up in the area. Emissions (t) 441.1 566.9 1.0 0.0 112.0 453.9
KEY MITIGATION ACTIONS AND THEIR RESULTS
In Pluspetrol we record and assess GHG emissions levels resulting from our activities. Based on this information, we seek strategies and new technologies that enable us to reduce this kind of emissions. 16. Turbo JP1, HFO (Heavy Fuel Oil) and Residual consumption have not been Consequently, throughout 2014 we performed a series included in this report. 17. For the formulation of the gas flaring and venting coefficient indicator, production of key mitigation actions in some BUs which include in Río Colorado District was not considered in Argentina and Pluspetrol totals, as no data is available on flared and/or vented gas in this operation. the design of energy efficiency processes in new 18. Standard cubic foot. A cubic foot equals 0.028317 cubic meters. and ongoing projects, and a decrease of flared or vented gas.
Sustainability Report 2014 • 43 Planta Ramos, Argentina.
Based on the new Waste Management Standard, the ENVIRONMENTAL PIMAR Project was implemented. This project was IMPACTS MANAGEMENT conducted during 2014 in PPN operations. It is focused on achieving an integral waste management in blocks 8 and 1AB.
NUMBER OF SPILLS - 2011/2014 EVOLUTION
120 WASTES TREATMENT - 101 CLASSIFICATION FINAL DISPOSAL
100 92 89 83 80
60 47 47 CORPORATE EXTERNAL 45 44 SEGREGATION STANDARD WASTE 40 AND COLLECTION OF WASTES TRANSPORT 30 MANAGEMENT 21 32 19 20 26 21 16 17 0 2011 2012 2013 2014 GENERATION TEMPORAL • PLUSPETROL’S TOTAL REDUCTION WASTE STORAGE • MIXTURE SPILLS • HYDROCARBON SPILLS • OTHER SPILLS
During the last 4 years, the total number of spills has GARRAHAN HOSPITAL FOUNDATION decreased by 18%. This is so thanks to the fact that RECYCLING PROGRAM during that same period, drops -of between 1% and 13%- in this indicator were recorded in all BUs We continue collaborating with this institution (except for Angola, which started production in mid through a recycling program, donating paper and 2013). This drop was steeper between 2011 and 2012. plastic lids that we collect from offices in Buenos Aires and Neuquén every month.
In 2014, we contributed: 17,681 kilos of paper, preventing the felling of 300 medium-sized trees. 38 kilos of lids, representing 15,200 plastic lids, approximately.
4244 • Pluspetrol ENVIRONMENT
Management of the environmental impacts associated to the activities we peform is carried out based on three instruments:
In each project, whatever the phase of the cycle the business is in, Pluspetrol performs the early identification, prediction and assessment of the potential physicochemical, biological, social and cultural impacts based on the A corporate model for environmental, social and elaboration of specific and detailed baselines in operational risk management is implemented in the working area. order to minimize the operations’ exposure level, to prevent potential impacts and act proactively to make decisions in front of potential hidden risks. This model, which is being consolidated since 2012, is aligned with the Operational Excellence approach developed in our Company.
A specific methodology is used through which risk IMPACT IDENTIFICATION surveys and classification is made, as well as AND ASSESSMENT identification of treatment actions, by means of interdisciplinary workshops. Based on the informa- tion gathered, risk maps are elaborated for every BU. These maps have follow-up measures linked to RISK the treatment actions for the high and very high MAPPING exposure level risks.
At corporate level the information generated at MANAGEMENT TOOLS each BU is used to define common risk categories AND PRACTICES which make up the baseline corporate risk map. IMPLEMENTATION
The main aspects we preventively and proactively manage to avoid and minimize their impacts on the environment are:
● Hazardous and non-hazardous waste management Environmental impact assessments; Environmental ● Drilling wastes management management plans; Environmental Procedures, ● Spill events Action plans, Activity-specific environmental ● Potentially impacted sites and environmental guides; Audits; Environmental indicators, remediations Contingency plans. ● Produced water management
Sustainability Report 2014 • 45 WASTES MANAGEMENT
During 2014, the Corporate Environmental the waste management plans of every Wastes Management Standard was BU; among those criteria, the TRAINING developed, focused in establishing the consideration of reduction, reuse, • They reach all of our own and contractors’ minimum requirements for environmental recycling and recovery alternatives staff. wastes management in our operation is established, according to their • It refers to appropriate waste areas. These requirements aim to achieve applicability, as well as the management. wastes identification and characterization implementation of sufficient records • It involves staff training in areas in from their source, implementing an to ensure an appropriate traceability operation, as well as administrative areas, appropriate segregation and collection of wastes and compliance with the which provide operations support (e.g., system, safely transporting them, and applicable laws in each of the sites. Supplies, Facilities, etc.). implementing more efficient treatment and/or final disposal alternatives from the Considering the previous points, and in technical, logistics and environmental order to monitor compliance with the AUDITS viewpoints. waste management plans, regular It is planned to perform, at least, two monitoring reporting as well as internal audits aimed at: The criteria defined in the standard are audits are done. • Internal waste management. considered as minimum requirements in • External waste management (transfer, treatment, recycling, final disposal).
All BUs classify their Each BU performs waste wastes according to the treatment according applicable legislation; the to the applicable legal minimum requirement is requirements. Waste the separation of Management Plans Hazardous Wastes and WASTES TREATMENT - include treatment Non-hazardous Wastes. CLASSIFICATION FINAL DISPOSAL measures that allow minimizing the amount of wastes to dispose of in-situ or ex-situ.
Every BU performs Wastes are conditioned wastes segregation CORPORATE for their withdrawal from according to the STANDARD EXTERNAL the areas in operation; SEGREGATION classification criteria; OF WASTES WASTE TRANSPORT keeping the necessary AND COLLECTION sorted collection is MANAGEMENT records required by law carried out maintaining and Pluspetrol’s specific the necessary records to procedures. ensure wastes traceability situ or ex-situ. and follow-up.
GENERATION TEMPORAL It is performed in sites REDUCTION WASTE STORAGE conditioned to such purpose, based on Since the projects and/or the characteristics and activities’ design phase requirements of we perform an analysis of the wastes stored. alternatives that enable situ or ex-situ. reduction of waste generation at the source.
Thanks to these efforts during 2014, we treatment or final disposal techniques recycled 36 % of our non-hazardous vary depending on the local NON-HAZARDOUS WASTES wastes, including plastic wastes, paper, characteristics and complexities of every MANAGEMENT cardboard paper, glass and wood. site. In all cases, hazardous wastes are managed by authorized operators, who • 64% FINAL As per hazardous wastes, such have been perform the final disposal according to DISPOSAL managed according to the applicable the wastes’ characteristics and the • 36% RECYCLED legislation in each operation site. The applicableregulations.
46 • Pluspetrol ENVIRONMENT
PLUSPETROL NORTE, PERU COMPREHENSIVE WASTES MANAGEMENT PLAN - PIMAR
As part of our commitment to perform the appropriate environmental management of wastes in PPN, and within the corporate standard framework mentioned above, we initiated the implementation and dissemination of a Comprehensive Waste Management Plan –PIMAR for its Spanish acronym-, which main objective is to develop the effective and responsible management of all wastes generated in the operation of the Business Unit Blocks.
The PIMAR includes the identification, classification, management and disposal of the wastes generated, involving the entire generation chain: from the hiring and purchase of services and materials, and their transfer to operative areas, to their use, to the disposal of wastes associated to such products, goods and services. Therefore, PIMAR not only involves operative areas, but also requires the engagement of the Supply Chain, Projects, Logistics, Legal Department, etc. The coordinated engagement of all these areas enables the identification and application of effective reduction measures in the place of origin. Pavayacu, Pluspetrol Norte, Peru.
During 2014, the implementation focus from such materials. This tool has PIMAR Principles was placed on the reduction in the place enabled us to identify the main lines of • Reduction in the place of origin of origin, training and segregation, and work and to focus actions on • Segregation temporary storage. implementing improvements in the entire • Reuse, recovery and recycling waste management process. Regarding • Temporary storage To achieve reduction in the place of segregation and temporary storage, these • Treatment origin, the measures implemented start are performed at green points, which are • Transfer and final disposal at the beginning of the process, from the sites especially conditioned to store • Management control hiring of services and the material and wastes in a temporary and segregated • Training and raising awareness input purchase, to the later appropriate way until their collection by the internal management of wastes generated in wastes operator. During 2014 the Green the operation. To this aim, we develop Dots they were adjusted to a new workshops which take part in the color code, voluntarily comforming to purchase, transfer and use of materials, in the Peruvian Technical Standard order to evaluate alternatives that enable 9000 o58-200519, which includes waste REDUCTION us to modify: consumption, packaging classification into 8 types: Reusable: AT THE PLACE management (reuse, net weight/gross hazardous, organic, metal, plastic, glass, OF ORIGIN weight ratio), wrappings use, among paper, cardboard paper; Non-reusable: SEGREGATION others. In turn, in each block, measures hazardous and non-hazardous. This new AMOUNT IN 7 COLORS OF WASTES to improve general waste management classification enables a more efficient REUSE, were implemented; the most significant waste segregation in order to reduce the RECOVERY AND RECYCLING achievement of this phase being the mass of those that are effectively sent for construction of wastes flowcharts, which their final disposal; in this way, we TREATMENT AND/OR FINAL make use of the “mass balance” concept, generate 3 Rs alternatives: reusing, DISPOSAL connected to the materials coming in into recovering, recycling. the operation, with the wastes generated
19. NTP 900.058 2005: Environmental Management. Wastes Management. Color code for waste storing devices.
Sustainability Report 2014 • 47 ARGENTINA DRILLING WASTES TREATMENT
The system used in Argentina’s operations consists of closed loop circuits set to manage cuttings and drilling muds, in order to reduce the operations’ DRILLING WASTES environmental impact and generation of wastes which later need to be sent to MANAGEMENT20 treatment and final disposal.
As part of the drilling activities, solid In the case of Neuquén area a treatment plant was set up, where we can wastes known as cuttings are generated separate, through different mechanisms, the muds’ liquid fraction. These fluids (made up of small pieces of rock and are later sent to the Salt Water Injection Plant. The solids remaining from each excess mud). In this sense, drilling with phase of the treatment process are sent to drying cells where, after being the best environmental and quality sampled to ensure their innocuity (according to the regulations in force), are industry standards requires defining an disposed of in quarries operated within the framework of Degraded Zones appropriate methodology for waste Recovery Projects. management and final disposal as a key aspect of this activity’s environmental management. NEUQUÉN AREA PROCESS:
Some of the techniques used to manage drilling wastes at Pluspetrol are as MUD DRILLING follows: EQUIPMENT
• Re-injection of drill cuttings. Camisea, Peru.
• Assisted landfarming. Bolivia. REPOSITORY • Re-injection of drill cuttings. Pluspetrol Norte, Peru. DEHYDRATION PLANT
FLUIDS PRE- TREATMENT
FLUIDS CENTRIFUGAL SECONDARY SEPARATION RECOVERY THROUGH SALT WATER INJECTION CUTTING PLANT (PIAS) (ONLY IN CENTENARIO FIELD PLANT)
CLARIFICATION
CLARIFIED WATER SOLIDS
DRYING SOLIDS SOLIDS LOT (50% HUMIDITY) (35% HUMIDITY) DRYING CELLS FINAL DISPOSAL 20. These wastes are not included in the hazardous waste (AUTHORIZED indicator, as they are eventually generated in drilling projects. QUARRIES)
48 • Pluspetrol ENVIRONMENT
SPILLS MANAGEMENT
In case of a spill in any of the sites where our operations are set in, in addition to deploying our response plans in order to minimize potential environmental impacts, we proceed to investigate the causes of such event.
The investigation of the causes of a spill is very useful to make the necessary adjustments and improve our actions to prevent this kind of events, both in relation with the facilities’ maintenance and inspection plans, as well as training and awareness actions.
SPILL INVESTIGATION PROCESS
INVESTIGATIVE COMMITTEE FORMATION
THE INVESTIGATION IS PERFORMED BY INVESTIGATION DUTIES A COMMITTEE FORMED ACCORDING TO THE CHARACTERISTICS OF THE RELEVANT EVENT. THIS COMMITTEE IS MAINLY DEVOTED TO INVESTIGATING (Site inspection; THE INCIDENT/ACCIDENT IN ORDER witness interviews; procedures review; TO FIND ITS BASIC AND IMMEDIATE background CAUSES. THE INVESTIGATION CAUSE-EFFECT analysis; etc.) ANALYSIS INCLUDES INSPECTING THE PLACE WHERE THE EVENT OCCURRED, INTERVIEWING WITNESSES, REVIEWING PROCEDURES, AND ALL THE RELEVANT DOCUMENTATION; AS DEFINITION OF WELL AS ALL THE EVIDENCE AND CONCLUSIONS AND BACKGROUND INFORMATION THAT RECOMMENDATIONS COULD BE FOUND. CONSIDERING ALL THE DATA GATHERED, WE PROCEED TO ANALYZE THE CAUSE-EFFECT. FINAL REPORT LATER, A FINAL INVESTIGATION REPORT IS GENERATED, WHERE THE PROCESS’ CONCLUSIONS AND RECOMMENDATIONS ARE SHOWN.
Another important element that enables us to manage spills is the follow-up and assessment of the corresponding environmental indicator. To this end, we count with a specific procedure for reporting spills, which we classify into three types so as to make a detailed analysis of the trends in every case; the categories are: Hydrocarbon Spills, Mixture Spills (hydrocarbon and water mixtures), and Other Substances Spills (which comprises products not included in the other categories).
Sustainability Report 2014 • 49 Assessment of spill response capacity
During 2014 we completed the implementation of the spill response HYDROCARBON SPILLS21 capacity assessment corporate project, which consisted in the assessment of all VOLUME OF HYDROCARBON SPILLS PER PRODUCTION UNIT, the aspects that make up an effective PER OPERATION (BBLS/MMBOE)22 - 2011-2014 EVOLUTION response: response preparation, contingency plans, training, human
40 resources and equipment available, and current drill plans in the framework of the
27.43 Peruvian operations (PPN and Camisea). 30 27.3
20 As a result of the analysis a recommendation to build sensitivity 11.9 10 maps arose, so as to enable focusing and 7.13 3.12 2.6 2 1.45
1.96 optimizing response mechanisms in the 1.1 1.4 0.25 0 0 0 0.1 0.03 0.18 0.29 0 0 0 face of spill events.
Argentina Bolivia Camisea | Peru PPN | Peru Angola Pluspetrol
Due to the implementation of the abovementioned investigation methodology, we could conclude that during 2014, the spills occurred as a consequence of vandalism have generate higher volumes of hydrocarbon spill (70% of the total volume spilt), although in terms of the number of events occurred, they only represent 24%.
WATER/OIL MIXTURE SPILLS
VOLUME OF WATER/OIL MIXTURE SPILLS PER PRODUCTION UNIT, PER OPERATION (BBLS/MMBOE) – 2011-2014 EVOLUTION
80 69.25 60 47.01
40 39.3
20 20.2 7.13 14.65 11.08 12.8 8.6 7.02 0 0 0 0 0 0 0 0 4.7 0 3.85 0
Argentina Bolivia Camisea | Peru PPN | Peru Angola Pluspetrol
Spills of other substances This category includes spills of substances other than hydrocarbons, associated to production activities, such as water based drilling fluids, produced water, or injection water. In 2014, the volume spilt decreased 28%, reaching a total of 3.9 BBLS/MMBOE spilt, thanks to the implementation of scheduled maintenance plans, facilities’ inspections, as well as different training courses and awareness 21. These spills include leaks of crude oil and its derivatives (gasoline, distillates, asphalt, lubricants, kerosene) bigger than 1 raising actions. barrel, which reach the environment. 1 barrel = 0.162 m3. 22. It does not include spills as a consequence of vandalism.
50 • Pluspetrol ENVIRONMENT
CAMISEA, PERU ENVIRONMENTAL SENSITIVITY MAP OF THE NGLFP23
In Camisea, the elaboration of an Environmental Sensitivity Map was initiated in the marine and coastal environments of the NGL Fractionation Plant and in the buffer zone of the Paracas National Reserve, in order to generate a planning and response tool in the case of contingencies that might happen in the operations and activities related to the Pisco Camisea Marine Terminal.
For its preparation, international reference indicators, methodologies and criteria were used, and, as a first measure, the area of influence of the operations was delineated. The subsequent phases included:
• Biological resources mapping: it was performed using the vast information on the area’s characteristics offered by the Biotic and Abiotic Monitoring Program conducted by Pluspetrol since 2003. Work was done on the identification of areas with the highest concentrations of individuals and which represent development sites for the most sensitive phases in the lifecycle of certain species. The groups of species that were mapped included those more vulnerable and sensitive to hydrocarbon spills and disturbances related to response activities; threatened, endangered or rare species; and species that have commercial or recreational relevance.
• Definition of the kind of coastline: it facilitates determining the capacity of penetration and/or burial and movement of the hydrocarbon on the coast, exposure to waves and tidal energy that determine the hydrocarbon’s persistence on the coast along time, the biological productivity and overall sensitivity, and clean up easiness.
• Mapping of stakeholders in the coastal area of influence in Pisco: those that could be potentially involved if an emergency/contingency response event was considered, identifying their vulnerability and resilience in front of a spill event in the coastline and marine environments.
This process, still ongoing during 2015, will let us have a strategic Environmental Sensitivity Map, at a 1:50,000 scale, and with tactic maps divided into sectors in 30 quadrants within the area of influence, which show in more detail the areas’ sensitivity that will require attention in case of a spill event.
23. Natural gas liquids fractionation plant.
Sustainability Report 2014 • 51 POTENTIALLY IMPACTED SITES AND REMEDIATIONS
• Investigation, assessment and application of corrective actions in potentially affected sites.
In September, 2014, the corporate standard for the investigation, assessment and PLUSPETROL NORTE, PERU eventual application of corrective actions in affected soils, sediments and water REGULATORY COMPLIANCE bodies was approved. The objective of this standard is to ensure: i) that the sites OF SOIL ENVIRONMENTAL affected or potentially affected by past and/or present operations, are duly investigated and assessed from an environmental viewpoint, and ii) that based on QUALITY STANDARDS the results of the evaluations performed we proceed to define, implement and (SOIL ECA) assess the effectiveness of the corrective actions necessary to ensure the protection of human health and the environment. During 2013 and 2014, the Ministry of Environment (MINAM, Peru) approved the In this way we guarantee the application of the best practices and the generation regulatory framework associated to the of all the information necessary to support management and operational decisions. Soil Environmental Quality Standards (Soil ECA standard, its complementary Based on the standard, contaminated sites are managed according to 5 phases provisions and technical guides). where the best techniques and practices on the subject are applied, which allow to ensure the traceability and robustness of the whole process. To comply with this last regulation, PLUSPETROL NORTE (PPN) contracted the environmental engineering company CH2MHill, a leading global environmental services consulting company to, pursuant the current legislation and in line with the international standards, research potential areas of interest in blocks 1AB and 8.
Such projects consist of an initial Site IDENTIFICATION Identification Phase, whose objective is to confirm or rule out the existence of affected zones in these blocks by determining whether soil concentrations exceed the environmental quality or background level standards, through the
PRELIMINARY collection of representative samples and ASSESSMENT the analysis of toxicological or ecotoxicological parameters inherent to the Oil & Gas industry, indicated in the applicable environmental regulations currently in force in Peru.
ENVIRONMENTAL During 2015, we plan to submit to the CHARACTERIZATION Authorities the information resulting from the Identification Phase through the submittal of Site Identification Reports.
RISK ASSESSMENT
REMEDIATION/ REHABILITATION
4852 •• PluspetrolPluspetrol • Remediations
The aim of environmental remediations is
to restore the sites that may be impacted Lote 8, Pluspetrol Norte, Peru. by spill events, as well as those sites intervened during operations which, once completed (in the abandonment phase), PLUSPETROL NORTE, PERU must be brought back to their previous condition or else, an environmentally safe LIDERA PROJECT (SPILL CLEANING condition. AND ENVIRONMENTAL REMEDIATION)
In the light of the occurrence of a series of spills due to acts of vandalism between 2010 and 2013, the LIDERA Project (Spill Cleaning and Environmental Remediation) was created, led by PPN’s Environmental Management Area. Said project summons highly specialized professionals to carry out control, cleaning and remediation work at the different impacted sites that exist as a consequence of spills derived from acts of vandalism in Block 8.
These cleaning tasks involve the implementation of in situ technologies, which represent an alternative to the final disposal of contaminated soils in secure landfills as hazardous wastes.
The activities that LIDERA carries out start with hydrocarbon recovery, which involves the removal of free hydrocarbon from the incident zone through physical and mechanical methods. Then, the bioremediation itself is implemented24. In late 2014, the following results were achieved: • 4 environmental incidents have been 100% concluded in relation with the area’s cleaning and remediation. • 9 environmental incidents are being cleaned and remedied. • Recovery of approximately 6675 barrels of crude oil, which have been incorporated into the Block’s production through the installation of connections to the existing oil pipelines, which resulted in substantial resource savings, as airborne transport of fluids from the impacted sites to the batteries was eliminated. • Cleaning and remediation of 34,018.6 m2 of soil. • Implementation of biopile-based bioremediation technologies in an area prepared for that purpose, leading to a substantial reduction in the amounts of transported and disposed hazardous wastes. • Generating work and staff training in the local communities within Bock 8’s area of influence.
ARGENTINA RESTORATION PLAN FOR “AGUADA BAGUALES” DEGRADED SITES
This degraded areas rehabilitation project in Neuquén’s operations started with a survey of the condition of the abandoned well locations in the Aguada Baguales Before and after the restoration work of a location in Aguada Baguales (Argentina). CNQ-12 area, to later determine the necessary environmental remediation works, such as widrawal of calcarous material, closure of old accesses, closure of auxiliary entrance paths, and reduction of existing locations using restoration techniques, thus complying with the province’s legal standards.
During 2014, progress was made in reconditioning tasks in 5 locations. The sites 3 24. Bioremediation: Bacterial hydrocarbon degradation have been scarified, access roads have been closed and 6350 m total of process. Different techniques are used to accelerate the degradation rate through the addition of fertilizers calcareous material have been carried away (material that was collected for its containing nitrogen and phosphorus, which in turn favor the proliferation of living microorganisms that degrade the spilt later reuse in road restoration, works within the field and construction in other hydrocarbon. locations).
Sustainability Report 2014 • 53 NATURAL RESOURCES MANAGEMENT
WATER MANAGEMENT
Our water resource management is aimed at The uses given to freshwater coming from different reducing the amount of surface and/or underground surface and underground sources may be grouped in water extracted, incrementing reuse of treated water 5 general types : camps and offices, plant and making use of produced water in the operations consumption, drilling, secondary recovery, and where it is generated; it also aims at reducing the others. The highest consumption is originated in, amount of domestic effluents generated and firstly, plant consumption, which includes industrial implementing industrial and domestic wastewater processes (such as crude oil treatment), and treatment systems to ensure the discharge quality secondly, the secondary recovery process. and harmlessness. On the other hand, Zero Discharge ofproduced water is a standard in all our operations.
To meet the water resource management goals, the TYPES OF action pillars are defined as follows: CONSUMPTION
• Adopting the best practices available in the industry, • 6% OTHERS (IRRIGATION OF adjusting them to the complexity of the GREEN AREAS, PIPELINES, WORKSHOP, PLANT WASH, environments where we operate. FIRE SYSTEM TESTS) • Investing in the development of new domestic and • 14% CAMP/OFFICES industrial wastewater treatment technologies. • Developing process improvements that are key to • 40% CONSUMPTION AT THE PLANT reducing freshwater use. • Carrying out training and awareness raising • 2% DRILLING campaigns on the efficient use of water. • 38% SECONDARY RECOVERY
Camisea, Peru.
54 • Pluspetrol 0 0.5 1 1.5 2 2.5 the operationsperformedineachsite,andtypesofconsumptioncharacteristicsbelongingtooperations. In allthecasesweselectedmostappropriateefficientuseorwaterresourcereusealternativesaccordingtotechnologyavailable, is performedthroughdifferent techniques. Río ColoradoAreas),produced watermanagement PPN andArgentinaBusinessUnits(Neuquén treatment andreuseforotheractivities.Inthe injection indedicateddisposalwellsorelsethrough reuse oftheproducedwatergenerated,eitherby Discharge” concept,inreferencetothedisposalor all productionsitesweoperateunderthe“Zero re-injection inallouroperations.Thismeansthat Since 2009wehavea100%ofproducedwater LIQUID EFFLUENTS: PRODUCTION WATER PEROPERATION (MBBLS/MBOE) - 2011-2014EVOLUTION WATER CONSUMED PER PRODUCTION UNIT, 2014 (MBbl/d) water volumeduring Total production • • 2.1 99% 1% SUPERFICIAL UNDERGROUND Argentina 2
1.6
0.9 • • 0.1 4% 96% SUPERFICIAL UNDERGROUND Bolivia 313.84 ARGENTINA 0.04
0.04
0.12 • • Camisea 9% 91% 0.03 SUPERFICIAL UNDERGROUND
0.03 3.09 BOLIVIA |
PERU 0.02
0.02 • • 98% 2% 1.4 SUPERFICIAL UNDERGROUND 0.58 CAMISEA |PERU PPN 100%
1.5 |
PERU 0.9
1.1 TECHNOLOGICAL FOREFRONT RE-INJECTED. INNOVATION AND OF PRODUCED WATER • • 75% 25% SUPERFICIAL UNDERGROUND 1000.47 PPN Angola
| PERU 0.04
0.6 Pluspetrol 1.01 ANGOLA 0.5 Sustainability Report2014• 0.2
0.2 ENVIRONMENT 55 ENVIRONMENTAL MANAGEMENT OF DISSEMINATION IMPACTS ON BIODIVERSITY AND EDUCATION
BIODIVERSITY
CORPORATE STANDARD OF INTERACTION WITH BIODIVERSITY TRAINING AND BIODIVERSITY MANAGEMENT STAKEHOLDERS STANDARD RAISING AWARENESS
In order to establish the general criteria that should be considered for Biodiversity protection and management in the areas of influence of our facilities, activities, operations and new projects, we have a Corporate Standard of Biodiversity PROTECTED RESEARCH AREAS AND SPECIES AND DEVELOPMENT Management in force since 2010.
1. Habitat loss and degradation (fragmentation) / Changes in the land use 2. Introduction of invasive species 3. Overexploitation 4. Contamination
The purpose of the main actions defined in the Standard is to prevent and mitigate those potential impacts; to that, the following lines of work were defined: complying with the applicable legislation, identifying the area of influence and its sensitivity, elaborating thorough biological baselines and developing limited environmental impact evaluations (for new projects), managing Biodiversity impacts, training and raising awareness of our own employees and contractors, promoting biodiversity research by means of programs jointly developed with scientific institutions and other stakeholders.
Biodiversity Monitoring Program (Camisea, Peru). Photograph: Enrique Castro.
56 • Pluspetrol ENVIRONMENT
MANAGEMENT OF IMPACTS ON BIODIVERSITY
Developing biodiversity Baselines, identifying potential positive and/or negative impacts
BIODIVERSITY MONITORING PROGRAM (BMP) IN CAMISEA, 10 YEARS OF IMPLEMENTATION
This is a long-term scientific program that, since 2005, performs monitoring in the area, in order to establish whether CAMISEA, PERU there is negative impact to biodiversity, BIODIVERSITY MONITORING PROGRAM (BMP) and if so what is its extent and origin, while at the same time it generates During 2014, within the BMP framework, the following activities were carried out: recommendations for the prevention and mitigation of said impacts on biodiversity Landscape monitoring: characterization and evaluation of the deforestation in the project’s area. produced during the installation of heliports and temporary base camps opened during seismic works, and for the installation of all the wells platforms in Blocks During the 10 years of implementation, 56 and 88. 82 monitoring campaigns were carried out -including terrestrial biota, aquatic Species and communities monitoring: based on the monitoring activities biota and the use of natural resources in performed during 2014, and using the information disclosed in the last 10 years, native communities- where more than 80 the degree of negative impact and/or recovery in flowlines and wells locations, scientists and 250 native co-researchers after 6 years of initiating revegetation activities, were analyzed. Additionally, participated. Among the contributions for this analysis we considered the condition of non-intervened areas with the to scientific knowledge of the area, there same type of landscape unit. is a registration of more than 2260 terrestrial species (excluding insects), Concerning the aquatic biota, in 2014, 28 stations were monitored, and a over 700 aquatic species, finding of comparative analysis was initiated on the data historically collected in order to 6 new species of insects for science, a evaluate water course trends with similar characteristics, downstream and detailed characterization of the different upstream of Camisea Project. landscape units, generating information on the different biological groups Monitoring Native Communities’ use of resources: analysis of the data obtained evaluated: vegetation, insects, in four running years of information compilation, presenting the first trends amphibians, reptiles, birds, mammals and identified in the access to the use of resources, as well as season analysis and aquatic biota, and knowledge about the changes in the activities evaluated (hunting, fishing and collection). structure and function of the ecosystem monitored.
All the information related to the program IDENTIFYING BIOLOGICALLY SENSITIVE AREAS (BSA) WITHIN THE and its activities can be found in the SCOPE OF 2D SEISMIC OF BLOCK 88: website www.pmbcamisea.com As part of the block’s exploration and development extension program (FEP), a seismic survey was conducted for which a biological support program was designed in order to identify sensitive areas that could be impacted by the seismic design. To this end, a group of 6 biologists worked with the seismic topography teams during July and August defining BSA, such as collpas, animal bathing and feeding places, reproduction zones, water bodies, etc. A total 260 significant BAS and 87 non-significant BAS were identified, which required the displacement of the seismic lines’ location to avoid impact on these areas.
Sustainability Report 2014 • 57 Monitoring with trap-cams, Biodiversity Monitoring Program (Camisea, Peru).
FULL EXPLORATION PLAN (FEP)
The Block 88 Full Exploration Plan, FEP, includes the execution of different sub-projects in order to evaluate the exploratory potential, find and develop new hydrocarbon reserves to ensure meeting Peru’s energy needs in the coming years. Block 88 is characteristic for its high environmental and social sensitivity, for which different safeguards have been developed and implemented which facilitate the execution of works respecting and protecting the environment, and among which the following stand out: the heliborne operation modality with no CAMISEA, PERU opening of land access roads (off-shore in land), the implementation of a Code of Conduct for Employees and Contractors, the Communication and Consultation The UN Special Rapporteur on the Rights Program, the Community Environmental Monitoring Program, and the of Indigenous Peoples presented in March Anthropological Contingency Plan, as the primary ones. Next, we highlight some 2014 a report about the expansion of the of the projects implemented within the FEP framework. Camisea project in Block 88. In this document he collects his impressions after his visit to Peru and to the project in Monitoring big mammals during seismic activities with camera traps. December 2013. He also recognizes ”the The use of camera traps is a non-invasive method, specific for elusive animal Company´s effort to minimize the studies and/or animals with nocturnal or crepuscular habits that often avoid presence and the adverse impacts of its human presence, being their recording through other methods rather limited. activities in a geographic area of high This technique, which consists of a photographic record, provides evidence sensitivity due to its extensive of the presence -and even identity- as well as activity patterns of many species. biodiversity and the presence of indigenous inhabitants”. At the same time, In 2014, the BMP implemented the “Big mammals monitoring during seismic he highlights the off-shore in land model activities with camera traps”, with the aim of evaluating the potential impact developed by the Company in the Block related to the exploration activities of the 2 D Seismic Project of Block 88. 88 operations as a “good practice” from Monitoring covered the period of activities associated to the seismic survey with the environmental point of view. the installation of 34 camera traps. A total 341 registries were obtained, which included 19 mammal species, some of which arecategorized as endangered. The full report of the Special Rapporteur As an important registry it is worth highlighting the presence of two species of on the Rights of Indigenous Peoples can bush dogs (Atelocynus microtis and Speothos venaticus) with (VU/NT) threat be found at: http://unsr.jamesanaya.org/ category, extremely rare and difficult to observe. esp/special-reports Recovery, Maintenance, Relocation of Epiphytes from Central Kimaro Platform in Block 88 It was initiated during the forest clearing performed in the location, through the identification of epiphytes (orchids and bromeliads) in felled trees. These species were transferred to a greenhouse especially designed for this purpose. Once stabilized, the epiphytes were relocated on host trees, thoroughly selected, having previously set for this purpose election criteria according to the conservation state, vulnerability, diversity, predominance, phytosanitary state, and others that enable ensuring the continuity of every identified species. 3035 epiphyte individuals were rescued, relocating 1562 individuals. In November, 2014, the first relocated epiphytes monitoring was performed to determine their survival rate, evidencing a low mortality rate (8.65% three months after relocation). Based on the results obtained via the application of strict technical criteria, it’s been demonstrated that it is possible to transfer species of vascular epiphytes to new natural habitats, ensuring the survival of these species without altering the existing diversity, constituting a conservation alternative to reduce the environmental impact in a highly sensitive zone.
58 • Pluspetrol ENVIRONMENT
ENVIRONMENTAL CAMISEA, PERU DISSEMINATION AND SOCIALIZATION AND DISSEMINATION OF RESULTS OF THE BIOTIC EDUCATION AND ABIOTIC MONITORING PROGRAM IN PISCO
We keep promoting the participation of local authorities in the monitoring Supporting education campaigns and program’s field activities; in 2014, staff from the following institutions took part: disseminating Biodiversity conservation Paracas National Reserve (RNP), Guano Isles, Islets and Points System National actions. Reserve (RNSIIPG), Peru Sea Institute (IMARPE), Pisco Port Harbormaster (CAPISCO), Río Seco Local Water Authority (ALA-RS), Environmental Committees from Local Municipalities and Universities. Besides, the Program results are shared and disseminated to the local authorities.
Additionally, the Program results are disseminated through the following activities: • Anomalous events report (algal blooms, species morality) to Pisco Port Harbormaster, Paracas National Reserve, Guano Isles, Islets and Points System National Reserve. • Result dissemination to 338 Camisea workers and from contractors companies, during an awareness raising day that includes a visit to Paracas Bay, a demonstrative plankton monitoring, and a visit to Ballestas Islands (habitat of sea wolves, penguins and guano birds); to later visit the Interpretation Center of the Paracas National Reserve (RNP). • Results external dissemination to 465 students and 967 stakeholders from our area of influence, among which there were RNP, RNSIIPG, Paracas Municipality, Pisco Municipality, San Andrés Municipality, Universities, and Schools. • Identification of Contamination Sources Study in Paracas Bay, carried out by the Río Seco Local Water Authority (identified sources not related to our activities). • Huerequeque (Burhinus superciliaris) nesting research in the surroundings of the PFLGN Landscaping Project, presented in the Ornithology National Congress.
ANNUAL BMP WORKSHOP The annual workshops on results dissemination are framed within the communication actions carried out by the BMP, which aim is to spread the information generated by the Program. Based on a transparent process, it provides concrete contributions to the scientific community, the Oil and Gas sector, government bodies, and the civil society in Peru, through significant information.
In 2014, the event was held on June 3 in Lima, Peru.
The panel of speakers comprised four experts, BMP Scientific Committee leaders, who presented the main results of the year concerning the contributions of the Program in terms of Biodiversity Management, Scientific and Communication results.
Other presentations made in 2014: • Bird Monitoring in Lower Urubamba Basin and Effectiveness of Mackinnon Lists, Counting Points and Mist Nets. IX Ornithology National Congress Ayacucho, Peru.
• Biodiversity Monitoring Program in Camisea. 10 Years of Implementation. VIII INGEPET, Lima.
• Landscape Changes Associated to the Camisea Project Development - Its Evolution Along Time. VIII INGEPET, Lima.
• Characterization and Ecosystemic Services of the Amazonic Forest Pacal in the Lower Urubamba, Cusco, Peru. XI Latin American Botanical Congress - Salvador de Bahía, Brazil.
Participation via the setting-up of a PMB stand in the Society of Petroleum Engineers (SPE) in June, 2014.
Sustainability Report 2014 • 59 Malvinas Plant, Camisea, Peru.
IMPACT REDUCTION AND PREVENTION
CAMISEA
COMPLIANCE RESPECT WITH IFC FOR NATIVE PERFORMANCE COMMUNITIES STANDARDS 10 YEARS OF CAMISEA - PERU
The Camisea project is developed in a complex scenario, from both the environmental and social point of view. On the one hand, the operations are carried out in a sensitive natural ecosystem, which is the Tropical Forest of the Lower Urubamba valley (Cusco, Peru); this zone is categorized as a Biodiversity Hotspot26, included in the “Global 200”27; SOCIO-ENVIRONMENTAL besides, Block 88 is situated within the buffering CONSIDERATIONS zones of Manu and Otishi National Parks. Likewise, BEFORE DURING the project’s area of influence is inhabited by THE PROJECT THE PROJECT indigenous population with different levels of organization, while part of the block is located within the Kugapakori Nahua Nanti Territorial Reserve28. PARTICIPATIVE DESIGN PMAS Understanding this environment’s complexity, since the Camisea project design phase environmental and social management was considered a key aspect when it came to defining operational alternatives and techniques in all the activities involved in the process.
COMMITMENT COMMUNITY The starting point for all socio-environmental WITH OUTREACH considerations was the participative design of the STAKEHOLDERS PLAN consultation process, which was done in the early stages of the project, enabling the identification of the communities’ specific concerns and interests through the dissemination of clear and accurate information in over 50 workshops held. The consultation process generated a series of commitments with the stakeholders, which are SPECIFIC ESIA embodied in the following general considerations: PROGRAMS
60 • Pluspetrol ENVIRONMENT
Another milestone in the project was the Based on the impacts identified and evaluated in development of the Environmental and Social Impact the ESIA, a series of distinctive management tools, Assessment (ESIA), which was carried out under the as well as best practices were defined and applied, IFC, the World Bank and Peruvian legislation which nowadays constitute a standard in the guidelines. The social and environmental baselines development of hydrocarbon activities in rain were built thoroughly considering participation of forest zones: the local communities.
TOOLS
ARCHEOLOGY COMMUNICATION BIODIVERSITY CODE OF LOCAL AND CULTURAL AND MONITORING CONDUCT AND EMPLOYMENT RESCUE CONSULTATION PROGRAM STAFF TRAINING PROGRAM PROGRAM PROGRAM
PARTICIPATIVE MONITORING AGREEMENT, PROGRAM ENVIRONMENTAL ACCESS ANTHROPOLOGICAL COMPENSATION AND (PMAC + MONITORING CONTROL CONTINGENCY INDEMNIFICATION FLUVIAL PROGRAM PROGRAM PROGRAM ESTABLISHMENT COMMUNITY PROGRAM SURVEILLANCE)
BEST PRACTICES
PIPELINE DRILLING OFF-SHORE SPECIFIC CUTTINGS IN LAND DESIGN RE-INJECTION
EROSION AND GUIDED REVEGETATION DRILLING CONTROL
INTERVENED MINIMUM USE HELITRANSPORTABLE AREAS OF THE LAND SEISMIC RECOVERY
26. According to Conservation International (CI) 27. According to World Wildlife (WWF). 28. The RTKNN was created in 1990 as a State Reserve; inside it, populations with different levels of contact reside, some of them settled and others in voluntary isolation.
Sustainability Report 2014 • 61 SOME OF THE PROGRAMS 01 CURRENTLY ONGOING IN CAMISEA:
PARTICIPATIVE MONITORING SOCIO-ENVIRONMENTAL MONITORING PROGRAM Continuous follow-up and observations of both By means of this program, Pluspetrol aspects seeks to increase the efficacy and efficiency of the monitoring and supervision actions in the Camisea operations, through the participation COMMUNICATION TRAINING AND of local population. In this way, AND COORDINATION we can generate and record reliable DISSEMINATION PMAC COMMITTEE 04 Skills development Reliable registry and 02 and accessible information, via the and training experience sharing community, for its use by the local population, Pluspetrol and interested organizations. In turn, this program has two segments: one is the Lower Urubamba Community Environmental ENVIRONMENTAL EDUCATION Monitoring Program, which is directed Awareness raising on the to the community monitoring of environment and initiatives coordination environmental aspects, and the other one is the community fluvial surveillance Program aimed at monitoring fluvial transport in Urubamba and Camisea rivers. 03 COMMUNITY ENVIRONMENTAL MONITORING PROGRAM (PMAC)
This program has 4 components and its main objective is to promote and implement the actions necessary to ensure conservation of the environment by contributing in maintaining biodiversity, and encouraging the use of sustainable resources for the development of a conservation culture in the local communities.
All the information gathered during the monitorings is duly recorded and, if potential deviations to the applicable procedures are identified, relevant corrective measures are implemented. At the same time trainings, workshops and talks are coordinated in order to disseminate the program’s results, share experiences and generate awareness about the environment.
22 COMMUNITY MONITORS COMMUNITY FLUVIAL WORKING FOR 8 YEARS SURVEILLANCE
OBJECTIVES 1. ONGOING FLUVIAL TRANSIT COMMUNITY OPERATION FOLLOW-UP MONITORING. RESULTS OF THE 2. COMMUNITY VERIFICATION OF THE COMMUNITY PROJECT’S FLUVIAL TRANSIT REGULATORY ENVIRONMENTAL COMPLIANCE. MONITORING PROGRAM 10 YEARS RESULTS AFTER INITIATING POTENTIAL IMPACT 1. PROMOTION OF LOCAL WORKMANSHIP CAMISEA EARLY IDENTIFICATION EMPLOYMENT IN RIVERSIDE COMMUNITIES.
2. 22 SURVEILLANCE BOOTHS ALONG URUBAMBA AND CAMISEA RIVERS.
3. 40 FLUVIAL WATCHMEN FROM 20 ONGOING DIALOG CHANNEL COMMUNITIES. WITH THE COMMUNITIES
62 • Pluspetrol ENVIRONMENT
ENVIRONMENTAL MONITORING PROGRAM
The objective of this program is to evaluate physical and chemical conditions of the environmental factors as air, surface water, groundwater and soil. To this end, through a system of monitoring stations located upstream and downstream of our facilities, a number of parameters are measured:
• Air quality • Emissions • Surface water quality • Groundwater quality • Soil characteristics
This program ensures that none of these factors is affected as a result of the activities carried out by the Camisea project.
BIODIVERSITY MONITORING PROGRAM (BMP)
OBJECTIVE: THE SYSTEMATIC EVALUATION OF BIODIVERSITY TO DETECT CHANGES OR DISTURBANCES.
The BMP generates contributions to biodiversity management via recommendations for decision-making. Among the topics addressed are included the information for the selection of better alternatives from the environmental viewpoint in the definition of pipeline routings; implementation of procedures when encountering fauna; identification of highly sensitive areas from the biodiversity point of view; identification of recovery-delayed sectors; invasive exotic species mapping; and staff training, among others.
In 10 years of implementation, some scientific conclusions were drawn:
• The Camisea Project’s landscape footprint is of about 481 hectares, and it represents less than 0.2% of the project’s total area (Block 88, Block 56 and Malvinas Plant area), confirming that the implementation of Pluspetrol’s work methodology, consisting of a scheme with no roads construction and closing and reforestation actions, is critical to minimize impact on the ecosystem.
• The edge effect associated to flowlines opening was studied. In different vegetation indicators, an effect was checked up to 25 m from the center of DDV. For specific indicative groups (such as beetles), we observed a gradual increase in the richness of the species, from the flowline edge to 50 m.
• The limnological parameters evaluated in water courses present normal values for Amazonian waters, and the variations observed are related to the climate conditions and the basin’s location.
Biodiversity Monitoring Program (Camisea, Peru). Photograph: Enrique Castro
Sustainability Report 2014 • 63 COMMUNITY
WE PROMOTE A HARMONIC RELATIONSHIP WITH THE COMMUNITIES OF THE AREAS WHERE WE OPERATE, PURSUING TO FAVOR THEIR LIFE QUALITY AND DEVELOPMENT, PRESERVING BIODIVERSITY AND LOCAL CULTURES.
PARTICIPATORY SOCIAL PROCESSES INVESTMENT
INDIGENOUS COMMUNITIES
LOCAL EMPLOYMENT
COMMUNITY
COMMUNITY COMPANIES
COMMUNITY DEVELOPMENT INSTITUTIONAL STRENGTHENING
64 • Pluspetrol One of Pluspetrol’s strengths is its capacity to perform in sensitive socio-cultural and geographical environments. To achieve and sustain such capacity in time, it is imperative to achieve an efficient leadership and management of resources and the relations with local communities. In this respect, the implementation of the best practices in the industry and the continuous improvement of our operations add value to the care and conservation of the environment and the local communities, and they contribute in the strengthening of stakeholders’ development skills.
Marisol Rodríguez Vargas Community Affairs Corporate Manager
Villa Trompeteros, Loreto. Pluspetrol Norte, Peru.
Sustainability Report 2014 • 6557 MANAGING OUR RELATIONSHIP WITH THE COMMUNITIES The social management that we perform seeks to consolidate relations that generate value for the company and stakeholders. Particularly, we work with the communities based on social management standards that gradually enhance our performance. Such standards set guidelines to detect and timely prevent our projects’ potential impacts on the local populations, their lifestyles, culture and/or territories.
In this way, the corporate community action standard establishes the general guidelines for establishing relations with local communities, while enabling each Business Unit to be able to respond to particular challenges of their socio-cultural context. In turn, the corporate social investment standard incorporates the criteria to be considered in defining and directing social economic investment, as part of our project and operation sustainability strategy. Another corporate standard which is part of the set of documents that guides our social management is the one referred to land acquisition and involuntary resettlement, which establishes general guidelines for the development of an orderly and consensual land acquisition process for its use during the operational phase.
SOCIAL MANAGEMENT GUIDELINES DURING THE PROJECT’S LIFE CYCLE
• Stakeholders indentification and early ASSESS AND SELECT assessment of the social conditions in the area At the initial stages of assessment and selection of a production site, activities focus on identifying and mapping stakeholders, in addition to performing an early analysis of the social condition of the area.
• Strengthening and development of projects DEFINE Definition of projects through participatory mechanism and strengthening of relations with stakeholders, fostering mutual approach and understanding. Concurrently, compensation mechanisms for communities are evaluated as regards any potential EXECUTE impact generated by our presence in the area. AND OPERATE • Management of social impacts and Implementing social investment plans During the operation stage, projects are continued with local communities, and social investment plans are organized. ABANDON During the abandonment stage, we weork to minimize social impact on the areas reverted.
66 • Pluspetrol COMMUNITY
SOCIAL INVESTMENT
Pluspetrol’s growth depends on all of our stakeholders’ growth. Hence, our efforts are focused EDUCATION on contributing to generating economic opportunities and improving the life quality of the local communities in the areas surrounding our operations through different productive initiatives and entrepreneurships; always preserving identities, customs, culture and traditional values. By means of programs led by the different Business Units, COMMUNITY COMMUNITY HEALTH community relations teams develop sustainable plans DEVELOPMENT PROJECTS and projects, aimed at promoting the local population’s skills and capabilities, with medium and long-term economic initiatives, and therefore contributing to local and regional development.
Education, Healthcare, Institutional and Productive INSTITUTIONAL Strengthening, and Community Development are all AND PRODUCTION STRENGTHENING considered priority work lines which we implement transversally throughout the company.
Camisea, Lower Urubamba, Peru.
Sustainability Report 2014 •• 5067 EDUCATION
HIGHLIGHTED PROJECTS
WHAT DO WE SEEK?
TO STRENGTHEN THE EDUCATIONAL QUALITY OF OUR ARGENTINA COMMUNITIES MUSIC AS A LEARNING AND VALUE-SHARING TOOL
“Among violins and cellos, musical stimulation” is a project that Pluspetrol carries WHAT DO WE WORK ON? out together with School No.234 from the City of Plottier, within the framework EDUCATION of the “School Projects Support Program” that the company has been conducting PROGRAMS BASIC INFRASTRUCTURE during the last 4 years in the South District, supporting initiatives associated with SCHOLARSHIP technology, physical activities, libraries, art, among others. PROGRAMS
We work jointly with the headmasters and teachers of this school, located in one of the access roads to the Centenario Oilfield and close to several company’s facilities, it is attended by kids from poor neighborhoods in the eastern area of the city. In 2014, we decided to create a children orchestra with pedagogical purposes, to promote social inclusion through music, which is appreciated as a tool that consolidates values such as discipline, solidarity, collective sense and intellectual development.
For the project, the School arranged the contribution of two workshop leaders, in charge of children pedagogical and training aspects, while from Pluspetrol we committed ourselves to provide the required instruments. Since June 2014, the project has been running with a significant participation of children from the school and the neighborhood on an extracurricular schedule.
PLUSPETROL NORTE, PERU TECHNOLOGY TO TRAIN AND PROVIDE HOPE
Since 2014, Pluspetrol has contributed to a project that the organization Kuepa runs in the Nuevo Andoas native community (Block 1AB), in order to train young people who were not able to complete their high school studies through an online platform.
The 8-month long project is supported by the Department of Education and is conducted with the consent and participation of the High School’s headmaster, parents and students.
The Kuepa organization has ample experience in this kind of digital education experiences, which are being performed in different parts of the world. By means of a modern platform, it facilitates distance learning or face to face learning, with excellent digital educational content.
From Pluspetrol we facilitate the program’s integration in the Nuevo Andoas community. Our IT staff was responsible for the implementation of the infrastructure to support the project, installing 8 new networked computers in the Variante Agropecuaria school. Up right: Plottier, Neuquén, Argentina. At the program’s launch, 12 youths from the Nuevo Porvenir, Alianza Capahuari Down left: and Nuevo Andoas communities participated, subsequently joined by 7 youths Block 1 AB, Pluspetrol Norte, Peru. from Los Jardines native community.
68 • Pluspetrol COMMUNITY
Educational Projects
BU PROJECT LOCATION 2014 RESULTS
Argentina Scholarship program for university Ramos Financial help is provided through a fixed students. monthly amount to cover the university courses of scholars. Like the previous year, during 2014 scholarships were granted to 14 students.
Forest Nursery Project at Ramos It is a new project aimed at producing Cornejo Agricultural School. native plants for reforestation efforts. New Project. During 2014, sprinkler irrigation materials were acquired.
Bolivia Support to productive indigenous Tacobo We continued providing financial and material community projects. and Tajibo support to educational programs in 17 Guaraní communities from Tacobo and 13 indigenous communities from Tajibo.
Camisea, Pilot Environmental Education Program Pisco, San Strengthening of values, attitudes and skills of Peru for basic level Educational Institutions in Andrés students and teachers from 10 institutions, with Pisco province. and an emphasis on neighborhood environmental Paracas education and knowledge of nearby protected natural areas. In 2014, a total 5,980 students were trained.
Technical Training Program for 4th and 5th Pisco Technical training for employment year high school students as Maintenance opportunities in the short-term. In 2014, 100 Mechanic Assistant 4th and 5th year students from the Raúl Porras Barrenechea, José de San Martín and Renán Elias Olivera schools were trained.
Success Program - Young People Pisco Training and strengthening young Entrepeneuring for Success entrepreneurs’ business knowledge. During the New Project. first year, 200 young people were trained, and 15 entrepreneurs won the “capital semilla” (seed capital), a stimulus given in order to establish the business idea.
University Scholarships Program Native Professionals are developed under an –UCSS NOPOKI–. communi- intercultural, bilingual approach. Continuing ties from with the program, in 2014, twenty one young Camisea, people (7 women and 14 men) from Kirigueti, Kirigueti Nuevo Mundo, Timpía, benefitted from the and Nuevo university study scholarships on Basic Mundo, Intercultural Bilingual Education, Agricultural in Lower and Forestry Engineering, and Administration. Urubamba
Pluspetrol Local Educational Management Nueva Support for the educational quality of the Norte, Support Program. Jerusalén community students is provided. Services of a Peru New Project. (Block pre-university education professor were hired 1AB). and 12 students were successfully trained.
Down left: Camisea, Lower Urubamba, Peru.
Up right: Gral. Mosconi, Salta, Argentina.
Center right: Camisea, Lower Urubamba, Peru.
Down right: Lower Urubamba, Peru.
Sustainability Report 2014 • 69 HEALTH
HIGHLIGHTED PROJECTS
WHAT DO WE SEEK?
TO ENHANCE ARGENTINA AND PRESERVE OUR COMMUNITIES’ INDIGENOUS COMMUNITY’ HEALTHCARE WELL-BEING. Since 2005 Pluspetrol has actively contributed to the AMTENA (Thomas Elkins Norte Argentino Health Care) program, whose objective is to contribute to health WHAT DO WE WORK ON? care in indigenous peoples communities that live in the Santa Victoria Este and neighboring areas, 170 km east of Tartagal. PREVENTION PROGRAMS BETTER ASSISTANCE During 2014, Pluspetrol and the province of Salta collaborated by ensuring the HEALTHCARE SERVICES logistics for both doctors and patients. In the two campaigns run during the year, a total of 3655 patients were assisted: 961 clinical visits, 916 pediatric visits, and 845 gynecological visits; besides, 499 gynecological studies were performed, as well as 676 imaging tests and 257 dental visits.
By late 2014, a specific campaign of surgical operations was carried out for the first time, where 19 professionals from the Británico and Italiano Hospitals participated.
BOLIVIA COMMUNITY HEALTHCARE SERVICE
Through the Solidary Medical Group (GRUMEDSO), throughout 2014 we continued providing primary health care to neighbors from the 31 communities in the area of influence of Tacobo, Tajibo and Curiche fields, with the aim of performing health diagnosis focused on illness prevention, as well as providing pharmacological treatment when required.
This year, 155 service days were completed, and 4,978 patients were assisted (830 more than in 2013). The most frequent pathologies were acute respiratory infections (29%), musculoskeletal conditions (18%), gastrointestinal conditions (17%), and cardiovascular illnesses (13%).
70 • Pluspetrol COMMUNITY
Healthcare Projects
BU PROJECT LOCATION 2014 RESULTS
Argentina “Pluspetrol and Schools” Neuquén Dental, pediatric and ophthalmologic Healthcare plan. Area assistance to school-age children. In 2014, 1,406 dental visits were made (with 5187 services) as well as 1,385 pediatric visits. Additionally, in the ophthalmology area, 551 visits were performed and 232 pairs of glasses were delivered.
“Healthy to school” Healthcare Plan. Ramos In 2014, we worked all year round at Coronel E. Vidt School in General Mosconi, to detect and solve basic dental (with 7,684 services), pediatric (with 1,408 services), ophthalmological issues (860 pair of glasses were delivered), and to refer high risk cases to Public Health Centers (457 derivations).
Camisea, “Zero Cavity” Program Pisco, Dental health assistance aimed at reducing the Peru New Project. San risks associated with dental cavities, in the Andrés framework of the Interinstitutional Support and Agreement entered into with San Juan de Dios Paracas Hospital from Pisco. In 2014, over 1,300 boys and girls of between 3 and 11 years of age, from three educational institutions (kindergarten and elementary school) benefitted from it.
Pluspetrol Healthcare Program Block 1AB Access to health is favored for indigenous Norte, - Medical Campaigns. communities (assistance, medical tests and Peru medicines). During 2014, 17,706 medical consultations were delivered at health stations in Block 1AB, besides the medical campaigns in Pastaza and Tigre basins communities.
Prevention and Health Care. Block 1AB Health promoters training within the “Health Promoters Training”. communities. During 2014, we continued training 27 young people through courses deliverd by qualified professional in Andoas and San Jacinto medical units.
Provision of Community First-Aid Kits Block 8 In 2014, we provided the Native Communities from Patuyacu and Chambira basins with community first-aid kits containing basic medicines. The material was delivered to local health promoters.
Sustainability Report 2014 • 71 INSTITUTIONAL STRENGTHENING
HIGHLIGHTED PROJECTS
WHAT DO WE SEEK?
TO FOSTER SELF-MANAGEMENT OF SOCIAL ORGANIZATIONS
WHAT DO WE WORK ON?
SELF-MANAGEMENT SKILLS CAPABILITIES
BOLIVIA SUPPORT TO COMPREHENSIVE PROJECT MANAGEMENT
Pluspetrol continues working jointly with FUNDESOC to support the comprehensive and social management of development projects for 30 indigenous communities of the Guaraní People Assembly Captaincy (APG), North Charagua.
During the reporting period, 13 water projects were managed for those communities; we helped arrange the funding for the execution of the Social Housing Construction program for 5 communities.
CAMISEA, PERU TECHNICAL GUIDANCE TO COMMUNITY COMPANIES
During 2014, Pluspetrol continued supporting and providing technical guidance to transport community companies that belong to the CISA Consortium, in the Ucayali Region, through the Business Strengthening Program in Atayala.
With the aim of improving the management capacity of community companies and settlers who provide fluvial cargo transport, during this period we worked on diversification tasks, and we managed to help them become providers of other companies, both private and state-owned. Also, we provided guidance related to the constitution and formalization of CISA SAC.
Up right: Bolivia.
72 • Pluspetrol COMMUNITY
Institutional Strengthening Projects
BU PROJECT LOCATION 2014 RESULTS
Argentina Family Foundation. Neuquén Support to productive projects and community Area support to project entrepreneurs: native thinking, green horizon, microenterprises bank and pig production.
Bolivia Headquarters construction for APG APG With resources from the TCB-X1002ST well Captaincy in Charagua Norte. Captaincy, compensation, the construction of the New Project. North Captaincy’s new headquarters in Charagua was Charagua. financed.
Camisea, “Carlos Laborde de Sepahua Institute Atalaya Project management, development of skills on Peru Capabilities Strengthening” Program. cacao growing, and infrastructure and New Project. equipment enhancement. In 2014, technicians and producers specialized in cacao growing were trained.
Framework Commitment subscribed Pisco A money contribution was established for the this year with the provincial municipality execution of social, economic and of Pisco and local governments. infrastructure projects in a 5-year period: New Project. cleaning service and green areas enhancement to mitigate environmental impact in Pisco; and installation of sewage, house connections and wastewater treatment facilities in San Emilio, San Jacinto and Zarate Emilio neighborhoods.
Pluspetrol Institutional Strengthening Program Communi- Strengthening of environmental and public Norte, in Indigenous Federations. ties from management capabilities of the organizations. Peru Pastaza, Agreements were reached with the Corrientes Corrientes River Federations (FECONACO and FECONAT) and Tigre in order to finance informative workshops. basins (Block 1AB and Block 8)
Gastronomic and hotel management Block 8 The Center has a training plan in place for training center in Villa Trompeteros. young people from the region to develop restaurant and hotel hospitality skills. In 2014, thirty-seven students graduated.
Skills strengthening. Young people from the communities are New Project. Block 1AB trained to meet the needs of contractor companies that work inh Block 1AB. They were trained in welding, brick laying and vehicle driving services. In 2014, 19 people from the communities were trained in the welding course, 18 in the brick laying course and 20 in the vehicle driving course.
Basic Welding Course. Block 1AB In 2014, training was delivered by the National New Project. Service of Industrial-Technical Training (SENATI) in the Andoas base, with a duration of 100 hours. Certificates with national recognition were delivered. 19 inhabitants from the communities took part in it.
Down left: Centenario, Neuquen Area, Argentina.
Up right: Centenario, Neuquen Area, Argentina.
Down right: Pisco, Peru.
Sustainability Report 2014 • 73 COMMUNITY DEVELOPMENT
HIGHLIGHTED PROJECTS
WHAT DO WE SEEK?
TO ENCOURAGE PRODUCTIVE INDEPENDENCE AND ARGENTINA INFRASTRUCTURE STRENGTHENING A COMMUNITY AND ENVIRONMENTAL ALTERNATIVE
“Native Thinking” is a project started four years ago in North Valentina WHAT DO WE WORK ON? (Neuquén Area), based on the interaction of a local NGO (Fundación Familia), the Environment and Health School of the Comahue National University and SUSTAINABLE PRODUCTION ENTERPRISES Pluspetrol. ENHANCEMENT OF INFRASTRUCTURE AND UTILITY SERVICES The project has a community and environmental objective. A group of young women received training from the University to implement a nursery and greenhouse and produce local flora seedlings to be used to revegetate degraded areas. The sale of these seedlings generates the support for the youths who benefit from it.
For this initiative, Pluspetrol contributed a 4 hectare site, and built the nursery, the hardening site and the irrigation systems. The Environment and Health School is in charge of the project’s technical management and the attendees’ training. Additionally, Fundación Familia accompanies the whole process considering the social risk environment the participants come from.
During 2014, we worked on seeds collection and planting, and raising of native species for further sale. Approximately 20,000 seedlings of 8 different species were produced and sold.
BOLIVIA AGREEMENTS AND PRODUCTIVE PROJECTS FOR WATER AND ECOSYSTEMS CONSERVATION
The aim of this Interinstitutional Agreement between Fundación Natura, North Charagua APG Captaincy and Pluspetrol is to preserve the captaincy’s water resources and its 30 communities, in order to ensure long-term water supply for human consumption, food security, the environment and the development of economic activities.
As part of this project, the implementation of Water Reciprocal Agreements (WRA) is considered, where water users downstream in the basin support upstream communities or farmers through development projects in order to preserve or restore ecosystems relevant for the provision of domestic use and irrigation water. For its implementation the participating municipalities, the entity that renders the water service, irrigators, NGOs and Pluspetrol provide about 80% of the economic resources that will be invested upstream. The resources collected are managed by local institutions and the value of the retribution is decided during participatory processes.
During 2014, the socio-economic diagnosis of 30 captaincy communities was performed. Likewise, a water potentiality inventory and a water systems diagnosis are being carried out.
74 • Pluspetrol COMMUNITY
Community Development Projects
BU PROJECT LOCATION 2014 RESULTS
Argentina “This is Rhythm” Project. Neuquén An arts engagement forum for children and Area school age kids, through dance classes. In 2014, 270 students from 8 schools and a community center in the cities of Neuquén and Centenario took part in it. Three public performances were made with an overall number of 3,000 spectators.
Support to the North Valentina Neuquén We support the development of activities to Neighborhood Center. Area improve the neighborhood’s life quality. In 2014, there was a contribution of 2,500 meters of drinking water pipelines, streets conditioning, support to popular festivities, power line cables and poles.
North Valentina Genetic Lodge. Neuquén Development of a genetically-controlled pork Area breeding lodge to contribute to poor local producers. Construction of a barn was initiated, which will serve as a breeding center. At present, there are 30 animals under control and breeding.
Cobblestone Project. Ramos Cobblestone production for articulated New Project. pavement, together with Mosconi Municipality and Unemployed Workers Union (UTD) from Cornejo locality. By mid 2014, Pluspetrol gave UTD, under loan for use, a cobblestone maker, as well as aggregates and cement to manufacture 3,000 cobblestones. At the end of the year, the entrepreneurship is under operation, making its first sales.
Construcción de sede social Curiche Phase 1 of the community center construction Bolivia para Community de San Silvestre. was completed for the San Silvestre Proyecto nuevo. community to have a place where to hold meetings and cultural activities.
Mejoramiento del Matadero Municipal Curiche The municipal slaughterhouse has been Abapó Sur. enhanced and is already operative, which will Proyecto nuevo. enable the community to have a space to slaughter animals in optimal health conditions.
Construcción de un parque infantil. Curiche Construction of the playground was concluded Proyecto nuevo. and it was officially handed over to Abapó community, for the children to have a healthy recreational environment.
Camisea, Support for procurement and purchase of San Loans. In 2014, 1,125 fishermen were granted Peru traditional fishing equipment within the Andrés, a loan. framework of the emergency program for Paracas Traditional Fishermen, through Fondepes. and Pisco localities, Ica Depart- ment
“Water and Sanitation - Elevated Reservoir Paracas Paracas inhabitants’ life quality is improved Construction in Santa Cruz sector, Paracas localities, by means of the provision of drinking water to district” Project. Province their homes. The elevated reservoir of Pisco, construction was completed, which will benefit Ica 7,400 inhabitants from the Paracas district. Depart- ment.
“Our Well-Being” Project. Amazo- The development of individual, collective and nian institutional capabilities to improve relations indigenous among family members. During 2014, together communi- with Flora Tristán Organization, the actions ties from focused on two components: Matsiguenga Lower women development program and “My Healthy Urubamba Home” program. 90 craftswomen from 6 (Camisea, communities, 40 children, 80 local workers, 6 Shivan- directive boards, and about a hundred koreni, inhabitants were benefitted. Cashiriari, Segakiato, Kirigueti and Nuevo Mundo).
Improvement of streets, rehabilitation of the San Improvement of the living conditions of 4,000 water network and building of sidewalks and Andrés district inhabitants. During 2014, 42% of the pavements. localities, work was completed. New Project. Province of Pisco, Ica Depart- ment.
Sustainability Report 2014 • 75 COMMUNITY Community Development Projects
DEVELOPMENT BU PROJECT LOCATION 2014 RESULTS PROJECTS Pluspetrol Construction of community and family Pijuayal, Community self-support. 15 fish farms were Norte, fish farms. Valencia, built. Families received guidance on fish farm Peru San José management in the beneficiary communities. de Nueva HIGHLIGHTED Esperanza, PROJECTS Peruanito and Boca de Copal (Block 8).
Obras de infraestructura para Block 8 Pedestrian walkways in San Juan Nativo, Communityes nativas. Nuevo San Martín, Santa Elena and Nuevo Porvenir; pedestrian bridge in the Cuchara community; expansion of the school premises in Dos de Mayo community; construction of a community facility for Santa Rosa’s native community. Also, we are building the kindergarten education center in Santa Elena; and progress was made in the construction of two community facilities in S.J. Campesino and Las Palmeras.
Basic, educational and community interest Alianza During 2014, progress was made in the infrastructure development projects. Capahuari, following projects: maintenance of 3.5 km of New Project. Tituyacu, the Capahuari road – Tambo (70% progress); José electrification system complementary work Olaya, (37% progress); repairs to the current Doce de electrification system (95% progress); Octubre, improving the electric system in the Vista community changing poles and installing solar Alegre, panels (25% progress); construction of the Andoas kindergarten educational center facility (75% Viejo, progress). Pañayacu, Los Jardines, Alianza Topal, Sauki, Antioquia, Pampa Hermosa, Alianza Topal (Block 1AB).
Delivery of agreed-upon goods Block 1AB Two portable sawmills were delivered (and and works to native communities. installed) to Sauki and Vista Alegre native New Project. communities, and teaching material was delivered to the Titiyacu community. Besides, two community works were concluded: a church for the Titiyacu community and a health cabin for Los Jardines community.
Camisea Native Community, Lower Urubamba, Peru.
76 • Pluspetrol COMMUNITY
Villa Trompeteros, Loreto, Peru.
OUR SOCIAL INVESTMENT SOCIAL INVESTMENT, IN MILLION US$ IN NUMBERS 2011/2014 EVOLUTION
During 2014, Pluspetrol assigned US$ 16,242,937 to projects selected based on corporate standards 20,000,000 18.6 for community action and social investment, with the permanent and active engagement of the 16.2
communities and beneficiary localities. 15.5 15,000,000 13.6
10,000,000
PERU WORKS FOR TAXES A successful and innovative way of complementary 5,000,000 social investment, shared between our company and the local and regional governments of Peru, is the “Works for Taxes” modality. The strategy consists 0 in the investment in community interest works in the sanitation, health, education and transport Field 2011 2012 2013 2014 sectors, with private company funds, which may be (in dollars) exchanged for taxes. The first works in the rain • Education 935,221 748,425 911,842 739,479 forest regionwere executed by Pluspetrol Norte in • Health 4,047,757 3,282,958 2,792,347 2,344,859 the Nuevo Andoas community; it consists in the • Community construction of a new high school. development 5,561,651 8,048,339 10,188,868 8,533,732 • Institutional strengthening 399,589 468,138 2,639,462 1,132,538 • Other 2,681,183 3,037,454 2,118,272 3,492,330 TOTAL 13,625,400 15,585,312 18,650,791 16,242,937
Sustainability Report 2014 • 77 PARTICIPATORY PROCESSES COMMUNICATION PROCESSES In our industry there are two types of Pluspetrol’s community action is based on reliable, accessible, citizen participatory mechanisms: the understandable and timely information related to its operations and mandatory ones, that is, those contained projects. During 2014, Pluspetrol promoted the liaison with local in the standards and regulations of each communities through meetings, workshops, visits or hearings, associated country’s extraction sector, and the with the communication of their projects and fulfillment of the processes designed by the company itself commitments made in the different legal instruments. to encourage the engagement and involvement of local players and integrate them into the decision making process.
The mandatory or legal engagement mechanisms demand that companies ● 4 briefings were held, where consultations were received from 168 inhabitants from Yabi, Chimbolo, Simindele & Chibodo, and Zongolo communities in order follow a communication, consultation ANGOLA to provide a better understanding of the company’s activities and search for and/or information process of their community engagement alternatives. projects to the people who inhabit the areas surrounding their operations. In certain countries, such as Colombia or Peru, this action is carried out in a phase previous to the operations and land concession; others admit it in a phase subsequent to the bidding contract´s subscription, through the execution of informative workshops, hearings or ● 13 meetings with a total 69 people were held in Centenario Field to move forward with respect to the company’s operations and collaboration with the other citizen-engagement events, where ARGENTINA community. the population’s expectations, doubts, ● In Zapala, we reached an agreement with the Gelay Ko community to complete an exploratory well after 5 meetings with a total of 8 people. concerns and suggestions in relation to the new project are collected and incorporated into the final design.
The starting point of our participatory processes is to understand the ● During 2014, together with the Curiche community, we addressed the Tacobo communication needs and interests of Field’s 3D Seismic Exploratory project. 6 agreement subscription assemblies with a total 540 people were held, as well as 17 community meetings to inform BOLIVIA our local communities. The citizens and 363 people about the project execution. community engagement is inherent to our ● 2 Meetings with the Tajibo community were held for the reception of claims and complaints, attended by a total of 30 inhabitants. social management process; community involvement demands an open and intercultural approach from us, which in many occasions increases the timeframe of a project so as to adapt it to the local decision-making processes. This ● The company held several meetings in Block 8, in order to sign agreements change in the perspective ensures a and contracts with communities from the Corrientes, Patuyacu and Chambira rational and committed support of the river basins. ● Additionally, 30 meetings were held, where agreements were subscribed, population to our projects. Engagement which are part of the vandalism prevention plan, such as: the Fluvial mechanisms are made viable by means PPN, Surveillance Program and the Mutual Benefit Agreement for facility (pipelines) PERU security, with the participation of Patayacu and Chambira communities for the of different strategies, such as 2014-2015 period. consultation and information workshops, ● Meetings and assemblies were held in Block 1AB, in different communities, to negotiate the use of lands and quarries. participatory monitoring programs, ● Finally, 12 meetings were held Pastaza and Corrientes basins communities to local staff incorporation in new projects’ evaluate the progress made in relation with the 2011-2014 Agreement. monitoring, and community lookouts training, among other alternatives. The development of participatory methods enhances the projects’ quality, efficiency ● 50 Workshops were held to inform the communities about the company’s and sustainability; and strengthens activities, attended by 1543 people, besides the issuance of 5 newsletters that our stakeholders’ responsability and reached 50,000 people in Pisco, San Andrés and Paracas. ● To receive enquiries or requests for support and coordinate activities, 61 events CAMISEA, commitment. were held with the Boards from the 12 communities from the direct and indirect PERU areas of influence of Blocks 88 and 56, Lower Urubamba. ● 39 meetings were held with local inhabitants, base organizations, educational and public institutions from Pisco, San Andrés and Paracas, attended by a total 917 local inhabitants.
78 • Pluspetrol COMMUNITY
CORE ELEMENTS OF THE CLAIM OR COMPLAINT RESOLUTION PROCESSES
GRIEVANCE RESPONSE MECHANISMS AND CONFLICTS RESOLUTION DESIGNATION OF The development of our activity involves PEOPLE IN CHARGE FOR ALL MANAGEMENT permanent interaction with local PHASES. stakeholders. This liaison is particularly complex in those regions where multiple players with different interests coexist, or in social environments where diverse indigenous communities reside, each of EVERY them with their own values and cultures. OPERATION OBSERVANCE OF INVESTIGATION OF THE HAS ITS OWN RESPONSE TIMES EVENT OCCURRED AND PROCEDURE, ENSURING CLAIMANTS’ RELEVANCE OF THE From Pluspetrol we work to solve ADJUSTED TO ITS SATISFACTION. COMPLAINT TO DEFINE CHARACTERISTICS differences within a mutual respect CORRECTIVE ACTIONS. AND CONTEXT framework. In all our operations we have procedures to ensure the appropriate reception and answer within the shortest possible time to eventual complaints received from the local population, public or private institutions, and indigenous IMPLEMENTATION OF organizations settled in the area of RECORDING AND influence, among others. MONITORING TOOLS FOR ALL THE PHASES OF THE PROCESS.
ARGENTINA • We worked on the resolution of 2 conflicts in Ramos and Centenario Fields, related to the demand for service provision and cooperation in general tasks that the company provides the communities in the area. Company representatives met with community leaders and neighbors.
PLUSPETROL • In Block 8, four conflicts were recorded related to the retention of workers who NORTE, provide services to the company and also from fluvial vessels, in the Nueva PERU Valencia, Nueva Unión, Boca de Copal and San José de Nueva Esperanza communities. There were 9 labor stoppages in the communities of Nueva Reforma, La Petrolera, Nuevo Progreso, Nueva Alianza, Santa Teresa, Nuevo Peru and Bellavista. The facilities of a contractor company were taken over in the Nuevo Porvenir community. • In Block 1AB, two labor stoppages were recorded in the José Olaya community, and 1 access blockade in Nuevo Andoas, due to compensation claims for the use of lands and quarries. Additionally, an alliance of communities performed a pacific demonstration for 15 days -which affected the normal traffic and activity in the area- to draw attention to different claims; on the other hand, the Doce de Octubre community carried out one blockade in the entrance of Tigre river bridge, due to the delays in the commencement of the works agreed upon, an elementary school. Also, 2 blockades of the main road were recorded: the Nueva Jerusalén community protested against a chemical leakage incident, and representatives from Tigre Basin demanded that the Government hire an expert company to carry out soil characterization works.
Angola, Bolivia and Camisea, Peru only received a few complaints which were quickly resolved.
The conflicts were solved through meetings and rounds of dialogue between Pluspetrol, the communities’ authorities and government bodies, if they are involved.
Sustainability Report 2014 • 79 INDIGENOUS COMMUNITIES
Pluspetrol’s operations are usually developed in very sensitive geographical and socio-cultural areas, such as indigenous communities’ lands. Preserving their habitat and culture is one of the company’s priorities, whose strategy is based on respect for local organizations, traditional values and ongoing participatory work, to contribute to the development of these valuable communities.
PPN ETHNIC GROUPS AND CULTURES: Ethnic groups: THE MACHIGUENGAS29 Achuar Quechua and Urarina (Department of The Machiguenga ethnic group –also known as Loreto, Peru) Matsigenka or Machigüenga– inhabits the Peruvian Amazon rain forest in the basins of the lower Urubamba, Manu and high Madre de Dios rivers, in the Departments of Cusco and Madre de Dios, respectively. According to census data, by 2007, the population of the communities self-identified as CAMISEA Ethnic groups: Matsigenka was 11,279 people. In addition, there are Machiguenga, Yine Matsigenka families in isolation and initial contact and Ashaninca. (Department of conditions (PIACI), who move around the area of Cusco, Peru) the Kugapakori, Nahua, Nanti Land Reserve (Cusco and Ucuyali).
Currently, most of the Matsigenka population lives in native communities alongside the rivers, which implies a relative level of sedentary lifestyle. Regarding their economic activities, the Matsigenka BOLIVIA Guaraní Ethnic in general practice small scale mixed farming through Group (APG the slash and burn method. Main products grown Captaincy, North Charagua) include corn, yucca, banana, beans and peanuts. The crops marketed are annatto, coffee and cacao. Fishing is the economic activity that represents their primary source of animal protein in their basic diet, while hunting comes second.
ARGENTINA Until the beginning of the 1950’s, the Matsigenka’s Ethnic group: political organization was limited to a self-selected Wichi and Guaraní (North Area) chief in every family group. Nowadays, also central Ethnic group: organizations, federations and councils are identified, Mapuche (Neuquén Area) who represent the different native communities of the area.
The Camisea Project (Blocks 88 and 56) are located in community territories of this indigenous ethnic group; the native communities in the area of influence of our operations are: Camisea, Ticumpinía, Cashiriari, Segakiato, Shivankoreni and Kirigueti. The social management developed since the early stages of the project with these communities is
29. Sources: “Los Machigüengas”, France-Marie Renard-Casevitz, Boletín de detailed in the section “10 years of Camisea” in the la Sociedad geográfica de Lima (1974, 93, août-décembre), p. 27-35. Peru Ecológico: http://www.peruecologico.com.pe/etnias_machiguenga.htm Environmental Chapter. Interculture Vice Ministery of Peru: http://bdpi.cultura.gob.pe/pueblo/matsigenka
80 • Pluspetrol COMMUNITY
OBSERVANCE AND PROTECTION OF INDIGENOUS PEOPLES’ RIGHTS CODE OF CONDUCT
Continuous training programs for Pluspetrol staff Its objective is the proper work behavior inside as and staff from contractor companies transfer well as outside our areas in operation, to safeguard the main guidelines of community management the integrity and good relations with indigenous regarding liaison with indigenous communities, as communities and the environment. The Camisea´s well as knowledge and respect for their cultural Code of Conduct, developed in a participatory way and land rights. with indigenous communities in 2002, is the first antecedent of a document of this kind in our company.
CODE OF CONDUCT
In Camisea, Peru, during 2014, induction talks on Community Affairs and the Code of Conduct were delivered to 2,877 new workers from Pluspetrol and the different contractor companies. COMMUNITY ENVIRONMENTAL INDIGENOUS LAND MONITORING COMMUNITIES RIGHTS In turn, in Bolivia 34 talks were delivered on the Code PROGRAM (PMAC) of Conduct,training 879 workers. Further, within the framework of the 3D Seismic Exploration project, 25 induction talks on North Charagua Original Community Land (TCO) were held, attended by 635 workers.
AGREEMENTS, COMPENSATIONS AND INDEMNITIES PROGRAM
Sustainability Report 2014 • 81 LAND RIGHTS
Pluspetrol develops its activities paying special attention to respect the isolation that certain indigenous communities wish to preserve, without disturbing their community rights or natural habitat.
CAMISEA, PERU ANTHROPOLOGICAL CONTINGENCY PLAN (PCA) - BLOCK 88
In order to reduce the level of socio-cultural and health risk in the populations of the Kugapakori Nahua Nanti Land Reserve (RTKNN) due to the execution of the Camisea project activities, we continued in Block 88 the Anthropological Contingency Plan (PCA) that Pluspetrol has implemented since the beginning of its activities in 2002.
Aligned with the RTKNN Protection Plan -approved by the Ministry of Culture as part of the official policy for defending the integrity of the people that live inside said reserve- the PCA considers measures that facilitate efficiently managing, under social responsibility criteria, situations resulting from the Project’s activities that involve some level of risk for the RTKNN population.
Among the PCA’s objectives stand out training and dissemination of conduct standards for Pluspetrol’s and contractors’ staff, associated to procedures and protocols in the face of sightings and encounters with isolated populations. Also, in the different work fronts there are lookouts, Matsiguengas as well as Nahuas, who serve as translators (bilingual Matsiguengas and bilingual Nahuas) in cases where there is an undesired encounter with the inhabitants from inside the RTKNN.
Finally, the PCA includes communication and coordination mechanisms with the relevant authorities to manage possible contingent situations, based on cooperation agreements with the Ministry of Culture, the SENANP (National Service for State Protected Natural Areas), and the MINSA (Ministry of Health), among others.
For the development of the Full Exploration Plan (FEP), the PCA has been implemented in field operations, pursuant the recommendations and guidelines set by the VMI (Interculture Vice Ministry), and the UN Special Rapporteur on the rights of indigenous peoples, incorporating the improvements suggested. The PCA is an appropriate tool for the prevention and management of undesired contacts with Isolated or Initial Contact Indigenous Peoples (PIACI).
Each work group has a community lookout especially trained in the PCA, who can communicate in the native languages of the area (Nanti, Nahua and Machiguenga).
In 2014, during the execution of the 2D seismic project, under the FEP, 27 pacific contacts occurred, one sighting and some evidence findings. Most events were associated to the population settled in the RTKNN (officially called “population in initial contact condition”), though there were also some events with neighboring populations, from the Cashiriari and Segakiato communities.
No event with isolated communities has been recorded.
82 • Pluspetrol COMMUNITY
COMMUNITY ENVIRONMENTAL MONITORING PROGRAM (PMAC)
The PMAC is the result of an extensive We register social and We design and participatory process developed environmental variables update a training to evaluate the plan to strengthen between Pluspetrol and the indigenous program by means the monitors’ communities that live in the area of of monitoring technical skills. activities. influence of the project. The aim is to take advantage of these communities’ ENVIRONMENTAL MONITOR AND SOCIAL TRAINING knowledge to monitor environmental and MONITORING social impacts that our activities might cause. Additionally, the PMAC enables the local population to participate in verifying the observance of the environmental COMMUNICATION ENVIRONMENTAL commitments taken on by the company. AND EDUCATION DISSEMINATION We communicate We strengthen The program is structured based on environmental the monitors’ oral an improvement process that facilitates awareness, with the and written skills aim of promoting healthy in order to improve optimizing the scope of its objectives environmental behaviors their performance with active engagement of the inside the communities. within the communities. communities:
CAMISEA, PERU
As part of the PMAC, in 2014 a total of 36 environmental monitorings were performed in different locations within the areas of operation, both in Block 88 and Block 56.
The monitorings included: Mipaya flowline facilities; drilling platform for the injection well in Malvinas; Malvinas Gas Plant; Pagoreni B, San Martin 1 and Mipaya platforms; and facilities in Oropel, paying special attention to wastes management, drinking and discharge water treatment systems, among others. In addition, monitoring of dringking water sources, environmental noise and air quality were carried out in the native communities of Segakiato, Cashiriari and Ticumpinía.
During the year, a total of 12 monthly workshops were organized to provide environmental and social training.
For more information visit www.pmac-bu.org.pe
BOLIVIA
During the execution of the 3D Seismic Exploration project (initiated 1 August, 2014) a public disclosure document for the consultation and engagement process was prepared in a participatory manner, and an active assistance in the public consultation workshops was recorded. Likewise, socio-environmental monitoring of the following activities associated to the project execution was performed: path clearing and topographic surveying; verification of minimum safe distances of shot holes in seismic lines; hiring labor and local services; project socialization in the communities; communication management with their parent organization and community authorities; grievances management; community roads use and maintenance; obtaining permits, valuation and payment of compensations and signing of conformity acts; staff behavior inductions and surveillance; and elaborating monthly monitoring reports and a final report.
Sustainability Report 2014 • 83 AGREEMENTS, COMPENSATIONS AND INDEMNITIES PROGRAM CAMISEA, PERU Included in our Community Liaison Plan, agreements, compensations and During 2014, six fluvial traffic agreements for the period 2011-2014 were indemnities establish fair reimbursement completely settled, and another three have an outstanding paymentbalance. for the population, under a mechanism Likewise, fluvial traffic agreements for the period 2014-2016 were signed with five of returns for a service provision or the villages and two rural settlements (Shintorini and Tupac Amaru). temporary use of an area of interest for our operations. The agreements and Regarding the compensation agreements in the operation phase of Blocks 88 compensations are executed under the and 56, an agreement with the Kirigueti community was signed as well as an applicable regulations and established agreement with the rural settlement Tupac Amaru. Further, we completed under a process of mutual agreement the negotiation with the Ticumpinia community for the Malvinas plant extension. with the populations, pursuant to their Likewise, an agreement was signed in relation with the compensation of Block 88 decision-taking guidelines or mechanisms. for the 2D seismic survey, and a disbursement was made to the Cashiriari In the case of indemnities, the purpose community. of the negotiation is to revert or redress a damage or loss caused individually or collectively; a very simple example of this process is the indemnity payment for the plants and/or trees that must be temporarily withdrawn due to a road construction in a seismic project.
BOLIVIA
30 productive initiatives were funded, with charges to the following sources: a) Social Action Plan 2014 (agreements); and b) Compensations Agreement for Wells SID-X1, TCB-X1002ST, SIN-X1, and Tacobo and Curiche Fields 3D Seismic (compensations).
Also, we achieved co-financing of the Housing State Agency of Bolivia for the construction of 66 dwellings in the communities of Puerto Viejo, Tacobo and El Carmen. The local counterpart comes from resources of the 2014 Social Action Plan, Compensations Agreement (PBC) and local manpower. As per the installation and enhancement of water systems for human consumption in 17 Guaraní communities, seven projects were completed with FUNDESOC’s technical assistance, the resources came from agreements, compensations and third-party funds, and six projects were executed with the NGO Acción Contra el Hambre, as a result of FUNDESOC’s management.
84 • Pluspetrol COMMUNITY
COMMUNITY AND VALUE CHAIN
In Pluspetrol we are convinced that generating job and local development opportunities contributes to the communities’ sustainability and stregthens our value chain. That is why we prioritize hiring people from the areas where we operate, developing local management capabilities and encouraging the creation of community companies that may become LOCAL EMPLOYMENT our suppliers and suppliers of other companies in the area. In Pluspetrol we particularly prioritize hiring people living in the communities immediately surrounding our operations. Our Community Affairs Area works on mechanisms and agreements that facilitate VALUE CHAIN CYCLE hiring local staff -including members of native communities- directly and through community companies.
SUPPLIERS
● Through community companies serving as our contractors, during 2014, 1,426 job opportunities were generated in Block 8, and 3,803 in Block 1AB. Likewise, 70% of the works executed in 5,229 the communities were in charge of community companies. Job opportunities Finally, during the reporting period, 89 people were trained in LOCAL created in the Villa Trompeteros training school, out of which 19 were DEVELOPMENT PPN, PERU employed by contractor companies, and the rest work in their own family businesses. COMMUNITY LOCAL COMPANIES EMPLOYMENT
● To carry out a 3D seismic project in Tacobo and Curiche fields, 93 technically-skilled workers were hired. Additionally, 604 workers were hired to move equipment and staff, and perform drilling, 736 registry, restoration and abandonment, and topographic surveying tasks. Additionally, jobs were provided to workers to manage Job opportunities lodging and food services for 180 workers in hotels and homes. created in Likewise, community members from Tajibo Field carried out the BOLIVIA surveillance of AMR-X1001 well in order to provide water to Aymiri and Quebracho Guaraní communities.
● Job opportunities were created for members of native communities 3,950 and rural settlements from Lower Urubamba associated with Job opportunities different projects executed throughout the year. created in CAMISEA, PERU
49 ● An agreement was signed with a local organization with the aim of hiring labor for general tasks to be performed in the Ramos Field. Job opportunities created in ARGENTINA
Sustainability Report 2014 • 85 COMMUNITY COMPANIES AND PRODUCTIVE ENTERPRISES CAMISEA, PERU
Pluspetrol collaborates with the creation In 2014, the company Segakiato SAC, constituted with compensation funds and maintenance of community granted by Pluspetrol to the native community with the same name, continued business initiatives. The Company hires providing fluvial cargo and passenger transport services to Pluspetrol and other and advises the services of these local companies, as it’s been doing since 2012. enterprises and, in turn, the latter contribute as service suppliers of other With respect to the previous period, Segakiato notably increased 80% its staff, companies in the region. with 382 people in December, 2014, coming from different communities from Lower Urubamba.
PLUSPETROL NORTE, PERU
The first entrepreneurship of this kind started its activities in October, 2007, as an agricultural service community company (ECOMUSA), in the José Olaya community, with a total of 21 full-time employees. The company started offering clearing (weed cutting) services in rights of way, oil pipelines, flowelines, high voltage power lines and specific locations. In July, 2009, a new service was added: tree felling, which enabled the creation of 16 new work positions. The company has been growing ever since; nowadays it has 797 work positions.
During the 2014 period, the number of community companies in Block 1AB was extended, addingup to 10 at present: Doce de Octubre, José Olaya, Antioquia, Nuevo Andoas, Alianza Capahuari, Nueva Jerusalén, Pampa Hermosa, Titiyacu, Los Jardines and Nuevo Porvenir. These community companies generated 3,803 total job positions in the different work fronts, such as selective felling, weed cutting, reforestation and erosion control, among others.
86 • Pluspetrol COMMUNITY
PLUSPETROL NORTE, PERU
AWARDS AND 2014 PROINVERSION AWARD FOR SOCIAL INCLUSION During the reporting period, Pluspetrol Norte was awarded this recognition RECOGNITIONS within the Works for Taxes program, for the management of an entrepreneurship in the rain forest region. The winning project consisted in the construction On many occasions, our work with the of a high school educational center -agricultural modality- in the Nuevo Andoas communities rewards us with special community in Block 1AB. recognitions that, beyond the objectives of the areas where the company is involved, confirm our goals and encourage us to double our efforts. SUSTAINABLE DEVELOPMENT 2014 AWARD, SOCIO-ENVIRONMENTAL MANAGEMENT CATEGORY In this edition, we share some distinctions The Community Environmental Monitoring Program of Corrientes River, which received by our Peru units. PPN promotes in the region of Loreto jointly with indigenous communities in the area of influence of Block 8 and the NGO Pro Naturaleza, won the award for “Sustainable Development 2014”, organized by the National Oil, Mining and Energy Society (SNMPE). The PMAC Corrientes was awarded first place in the category of Environmental Management, which recognizes the efforts in conservation and efficiency in the use of natural resources and the prevention, rehabilitation and recovery of affected areas.
It was also declared as a finalist in the category of Biodiversity Management 2014 in the National Environmental Award, granted by the Ministry of Environment. In this case, it has been recognized for its work in the recovery of the quality of ecosystems, including emblematic species of Corrientes River basin as the taricaya (river turtle), the black caiman and amazonian fish.
CAMISEA, PERU
RECOGNITION OF PISCO SOCIETY
The Chamber of Commerce of Pisco recognized Pluspetrol for its commitment and accountability with the society of this province. The award was made official within the framework of the Chamber’s 79th anniversary, highlighting the coordinated joint work by the company and Pisco’s different stakeholders, as well as its contribution to the execution of several programs and projects aimed at driving local development.
Also, we must point out that the Department of Education distinguished Camisea with a Diploma, recognizing Pluspetrol’s contribution to Educational development. Since 2008, different educational programs have been carried out for the benefit of students in the Pisco province and in the native communities of the Lower Urubamba.
Sustainability Report 2014 • 87 SAFETY & INTEGRITY
WE MANAGE RISK AS AN ESSENTIAL PART OF OUR ACTIVITY; WE TAKE DECISIONS ACCORDING TO THEIR LEVEL, MINIMIZING NEGATIVE IMPACTS AND OPTIMIZING THE BENEFITS AND OPPORTUNITIES CREATED BY OUR ACTIVITY DURING THE LIFETIME OF OUR PROJECTS.
WE OPERATE SAFELY AND RESPONSIBLY, WITH A PREVENTIVE APPROACH, WHICH SEEKS TO AVOID ALL KINDS OF INCIDENTS AND MINIMIZE ADVERSE IMPACTS ON STAFF, THE ENVIRONMENT AND OUR NEIGHBORS.
SAFETY AND OPERATIONS INTEGRITY
PERFORMANCE INDICATORS SAFETY AND OPERATIONS INTEGRITY MANAGEMENT
TRAINING & LEARNING
Ramos Gas Plant, North Area, Argentina.
88 • Pluspetrol Operational Excellence is the strategy defined from Operations to achieve growth, value creation and long-term sustainability objectives. Safety & Operations Integrity management excellence involves ensuring an optimum risk and integrity management, establishing continuous improvement processes to minimize incidents and losses, and appropriate contingency management.
Mary Stella Corsaro Safety & Operations Integrity Corporate Manager
Ramos Gas Plant, North Area, Argentina.
Sustainability Report 2014 • 89 THE RISKS RELATED TO PERSONAL OR PROCESS SAFETY-RELATED RISKS LEAD TO OCCUPATIONAL SAFETY LEAD TO INCIDENTS MAJOR INCIDENTS DUE TO THE RELEASE OF WHOSE IMPACT IS LIMITED TO THE WORKERS POTENTIALLY HAZARDOUS MATERIALS OR INVOLVED IN THE TASK. ENERGY, WHICH IMPACT ON THE WORKERS, THE COMMUNITY, THE ENVIRONMENT, THE FACILITIES AND/OR THE BUSINESS CONTINUITY.
SAFETY
OUR SAFETY & OPERATIONS INTEGRITY MANAGEMENT PERSONAL PROCESS SAFETY SAFETY
Over the past 25 years, the industry -and PERSONAL FIRE, EXPLOSIONS, also Pluspetrol as part of it- has focused DAMAGE CHEMICAL PRODUCT PREVENTION RELEASE PREVENTION on occupational safety; i.e., managing AND MITIGATION AND MITIGATION people’s safety, by using systems centered on identifying and managing risks during the performance of their duties. The implementation of these systems has substantially reduced the frequency of incidents.
In Pluspetrol, we manage a complex risk portfolio, from the possibility of occurrence of minor events to major ones. We have achieved improvements LOW CONSEQUENCE HIGH CONSEQUENCE in their management, and the challenge is HIGH FREQUENCY LOW FREQUENCY to continue reducing the probability of major events. The correct management of Source: ccps the aspects that include, but are not limited to, asset integrity, management Pluspetrol’s management strongly believes that the appropriate implementation processes and competence assurance are of the Process Safety concepts is the key to minimize the risks of major accidents key elements to meet this goal. This set in the operations. of elements is called Process Safety.
One of the lessons that result from the major incidents analysis in our activity is the need to distinguish process safety and personal safety, and manage both PROCESS SAFETY aspects with the appropriate approach.
This is a disciplinary framework for the integrity management of operational systems and processes that handle hazardous substances. It is based on the best practices for design principles, engineering, operation and maintenance.
90 • Pluspetrol SAFETY
WHAT DOES PROCESS SAFETY IMPLY? All the actions necessary to prevent catastrophic events (explosions, fires, environmental disasters)
TOOLS
THE RIGHT APPROPRIATE PEOPLE WITH THE ORGANIZATION RIGHT SKILLS ● PROCEDURES ● GUIDES
WITHIN A FRAMEWORK OF THE SENSE OF VULNERABILITY
By understanding this change, Pluspetrol has evolved considering the Safety concept as an approach that manages Personal Safety and Process Safety, so that Occupational Health and Safety has accompanied this change process renaming it as Safety & Operations Integrity (S&OI), and its challenge is set up in four general chapters, one for each subject area that constitutes the Management structure.
S&OI STRUCTURE
CHANGE SAFETY ASSET RISK MANAGEMENT (CULTURAL INTEGRITY AND CONTINGENCY EVOLUTION) PLANS
ENSURE THE DEVELOP SAFETY DEVELOP ASSET ENSURETHE SAFETY IMPLEMENTATION POLICIES AND INTEGRITY POLICIES AND INTEGRITY OF PLUSPETROL’S STRATEGIES FOR AND STRATEGIES RISK MANAGEMENT INTEGRITY STANDARD, PLUPETROL, FOR PLUSPETROL, OF PLUSPETROL’S BY COORDINATING PROMOTING PROMOTING OPERATIONS, ALIGNED THE DEFINITION OF MANAGEMENT THE MANAGEMENT’S WITH THE PROCESS PROCESSES, ALIGNMENT WITH ALIGNMENT WITH SAFETY MANAGEMENT STANDARDS AND INTERNATIONAL INTERNATIONAL (PSM) PRINCIPLES PRACTICES, PROVIDING STANDARDS. STANDARDS. THROUGHTHE MANAGERS WITH DEFINITION OF THE SUPPORT, USING AS ENSURE AN ENSURE AN RISK MANAGEMENT LEVERAGE CULTURE APPROPRIATE APPROPRIATE PROCESSES. MANAGEMENT AND DISSEMINATION AND DISSEMINATION AND THE ARTICULATION IMPLEMENTATION OF IMPLEMENTATION ENSURE THE OF THE NECESSARY SUCH POLICIES AND OF SUCH POLICIES ALIGNMENT OF ALL COMMUNICATION. STANDARDS, AND AND STANDARDS, AND THE CONTINGENCY THEIR ALIGNMENT THEIR ALIGNMENT PLANS WITH THE WITH THE COMPANY’S WITH THE COMPANY’S IDENTIFIED RISKS, STRATEGY. STRATEGY. AND THEIR QUALITY.
ENSURE THAT THE INSURANCES PROCURED ARE ALIGNED WITH THE IDENTIFIED RISKS.
Sustainability Report 2014 • 91 SAFETY PROCESS SAFETY OUR CHALLENGES
• TO INTEGRATE PROCESS SAFETY INTO MANAGEMENT, IN ORDER TO ENABLE EARLY DETECTION OF DEVIATIONS SO AS TO MINIMIZE POTENTIAL MAJOR ACCIDENTS STANDARDS DEFINITION • TO DEFINE AND IMPLEMENT SAFETY MANAGEMENT STANDARDS AND TOOLS SO AS TO INCORPORATE THE BEST PRACTICES OF THE INDUSTRY AT AN INTERNATIONAL LEVEL, AND COMPLY WITH THE LOCAL LAWS AND STANDARDS IN EVERY BUSINESS UNIT PERFORMANCE INDICATORS • TO POSITION OURSELVES WITHIN THE IOGP WORLD TRIF30 TOP QUARTILE
• TO BE RECOGNIZED AS SAFETY LEADERS IN ARGENTINA AND PERU
TRAINING AND LEARNING
TRAINING AND LEARNING
Year after year, we offer different Safety-related The first event that Pluspetrol’s staff had an training courses aimed at our collaborators as well as opportunity to attend this year was the Latin contractors, in order to increment their knowledge American Process Safety Congress, which lasted 4 and strengthen their skills, favoring a higher days, and where a significant number of employees professional growth and performance when carrying from different roles and business units were able out their tasks safely. Such courses are defined to share knowledge and experiences. based on the people’s roles and responsibilities, and the risks present in the position they serve. During November and December, personnel from technical and operational areas attended the course: CCPS “Foundations of Process Safety”, whose TRAININGS HOURS OF TRAINED TOTAL aim is to strengthen knowledge on Process Safety, 31 BY BUSINESS TRAINING RECEIVED PERSONNEL TRAINING based on a need for the implementation of UNIT PER PERSON HOURS an efficient management system to increment 32 Bolivia 12.18 2,053 25,006 operational efficiency, based on 4 pillars and 20 Argentina 2.33 2,369 5,520 elements from the Risk Based Process Safety.
PPN, Peru 2.42 7,027 17,021
Camisea, Peru 14.5 4,705 68,251
Total 7.2 16,154 115,798
Additionally, during 2014, we worked to incorporate into the organization the skills and abilities required to manage Process Safety. A series of learning spaces have been planned, which will enable the organization to acquire knowledge on keynote aspects.
30. Total recordable incidents frecuency / Frecuencia del total de incidentes registrables. 31. It includes both, its own personnel and contractors. 32. The average hour value per person is higher than for the rest of the BU. The explanation is that in such BU an exploratory project was developed, which tripled its workforce for a few months. These people receive a thorough short-term safety training program.
92 • Pluspetrol SAFETY
TRAINING AND LEARNING PRACTICES
SAFETY AND HEALTH AT WORK WORLD DAY CELEBRATIONS - CAMISEA, PERU
On the celebration of the World Day for Safety and Health at Work, during the week of April 28, a space for reflection was generated throughout the areas of the company, both at the corporate level as well as in the business units. The topics addressed included, among others, Process Safety; Hand Protection, Noise and Hearing Preservation; Chemical Products Handling; Behavior-Based Safety.
BRIGADE TRAINING AT CORCOBO FIELD, ARGENTINA
The Corcobo field has its own brigade squad to fight fires. Once a week, this brigade –which received formal training on firefighting at the Argentine Fire Fighting and Training Center (Centro Argentino de Lucha Contra Incendios y Conducción, CALCIC), and on first aid– meets to debate different topics of interest for the brigade and to carry out fire fighting drills.
DRILLS, CAMISEA, PERU
Level II Emergency Drill On May 28 and December 20, Level II Emergency drills where carried out. The aim was to assess the appropriate control techniques for potentially inflammable gas leaks in pressurized equipment, using the resources assigned to emergency response.
Helicopter Crash and Rescue Drill In August, a planned helicoptercrash landing and rescue drill was conducted in the Urubamba river; to this end the procedures that need to be applied to timely and efficiently face the occurrence of potential emergencies that might take place during the course of our operations were carried out; in addition, the Crisis Committee activation drill was also carried out, assessing the actions taken in response to the emergency.
These practices enable us to face, in an appropriate, fast and safe way, the occurrence of emergencies that could happen in our operations, therefore raising the level of response of our personnel in the different areas, and especially of our emergency brigade.
RECOGNIZING OUTSTANDING SAFETY PERFORMANCE, PLUSPETROL NORTE, PERU
As part of Block 8’s safety program, there has been ongoing recognition of the work crews who have demonstrated management of best safety practices in the activities they perform; this recognition is part of the organization’s commitment of creating a safety culture within our operations.
Sustainability Report 2014 • 93 OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM (OH&S)
Currently, the Occupational Health and Safety Management Systems (OH&S) constitute a tool that enables business units to ensure the appropriate application of our corporate safety criteria related to personal safety. At the same time, they contribute to the continuous improvement of processes development in all our operations.
● Certifications OHSAS 18.001 were maintained for Ramos Field, ARGENTINA Balbuena Tank Farm, Sweetening Plant and Pluspetrol’s Base in the North Area. Two semiannual Follow-up Audits were conducted.
● Certifications OHSAS 18.001, obtained in 2012, are maintained, which comprise the Santa Cruz offices and Tacobo and Tajibo BOLIVIA fields. In 2013, said standard was certified in Curiche field. In Bermejo, the management system was implemented although without this certification yet.
● The management system responds to the requirements of OHSAS 18001:2007, as well as the procedures that Camisea has defined and implemented for the CAMISEA, performance and improvement PERU of its Environment, Safety and Occupational Health Management. The system deployed covers all the BU’s fields, and in 2014, it received its second re-certification.
● A search for best practices (benchmarking) in other PLUSPETROL organizations (IOGP, OSHAS, API) NORTE, PERU has been made for the implementation of the integrated management system in PPN.
Our challenge is to continue enhancing our systems through the appropriate incorporation of the relevant standards.
7494 • Pluspetrol SAFETY
COMMITTEES
Different health and safety committees OPERATION ORGANIZATIONAL STRUCTURE DESCRIPTION work in Pluspetrol’s units, which are often comprised of the units’ leaders, people responsible for health and safety management, and employees’ Monthly reviews of high potential undesired event investigations, and related representatives. Committees meet actions follow-up. Contractors Biannual Working Day regularly, and during the meetings, they mostly analyze lessons learned from undesired events, strategies and action CORPORATION plans are proposed, and commitments for safety management are taken. • Two types of occupational health and safety committees: the EHS committees and the Mixed Occupational Health and Safety Committees (legal requirement of the Bolivian legislation).
• The EHS Committee is in turn divided into Local EHS Committees (one per each field: Tacobo, Tajibo, Curiche, Bermejo) and a Central EHS Committee (which in turn represents the Santa Cruz office).
BOLIVIA • Also, there are two Mixed Occupational Hygiene and Safety Committees. One of the Committees represents workers from the Tacobo, Tajibo and Curiche fields, including the Santa Cruz office. And the remainder represents the workers from Bermejo and Toro fields.
• Country Safety Committee: comprised of the senior management of Camisea.
• Workplace Health and Safety Committee: is a joint governing body of workers and management that evaluates and reviews the global performance of the health, safety and environment management system, and undertakes initiatives to ensure performance is adequate to their objectives and goals.
• Lima IMS Committee: led by the Executive Management; it reviews the overall performance of the integrated management system twice a year, and sets improvement and growth strategies .
• Malvinas and Pisco IMS Committee: led by the Malvinas and Pisco plant managers; it reviews the Safety, Health and Environmental performance of each of the Camisea operations on a monthly basis.
CAMISEA, PERU CAMISEA, • Area Subcommittees: they execute Safety, Health and Environmental initiatives and guidelines issued by the Committee of each operation.
• Camisea Shielding Committee: comprised of Camisea technical authorities and the organization’s directors, in order to establish initiatives aimed at ensuring process Safety in the facilities.
• In every operating area (Neuquén, Rio Colorado, Ramos and GETSA) a monthly committee is held, comprised of the area Manager, Safety personnel and operational leaders. This committee analyzes the indicator results of the month; undesired events are presented, together with the investigation results of such events; the safety highlighted facts of the month, as well as follow-up of the corrective actions.
• Bimonthly, Argentina’s safety committee meets, with the participation of the Country manager, the Operations manager and operations support areas ARGENTINA managers. In this framework, reactive and proactive indicators are analyzed, and safety standards are approved for the business unit.
• Safety, Health and Environment Committee: Monthly meetings in both blocks, with contractractor companies representatives and Pluspetrol Management teams at the operational sites. The lessons learned from undesired events are analyzed, strategies and action plans are proposed, and commitments for safety, health and environmental management are taken.
• Electrical Safety Committee: Quarterly meetings at Block 1AB, led by the Maintenance Department and comprised of representatives from different maintenance-related companies.
• Joint Safety Committee: Implemented as required by law and carried out with representatives of the workers from both blocks and the company, at the Lima offices. For 2015, a change in the committee’s board of directors is planned.
• Logistics Safety and Fluvial Transport Committee: implemented by Camisea in 2013 and extended to PPN in 2014, it discloses on a monthly basis safety and operational aspects of piers and rivers used by water units that serve both of Pluspetrol’s business units in Peru. PLUSPETROL NORTE, PERU NORTE, PLUSPETROL • Country Safety Committee: Quarterly meetings with participation of the company senior management. The lessons learned from undesired events and Safety management core matters are analyzed, and progress in Corporation Safety matters is presented.
Sustainability Report 2014 • 9995 NEW MEMBERSHIPS IN INTERNATIONAL BODIES - IN LINE WITH OPERATIONAL EXCELLENCE
CCPS is the Center for Chemical Process Safety, an organization that identifies and establishes the needs for process safety in the chemical, pharmaceutical and oil industries, together with the American Institute of Chemical Engineers. Its members work in committees and develop guidelines with practical application in the industry. It has over 100 publications, focusing on 5 principles: culture, standards, competences, management systems and lessons learned. In the site http://www.aiche.org/ PERFORMANCE ccps you may find guides and guidelines for process INDICATORS safety, from the design and construction to process plant operation. The work done by Pluspetrol to improve its safety performance includes changes in the way it measures Pluspetrol’s engagement in these organizations it. It consists in the incorporation of an indicator shows its eagerness to stand out as a benchmark called Total Recordable Cases (TRIC) into the company among international power companies, and management follow-up, which includes a record of all to implement the best practices in line with the events classified as “medical treatment, restricted international standards. work and lost days incidents”, trying to achieve the objective of zero recordable events.
120 6
100 100 5
80 4 68 60 3
40 2 22
20 1 1 9
0 0
CAMISEA, PPN, ARGENTINA BOLIVIA TOTAL PERU PERU PLUSPETROL • TOTAL RECORDABLE CASES • TOTAL RECORDABLE CASES/HOURS WORKED
In 2014, the corporate frequency index for accidents with lost time was 1.00, 60% lower than in 2013. In relation to the severity rate , its value was 0.05, a 20% decrease compared to the previous year.
In turn, Pluspetrol has started measuring process safety events. We started in Camisea, Peru, to later transmit the experience to the rest of the units.
33. Frequency rate: number of accidents with lost time accumulated during the year, per million hours worked. 34. Severity rate: number of lost days accumulated during the year, per thousand hours worked.
7496 • Pluspetrol SAFETY
OTHER ACTIONS TAKEN DURING 2014
BOLIVIA PLUSPETROL NORTE, PERU
• “3D Seismic Exploration, Tacobo and Curiche Fields: • Modifications to the scope of the Contingency The execution of this project, which lasted 5 months, Plan to be followed in Blocks 8 and 1AB. 2 reviews involved 650 people average, reaching 1,500 people were performed in 2014. at its highest peak. It involved 1,082,500 man hours worked. The operation was conducted through land • Evaluation of Blocks 8 and 1AB’s major risks, and airborne vehicles, so a helicopter and lifting following the Operational Risk Management (ORM) device audit plan was implemented. We must point approach. out the absence of LTICs35 and HIPOs36 during the overall execution of the project.
• “Pluspetrol Family Health and Safety Day”: This event, which was held in November, was massively attended by Pluspetrol workers and their families, and its aim was to work on integration and raising awareness with relation to health, home safety, nutrition, and office gym.
CAMISEA, PERU
• Classification process of Undesired Events (UER) for PSM (Process Safety Management): implementation was initiated according to Standard API 754 and the IOGP (International Oil and Gas Producers) Report 456 guidelines.
• Work Monitoring: This work system was put into ARGENTINA practice, which describes the planning required, the control barriers and authorizations necessary to • Cross-audit implementation. An audit program was execute critical and non-critical tasks within set up, where the area managers, together with an Pluspetrol’s operations. This work system contains assistant auditor, visited and audited other business processes as relevant as hazard identification and areas in Argentina. Besides auditing the degree task risk analysis; work permits system, competence of compliance with the safety standards, the activity verification, operational discipline, etc. enables sharing experiences and best practices. • Change Management: Review of this process was carried out, whose purpose is to identify monitoring measures to minimize the risks caused by changes of an organizational, structural, process, procedural nature, etc. The Change Management procedure also defines the levels of authorization required to approve such changes.
35. LTIC = Lost Time Injury Case 36. HIPO = High Potential Incident
Sustainability Report 2014 • 97 GRI INDEX
PLUSPETROL HAS ELABORATED ITS SUSTAINABILITY REPORT BASED ON THE GLOBAL REPORTING INITIATIVE GUIDELINES, INCLUDED IN THE G3.1. GUIDELINES AND THE OIL AND GAS SECTOR SUPPLEMENT, REACHING A C APPLICATION LEVEL37.
37. To indicate that a report is GRI-based, the organization should declare the level to which it has applied the GRI Reporting Framework for its elaboration via the “GRI Application Levels” system. There are three Application Levels: C, B and A, the latter being the one showing the greatest application of the GRI Framework.
98 • Pluspetrol GRI INDEX
STATUS DETAIL PAGE / ANSWER STATUS DETAIL PAGE / ANSWER
1 STRATEGY AND ANALYSIS 3.10 Explanation of the effect of any In the cases where there • restatement of information provided was a restatement of 1.1 Statement by the most senior 2 and 3 in earlier reports, and the reasons for information corresponding • decision-maker of the organization such restatement. to previous reports, it was about the relevance of sustainability explained in the contents to the organization and its strategy. of this report together with the reason that originated 1.2 Description of key impacts, risks, 15, 16, 30, 38, 72 and 96 such restatement. • and opportunities. 3.11 Significant changes from previous 1 • reporting periods in the scope. 2 ORGANIZATIONAL PROFILE GRI Content Index 2.1 Name of the organization. Pluspetrol. 3.12 Table identifying the location of the 106-110 • • Standard Disclosures in the report. 2.2 Primary brands, products and/or services. 8, 9, 26 and 27 • Assurance 2.3 Operational structure of the 8 and 9 3.13 Policy and current practices with The report hereby has not • organization, including main divisions, • regard to seeking external assurance been subject to external operating companies, subsidiaries for the report. assurance. and joint ventures.
2.4 Location of the organization’s Buenos Aires, Argentina. 4 GOVERNANCE, COMMITMENTS • headquarters. AND ENGAGEMENT OF STAKEHOLDERS 2.5 Number of countries where the 8, 9 and 25 • organization operates, and names Governance of countries with either major 4.1 Governance structure of the 12 and 13 operations or that are specifically • organization, including committees relevant to the sustainability issues under the highest governance body covered in the report. responsible for specific tasks, such as setting strategy or organizational 2.6 Nature of ownership and legal form. Licensee and/or oversight. • concessionaire of hydrocarbon exploration 4.2 Indicate whether the Chair of The President of the Board and exploitation. • the highest governance body is also is also the Executive Chief Anonymous society an executive officer. of the Company.
2.7 Markets served (including geographical 8 4.3 State the number and gender of The Board of Directors is • breakdown, sectors served and • SE15 the members of the highest comprised of 3 types of customers/beneficiaries). governance body that are independent independent members. or non-executive member. 2.8 Scale of the reporting organization. 8, 9, 26, 27, 32 and 33 • 4.4 Mechanisms for shareholders and 20 2.9 Significant changes during the reporting 1 and 29 • SE16 employees to provide recommendations or • period regarding size, structure and direction to the highest governance body. ownership of the organization. 4.5 Linkage between compensation for N/D. 2.10 Awards received in the reporting 95 • members of the highest governance body, • period. senior managers and executives (including departure agreements) and the organization’s performance (including 3 REPORT PARAMETERS social and environmental performance).
Report profile 4.6 Processes in place for the highest N/D. 3.1 Reporting period. The report covers January • governance body to ensure conflicts of • 1 - December 31, 2014 interest are avoided. period. 4.7 Process for determining the composition, N/D. 3.2 Date of most recent previous report 2013 • qualifications and expertise of the • (if any). members of the highest governance body and its committees. 3.3 Reporting cycle Annual. • (annual, biannual, etc.). 4.8 Internally developed statements of mission 13 and 14 • or values, codes of conduct, and principles 3.4 Contact point for questions regarding Backcover. relevant to the economic, environmental, • the report or its content. and social performance, and the status of their implementation. Report Scope and Boundary 3.5 Process for defining report 20 4.9 Procedures of the highest governance 14-19 • content. • body for overseeing the organization’s identification and management of 3.6 Scope of the report. 1 economic, environmental, and social • performance, including relevant risks 3.7 State any specific limitations on the scope We report on the and opportunities, as well as adherence • or boundary of the report. performance of or compliance with internationally Pluspetrol’s production agreed standards, codes of conduct, areas, that is, our activities and principles. in Argentina, Bolivia Peru and some aspects 4.10 Processes for evaluating the highest N/D. of Angola. • governance body’s own performance, particularly with respect to economic, 3.8 Basis for reporting on joint ventures, 1 environmental, and social performance. • subsidiaries, leased facilities, outsourced operations and other entities that Commitments to External Initiatives can significantly affect comparability 4.11 Explanation of how the precautionary 14-19 from period to period and/or between • approach or principle is addressed organizations. by the organization.
3.9 Data measurement techniques and All the disclosures 4.12 Externally developed economic, 63 and 71-95 • the bases for calculations. concerning data collection • environmental, and social charters, techniques and calculations principles, or other initiatives to which are detailed throughout the organization subscribes or endorses. the report.
Sustainability Report 2014 • 99 STATUS DETAIL PAGE / ANSWER STATUS DETAIL PAGE / ANSWER
4.13 Main associations (such as industry ARPEL (Regional ENVIRONMENTAL • associations) and/or national/international Association of Oil, Gas and PERFORMANCE INDICATORS entities the organization supports and is Biofuels Sector Companies engaged as a member. in Latin America and the Materials Caribbean), IOGP EN1 Materials used by weight or volume. N/D. (International Association • of Oil & Gas Producers), EN2 Percentage of materials used that N/D. IAPG (Argentina Oil and • E10 are recycled input materials. Gas Institute), EITI (Extractive Industries Energy Transparency Initiative), EN3 Direct energy consumption 46 CEPA (Argentina Oil • E2 by primary energy source. Companies Chamber), Argentina-Bolivia Chamber OG2 Total amount invested in renewable No amounts are invested in of Commerce, American • E3 energy. renewable energy. Chamber of Commerce in Argentina (AMCHAM), OG3 Total amount of renewable energy Pluspetrol does not Argentina-Canada Chamber • E3 generated by source. generate energy from of Commerce, Peruvian renewable sources. Hydrocarbon Society (SPH), CCPS (Center for EN4 Indirect energy consumption by 46 Chemical Process Safety) • E2 primary source. Consumption by corporate buildings is not included. Stakeholder Engagement 20 4.14 List of stakeholder groups engaged EN5 Energy saved due to conservation and 46 and 47 • by the organization. • E2 efficiency improvements.
4.15 Basis for identification and 20 EN6 Initiatives to provide energy-efficient N/D. • selection of stakeholders with whom • E3 or renewable energy-based products and the organization engage. services, and reductions in energy requirements as a result of these initiatives. 4.16 Approaches to stakeholder 20 • SE16 engagement, including frequency EN7 Initiatives to reduce indirect energy N/D. of engagement by type and by • E2 consumption and the reductions achieved. stakeholder group. Water 4.17 Key topics and concerns that have 20 EN8 Total water withdrawal by source. 59 • been raised through stakeholder • E6 participation, and how the organization has responded to those key topics EN9 Water sources significantly affected by 59, 60 and 61 and concerns, including through its • E6 withdrawal of water. None of the water sources reporting. from where Pluspetrol captures consumption water in its operations is on ECONOMIC PERFORMANCE the International Relevant INDICATORS Wetlands List (Ramsar List). Operations in Camisea, Economic Performance Peru, are situated in the EC1 Direct economic value generated N/D. Lower Urubamba Region, • SE4, SE13, and distributed. Cusco department, SE14 and they capture surface consumption water EC2 Financial implications and other risks N/D. from Urubamba River. In the • and opportunities for the organization’s case of PPN, a sector activities due to climate change. of our operations is located in Cordillera Azul National EC3 Coverage of the organization’s N/D. Park. • defined benefit plan obligations. EN10 Percentage and total volume of water 59 EC4 Significant financial assistance received N/D. • E6 recycled and reused. • SE13 from governments. Biodiversity Market Presence EN11 Location and size of land owned, leased, 62-67 EC5 Range of ratios of standard entry level N/D. • E5 managed in, or adjacent to, protected • SE15 wage by gender compared to local areas of high biodiversity value outside minimum wage at significant locations protected areas. of operation. EN12 Description of significant impacts of 62-67 EC6 Policy, practices and proportion 94 • E5 activities on biodiversity in protected areas • SE5, SE7 of spending on locally-based and areas of high biodiversity value outside suppliers at significant locations protected areas. of operation. EN13 Habitats protected or restored. 62-67 EC7 Procedures for local hiring and proportion 93 • E5 • SE5, SE6 of senior executives hired from the local community at significant locations EN14 Strategies, current actions, and future plans 62-67 of operation. • E5 for managing impacts on biodiversity.
Indirect Economic Impacts OG4 Number and percentage of significant 62-67 EC8 Development and impact of 77, 79, 81, 83, 84 and 85 • E5 operating sites in which biodiversity risk • SE4 infrastructure investments and services has been assessed and monitored. provided primarily for public benefit through commercial, in-kind, and EN15 Number of IUCN Red List species and 62-67 pro bono engagement. • E5 national conservation list species with www.pmbcamisea.com habitats in areas affected by operations, EC9 Understanding and describing N/D. by level of extinction risk. • SE6 significant indirect economic impacts, including the extent of Emissions, Effluents and Waste impacts. EN16 Total direct and indirect greenhouse gas 44-47 • E1 emissions by weight. Reserves OG1 Volume and type of estimated proved 27 EN17 Other relevant indirect greenhouse gas N/D. • reserves and production. • E1 emissions by weight.
EN18 Initiatives to reduce greenhouse gas 44 and 45 • E1 emissions and reductions achieved.
100 • Pluspetrol GRI INDEX
STATUS DETAIL PAGE / ANSWER STATUS DETAIL PAGE / ANSWER
EN19 Emissions of ozone-depleting substances N/D. Occupational Health and Safety • E7 by weight. LA6 Percentage of total workforce represented 103 • HS1 in joint management-worker health and EN20 NOx, SOx, and other significant air 43 and 47 safety committees to help monitor and • E7 emissions by type and weight. advise on occupational health and safety programs. EN21 Total water discharge by quality and 60 and 61 • E9 destination. LA7 Rates of injury, occupational diseases, 104 • HS3 lost day and absenteeism, and total OG5 Volume of formation or produced water. 60 number of work-related fatalities by • E9 region and per gender.
EN22 Total weight of waste by type and 43 and 48 to 52 LA8 Education, training, counseling, 36 and 37 • E10 disposal method. • HS2 prevention and risk-control programs in place to assist workforce member, EN23 Total number and volume of most 43, 48 and 53 to 55 their families or community members • E8 significant spills. regarding serious disease.
OG6 Volume of flared and vented hydrocarbon. 43, 44 and 47 LA9 Health and safety topics covered in N/D. • E4 • SE16, HS1 formal agreements with trade unions.
OG7 Amount of drilling waste (drilling and 52 Training and education • E10 cutting mud) and strategies for treatment LA10 Average hours of training hours per 34, 35, 100 and 101 and disposal. • SE17 year per employee by gender and by employee category. EN24 Weight of transported, imported, Pluspetrol does not import • E10 exported or treated waste deemed or export this type of LA11 Programs for skills management and 34, 100 and 101 hazardous under the terms of waste, pursuant to the • SE17 lifelong learning that support the continued the Basel Convention Annex I, II, III Basel Convention. employability of employees and assist and VIII. them in managing their professional careers endings. EN25 Identification, size, protected status, N/D. • E5, E9 and biodiversity value of water bodies LA12 Percentage of employees receiving 34 and related habitats, significantly • SE17 regular performance and career affected by the reporting organization’s development reviews by gender. discharges of water and runoff. Diversity and Equal Opportunities Products and services LA13 Composition of the corporate 12, 32 and 33 EN26 Initiatives to mitigate environmental N/D. • SE15 governance bodies and breakdown • HS4 impact of products and services, and of employees per employee category extent of impact mitigation. according to gender, age group, minority group membership and other OG8 Benzene, lead and sulfur content in fuels. Pluspetrol’s operations indicators of diversity. • do not include refining operations. Equal Remuneration for women and men EN27 Percentage of products sold and their The products traded by LA14 Ratio of basic salary of women to men N/D. • packaging materials, which are reclaimed Pluspetrol do not require • SE15 by professional category. at the end of their lifetime, by category. packaging materials nor may they be recovered at the end of their lifetime HUMAN RIGHTS given their nature. PERFORMANCE INDICATORS
Regulatory Compliance Investment and Procurement Practices EN28 Monetary value of significant fines and N/D. HR1 Percentage and total number of N/D. • total number of non-monetary sanctions • SE8 significant investment agreements and for non-compliance with environmental contracts that include clauses regulations. incorporating human rights concerns.
Transport HR2 Percentage of significant suppliers, N/D. EN29 Significant environmental impacts of N/D. • SE9 contractors and other business • E1, E8 transporting products and other goods partners that have undergone human and materials used for the organization’s rights screening, and the actions operations, and transporting members consequently taken. of the workforce. HR3 Total hours of employee training on N/D. Overall • SE8 policies and procedures concerning EN30 Total environmental protection N/D. aspects of human rights that are • expenditures and investments by type. relevant to operations, including the percentage of trained employees.
LABOR PRACTICES Non-discrimination AND DECENT WORK HR4 Total number of incidents of discrimination N/D. PERFORMANCE INDICATORS • SE8, SE18 and corrective actions taken.
Employment Freedom of Association LA1 Total workforce by employment type, 32 and 33 and Collective Bargaining • SE15 employment contract, and region broken HR5 Operations and significant suppliers N/D. down by gender. • SE8, SE9 identified in which the right to exercise freedom of association and collective LA2 Total number and rate of new employee 32 and 33 bargaining may be violated or at • SE15 hires and employee turnover, by age group, significant risk, and the actions taken gender and region. to support these rights.
LA3 Benefits provided to full-time 35 Child Labor • employees that are not provided to HR6 Operations and significant suppliers N/D. temporary or part-time employees. • SE8, SE9 identified as having significant risk for incidents of child labor, and LA15 Return to work and retention rates after 35 measures taken to contribute to • parental leave, by gender. the effective abolition of child labor.
Labor/Management Relations Forced and Compulsory Labor LA4 Percentage of employees covered by N/D. HR7 Operations and significant suppliers N/D. • SE16, SE8 collective bargaining agreements. • SE8 identified as having significant risk for incidents of forced or LA5 Minimum notice period(s) regarding N/D. compulsory labor, and the measures • SE16 organizational changes. to contribute to the elimination of all forms of forced or compulsory labor.
Sustainability Report 2014 • 101 STATUS DETAIL PAGE / ANSWER STATUS DETAIL PAGE / ANSWER
Safety Practices Asset Integrity and Process Safety HR8 Percentage of security personnel N/D. OG13 Number of process safety events, N/D. • SE10 trained in the organization’s • HS5 by business activity. policies or procedures concerning human rights that are relevant to operations. PRODUCT RESPONSIBILITY PERFORMANCE INDICATORS Indigenous Rights HR9 Total number of incidents of violations N/D. Customer Health and Safety • SE2 involving rights of indigenous people and PR1 Life cycles stages in which health and N/D. measures adopted. • HS4 safety impacts of products and services are assessed for improvement, and OG9 Operations where indigenous 88 to 91 percentage of significant products and • SE2 communities are present or affected services categories subject to such by activities and where specific procedures. engagement strategies are in place. Total number of incidents of non- N/D. Assessment PR2 compliance with regulations and voluntary HR10 Percentage and total number of N/D. • HS4 codes concerning health and safety • SE8 operations that have been subject to impacts of products and services. human right reviews and/or impact assessments. Product and Service Labeling PR3 Type of product and service information N/D. Remediation • HS4 required by current procedures and HR11 Number of grievances related to human N/D. regulations. • SE18 rights filed, addressed and resolved through formal grievance mechanisms. PR4 Total number of incidents of non- N/D. • HS4 compliance with regulations and voluntary codes, concerning product and service SOCIETY PERFORMANCE information and labeling. INDICATORS PR5 Practices related to customers satisfaction, N/D. Local Communities • including results of surveys measuring SO1 Percentage of operations with 72-95 customer satisfaction. • SE1 implemented local community We evaluated the social engagement, impact assessments and and environmental impact Marketing Communications development programs. of all our operations, and PR6 Programs for adherence to laws, standards N/D. we developed social • HS4 or voluntary codes related to marketing programs in cooperation communications. with the community. PR7 Total number of incidents of N/D. SO9 Operations with significant potential 86, 87 and 90 • HS4 non-compliance with the regulations • SE1 or actual negative impacts on local concerning marketing communications. communities. Customer Privacy SO10 Prevention and mitigation measures 86, 87, 90 and 91 PR8 Total number of substantiated complaints N/D. • SE1 implemented in operations with • regarding breaches of customer privacy significant potential or actual negative and losses of customer data. impacts on local communities. Regulatory Compliance OG10 Number and description of significant 86 and 87 PR9 Monetary value of significant fines for N/D. • SE1, SE3 disputes with local communities and • non-compliance with laws and regulations indigenous peoples. concerning the provision and use of the organization’s products and services. OG11 Number of sites that have been No sites were • SE8 decommissioned and sites that are in decommissioned during Fossil Fuel Substitutes the process of being decommissioned. the report period. OG14 Volume of biofuels produced Pluspetrol does not • E3 and purchased meeting sustainability produce or purchase Corruption criteria or standards. biofuels. SO2 Percentage and total number of N/D. • SE11, SE12 business units analyzed for risks related to corruption.
SO3 Percentage of employees trained in N/D. • SE11 organization’s anti-corruption policies and procedures. References
SO4 Actions taken in response to incidents N/D. Reported • SE11, SE12 of corruption. • Partially reported Public Policy • Not reported SO5 Public policy positions and participation in N/D. • • SE14 public policy development and lobbying. N/D Not declared
SO6 Total value of financial and in-kind N/D. • SE14 contributions to political parties, politicians and related institutions by country.
Anti-competitive Behavior SO7 Total number of legal actions for N/D. • anti-competitive behavior, anti-trust and monopoly practices and their outcomes.
Compliance SO8 Monetary value of significant fines, N/D. The premises, initiatives, descriptions, programs, processes and other activities • and total number of non-monetary mentioned in this Sustainability Report shall not be deemed or construed either by sanctions for non-compliance with implication or analogy, as legal, contractual obligation, or enforceable agreements, laws and regulations. beyond any consequence resulting from any formal or express sources of legal liability.
Involuntary Resettlement Such sources do not account or hinder their continuity, improvement or extension OG12 Operations where involuntary resettlement During 2014, we did not under the same or different circumstances, without the existence of an express • SE3 took place, the number of households promote involuntary acknowledgement in that regard. resettled and how their livelihoods were resettlement of any of the affected in the process. communities settled in the direct or indirect area of influence of our operations.
102 • Pluspetrol SURVEY
OPINION POLL 2014 SUSTAINABILITY REPORT
Through the following Opinion Poll you can send us your comments and suggestions to improve our Sustainability Report in the future.
You may contact us by e-mail to [email protected] or by regular mail to the following address: Gerencia de Medio Ambiente - Lima 339 - C1073AAG Buenos Aires - Argentina.
1. WHAT TYPE OF STAKEHOLDER ARE YOU?
CUSTOMER SHAREHOLDER PROVIDER
OTHER EMPLOYEE (SPECIFY)
2. HOW MUCH HAVE YOU READ OF THIS REPORT?
VIRTUALLY ALL OF IT ENOUGH A LITTLE NOTHING
3. WHAT DO YOU THINK OF THE LENGTH OF THE REPORT?
SHORT APPROPRIATE LONG
4. GENERAL OPINION ABOUT THE REPORT
VERY GOOD GOOD AVERAGE POOR 4.1 GENERAL OPINION
4.2 RELEVANCE OF INFORMATION
4.3 LANGUAGE AND WRITING
4.4 DESIGN
5. OPINION ABOUT THE CONTENTS OF EACH CHAPTER
VERY GOOD GOOD AVERAGE POOR 5.1 CEO’S LETTER AND INTERVIEW WITH THE DIRECTOR OF ENVIRONMENT
5.2 ABOUT PLUSPETROL
5.3 OUR PEOPLE
5.4 ENVIRONMENT
5.5 COMMUNITY
5.6 SAFETY
6. WHAT OTHER INFORMATION WOULD YOU LIKE TO FIND IN SUBSEQUENT REPORTS?
7. DO YOU HAVE ANY OTHER COMMENTS ABOUT OUR 2014 SUSTAINABILITY REPORT? Editing and Coordination: Strategic Environmental and Social Management
Design and production: Chiappini + Becker Tel. +54 11 4314 7774 www.ch-b.com
www.pluspetrol.net
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