Sustainability Report 2019 - pluspetrol.net
Transcript of Sustainability Report 2019 - pluspetrol.net
Sustainability Report 2019 • 1
LETTER FROM THE CEOGRI 102-14
This year has faced us with new challenges and, once again, we have been put to the test and we have challenged our capabilities. We were persistent, we saw beyond the possibilities and, as a team, we managed our projects with a strong commitment to ethics and integrity, fostering our company’s sustainable growth, the efficient use of resources, good relations with our stakeholders and the preservation of the environment.
We strengthened our commitment to sustainable development through the revision and update of our Sustainability Policy and its implementation on the daily activities. Our Policy compels us to think in the long term, working in line with good practices and balancing the economic, social and environmental aspects of our decisions.
Within this framework, we approved the Anti-bribery and Anti-corruption Policy, whose goal is to set general guidelines that reflect Pluspetrol’s commitment to ensuring transparency and ethics in the development of our business. With the purpose of spreading this commitment across our value chain, we developed the Third Parties’ Code of Conduct, defining a set of key principles that highlight the commitment of integrity in commercial relations, and reaffirm the interest to jointly contribute to economic, social and environmental development.
In line with our long term growth strategy, during 2019, we continued our development plans in the operated areas, investing in drilling, secondary recovery and tertiary projects; we started production of unconventional reservoirs in La Calera, Argentina, putting 10 gas wells into production and processing this production in our new plant; we increased our participation in the Camisea project, in Peru, by 17% and integrated a consortium that was the tenderer of 2 offshore exploration blocks in Argentina.
As part of our ongoing sustainable company vision, and in line with our business diversification strategy, we expanded our activities, creating a Mining division, focused on the exploration and development of minerals for high quality batteries.
To support this growth, we have an excelling team, trained and ready to face different situations. We apply our philosophy and values, and prioritize respect towards people and the socio-environmental context, always having in mind a sense of vulnerability, in order to ensure a proper risk management.
In line with our Sustainability Policy, we use indicators to assess, verify and report compliance with set goals, in relation to a responsible corporate behavior. In this context, I am pleased to present our 12th Sustainability Report, which is the result of the involvement of different areas and employees, who I thank for their effort and dedication.
ABOUT PLUSPETROL
Company profile
Areas of operation
Governance
Purpose, vision and values
Cultural approach for a
Sustainable Operation
Excellence in Operation
Management
Corporate strategy
Associations
Awards and Recognitions
•••••
•
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INSTITUTIONAL
Letter from the CEO•
Claudio de DiegoCEO
SUSTAINABILITY
Sustainable Management
Stakeholders
Materiality analysis
Sustainable Development
Goals
••••
OUR PEOPLE
Direct employees
Employment
Value proposal
Learning and development
Healthcare
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SUPPLY CHAIN
Supply structure
Local purchases
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COMMUNITY
Social investment
Dialogue with local
communities
Indigenous Communities
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ENVIRONMENT
Energy and Climate Change
Biodiversity Management
Water and Discharge
Management
Effluents and wastes
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PLUSPETROL
IN NUMBERS
PROCESS
SAFETY
Commitment and Leadership
Understanding hazards
and risks
Handling risks and managing
impacts
Learning from experience
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ABOUT THE
SUSTAINABILITY REPORT
Development of the
Sustainability Report
GRI Index
•
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2 • Pluspetrol Sustainability Report 2019 • 3
ABOUT PLUSPETROL
AREAS OF OPERATIONGRI 102-4
The scope of this Report includes all the areas
operated by the Company in Angola, Argentina,
Bolivia and Peru.
1. 1 MMBOE = 1,000,000 BOE.2. 1 MMSCF = 182.9 BOE.3. Proved+probable
SURINAMOFFSHORE EXPLORATION
COLOMBIAOIL EXPLORATION
PERUOIL AND GAS EXPLORATION AND PRODUCTION
BOLIVIAOIL AND GAS EXPLORATION AND PRODUCTION
ARGENTINAOIL AND GAS EXPLORATION AND PRODUCTION
URUGUAYMONTEVIDEOOFFICES
SURINAM
USAHOUSTONOFICINA COMERCIAL
COLOMBIA
PERU
BOLIVIA
ARGENTINA
ISLAS MALVINAS (ARG)
URUGUAY
NETHERLANDSAMSTERDAMHEADOFFICE
ANGOLAOIL EXPLORATION AND PRODUCTION
References
OfficesExplorationProductionPflngAndes basins
Pluspetrol Resources Corporation B.V. is the parent company. Legal form: Dutch- closed Stock company.
+40YEARS IN THE INDUSTRY
OIL REFINERIESNATURAL GAS DISTRIBUTORSELECTRIC POWER GENERATORSNATURAL GASLIQUEFACTION PLANTSINDUSTRIES LPG FRACTIONAL COMPANIES
CLIENTS ••••
•
108MBBL/D OF TOTAL LIQUIDS PRODUCTION
CRUDE OILNATURAL GASLPG (PROPANE AND BUTANE)OTHER NATURAL GAS LIQUIDS (MIDDLE DISTILLATES AND FUEL)
PRODUCTS••••
1,252 MMSCF/D2 OF GAS PRODUCTION
142.5 MMBOE1 OF TOTAL OPERATED PRODUCTION
1,890 DIRECT EMPLOYEES
MMBE OF 2P NET RESERVES3
1,060
COMPANY PROFILEGRI 102-1, 102-2, 102-3, 102-5, 102-6, 102-7, OG 1
WE ARE A PRIVATE ENERGY COMPANY WITH OVER 40 YEARS’ EXPERIENCE IN HYDROCARBON EXPLORATION AND PRODUCTION. WE HAVE INTERNATIONAL PRESENCE, WITH ACTIVITIES IN ANGOLA, ARGENTINA, BOLIVIA, COLOMBIA, PERU AND SURINAME, AND OFFICES IN THE UNITED STATES, NETHERLANDS AND URUGUAY.
OUR BUSINESS IS THE DEVELOPMENT OF GREAT GAS FIELDS, EXTRACTION OF HEAVY CRUDE OIL, DEVELOPMENT OF MATURE SITES AND MARGINAL AREAS WITH SECONDARY RECOVERY, AS WELL AS THE DEVELOPMENT OF UNCONVENTIONAL HYDROCARBONS, APPLYING CREATIVITY AND INNOVATION TO FACE THE SPECIFICITIES OF EACH ACTIVITY.
PRODUCCIÓNLA PRODUC-
CIÓN DE PETRÓLEOY GAS SE
REALIZA EN DIFERENTES
ENTORNOSDESDE LA
REGIÓNPATAGÓNICA
ARGENTINAHASTA LA
SELVA AMAZÓNICAPERUANA.
EXPLORACIÓNLA EXPLORACIÓN DE PETRÓLEO Y GAS SE EXTIENDE DESDE LAS
ÁREAS OPERADAS ACTUALMENTE
HASTA NUEVAS REGIONES
DE PAÍSES ENLOS QUE LA COMPAÑÍAAÚN NODESARROLLA ACTIVIDADES.
LA CONSTANTE BÚSQUEDA
DE NUEVASOPORTUNIDADES
ES UNA ACTIVIDAD ESTRATÉGICA CONPROYECCIÓN A FUTURO.
EN PLUSPETROLDESARROLLAMOS
NUESTRAS ACTIVIDADESDE PRODUCCIÓN Y EXPLORACIÓN
CON LAS MEJORES PRÁCTICASEN SEGURIDAD Y EFICIENCIA,
ORIENTADAS A RESPETAREL MEDIO AMBIENTE,
LOS ENTORNOS NATURALESY LAS COMUNIDADES
LOCALES.
PLUSPETROL’S NET 2P RESERVES (PROVED+PROBABLE) 1,060 MMBOE
74%
26%
••
GAS
OIL
2019 LIQUIDS AND GAS PRODUCTION BY COUNTRY (MMBOE)
150
100
50
0
ACTIVITIES AND RESULTS
Angola Argentina Bolivia Peru Pluspetrol
0.2
20
0.6
121
142
MINING DIVISION
IN LINE WITH THE BUSINESS DIVERSIFICATION STRATEGY, PLUSPETROL CREATED A MINING DIVISION, WITH THE PURPOSE OF FOCUSING ON THE EXPLORATION AND DEVELOPMENT OF MINERALS FOR HIGH QUALITY BATTERIES. AIMING TO EXPAND THEIR PRESENCE IN THE SO-CALLED “LITHIUM TRIANGLE”, IN THE ARGENTINE NORTH, PLUSPETROL ACQUIRED LCS LITHIUM CORPORATION’S STOCKS PACKAGE, CONSOLIDATING A PORTFOLIO OF OVER 300,000 HECTARES OF LITHIUM-RICH SALT PANS, IN THIS REGION, THUS BOOSTING THE STRATEGIC AND SUSTAINABLE DEVELOPMENT OF THIS KEY INPUT. AS OF NEXT YEAR, THE MINING ACTIVITIES WILL BE INCLUDED IN PLUSPETROL’S SUSTAINABILITY REPORT.
Sustainability Report 2019 • 54 • Pluspetrol
ONE OF THE MAIN OBJECTIVES OF OUR
CORPORATE GOVERNANCE SYSTEM IS TO
STRENGTHEN THE ORGANIZATION’S STRATEGIC
CAPABILITY AND APPROACH, FOCUSING ON THE
BUSINESS’ SUSTAINABLE DEVELOPMENT, BOTH
ON THE IMMEDIATE CONTEXT AND THE LONG-
TERM CONTEXT. IN ORDER TO ACHIEVE THIS,
PLUSPETROL’S DIFFERENT EXECUTIVE BODIES
ACT SUPPORTED BY THE PILLARS OF
TRANSPARENCY, ETHICS AND INTEGRITY, EITHER
TO GUIDE THE STRUCTURE AND FUNCTIONING
OF ALL COMPANY AREAS, AND SET FORTH
STRATEGIC AND OPERATIONAL PLANS.
CORPORATE GOVERNANCE
Board of DirectorsPluspetrol’s Corporate Governance is chaired by the
Board of Directors, which sets the Company’s goals
and strategic pillars, supervises internal management
and evaluates the organizational performance. This
body is formed by three independent members,
appointed by the Shareholders’ Meeting.
Executive CommitteeThe Executive Committee is responsible for the
alignment of the Company’s different projects with
the corporate strategy. Additionally, it facilitates
communication between different sectors and with
employees. It is chaired by the Executive Director
(CEO) and other three Senior Management members.
Crisis CommitteeIt is responsible for managing and coordinating the
different areas of the Company, in case of a crisis
situation. Its composition and performance are
defined by an internal crisis management procedure
and regulations complementary to the contingency
plans and safety procedures in each Business Unit.
Ethics CommitteeIt reports to the Board of Directors and its function is
to analyze the information that an employee or a
third party associated to the Company may share
about behaviors that are at odds with the Code of
Conduct or that are contrary to good practices,
coordinate the corresponding administrative
investigation, and determine the following actions.
It is chaired by an independent director and formed
by the heads of Legal Affairs, Human Resources, and
Internal Audit and Compliance.
INTERNAL AUDIT
The mission of the area is structured around three
main pillars. Firstly, it assists the Board of Directors
contributing an objective and independent view on
the design and operation of the Company’s internal
control; additionally, it participates in the
improvement of processes and controls; and finally,
at a global level, it collaborates with the achievement
of business goals.
Internal Audit’s scope encompasses both
administrative and accounting aspects, and
operational and technical processes, including
environmental, social and safety issues.
Auditing activities and tasks are agreed and defined
via an annual plan, approved by the Board of
Directors, prioritizing the activities according to the
risks associated to the processes, their economic
relevance, the country of origin, the control
environment and the technological aspects, among
others. The area uses a systematic approach to
assess and improve the effectiveness of the risk,
control and governance management.
During the past 11 years, over 90 internal audits have
been performed, covering all business areas:
corporate, all the countries where the Company
develops its activities, and the non-operated Joint
Ventures.
As a result of the performed audits, more than 2000
improvement actions have been agreed upon, with
over 80% of those implemented thus far. To achieve
this level of compliance, a strict follow-up of the
pending actions is carried out in coordination with
the persons responsible for each action, and their
status is periodically reported to the Board.
Additionally, the concept of continuous audit was
developed through the creation of indicators that
generate alerts for the non-compliance of the
designed controls and procedures.
GOVERNANCEGRI 102-16; 102-18
SUPPORT FOR ETHICAL BEHAVIOR GRI 102-17
Code of ConductPluspetrol has a Code of Conduct that defines the
basic rules of daily behaviors that are expected to be
followed by all employees, regardless of their
hierarchy. Non-compliance may result in disciplinary
measures, which may include termination of the
employment relationship. All employees are asked,
on an annual basis, to be re-certified, in order to
ensure their knowledge and compliance.
Code of Conduct for third partiesDuring 2019 the Code of Conduct for third parties4
was developed, including in its scope suppliers,
contractors, subcontractors, consultants, advisers,
representatives, and any other service supplier and
commercial partner. The document was elaborated in
collaboration by the corporate areas of Compliance,
Corporate Social Responsibility, Community Affairs,
Human Resources, EHS and Legal Affairs,
establishing a set of essential principles that
underlines the commitment of integrity in
commercial relationships, and reaffirms the interest
in contributing to the economic, social and
environmental development of the places where
Pluspetrol has presence. Pluspetrol requires all the
mentioned third parties to accept the Code of
Conduct before procuring their services.
FranciscoPulit
Sr. Vice-President of Corporate
Development
RobertoDíazCoral
Sr. Vice-President of Corporate Production
Assets
ChristiánGarzónMaceda
Sr. Vice-President of Corporate
Services and CFO
Claudiode Diego CEO
4. The document is publicly accessible and it is available in our web site http://www.pluspetrol.net/proveedores.php5. Essential Principles of the CCTP.
PLUSPETROL ETHICS LINE
ETHICSLINEPLUSPETROL.LINEASETICAS.COM
TOLL-FREE PHONE LINES:
ARGENTINA: 0800-122-0441
BOLIVIA: 8001-0-0985
COLOMBIA: 0180-0752-2263
UNITED STATES: 1-800-304-5395
NETHERLANDS: 0800-022–5872
PERU: 0800-0-0831
URUGUAY: 0004-0529-6681
ETHICS LINE
Pluspetrol Ethics Line is a channel through which
it is possible to report any behavior from Company’s
employees or officers, or contractor personnel,
that is possibly in breach of the Code of Conduct
and good practices, such as conflicts of interest
(economic or relational), Company’s assets or work
time misuse, disclosure of Company’s confidential
information, bribery events, corruption, asset
laundering and other improper behaviors.
In addition to the Ethics Line, at Pluspetrol we
have other channels available to file a complaint,
such as direct contact with a member of the Ethics
Committee, or communication with a supervisor,
manager or Human Resources representative.
Likewise, an external third party, such as a
contractor, a supplier, an offeror, or partner can also
report an incident to a Company employee.
ESSENTIALPRINCIPLES5
ETHICS ANDGOOD BUSINESSPRACTICES
ENVIRONMENTAND SAFETY
PHYSICAL, PROPERTY, TECHNOLOGICAL AND INFORMATION SECURITY
HUMANRIGHTS
LOCALCOMMUNITIES
OCCUPATIONALHEALTH
Sustainability Report 2019 • 76 • Pluspetrol
COMPLIANCE GRI 205-1
To foster a solid ethical commitment and
transparency in the conducts and decisions
governing Pluspetrol’s business, with the support of
the top management, the Regulation Compliance
area (henceforth, Compliance) has developed a
management system to prevent, detect and solve
cases of bribery and/or corruption within the
organization, in line with the requirements set by
applicable regulations and internal guidelines against
bribery, corruption, asset laundering and terrorism
financing.
Anti-bribery and anti-corruption policyIn 2019, the Board of Directors approved the
Anti-bribery and Anti-corruption policy6, which sets
the general guidelines that convey the solid and
visible commitment to ensure transparency and
ethics in the development of business. It determines
Pluspetrol’s prohibition of any illicit action associated
to bribery and corruption, in any form, whether
direct or indirect, in both the private and public
domains, in any part of the world.
The policy applies to all companies in the Pluspetrol
Group, with an annual re-certification for all
employees, and it extends to all consortiums in which
Pluspetrol operates. For the businesses in which
Pluspetrol is not the operator, all parties are required
to comply with the applicable anti-corruption
legislation, and the operator is expected to
implement corporate anti-corruption good practices.
Fraud and corruption risk managementBased on the results from the fraud and corruption
risk mapping and assessment in the Argentina and
Peru business units, an action plan was designed in
line with the business, in order to manage fraud and
corruption through control measures. As a
complement, the Risk Assessment Workshop was
launched with corporate scope, including the
centralized management units. This process will
result in a corporate risk matrix. Once the risks are
detected, work will focus on reducing and/or
mitigating them.
Relationship with third partiesAs part of their Compliance management program,
Pluspetrol performs an anti-corruption due diligence
process, surveying and assessing associated third
parties, according to their internal policies on the
subject.
During 2019, the Compliance area issued 247 reports
for internal clients, determining levels of associated
risk, and offering recommendations for the
commercial operation under analysis. Additionally,
the review project of more than 3500 suppliers and
380 clients for potential local and international
non-compliances was concluded. As a result,
remediation actions were promoted with some
specific counterparts.
On the other hand, together with Legal Affairs, the
anti-corruption clause model was reviewed, updating
the general terms and conditions, and other
procurement models with third parties.
Dissemination and trainingThroughout the year, the Anti-bribery and Anti-
corruption Policy and the Code of Conduct were
disseminated among all employees, middle
management, directors, and third parties, via
different internal and external communication pieces.
A training program fosters the exchange of
knowledge, messages and values associated to the
Compliance Program. This process is essential to
create awareness about the risks of corruption, asset
laundering and terrorism financing, which the
Company battles, and also to stimulate the creation
of an ethics and good practices culture in business.
436 employees participated, including most of the
supervisors, bosses and managers in the areas most
exposed to risks.
During the second half of the year, a Compliance
E-Learning Program, mandatory for employees, was
designed, and it covered specific subjects related to
the prevention of fraud, corruption, asset laundering
and terrorism financing.
In regards to third parties, the Compliance subjects
were addressed in the contractor forums.
6. The document is publicly accessible and it is available in our web site http://www.pluspetrol.net Sustainability section – Ethics Line.
PURPOSE, VISION AND VALUES GRI 102-11, 102-16
VALUESBEING PERSISTENT.
BEING GUIDED BY INTEGRITY AND GOOD PRACTICES
IN OUR DECISIONS AND BEHAVIORS.
THINKING BEYOND POSSIBILITIES AND TAKING ACTIONS DESPITE
UNCERTAINTY TO CAPITALIZE ON OPPORTUNITIES.
WORKING AS A TEAM AS A WAY OF LIBERATING OUR IMAGINATION
AND CREATIVITY.
PURPOSETO CREATE VALUE BY SATISFYING THE NEEDS AND EXPECTATIONS OF ALL
THE STAKEHOLDERS RELATED TO OUR ACTIVITY (SHAREHOLDERS,
EMPLOYEES AND THEIR FAMILIES, PARTNERS, SUPPLIERS, CLIENTS,
GOVERNMENTS, AND THE COMMUNITIES IN THE COUNTRIES WHERE WE
OPERATE), MAINTAINING OUR OWN IDENTITY.
VISIONTO EXCEL AS A BENCHMARK AMONG INDEPENDENT
INTERNATIONAL, UPSTREAM ENERGY COMPANIES.
DEVELOPING OUR HUMAN TALENTS, WHILE MAINTAINING
OUR IDENTITY.
ACHIEVING SUSTAINABLE GROWTH BY PRIORITIZING SAFETY, EFFICIENT USE
OF RESOURCES, OPERATIONAL EXCELLENCE, COMMUNITY RELATIONS AND
THE PRESERVATION OF THE ENVIRONMENT.
Sustainability Report 2019 • 98 • Pluspetrol
CULTURAL APPROACH FOR A SUSTAINABLE OPERATION
It is essential to Pluspetrol to foster a sustainable
culture in all corporate levels and processes. Based
on a cultural identity that stems from our origins, we
strive to develop our culture in a way that leverages
the strategy, people and our own identity.
We foster the development of leaders that make
decisions based on risks and lead with example. We
also empowered employees, equipped with
competencies to manage risks and challenges with
autonomy, complying with regulations and
procedures. Finally, we develop tools framed in
cycles of continuous improvement, which add value
to the management systems.
This allows to define the adequate strategies to
reach the desired stage of a sustainable operation,
creating management transversality in all aspects of
our daily operations.
EXCELLENCE IN OPERATION MANAGEMENT
Our operations are guided by Operational
Excellence, a continuous improvement process,
based on organizational capacity, unified processes
and proper technology. This process allows us to
create the required competencies and skills,
developing the business in an efficient way.
Having a culture of organizational excellence, with
leadership based on personal example and
communication, is essential to the Company.
Development of teams and
employees with proper
competencies and skills
Operational model:
consolidation of the
operational model, structuring
the operational continuity and
asset integrated development
teams, under the strategic
goal of profitable projects
with a focus on main assets.
Human capital management:
implementation of second
phase of our talent
management platform,
Growing Together, with the
addition of new modules that
improve the people
development strategy through
learning resources and career
opportunities.
Learning and knowledge
management: we continued
working on the technical
competence matrix and tying
it to work profiles, the initial
development of the electronic
learning tool, technical
committees and learned
technical lessons workshops.
Unified processes that help to
strengthen collaborative work
in the company, and to be
more efficient
Planning: we continue to
strengthen our planning
process, in the medium and
the long term, as an
interdisciplinary effort. This
task contributes to the
definition of company global,
area-specific and employees’
objectives.
Capital Excellence Process
(CEP): We developed an
externally supported
assessment to optimize the
process through the
identification of improvement
opportunities in the
organization, the work process
and the governance.
Contractor management:
We started standardizing
technical services
areas and we continued the
management process for
contractor performance, which
seeks excellence through
better management, based on
the contract risk profile,
mainly for critical contracts.
Proper technology to develop
our business more efficiently
Adoption of technology:
we developed the guidelines
to standardize this process
throughout the company.
Digital domain: a program
to align all those initiatives
that involve the use of
digital technology to improve
process efficiency and
continuous optimization in our
operations. We started the
assessment to determine
the implementation road map.
Document management:
we continued working on the
alignment and standardization
of regulatory documentation,
and we launched a project
team to work on the
management of technical
documents as the basis for the
implementation of data
analysis and data science.
Operational excellence must be developed in an
environment that prioritizes safety, the efficient use of
resources, the relationship with the community, and
the preservation of the environment.
During 2019, we worked on the following pillars
PROCESS SAFETY MANAGEMENT (PSM)We Continue to implement the framework whose
purpose is to manage risks and hazards in our
operation, aimed at reducing the frequency and
severity of operation severe accidents.
During the period, we worked to implement it in the
Camisea project in Peru, and in Argentina operations.
At a corporate level, we worked on the basic levels of
reliability and integrity, and defined the process to
manage the different types of MOC (Management Of
Change).
CULTURE AND LEADERSHIPRegarding organizational culture, we moved forward
sharing the results of the first survey performed in
2018 for each asset and location. This allowed each
business unit to create a specific action plan to help
evolve in order to obtain a better operational risk
management.
GENERATIVE CULTURE FOR A SUSTAINABLE OPERATION
AUTONOMOUSCOLLABORATORSCOLLABORATORS WHO:
• UNDERSTAND THE VALUE THAT THEIR WORK
CONTRIBUTES IN A DAILY BASIS.
• HAVE ADEQUATE COMPETENCES TO FULFILL
THEIR ROLES.
• INCORPORATE THE CRITERIA OF MAKING
DECISIONS BASED ON HAZARDS AND RISKS.
• COMPLY WITH REGULATIONS AND
PROCEDURES, AND REPORT DEVIATIONS.
THEY WORK WITH OPERATIONAL
DISCIPLINE.
LEADERS WHO:
• LEAD BY EXAMPLE.
• UNDERSTAND AND MAKE DECISIONS BASED ON HAZARDS AND RISKS.
• INSPIRE AND CREATE SENSE.
• BOOST COLLABORATORS’ AUTONOMY.
• FAVOR A MUTUAL TRUST ENVIRONMENT THAT FOSTERS
REPORTING AND CONTINUOUS LEARNING.
• FRAME RISK MANAGEMENT TOOLS IN CONTINUOUS
IMPROVEMENT CYCLES, ENSURING THEY ADD
VALUE AND ARE APPLIED WITH QUALITY.
CONSISTENT AND MUTUAL TRUST CONTEXT• VALUES FOSTERED THROUGHOUT THE ORGANIZATION.
• LEADERSHIP MODEL FOR CURRENT CHALLENGES.
• COMMUNICATION, INTERDISCIPLINARY WORK AND MESSAGE ALIGNMENT.
• PROCESSES AND TECHNOLOGY FOR THE CONTINUOUS IMPROVEMENT
OF RISK MANAGEMENT.
ANGOLAORGANIZA-
TIONAL CAPACITY
RISK AWARE LEADERSHIP
PROCESSES TECHNOLOGY
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•
•
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10 • Pluspetrol Sustainability Report 2019 • 11
VACA MUERTA
DURING 2019 WE COMPLETED THE EARLY PRODUCTION
PILOT PROJECT STARTED IN 2018 IN LA CALERA,
ARGENTINA. THIS PROJECT CONTEMPLATED THE
CONSTRUCTION OF 9 PRODUCTION WELLS, 1 DISPOSAL
WELL AND 1 MONITOR WELL, TOGETHER WITH THE
CONSTRUCTION OF PRODUCTION FACILITIES FOR
COLLECTION, SEPARATION AND DEHYDRATION OF THE
PRODUCED GAS, WITH CAPACITY OF 3MM M3/D, AND A
DISPATCH SYSTEM FOR GAS AND CONDENSATES,
COMPRISED OF PIPELINES AND TRANSPORT SYSTEM
TIE-IN POINTS.
PLUSPETROL’S COMMITMENT TO DEVELOP VACA MUERTA’S
UNCONVENTIONAL RESOURCES, IN LA CALERA, CONTINUED
THROUGHOUT THE YEAR WITH THE DRILLING OF 12
ADDITIONAL PRODUCTION WELLS, AND THE COMPLETION
OF 3 OF THEM. THE INITIAL ASSESSMENT OF THE
RESOURCES THUS FAR IS OPTIMISTIC IN REGARDS TO THE
QUALITY OF THE RESOURCE, IN VIEW OF A POTENTIAL
LARGE-SCALE DEVELOPMENT.
THE NEXT PHASE OF THE PROJECT, TO BE DEVELOPED IN
2020, CONTEMPLATES FURTHER CONSTRUCTION OF WELLS
IN THE BLOCK AND THE CAPACITY ENHANCEMENT OF THE
PRODUCTION AND SHIPPING FACILITIES.
CORPORATE STRATEGY
In a challenging context, it is essential to us to deeply
understand our assets and projects, and work on the
consolidation and analysis of our portfolio and
business plans. In 2019, the collaborative work
mechanisms that involve the whole organization in
the process were improved. The Long Term Plan
(LTP) was consolidated as the key component in the
management of Pluspetrol’s project and asset
portfolio. Then, consolidating the Action Plan allows
us to establish the goals for the following year, in line
with the LTP. In 2019, we integrated the Action Plan
goals with the objectives definition for employees
who work every day with this clear aim.
Long-term sustainability and growth require that we
guide Pluspetrol in a direction that creates value. To
do so, it becomes essential to envision the future
dynamics of the business in which we participate. In
2019, we contributed to that end, studying the main
trends of the energy industry, to shed light on the
business dynamics under which the company should
operate.
To sum up, during this year, we contributed tools
that guide fact-based quality discussions towards
high-level decision making in the company.
EXPLORATION STRATEGY
IN THE PUELÉN EXPLORATORY BLOCK, THE DOÑA
EDELMIRA X-1 WELL WAS COMPLETED IN
NOVEMBER, THROUGH STIMULATION BY
HYDRAULIC FRACTURING IN THE BASAL CYCLE
(EQUIVALENT TO THE LOMA MONTOSA
FORMATION), WHICH RESULTED IN PRODUCTION
OF WATER WITH TRACES OF HYDROCARBONS.
THE WELL, WHOSE FINAL DEPTH WAS 759
METERS IN THE PRECUYANO CYCLE, WAS
TEMPORARILY ABANDONED.
THE SECOND DRILLING CAMPAIGN IN THE SIERRA
DEL NEVADO BLOCK TOOK PLACE BETWEEN
JANUARY AND FEBRUARY, WITH THE
COMPLETION OF TWO WELLS, PLU.MDN.MYM.X-1
(MOCHO AND MALO), WITH A FINAL DEPTH OF
1,050 METERS IN THE BASE, AND PLU.MDN.BEC.X-1
(BAJO EL CARAPACHO X-1) WITH A FINAL DEPTH
OF 967 METERS IN THE BASE. THE
PETROPHYSICAL AND FOUND FLUIDS (NON-
MOBILE HEAVY CRUDE OIL) STUDIES SUPPORTED
THE DECISION TO RETURN THE AREA BY THE END
OF THE FIRST EXPLORATORY PERIOD (AUGUST
2019).
FOR THE UNCONVENTIONAL EXPLORATION OF
THE LOMA JARILLOSA EAST BLOCK, THE LJE-1020
(H) WELL SITE WAS BUILT (LOMA JARILLOSA
EAST) WITH THE VACA MUERTA FORMATION AS
AN OBJECTIVE, WHICH WILL HAVE 2,000 METERS
OF HORIZONTAL EXTENSION AT THE BASE LEVEL
(“KITCHEN”) OF SUCH UNIT. THE PLAN IS TO
CARRY OUT AN EXTENDED TRIAL TO KNOW THE
PRODUCTION POTENTIAL OF THE WELL, IN
WHICH PLUSPETROL WILL APPLY FOR THE FIRST
TIME AN INTENSIVE HYDRAULIC FRACTURING
METHOD KNOWN AS HIGH DENSITY COMPLETION
(HDC).
SETUP MOVED FORWARD ON THE DRILLING OF
THE FEIJAO-1 EXPLORATORY WELL, IN THE
CABINDA AREA. MANAGEMENT MAINLY
INVOLVED THE ENVIRONMENTAL LICENSING, THE
AGREEMENT ON THE SELECTED LOCATION, THE
PROCUREMENT OF THE DRILLING TEAM AND THE
WELL SERVICES, AND THE APPOINTMENT OF
HUMAN RESOURCES TO EXECUTE THE PROJECT.
DRILLING START WAS SCHEDULED FOR EARLY
2020.
IN OCTOBER 2019, THE CONSORTIUM COMPOSED
BY TULLOW (40%, OPERATOR), PLUSPETROL
(33%) AND WINTERSHALL DEA (27%) WAS
GRANTED EXPLORATION OF OFFSHORE BLOCKS
MLO-114 AND MLO-119, IN THE MALVINAS BASIN,
FOR AN INITIAL PERIOD OF 4 YEARS. THE
COMMITTED WORKS CORRESPOND MAINLY TO
THE ACQUISITION OF 10,490 KM2 OF 3D SEISMIC
SURVEY IN BOTH BLOCKS, WHOSE SURVEY
BEGAN IN DECEMBER 2019.
TWO INTERVENTIONS WERE PERFORMED
IN THE TCB-X1001 ST (TACOBO) WELL, WITH THE
PURPOSE TO REGISTER PRESSURES, INDUCE
NATURAL FLOWING TO MEASURE FLOW AND TO
BE ABLE TO SAMPLE FLUIDS IN THE SANTA ROSA
FORMATION. BY THE END OF THE YEAR, AND
WITH NO ENCOURAGING RESULTS, THE WELL
AWAITED A FINAL DECISION ON ITS FUTURE.
THROUGH A TECHNICAL EVALUATION
AGREEMENT (TEA), THE EXPLORATORY
POTENTIAL OF THE HUAYCO BLOCK WAS
ASSESSED. THE FINAL STUDY WAS SUBMITTED
TO YPFB’S EXPLORATION MANAGEMENT, AS
STABLISHED IN THE CONTRACT.
DURING MARCH, THE 2D SEISMIC ACQUISITION
ACTIVITIES WERE RESUMED IN THE SOUTH-WEST
SECTOR OF THE PUT-12. (PUTUMAYO) BLOCK,
WITH A TOTAL RECORD OF 80 KM. AMONG OTHER
ACTIVITIES, PLUSPETROL RE-ASSESSED THE
BLOCK AND UPDATED THE EXPLORATORY
PROJECTS PORTFOLIO.
IN BLOCK 108 OF THE ENE BASIN, THE DRILLING
OF THE BSE-1X (BOCA SATIPO EAST) WELL WAS
COMPLETED IN FEBRUARY, WITH A FINAL DEPTH
OF 3,020 METERS. EVIDENCE WAS FOUND OF
HYDROCARBON IN SANDSTONE FROM THE
CUSHABATAY FORMATION, ONE OF THE
CRETACEOUS OBJECTIVES, INDICATING THE
PRESENCE OF AN ACTIVE PETROLEUM SYSTEM IN
A COMPLEX STRUCTURAL FRAMEWORK.
A MAGNETOTELLURIC ACQUISITION WAS
PERFORMED THROUGH 439 STATIONS
DISTRIBUTED IN 23 LINES IN THE CENTRAL AND
SOUTH SECTORS OF THE BLOCK, WITH RESULTS
CURRENTLY UNDER ANALYSIS. TWO SURFACE
GEOLOGY CAMPAIGNS WERE ALSO PERFORMED,
IMPROVING THE SURFACE CONTROL AND
CONTRIBUTING TO THE GEOLOGICAL MODEL
UPDATE.
IN BLOCKS 88 AND 56, A STUDY WAS PERFORMED
ON THE EXPLORATORY POTENTIAL OF DEEPER
OBJECTIVES, AS IN THE PALEOZOIC FORMATIONS
OF COPACABANA, TARMA AND AMBO, LOCATED
BELOW THE PRODUCTIVE AREA OF THE CAMISEA
SITES.
DURING 2019, AS PART OF THE COMMITMENT OF
THE CURRENT EXPLORATION STAGE, WHICH
ENDS IN MARCH 2021, COORDINATES WERE
DEFINED FOR THE GVN-1 (GOLIATHBERG/
VOLTZBERG NORTH) WELL, IN BLOCK 47,
LOCATED IN DEEP WATERS OF THE SURINAME/
GUYANA BASIN. THE PROSPECT CORRESPONDS
TO A STRATIGRAPHIC TRAP WITH OBJECTIVE IN
CRETACEOUS SANDSTONE AND AVERAGE
RECOVERABLE RESOURCES GREATER THAN 500
MMBO.
ANGOLABOLIVIA
ANGOLAANGOLA
ANGOLACOLOMBIA
ANGOLAPERU
ANGOLASURINAMANGOLAARGENTINA
Sustainability Report 2019 • 13
THE NATIONALSOCIETY OF MINING,
PETROLEUM AND ENERGY (SNMPE)GRANTED US THE 2019
SUSTAINABLE DEVELOPMENTAWARD, IN THE LOCAL MANAGEMENT
CATEGORY, FOR THE PROJECT “LEARNING FOR GROWING
PROGRAM - PISCO”.
12 • Pluspetrol
AWARDS AND RECOGNITIONSASSOCIATIONSGRI 102-12, 102-13
As part of our commitment with sustainable
performance and the adoption of the industry’s best
practices, we participate in different national and
international organizations, at a corporate level, as
well as by country:
Americas Society and Council of the Americas
(AS/COA)
Regional Association of Oil, Gas and Biofuels Sector
Companies in Latin America and the Caribbean
(ARPEL)
Center for Chemical Process Safety (CCPS)
Argentinean Entrepreneurial Council for Sustainable
Development (CEADS)
Extractive Industries Transparency Initiative (EITI)
Argentine Institute of Oil and Gas (IAPG)
International Association of Oil & Gas Producers
(IOGP)
National Association of Corrosion Engineers (NACE)
Patronato Perú 2021
National Society of Mining, Oil and Energy (SNMPE)
Society of Petroleum Engineers (SPE)
Likewise, in each country, we participate in different
chambers of commerce and other types of initiatives.
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FOR SECONDYEAR IN A ROW,
WE WERE GRANTED THESOCIALLY RESPONSIBLE COMPANYAWARD BY PERÚ 2021 AND CEMEFI
(MEXICAN PHILANTHROPY CENTER),FOR COMPANIES THAT FOSTER THE
INCLUSION OF SUSTAINABILITYAS A MAIN PILLAR OFTHEIR BUSINESSES.
SUSTAINABILITY
Sustainability Report 2019 • 13
2019 SUSTAINABLEDEVELOPMENT AWARD, PERU
2019 SOCIALLY RESPONSIBLECOMPANY AWARD, PERU
Sustainability Report 2019 • 15
ECONOMIC, ENVIRONMENTAL
AND SOCIAL SUSTAINABILITY
RELATIONSHIP WITH COMMUNITIES
SAFE ANDRESPONSIBLEOPERATION
ETHICAL AND TRANSPARENT BEHAVIOR
CONTINUOUS IMPROVEMENT
MEASUREMENTAND REPORTING
RISKMANAGEMENT
ENGAGEMENT WITH STAKEHOLDERS
14 • Pluspetrol
AT PLUSPETROL, WE ARE STRONGLY COMMITTED
TO SUSTAINABILITY, SEEKING CONTINUOUS
IMPROVEMENT IN THE DEVELOPMENT OF OUR
ACTIVITIES, WITH THE PURPOSE TO ACHIEVE AN
EXCELLENCE MANAGEMENT THAT WILL DRIVE US
TO SUSTAINABLE GROWTH THROUGH A
RESPONSIBLE CORPORATE CONDUCT.
THIS PATH REQUIRES A LONG-TERM VISION AND
AN ETHICAL MANAGEMENT OF THE BUSINESS
THAT ALLOWS US, NOT ONLY TO BE IN HARMONY
WITH THE ENVIRONMENTAL AND SOCIAL
SURROUNDINGS, BUT ALSO TO CONTRIBUTE TO
THE PROGRESS OF THE COMMUNITIES WE HAVE
RELATIONS WITH, AND TO THE DEVELOPMENT OF
ALL PEOPLE AND STAKEHOLDERS CONNECTED
TO OUR COMPANY, CREATING SHARED VALUE.
DURING THIS PERIOD, WE HAVE REINFORCED THE
FOUNDATIONS OF OUR COMMITMENT CREATING
THE SUSTAINABILITY COMMITTEE AND UPDATING
THE SUSTAINABILITY POLICY
SUSTAINABILITY IN MANAGEMENT
During 2019, we continued to work on consolidating
our path towards sustainable management, creating
the Sustainability Committee, whose function is to
advise the Executive Committee in regards to the
Company’s performance in matters of sustainability
and responsible corporate behavior, to monitor
compliance with the Sustainability Policy across
Company and to analyze the main trends in the
subject.
Likewise, in 2019, we reviewed our Corporate
Sustainability Policy, the highest hierarchy document
in the Company’s documental pyramid. This revision
allowed us to update the commitments and defined
pillars, incorporating our stakeholders’ expectations
and the trends of the Oil & Gas industry.
In line with this, we started a due diligence analysis on
Human Rights, in conformity with the United Nations
Guiding Principles on Business and Human Rights,
and we developed the Physical and Property Security
Standard, in line with the Voluntary Principles on
Security and Human Rights.
We acknowledge that a responsible management
aimed at sustainable development is a dynamic
process that should be sufficiently flexible to address
the needs of the context and capitalize on
opportunities that arise, to optimize the creation of
shared value. In this challenge that we take on as a
Company, following our corporate values,
sustainability is the path we chose to grow.
MATERIALITY ANALYSISGRI 102-46; 201-47
Materiality is the principle that allows us to define the
relevant topics for a sustainability-oriented Company.
Through an inquiry process, we selected and
prioritized the topics that reflect the economic,
environmental and social effects on the Company,
and that are relevant for our stakeholders. This
process allowed us to assess how our activities affect
these groups, as well as the sustainability risks and
opportunities they create.
The relevant topics for the 2019 period are addressed
in this Sustainability Report, aiming to satisfy the
stakeholders and the Company’s need for
information.
In this framework, we strive to maintain an internal
and external inquiry process, through which we
validate the relevant topics every year. For this
Sustainability Report, we performed an internal
review with the corporate areas to adapt the content
of the Report to the Company’s management, and we
inquired the external stakeholders to prioritize and
validate such topics. These inquiries were performed
via on-line surveys, in which partners, employees,
suppliers and contractors participated.
Based on our stakeholders’ opinions and the analysis
of the corporate areas, we define the material topics
that reflect the effect of the Company in the
economic, social and environmental surroundings.
Coverage of such analysis takes into account the
effects along the value chain, including Pluspetrol’s
activities, framed by the principles of our
Sustainability Policy.
STAKEHOLDERSGRI 102-40, 102-42, 102-43, 102-44
Aware of our stakeholders expectations for our
activities, we foster the creation and maintenance of
trust relationships with our employees, partners,
contractors, suppliers, the communities from the
areas in which we operate, and other stakeholders,
creating shared value and favoring their quality of life
and sustainable development.
They represent an essential asset that promotes business growth, delivering productivity, excellence and leadership.
They contribute capital and industry knowledge. They help collaborate with manageable resources, and planning short, medium and long-term Company operability.
They represent a valuable component of the value chain for the Company’s growth.
They are the strategic part of the value chain. Their capabilities are key for the execution of operations in different countries.
They set the market conditions in which the Company operates. Likewise, they regulate sensitive topics of the industry, such as biodiversity, water management, emissions, and wastes, among others.
We seek to jointly enhance development opportunities and minimize negative aspects.
They share knowledge about trends and innovations in the industry. They influence the market and have an effect on the Company’s corporate image.
Employees
Partners
Customers
Suppliers and Contractors
Governmententities
Local Communities and NGOs
Mass Media and opinion leaders
ETHICAL AND TRANSPARENT BEHAVIOR ANTI-CORRUPTION
RELATIONSHIP WITHTHE COMMUNITIES RELATIONSHIP WITH LOCAL COMMUNITIES INDIGENOUS PEOPLES RIGHTS
ECONOMIC, ENVIRONMENTAL AND SOCIAL SUSTAINABILITY RESERVES LOCAL SUPPLIERS PROCUREMENT ECONOMIC PERFORMANCEECONOMIC IMPACTS ON THE COMMUNITYEMPLOYMENT PRACTICESTRAINING AND DEVELOPMENT
SAFE ANDRESPONSIBLE OPERATION ENVIRONMENTALCOMPLIANCEEFFLUENTS AND WASTESWATER MANAGEMENT EMISSIONS BIODIVERSITYASSET INTEGRITY ANDPROCESSES SAFETYPREPAREDNESS PLANSBEFORE EMERGENCIESOCCUPATIONAL HEALTHAND SAFETY
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SUSTAINABILITYPOLICY
PRINCIPLES
16 • Pluspetrol Sustainability Report 2019 • 17
SUSTAINABLE DEVELOPMENT GOALS (SDG)
At Pluspetrol, we base our operations in behaviors of
a sustainable nature, and we commit ourselves,
through different initiatives, to the growth of the
countries in which we perform our activities.
Companies being part of society, we are aware that
we have an important role in the implementation of
SDGs, and thus, we contribute to the achievement of
the 2030 Agenda.
Due to the nature of our business, our greatest
contribution is reflected by the energy we produce,
the creation of employment and the economic value,
the work in safe conditions, the social investment in
SUPPLY CHAIN
the communities we are related with, and the rational
management of resources.
Based on the principles of our Sustainability Policy,
and supported by the actions we performed during
the period, we started working on the identification
of the SDGs on which we have a greater impact. This
analysis will be completed the coming year, also
identifying the contributions to the SDG goals and
indicators to be measured.
.
OUTSTANDING ACTIONS 2019MAIN ASSOCIATED SDG POLICY PRINCIPLES
CONT
INUO
US I
MPR
OVEM
ENT
ECONOMIC, ENVIRONMENTAL AND SOCIAL SUSTAINABILITY
ETHICAL AND TRANSPARENT BEHAVIOR
MEASUREMENTAND REPORTING
RISK MANAGEMENT
SAFE AND RESPONSIBLE OPERATION
RELATIONSHIP WITHTHE COMMUNITIES
ENGAGEMENT OF STAKEHOLDERS
1890 direct jobs created.Management of purchases and procurement with 2115 suppliers. Over 87% of local purchases.Development of unconventional resources in Vaca Muerta. 72% gas in the year’s total production.Consolidation of the Growing Together platform. Support for production ventures in local communities.
Approval of Anti-corruption and Anti-Bribery Policy.Development of the Code of Conduct for third partiesApproval of the Physical and Property Security Standard, in line with the Voluntary
Sustainability Report Publication.GHG Emissions Inventory.
Programs for asset integrity and preventive maintenance in all our operations.Process Safety Management (PSM) Framework.Human Rights Due Diligence
Contractor forum.Social Investment Program Alliances.Involvement in industry and sustainability associations
Biodiversity Monitoring Program (BMP). Socio-environmental assessments.Waste management - 3R Program.Monitoring of superficial and underground water resources. Energy efficiency programs.
Social investment programs for education and health care. Community development programs for access to energy, fresh water and infrastructure investment. Grievances and complaints mechanism.
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Sustainability Report 2019 • 1918 • Pluspetrol
23.6%PURCHASE OF MATERIALS
76.4%SERVICE PROCUREMENT
89.8%OF PURCHASES FROM LOCAL SUPPLIERS
7.2%PURCHASE OF MATERIALS
92.8%SERVICE PROCUREMENT
95.7%OF PURCHASES FROM LOCAL SUPPLIERS
9.6%PURCHASE OF MATERIALS
90.4%SERVICE PROCUREMENT
94.4%OF PURCHASES FROM LOCAL SUPPLIERS
ANGOLAPERUANGOLAARGENTINA ANGOLABOLIVIA
DUE TO THE SPECIFICITIES OF OUR
MANAGEMENT MODEL, CONTRACTORS AND
SUPPLIERS ARE KEY PLAYERS FOR THE
ACHIEVEMENT OF OUR GOALS. CREATING SOLID
RELATIONSHIPS THAT SUPPORT A JOINT WORK,
PRIORITIZING AN EFFICIENT AND RESPONSIBLE
MANAGEMENT OF MATERIALS, EQUIPMENT AND
WORK AREAS, AS WELL AS PERSONAL SAFETY
ARE KEY ASPECTS IN OUR SUPPLY CHAIN
MANAGEMENT.
IN ORDER TO STRENGTHEN OUR RELATIONSHIP
WITH CONTRACTORS AND TO MAINTAIN
CONTINUITY WITH 2018, WE HAVE DEVELOPED
THE SECOND GLOBAL CONTRACTORS FORUM.
SUPPLY STRUCTUREGRI 102-9, 102-10
Pluspetrol’s supply chain is related to supply,
logistics operations, material management and
service procurement. The Company’s main
purchasing units are located in Argentina and Peru,
in line with the complex characteristics and scale of
the operations performed in those countries.
In 2019, we conducted operations with over 2115
suppliers and contractors, out of which 47%
correspond to Argentina, 38% to Peru, 8% to Bolivia
and 6% to Angola.
58% of the suppliers are related to service
procurement, and 42%, to the purchase of materials.
In terms of expenditure proportion, 84% of the
purchases correspond to service procurement.
To manage the supply chain we have the Supplies,
Logistics and Warehouse areas, which allow us to
satisfy the needs and expectations of the
organization, adding value and working
collaboratively in the search for new solutions for the
business.
7. Program 6A, inspired by Japanese methodology 5S, seeks to continuously maintain classification, order and cleanliness of materials and warehouses, via a standardization regulation and discipline.
CLASSIFYING
ORGANIZING
CLEANING
SAFETY
STANDARDIZING
•
•
LOCAL PURCHASESGRI 204-1
In the framework of our Sustainability Policy, we aim
our business to the sustainability of the Company
and the environments in which we operate,
stimulating purchases and procurement with local
suppliers, fostering their development and tailoring
their services to the needs of our activities.
We strive to maintain the requirements for the
technical and commercial conditions of the purchase
and procurement process, adapting ourselves to the
operational context and the conditions in the local
markets in which we work.
We foster the development of local suppliers in the
area of influence of our operations through initiatives
that seek to directly and indirectly influence local
capabilities. The creation of installed capacity in the
regions in which we develop our activities favors the
development of local economies and the sustainable
growth of the Company. In turn, this allows us to
reduce operational costs and comply with the
dispositions regarding “Local Purchasing”,
established by national, provincial and municipal laws
and/or contractual obligations that pertain to our
purchases and procurement.
By “local”, we mean the operation’s direct and
indirect area of influence.
These are the acquisitions registered in the different
operation sites in 2019, which correspond to local
suppliers:
IDENTIFYINGWHAT IS NECESSARY
AND WHAT IS NOT
ADEQUATELYDISPOSING OF
UNNECESSARY THINGS
ESTABLISHINGFACILITIES’
CLEANING PROGRAM
COMPLYINGWITH SAFETY
REGULATIONS AND MMAA
ESTABLISHINGPROCEDURES AND RESPONSIBILITIES
DISCIPLINE
WORK HABIT WITH RESPECT FOR PROCEDURES AND CONTINUOUS IMPROVEMENT
TOTAL AND PERCENTAGE OF SUPPLIERS PER TYPE OF PROCUREMENT AND PURCHASE
2018 2019
• Service procurements • Material purchases
1,818
37%
2,115
63%
42%
58%
9.2%PURCHASE OF MATERIALS
90.8%SERVICE PROCUREMENT
40.8%OF PURCHASES FROM LOCAL SUPPLIERS
Material managementSince 2018, Pluspetrol has a Material Management
Policy, aimed at optimizing work capital and
minimizing wastes, while guaranteeing a
comprehensive vision of the management process,
in the search of value along the whole supply chain.
To give continuity to this process, during 2019,
the 6A7 Program continued to be implemented,
with the purpose to set guidelines that allow
building a culture based on management excellence,
maintaining continuity in classification, order,
cleanliness and safety, via standardization
and discipline, pursuing the efficient management
of materials, equipment and work areas.
This methodology seeks the identification of
inefficiencies, the creation of order and space
leveraging in facilities, reducing the risk of accidents,
the early proposal of facility improvements, and the
focus of resources on aspects that are useful to the
process.
Complementarily, contractors were integrated to the
implementation of this program, with monitoring and
assessment to allow for a follow-up and to maintain
the program’s transparency, quality and safety.
90 contractor employees were trained in the
methodology, and 65 checklist were performed,
which allowed to identify 250 findings.
ANGOLAANGOLA
Sustainability Report 2019 • 2120 • Pluspetrol
Pisco – former cable storage area
Malvinas - remaining spares warehouse project
BEFORE AFTER
BEFORE AFTER
Contractor managementA large number of the activities that make up our
production system are developed by contractors,
which has a direct impact on the Company’s
management and performance. For that reason, we
seek to work jointly on the definition and
implementation of corporate guidelines associated to
safety, environment, healthcare and community
affairs management, to develop a responsible
management.
Our commitment with sustainability spreads across
the value chain ensuring suppliers and contractors
adhere to the principles established in our
Sustainability Policy and make the Company’s values
their own.
Another important aspect of managing the
contractors that work in our operations is the
generation of constructive dialog and collaborative
workspaces. In 2019, the second Global Contractors
Forum took place, with the purpose of aligning and
strengthening Pluspetrol’s EHS and risk management,
as well as the main contractors management.
Some of the main topics addressed in the Forum
were: organizational culture, leadership, risk
management and process safety, discipline and
operational excellence, and leaders and employees’
competences.
To reinforce this purpose, we wanted to replicate
these encounters in the rest of the country, focusing
on the planning and follow-up of the agreements
LOGISTICS CONTRACTORS WORKSHOP. PERU
The Logistic team carried out two workshops with
the terrestrial, fluvial and aerial transport contractor
companies with the purpose of deepening the
concepts for a safe and sustainable logistics
operation, creating a joint commitment plan.
Both workshops were attended by Pluspetrol’s
management teams from Community Affairs,
Compliance, Logistics, Environment, Operations,
Safety and Supplies, and by the leaders of the main
transport contractor companies.
These workshops focused on sharing safety statistics
from the internal and external logistics operations,
Pluspetrol’s Task Discontinuation and Sustainability
Policies, as well as on other key concepts in terms
of Compliance, and environmental and social
management.
In each session, a practical exercise about incident
investigation and continuous learning was
approached. The contractor companies presented
their best practices in terms of EHS and the
application of new technologies, finishing with a
workbench activity to create synergy and
commitments for a sustainable operation, such as
sharing the topics approached in this encounter with
all levels of each organization, among others.
Since 2018, we use the EHS Aspects standard in
contractor management. This standard, applied to
the selection, acquisition, use and monitoring of the
procured services, allows us to align the actions of
the contractors with the operation’s EHS
requirements and the Company’s performance
objectives, contributing to the implementation of
good practices in terms of EHS, and minimizing the
level of risk and/or impact on the operations.
THE FOLLOWING ARE
AMONG THE MENTIONED
STEPS OR CONTROLS:
RISK ANALYSIS.
COMPETENCES EVALUATION.
SAFETY AND INTEGRITY,
ENVIRONMENTAL, AND SOCIAL
CONTRACT REQUIREMENTS.
INSPECTIONS PREVIOUS TO
MOBILIZATION TO CONTRACT
EXECUTION SITE.
INSPECTIONS DURING
MOBILIZATION.
EHS ASPECTS ASSURANCE
DURING CONTRACT
EXECUTION.
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CONTROLES DE SEGURIDAD, MEDIO AMBIENTE,SALUD Y ASUNTOS COMUNITARIOS
achieved in the Global Forum, and we performed
active workshops to implement the actions in our
operations. In 2019, workshops took place in Malvinas
(Peru) and La Calera (Argentina), and a specific one
was held for logistics contractors in Peru.
AUDITS.
STATISTICS AND INDICATORS
REPORT.
INSPECTIONS DURING
DEMOBILIZATION.
PERFORMANCE EVALUATION.
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CONTRACT CLOSINGPROCESS
CONTRACTEXECUTION
CONTRACT OPERATIONAL
START-UP
NEGOTIATION AND ALLOCATION
BIDEVALUATION
EXECUTION,PROCESS,
PROCUREMENT MANAGEMENT
IDENTIFICATIONOF NEEDS
OPERATIONAL PLANNING
Supplies aerial transport.
Sustainability Report 2019 • 2322 • Pluspetrol
OUR PEOPLE:TALENT DEVELOPMENT
DIRECT EMPLOYEES PROFILE
Our operations require the
work of contractors. Due to
the characteristics of the
activity, we do not have
seasonal variations.
45% of employees in
Argentina are covered by
collective bargaining
agreements, and 31% in Peru.
Angola
EMPLOYEES BY WORK CONTRACT AND GEOGRAPHIC AREA
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1,854
Argentina Bolivia U.S.A. Netherlands Peru Uruguay Pluspetrol
41%
26%
17%
16%
••
••
BETWEEN 5 AND 15 YEARS
LESS OR EQUAL
TO 2 YEARS
BETWEEN 2 OR 5 YEARS
MORE THAN 15 YEARS
EMPLOYEES BY SENIORITY
EMPLOYEES BY AGE
71%
17%
12%
•••
31 TO 50 YEARS OLD
MAYOR O IGUAL A 51 AÑOS
AGED 51 OR OLDER
EMPLOYEES BY GENDER
79%
21%
••
MEN
WOMEN
EMPLOYEESGRI 102-8, 102-41
IN 2019, WE CONTINUED DOWN THE
CONSOLIDATION PATH OF THE HUMAN CAPITAL
MANAGEMENT PROCESSES, IN LINE WITH THE
COMPANY’S VISION OF EXCELLENCE, SEEKING
TO DEVELOP A SUSTAINABLE VIEW THAT,
AMONG OTHER THINGS, WOULD ENSURE HAVING
THE PROPER TALENT IN THE PRECISE MOMENT
TO ACHIEVE THE BUSINESS GOALS AND TO BE
PREPARED FOR THE COMING CHALLENGES.
WE KEPT OUR FOCUS ON MOVING FORWARD
WITH THE DEFINITION OF OUR PROCESSES AND
THEIR MANAGEMENT IMPLEMENTATION VIA THE
GROWING TOGETHER PLATFORM. THIS ALLOWS
US TO HAVE CONSISTENT, RELIABLE AND TIMELY
(JUST IN TIME) INFORMATION OF THE TALENT
MANAGEMENT PROCESSES AT A GLOBAL LEVEL,
IN THE PATH TO INTEGRATION; AND WE
COMPLEMENTED THE PLATFORM WITH THE
STAFFING (INTERNAL AND EXTERNAL) AND
LEARNING PROCESSES.
EMPLOYEES BY YEAR AND GENDER
41
816
54 1
839
97
5 23 0 0 0
1,500
1,000
500
0
DIRECTCOLLABORATORS1,890
• MEN • WOMEN
2018 2019
1,405
370
1,492
398
8 0 366• PERMANENT EMPLOYEES • TEMPORARY EMPLOYEES
Sustainability Report 2019 • 2524 • Pluspetrol
EMPLOYMENTGRI 401-1
LEARNING AND DEVELOPMENTGRI 404-1, 404-2, 404-3
PERFORMANCE MANAGEMENT
During 2019, we continued consolidating the
Performance Management Process (PMP). This
cyclical process is leveraged by the quality of
leadership, reflected on the constructive dialog
spaces between leaders and employees, and by the
view of the multiple People Development
Committees (PDC). The whole process is
comprehensively managed within our Growing
Together platform. Our PMP aims to aligning
individual goals with the Company’s strategic goals.
In 2019, 1740 employees participated in this process,
taking into account that most of the business units
develop the performance management through the
Growing Together platform, achieving the key
milestones for goal setting and feedback, through
dialog between the leader and the collaborator.
VALUE PROPOSALGRI 401-2, 401-3
8. New hires and losses do not account for foreign assignments.9. The new hires rate represents the number of hires in the period over the number of employees by December 31, 2019. It does not include new hires in foreign assignments.10. The rate is calculated based on the number of employees that came back after finishing the parental leave. In the case of women, out of the 20 that took leave in 2019, 7 finished it and came back during the period and 11 will finish their leave in 2020. In the case of men, all of them finished their leave during the period.
Employees with parental leave in 2019
Return to work rate 10
50
100%
20
90%
MEN WOMEN
MATERNITY AND PATERNITY LEAVES
ROTACIÓN DE PERSONAL
134 LOSSES
7% TOTAL TURN OVER RATE
In Pluspetrol, every year, we maintain a
comprehensive and differentiated vision: we propose
benefits that tend to balance individual needs
according to organizational values and the
regulations of each country in which we operate.
The following benefits serve as example: collective
life insurance, work travel health coverage, nursery,
extended maternity leave, medical coverage during
extended maternity leave, gifts and
acknowledgments for special dates, personal loans,
special leave days for personal purposes.
277 NEW HIRES8
15% HIRING RATE9
NEW HIRES BY GENDER
78%
22%
••
MEN
WOMEN
HIRES BY AGE
60%
32%
8%
•••
AGED 30 OR UNDER
31 TO 50 YEARS OLD
AGED 51 OR OLDER
Pluspetrol
HIRING RATE BY GEOGRAPHIC AREA
Angola
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
17
20
0
Argentina Bolivia U.S.A. Netherlands Camisea,Peru
UruguayPPN,Peru
0 0
12
7
14
15
NUEVAS CONTRATACIONES
HIRING RATE BY YEAR
2018 2019
13
1516%
14%
12%
10%
8%
6%
4%
2%
0
TURNOVER RATE BY YEAR
2018 2019
10
7
LOSSES BY GENDER
77%
23%
••
MEN
WOMEN
LOSSES BY AGE
61%
27%
12%
•••
31 TO 50 YEARS OLD
AGED 51 OR OLDER
AGED 30 OR UNDER
TURNOVER RATE BY GEOGRAPHIC AREA
Angola
26%
24%
22%
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
Argentina Bolivia U.S.A. Netherlands Peru Uruguay Pluspetrol
7
8
0 0
6
26
6
7
26 • Pluspetrol Sustainability Report 2019 • 27
Total training hours provided to employees
Average training hours
32,223
22
5,500
14
MEN WOMEN
AVERAGE CLASSROOM TRAINING HOURS BY EMPLOYEE, BY GENDER
37,723
20
TOTAL
Total training hours provided to employees
Average training hours
8,706
23
CATEGORÍA A
AVERAGE CLASSROOM TRAINING HOURS BY EMPLOYEE, BY WORK CATEGORY
29,018
19
CATEGORÍA B
As part of a management that promotes a safe
working environment for our direct employees and
for the contractor companies’ personnel, every year,
we support proposals with a consistent view: the
development of a positive culture of health care and
healthy habits.
Under this vision, our healthcare management
is focused on prevention and medical assistance,
mainly in terms of occurrence of occupational
diseases or work accidents. This approach is
materialized through the different campaigns,
programs and activities for control, training and
prevention implemented throughout our operations.
Some of the recurring actions we develop every
year are those associated to nutrition and healthy
habits (including food, active lifestyle, and prevention
of hypertension and tobacco use). Additionally,
this global perspective is complemented by specific
actions that attest for this healthcare look in each
operation and in the offices, for instance, CPR
courses and specific vaccination campaigns.
Training in diseases, injuries, prevention, first aid, among others
Vaccination campaigns
Occupational medical exams, consultation and controls.
HEALTHCARE ACTIVITIES
1,605
556
2,069
BENEFICIARIES
Days lost due to absenteeism
Absenteeism Rate
5,896
1.43%
MEN
2,239
0.54%
WOMENABSENTEEISM
To reinforce the commitment with the development
of our human capital, during 2019, 14 employees had
the opportunity to refine their knowledge with
financial support for postgraduate courses, master’s
degrees and specializations.
Complementarily, and in line with the 70/20/10
perspective, 19 on the job trainings were performed,
including, for the fourth consecutive year, the Young
Trails program, in which young professionals are
trained in theoretical-practical tools to approach the
industry for the first time. The program had 13
participants –selected after a thorough process- who
took courses in Introduction to the Industry and
carried out extensive field experience. The program
added up to an approximate total of 13,104 hours of
training (512 hours in classroom + 224 hours in field
school + 80 hours in the development of the
integration final work + 6 months on the field).
GOOD PRACTICESAND LEARNING
In line with the comprehensive and transversal view
of the learning processes, in 2019, the contents of the
Code of Conduct and the good practices of the
Company were communicated in a proposal that
took into account different resources, such as:
on-site workshops and virtual trainings, plus
communication pieces and flyers. The support role of
the leaders in the different business units, as well as
that of the members of the Ethics Committee, was
key for the development of this initiative, which
allowed to reach the entire team with information
about the importance of Pluspetrol’s good practices.
To that end, 25 leaders were trained together with
the Human Resources team, in 10 trainers training
workshops. These leaders, in turn, trained 248
leaders, with a total of 21 workshops in all units.
Complementarily, an ad hoc course on Good
Practices and Compliance for all employees was
created in the e-learning catalog, containing the
required contents, reflections and practice exercises.LEARNING
Continuing with the 70/20/10 learning vision,
Pluspetrol seeks to open opportunities in real
projects and experiences that allow a practical
learning and, in turn, the strengthening of the
self-development vision.
As part of the Learning process re-engineering
strategy, in 2019, we worked on launching the
Learning Management System (LMS) module in
Growing Together, which allows us to incorporate
e-learning resources that give us the capability to
streamline the way to reach all our employees.
During 2019, 968 employees received a total of
37,723 on-site training hours, associated to different
competences required for the business. Some of the
approached core topics were, for instance, training in
contingency plans and crisis management, and
Compliance training.
PERFORMANCE ASSESSMENTS BY GENDER
PERFORMANCE ASSESSMENTSBY WORK CATEGORY
37,723 HOURS OFCLASSROOMTRAINING
13,104 HOURS OF YOUNG TRAILS PROGRAM TRAINING
ABSENTEEISM RATE PER YEAR
2018 2019
1.7
1.97
Employees that received a performance assessment during the year
% of evaluated employees
1,385
93%
355
89%
MEN WOMEN
Number of employees that received a performance assessment during the year
% of evaluated employees
378
100%
1,362
90%
CATEGORY A11 CATEGORY B
IN 2019, THE STAFFING PROCESS WAS INCLUDED IN THE GROWING TOGETHER PLATFORM. THIS WAY,WE INCORPORATE A PROCESS THAT ALLOWS TO ARTICULATE A UNIFORM LEADERSHIP VIEW TO ACHIEVE THE ADEQUATE BALANCE BETWEEN THE DEVELOPMENT OF INTERNAL TALENT AND THE INCORPORATIONOF MARKET TALENT. OUR STAFFING MODEL INCLUDES BOTH THE MANAGEMENT OF INTERNAL CAREER OPPORTUNITIES AND THE HIRING OF EXTERNAL PROFESSIONALS, IN ORDER TO ACHIEVE THE BUSINESS GOAL, BOOSTING OUR HUMAN CAPITAL.
HEALTHCARE
11. Category A includes the positions in charge of personnel.12. 10% structured learning, 20% learning with others, and 70% learning from experience.
28 • Pluspetrol Sustainability Report 2019 • 29
COMMUNITYCONSIDERING THE HIGH DIVERSITY OF THE
GEOGRAPHICAL AND SOCIO-CULTURAL
CONTEXT OF OUR OPERATIONS, WE SEEK TO
CREATE BONDS THAT FAVOR HARMONY AND
RESPECT WITH NEIGHBORING COMMUNITIES,
FOCUSED ON COOPERATION, TRUST AND
LEARNING RELATIONSHIPS, THROUGH
COMMUNITY RELATIONSHIP PLANS THAT
INCLUDE SUSTAINABLE INITIATIVES AND
PROJECTS, TAILORED TO THE NEEDS OF THE
COMMUNITIES.
IN 2019, WE CARRIED OUT PROJECTS AND
INITIATIVES WITH THE COMMUNITIES LINKED TO
OUR OPERATIONS, WITH THE PURPOSE OF
STRENGTHENING LOCAL ECONOMIES, IMPROVING
HEALTH AND EDUCATION CONDITIONS, AND
CREATING CAPABILITIES THAT FOSTER
DEVELOPMENT.
AS WE SEEK TO ADAPT OURSELVES AND
INTERACT IN A RESPECTFUL MANNER WITH THE
SURROUNDINGS OF OUR ACTIVITIES, WE WORK
EVERY DAY ON THE RELATIONSHIP WITH THE
COMMUNITIES. DURING THE PERIOD, WE CARRIED
OUT OVER 200 MEETINGS, ASSEMBLIES AND
COMMUNICATIONS, REACHING MORE THAN 8400
PEOPLE.
SOCIAL INVESTMENTGRI 203-2, 411-1; 413-1, OG 9
We consider Social investment to be a key
component of our management, boosting the
community relationship plans of our assets. We
develop programs and initiatives that seek to reduce
economic, social and cultural gaps, contributing to
the development of the communities.
Our projects are developed on four main pillars:
education, health, community development and
institutional strengthening, striving to articulate
individual and community social capital in order to
guarantee the success and sustainability of the
projects.
We have social management guidelines for the
implementation of projects based on the
identification of stakeholders and the assessment of
the social situation in the area. We define projects
under mechanisms of participation and strengthening
of stakeholders’ relationships, stimulating local
involvement to ensure the sustainability of the
results, and articulating social investment plans with
different organizations and institutions.
On-the-field high profile multidisciplinary teams,
together with community organizations and
institutions, develop sustainable plans and projects,
aimed at boosting the local population’s skills and
capabilities, with medium and long-term economic
incentives, contributing to local and regional
development, always considering customs, cultures
and traditional values. The different areas of the
company get involved contributing their capabilities
according to the needs of each project and initiative.EDUCATIONINITIATIVES AIMED AT PROMOTING PERMANENCEOF KIDS AND YOUTHS IN SCHOOL, AND ATIMPROVING THE STUDENT’S LEARNING CONDITIONS, STRENGTHENING TEACHER TRAINING, INFRASTRUCTURE AND THE TECHNOLOGY AVAILABLE AT THE INSTITUTIONS. INSTITUTIONAL STRENGTHENING
STRENGTHENING AND ADMINISTRATION OF MANAGEMENT CAPABILITIES OF SOCIAL ORGANIZATIONS, INDIGENOUS GROUPS IN THEAREA OF INFLUENCE OF OUR OPERATIONS, WITHTHE OBJECTIVE OF REINFORCING THEIR ABILITIESAS VEHICLES FOR POSITIVE CHANGES IN THEIRAREAS OF ACTIVITY.
COMMUNITY DEVELOPMENTSUPPORT FOR SUSTAINABLE PRODUCTIVE ENTREPRENEURSHIPS (THROUGH THE PROVISION OF GOODS AND MATERIALS, TECHNICAL SUPPORT AND TRAINING) AND PROJECTS TO IMPROVE BASIC SERVICES INFRASTRUCTURE IN THE COMMUNITY.
HEALTHCAREIMPROVEMENTS IN COMMUNITY ACCESS TO HEALTHCARE, VIA PROJECTS THAT SUPPORT THE AVAILABLE PUBLIC SERVICES, AND THROUGH INITIATIVES THAT FACILITATE MEDICAL ATTENTION, INCLUDING MENTAL HEALTH, IN REMOTE AREAS, WITH LITTLE INFRASTRUCTURE OR PRESENCE OF HEALTH PROFESSIONALS.
28 • Pluspetrol
Sustainability Report 2019 • 3130 • Pluspetrol
During 2019, USD 9,017,812 were destined13 to social
investment programs, developed in the countries in
which we operate: Angola, Argentina, Bolivia and
Peru.
Below, we mention some of the developed projects.
We continue to support productive ventures in the
areas of influence of our operations. In Neuquén, we
support occupational education workshops for
teenage students in conditions of social and
economic vulnerability. Likewise, together with the
Centro Pyme ADENEU and the Familia Foundation,
we bolstered the pig production genetic
enhancement via embryo transfer, optimizing the
quality of the meat and significantly improving its
sanitary quality. Additionally, we assist the
Agricultural Professional Training Center supporting
the development of production projects with
technological innovation for production of
vegetables and strawberries.
In terms of healthcare, we maintained the
implementation of the Community Healthcare Plan,
through the mobile medical unit and its team of
specialists in the Centenario area, and we expanded
its scope incorporating the town of Añelo. The
purpose of this program is to collaborate and assist
communities within the area of influence of
Pluspetrol’s operations with medical, pediatric and
ophthalmological services. In 2019, more than 4500
people were assisted via this program.
Regarding the education pillar, we contributed with
infrastructure improvements in the Añelo
kindergarten, in Neuquen, and in four schools in
Tartagal, Salta.
management, with the purpose of providing
specialized training to the local population. Together
with the operators in Vaca Muerta, Pluspetrol
participates financing the project and integrating the
Advisory Council. This Council, whose main goal is
the design and implementation of the educational
policies, ensuring involvement and consensus of the
social players, was officially launched on November
5, with the participation of provincial and local
authorities, and the rest of the operators.
Strengthening of Local Farmers: via an agreement
between the agricultural cooperative Los Pioneros,
Centro Pyme-ADENEU and the Familia Foundation,
we worked with the goal of enhancing pig
production, through the contribution of genetics,
advisory and technical follow-up.
“Libro abierto” Program: in cooperation with Añelo’s
Kindergarten N° 52 and the Leer Foundation, it is
aimed at stimulating reading among kids of initial
level. The program includes the creation of two
totally equipped reading spaces, teachers’ training
and working with the families to leverage the new
available resources.
Institutional strengthening: we created agreements
to equip the physical therapy unit at the Añelo
Hospital and the Volunteer Fire Brigade, in order to
improve the service level of two core organizations
for the local quality of life.
SOCIAL RESPONSIBILITY IN LA CALERA With the purpose of supporting the development of
the La Calera project, fostering sustainable initiatives
for local development, a social baseline was
performed, including the identification and mapping
of stakeholders in the direct and indirect area of
influence of this project.
This social baseline survey, which included fieldwork,
interviews with different players and lab work, was
carried out by a team of professionals with extensive
experience in the subject, and it allowed to identify
two main areas of influence of the project: the area
that corresponds to the site and the town of Añelo,
as the main associated urban center. The first area is
managed by the Community Affairs and the
Superficiaries areas, while the approach to the town
of Añelo was assigned to the Corporate Social
Responsibility (CSR) area.
Part of this work included surveying the expectations
of the stakeholders and, from that point on, defining
the main lines of action to structure CSR programs in
Añelo:
Strengthening of value chain
Enhancement of rural production
Reinforcement of local capabilities
Institutional / infrastructure strengthening
For each of these lines, projects were identified, to
be implemented in the medium and the long term,
with the following standing out, starting
implementation in 2019:
Añelo Institute of Professional and Technical
Education: created via a public-private mixed
13. In the 2018 Sustainability Report, a total amount of USD 4,214,459 was reported, as the investments in the Pisco projects were not included, investments which are included in this chart, both for 2018 and 2019.
In the Lower Urubamba, main area of influence of the
Camisea project, different community development
projects were carried out supported by four pillars:
education, healthcare, support for production
ventures, and infrastructure and institutional
strengthening.
Regarding the educational pillar, we prompted
different initiatives aimed at supporting over 2100
students of initial level, primary and secondary
school, delivering supplies and equipment, and
economic support to pay for studies and teachers’
training. Regarding higher education, we want to
highlight the Integrated Education Program (PIE)
through the Nopoki scholarships to support 38
young people from native communities to study
university courses in the specialties of Bilingual
Intercultural Education, Agricultural Engineering,
Management and Accounting. The students are
academically monitored by the Católica University,
Sapientiae office, in the Atalaya district.
At a healthcare level, pursuant to cooperation
agreements with the Healthcare Regionals
Departments, we collaborated with the management
of emergency evacuations to Lima, accompanying
the patients along their care until their return to the
community, we provided economical support to the
Sepahua Dominican Mission to strengthen service
provision at a local level, and we financed water and
sanitation projects for the communities.
We performed nine institutional strengthening
agreements with indigenous organizations to
collaborate with their administration and
management capabilities, with the purpose of
reinforcing their leadership skills and social programs
management, originating from the regional and/or
central government for the support of their base
communities.
Regarding production ventures, we maintained the
technical-financial support for the Cocoa Crop
Enhancement Project with the Kirigueti community,
in which 28 families participated, achieving the
installation of 14 hectares of crops and recovering
other 3.5 hectares with no harm to the forest.
In Bolivia, infrastructure investment projects were
develop for the acquisition of fresh water, and the
construction of educational centers, community
meeting halls and medical attention centers, as well
as contributions for livestock farming projects.
In Neuquen, we continued to implement the Esto es
Ritmo Program, which uses dancing to foster
freedom of speech and thekids and teenagers’ right
to actively participate in cultural lif.
During the period, other contributions were carried
out, like the delivery of elements, equipment and fuel
to firefighters, hospitals and health centers in the
area of influence, as well as the delivery of foods and
supplies to organizations that provide food aid.
We worked with the Campo Maripe Mapuche
indigenous community, associated with the La Calera
site, in an alfalfa production project performing soil
moving tasks, constructing water channels, and
preparing and sowing 20 hectares. In the Ramos site,
we maintained our support to the Wichi indigenous
community via the contribution of tools, supplies
and technical assistance for community gardens.
SOCIAL INVESTMENT PER AREA IN USD
Education
2,202,196
1,681,148••
2018
2019
Healthcare
781,617
1,222,475
Institutional strengthening
1,014,603
1,890,922
Community development
4,147,313
4,032,213
Other
872,083
938,326
ANGOLABOLIVIA
ANGOLACAMISEA,PERU
ANGOLAARGENTINA
••• •
Sustainability Report 2019 • 3332 • Pluspetrol
In Pisco, based on the social investment strategic
plan developed by an independent consultant, we
continued to implement professional training
projects for managers and teachers of initial
education and primary school, and projects with
secondary level institutions to foster learning
improvements, digital education and education for
school technical work via teacher reinforcement and
the provision of equipment and infrastructure. In that
regard, at secondary level, 12 computer rooms and 6
occupational learning centers were equipped, 96,242
educational materials were delivered, and 600
teachers were trained and 180 were certified.
Likewise, 5500 students were certified by the
National Engineering University, thus improving their
productivity and access to the work market.
We participated in a sustainable environmental
education initiative to ensure schools would
incorporate to their curriculum the use of
environmental management technology, which
include greenhouses that allow them to produce
their own food.
In the context of the bicentennial of the
Independence of Peru, we signed an agreement with
the Ministry of Culture to rebuild the house where
General San Martín stayed in Pisco, and which
eventually became the headquarters of the
Liberation Expedition, in order to adapt its facilities
with cultural and museological purposes.
At a healthcare level, we supported the creation of
the Pisco Community Mental Health Center with the
construction of the necessary infrastructure, facilities
and equipment. We also contributed to the
improvement of the drinking water service, through
the construction of infrastructure.
Likewise, we continued to implement the Pisco
Emprendedor project, to strengthen the business,
technical, productive and commercial management
capabilities of 300 young people with on-going
businesses in the Pisco province.
We celebrated financial support and technical
collaboration agreements with 24 mariculture
farmers associations from Pisco, with the purpose of
improving the production and standard of living of
the families linked to the activity.
DIALOGUE WITH LOCAL COMMUNITIESGRI 411-1; 413-1; OG 9, 10, 11 Y 12
COMMUNICATION AND CONSULTATION MEETINGS
At Pluspetrol, we consider that the relationship with
the communities is a key tool for the development of
our activities, which is why the dialog and exchange
with the local population are an essential part of our
community approach.
Communicating and interacting with the communities
give us a broad and intercultural view that helps us
better understand the functioning of our
surroundings and its interaction with our activities.
Constant and close communication also allows us to
identify risks in the environment and share the
strategies the company designs to address them with
the local communities, alerting, educating and
minimizing potential impacts on the communities.
During 2019, different communication and
consultation meetings took place with the members
of the communities, including information workshops
about the operation’s activities and new projects,
awareness workshops about safety, environment,
production and social investment, and meetings
aimed at surveying the needs of the communities and
coordinating aid projects.
The purpose of the exchange and consultation
meetings is to prevent potential negative impacts
associated to our activities and which may affect
interests or the social dynamic of the nearby
communities. In turn, they strive to identify
collaboration opportunities while boosting positive
impacts.
After 3 years of implementation, the “Aprender para
Crecer” Project ended in December 2019, following
the purpose of contributing to the improvement of
teaching and learning in the areas of Communication
and Math, in 29 initial and primary level educational
institutions in the province of Pisco.
Close to 8000 students received learning benefits
thanks to 263 teachers being trained, school
principals/directors strengthening their capabilities
and their parents developing their skills,
accompanying them through the educational
process.
The Project, fostered by Pluspetrol and the Camisea
Consortium, was implemented in collaboration with
the Association of Entrepreneurs for Education, the
Cayetano Heredia University, the Ica Regional
Government and Ica’s Regional Directorate of
Education.
Halfway through the execution of the project, an
independent institution (GRADE) carried out a
performance assessment: at the teachers level, over
90% valued the intervention’s training strategies as
very positive, while 72% of them reached a
“satisfactory” level in the Communication and Math
evaluations. According to the Ministry of Education’s
annual test, in two years, the students improved by
16.44 points their grade in Math (in comparison with
the 3 points of the urban coast schools), and by 7.3
points in reading (in comparison to a general drop in
scores, in the urban coast).
As part of the relationship plan, different social
support programs for the communities were
developed, as well as healthcare programs, technical
studies financing programs, fuel delivery agreements,
school packages and support for furniture and
teachers and students transportation.
At the infrastructure level, we highlight the
construction of a footbridge and the support to
initiatives of improvement to the electrification
system in several communities. Likewise, financial
assistance was granted to production ventures,
including the construction of family fish farms and a
small-animals breeding project.
ANGOLA
ARGENTINA
BOLIVIA
CAMISEA, PERU
PPN, PERU
TOTAL
21
33
10
155
8
227
170
99
66
2,627
5,514
8,476
COMMUNICATION AND CONSULTATION
NUMBER OF MEETINGS
NUMBER OR ATTENDEES
GRIEVANCES AND COMPLAINTS MECHANISM
We have a grievances and complaints mechanism,
through which we proactively and timely manage the
concerns of the local population, public or private
institutions, indigenous communities and other
stakeholders located in the area of influence of our
operations, and which allows us to quickly solve the
conflicts that may arise and foster improvement
opportunities in the company’s social management.
This system functions in all our business units,
adjusted to the local specificities.
Through this system, we receive, record and classify
grievances and complaints, according to their
urgency and impact. Resolution times may vary
depending on the level of complexity of the issue
received and on the players involved. In 2019, 29
grievances and complaints were received, and they
were processed along with 13 pending of resolution
from 2018. The period closed with 36 solved
grievances and complaints, while 6 remained in
process of resolution.
In Bolivia, no grievances or complaints were receive
in the reported period.
14. 2 corresponding to 2018 and 1 to 2017.
ANGOLA
ARGENTINA
BOLIVIA
CAMISEA, PERU
PPN, PERU
TOTAL
0
0
0
10
314
13
1
6
0
16
6
29
GRIEVANCES AND COMPLAINTS
PENDING2018
RECEIVED
1
0
0
5
0
6
INPROCESS
0
6
0
21
9
36
CLOSED
”APRENDER PARA CRECER” – 2019 SUSTAINABLE DEVELOPMENT AWARD,FROM THE NATIONAL SOCIETY OF MINING, PETROLEUM AND ENERGY, PERU
AWARD
ANGOLABLOCK 8,PERU
34 • Pluspetrol Sustainability Report 2019 • 35
INDIGENOUSCOMMUNITIES
Pluspetrol’s operations are usually developed in
indigenous communities’ territories, and it is of great
interest to us to preserve their habitat and culture.
That is why our company has a strategy that
prioritizes the protection of the indigenous peoples’
rights, respecting traditional organizational
structures, socio-cultural values, territorial rights and
their decision-making processes and times.
We work constantly in a collaborative way, seeking to
contribute to the sustainable development of these
communities, creating value through a responsible
intercultural management.
Seeking to boost the intercultural approach of our
projects, we stimulate the incorporation of members
of the indigenous communities to our community
relationship teams.
ENVIRONMENT
PERU- LEGENDARY LANGUAGES
In the International Year of Indigenous
Languages, declared by the United
Nations to be in 2019, the “Legendary
Languages” project was developed
through strategic alliances with
important media outlets, supporting the
re-appreciation of the native languages of
the Lower Urubamba with communication
campaigns and the launch of the book
“El libro de nuestra selva”, a collection of
4 bilingual stories for children.
Matsiguenka – Spanish and Yine –
Spanish.
The goal of the project was to support
the re-appreciation of the native
languages of these two cultures,
Matsiguenka and Yine, showcasing them
as cultural heritage of Peru, recovering
their oral narrations and compiling them
into a collection of stories for children.
Likewise, to contribute a resource to
strengthen the sense of belonging and
pride in new and future generations of the
peoples that inhabit the Cusco jungle
area, with the purpose to helping them
maintain the legacy of their ancestors.
This initiative is in the framework of the
on-going program “Re-appreciation of
Cusco’s Amazonian culture”, which is
being implemented since 2015, and
comprises a series of actions aimed at
strengthening and re-appreciating
costumes, cultural traditions, as well as
the languages of the ethnicities that
prevail in the Lower Urubamba area,
Megantoni district, Cusco, area of
influence of the Camisea Gas project,
operated by Pluspetrol.
ANGOLACABINDA SUR BLOCK
ETHNIC GROUPS:KANGA FAMILY-BANTU
TRIBE.COMMUNITIES: 4
PERU PPN BLOCK 8
ETNIA: ACHUARCOMMUNITIES: 39
ETHNIC: CHAYAHUITACOMMUNITIES: 6
PERU CAMISEABLOCKS 88 AND 56ETHNICS GROUPS:
MACHIGENGA, YINEAND ASHANINCA.COMMUNITIES: 27
BOLIVIACURICHE, TACOBOAN TAJIBO AREASETHNIC GROUPS:
GUARANI.COMMUNITIES: 30
ARGENTINALA CALERA
ETHNIC GROUPS:MAPUCHE.
COMMUNITIES: 1
Sustainability Report 2019 • 3736 • Pluspetrol
ENERGYGRI 302-1, 302-3
To ensure operational excellence in terms of energy,
we constantly follow-up our energy matrix and its
impact on the carbon emission intensity.
Pluspetrol’s energy management is aimed at
optimizing energy sources, uses and costs, and
minimizing emissions in a reliable and sustainable
manner.
EMISSIONS
GRI 305-1, OG 6
We approach the management of gas emissions
related to our activity, starting with a reliable and
transparent estimation of our GHG emissions.
During 2019, the GHG emissions calculators were
refitted adopting measures aimed at improving data
quality, alternatives of capture and leverage were
analyzed to allow the reduction of emissions derived
from torch flaring and gas venting, technical
practices were designed for the detection,
quantification and mitigation of fugitive emissions
and methane leaks, and alternatives were analyzed to
improve the energy generation matrix.
2018 GHG direct emissions values for Argentina and Pluspetrol were restated due to
a calculation error.
GHG gases included in the calculation produced by our activity: CO2, CH4 and N2O.
We do not have CO2 biogenic emissions.
All calculations are performed with an activity operational control approach
Our environmental management incorporates the
commitments taken on in Pluspetrol’s Sustainability
Policy and strategic goals, in an articulated set of
requirements that guide the systematic and integra-
ted management of the environmental aspects. This
framework takes into account the sensitivity of the
areas where our activities are developed, protects
biodiversity and ecosystems, and makes efficient and
responsible use of natural resources.
All assets of the company adopt the criteria defined
at corporate level, and incorporate the specificities
associated to local legislation and the specific
context of their operations. The objective is to ensure
a standardize environmental performance throug-
hout the Company, in turn, allowing the incorpora-
tion of the specific needs of each asset and business
unit into the daily management.
One of the core pillars of our Sustainability Policy is
economic, environmental and social sustainability. To
that end, the development of our activities incorpo-
rate environmental aspects to decision-making
through conducts and actions that prioritize environ-
mental care. Focus is on prevention and minimization
of possible impacts, rational use of energy, efficient
use of resources, reduction of emissions into the
atmosphere and proper waste management, taking
into account and protecting the biodiversity of the
environment in which we operate.
During 2019, we focused mainly on the following
aspects:
ENERGY AND CLIMATE CHANGE
In line with the pillars of the Sustainability Policy, our
operations are developed monitoring the efficient
use of energy, reducing impacts to the environment
and watching out for their adverse effects on the
climate.
Natural gas plays a fundamental role in the supply of
energy for a global demand, and in the transition into
a future with low Greenhouse Gases (GHG). For that
reason, Pluspetrol collaborates in this energy
transition, fostering the growth of natural gas as part
of the solution to climate change, and contributing,
in turn, a high value, efficient energy resource, in
terms of carbon emissions. During 2019, 76% of
Pluspetrol’s production was gas and 24% crude oil.
Likewise, we strive every day to be more efficient.
We consider energy efficiency to be one of the paths
with highest potential to mitigate GHG emissions,
and thus, we permanently seek to reduce energy and
carbon emission intensity in our operations.
The methodology we designed with the IPIECA, API
and IOGP guides allows the calculation of GHG
emissions for fix sources, based on type of fuel and
type of source, including the calculation of CH4 tank
flash emissions.
On one hand, the basis of the inventory is supported
by the calculation of CO2 emissions by stoichiometry,
assuming full combustion from different sources,
and, on the other hand, by emission factors of the
AP-42 (EPA) and IPCC protocols for the calculation
of CH4 and N
2O.
Routine gas torch flaring is one of the main
components of our GHG emissions. For that reason,
we are constantly looking for and analyzing
leveraging opportunities that allow us to minimize
loss of product. In parallel, we work to incorporate
methane combustion burners of high efficiency,
turning torches in key elements for safety and
environmental protection in all our facilities.
3,114,214,890
876,280
3,554
Flared and vented gas (SFC)
BOE
Vented and Flared Gasby production unit(SCF/BOE)
835,790,769
18,617,900
45
9,770,481
771,560
13
553,963,579
125,055,970
4
4,513,739,719
145,321,710
31
ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROL
4,000
3,000
2,000
1,000
0
GHG DIRECT EMISSIONS (KTON EQ CO2)
Peru
1,505
1,528
Argentina
369
469
Bolivia
12
10
Angola
1,190
1,148
Pluspetrol
3,077
3,156••
2018
2019
ENERGY CONSUMPTION BY SOURCE (GJ)
Consumed electric energy
35
30
25
20
15
10
5
0
millions
1,949
,997
1,939
,901
106 1,8
77,89
0
31,89
3,590
0
Generated energy
Network energy
Gas oil consumption
Natural Gas Consumption
Gasoline consumption
VENTED AND FLARED GAS (SCF)
5,000
4,000
3,000
2,000
1,000
0
millions
4,504
,416,9
33
9,322
,786
3,731
,258,2
12
103,9
93,39
6
• FLARED GAS • VENTED GAS
2019 2018
ENERGY ANDCLIMATE CHANGE
BIODIVERSITYMANAGEMENT
WATER AND DISCHARGE MANAGEMENT
EFFLUENTSAND WASTES
38 • Pluspetrol Sustainability Report 2019 • 39
Pluspetrol develops operations in very diverse and
highly sensitive environments, applying tools that
allow us to achieve a proper management of
biodiversity and its ecosystemic services, always
looking out for the wellbeing of the communities and
creating direct results in the conservation and
recovery of the ecosystems and their resilience.
During 2019, we continued the execution of our
terrestrial flora and fauna monitoring programs, as
well as those concerning aquatic life.
In these monitoring programs, we set protocols to
measure the main aspects, as well as the use of
biological indexes and indicators to process the
information. This way, we assess the potential risks
and impacts to biodiversity, via the analysis of
sensitivity maps, biological baselines and impact
evaluations. All this work is aimed at preventing and
minimizing negative impacts in highly sensitive
environments with international protection category
or high biological diversity.
The following maps show the Company’s operation
areas, and their location in relation to the protected
areas, and the non-protected areas of great value to
biodiversity.
Pucaruro
National
Reserve
Buffer Area
Pacaya Samiria
National Reserve Matses
Buffer Area
Allpahuayo
Mishana
Buffer Area
Allpahuayo
Mishana
National
Reserve
Payaca Samiria
Ramsar Site
Pastaza Ream
Buffer AreaPucaruro
National Reserve
Pucaruro
Loreto
BLOCK 8
CHAMBIRA
BLOCK 8
PAVAYACU
BLOCK 8
YANAYACU
BLOCK 8
VALENCIA
BLOCK 8
CORRIENTES
PERUPPN,
PERU
Operated Area:
1,823.5 km2
Caverna de las Brujas
Natural Reserve
La Humada
Natural Reserve
La Pampa
Río Negro
ARGENTINA
JCP
CNQ-7CNQ-7/A
GA-III
Llancanelo Wetland
La Payunia
Reserve
Provincial
Monument
La Payunia
Reserve
Provincial
Shrine
Mendoza
Neuquen Auca Mahuida
Managed Resource
Protected Area
Tromen
National Park
Domuyo
Managed
Resource
Protected
Area
RÍO COLORADO
DISTRICT,
ARGENTINA
Operated Area:
1,909.3 km2
BIODIVERSITY MONITORING PROGRAM (BMP) IN THE CAMISEA PROJECT UPSTREAM AREA
The follow-up of different components of
biodiversity continued, through field and lab
activities. The results of the survey were presented in
public events.
Terrestrial biota component: with the purpose
of assessing the possible impact on the presence
and the habitats of terrestrial fauna during
the construction of the Cashiriari 1 – Malvinas Gas
pipeline, the monitoring of large and medium
mammals was conducted with camera traps. 20
monitoring transects were distributed perpendicular
to the pipeline, which is 31 km long. Monitoring is
expected to continue a year after the conclusion of
the construction, in order to compare records and
assess habitat recovery.
Aquatic biota component: Fish, benthic
macroinvertebrates (larval-phase insects and other
small aquatic animals) and peryphiton (algae and
microorganisms that live stuck to rocks and logs)
were monitored. Likewise, superficial water quality
was assessed in terms of the following parameters:
pH, temperature, dissolved oxygen, conductivity,
total dissolved solids, turbidity, total petroleum
hydrocarbons, sulfates, nitrates, ammonia and heavy
metals. Two field campaigns were carried out,
according to hydrologic cycles: wet and dry seasons.
21 stations, distributed in rivers and ravines of the
lower Urubamba basin, were assessed. These stations
were distributed in Pluspetrol’s areas of operation, as
well as in the territories of native communities and
areas of influence.
Use of ecosystemic services by native communities component: monitoring continued on the typical use
the native communities make of natural resources,
with the focus on fish extraction from rivers and
ravines. Monitoring was carried out with the
collaboration of the families from three Matsiguenka
communities: Ticumpinia, Shivankoreni and Cashiriari.
The families recorded their fishing workdays to
provide information about the extracted species:
common name, weight, size, fishing spot, used
fishing gear, among others. Monitoring was executed
in two campaigns, according to hydrologic cycles:
wet and dry seasons.
Landscape component: the follow-up of the
landscape footprint of each work in the Camisea
Project was reviewed along time, based on high-
resolution satellite imagery and aerial photographs.
Besides determining the footprint on the landscape,
it was possible to define the recovery rates of the
disturbed areas, in terms of vegetation coverage,
which allow to estimate the time needed to close a
project of similar characteristics or conditions. This
data was used to estimate the landscape footprint
for each subproject until 2040, with the purpose of
calculating residual impact by the end of the
operation. Likewise, the current situation of the
recovery in disturbed areas was analyzed in the
following projects: 2014 seismic survey (heliports and
fly camps) in Block 88; Flow line and San Martín and
Pagoreni associated platforms, and Kimaro C
platform. On another note, all the BMP study area
was regionally updated with 2019 images: both
concession blocks (88 and 56) and the Malvinas plant
area, up to the Urubamba River left margin.
On the other hand, a residual impact study of the
Camisea Project was also developed, to align the
project in light of the social and regulatory context
dynamic in Peru, and the international standards. The
study will allow to establish a framework for
environmental offsetting, in order to enable a zero
net loss biodiversity result. In other words, a positive
net balance between the project’s environmental
impact on biodiversity and the reasonably expected
result of applying the mitigation measures; and, if
possible, a net gain.
CAMISEA,
PISCO, PERU
Operated Area:
0.56 km2
Isla Chincha National
Reserve - North, Center
and South
Isla Ballestas National
Reserve - North, Center
and South
National Reserve
of Paracas
Pacific
Ocean
Buffer Area
Ica
PERU
PISCO
FRACTIONING PLANT
CAMISEA,
MALVINAS AND
BLOCK 108,
PERU
Operated Area:
2,019.8 km2
BLOCK
56
Megantoni
National Shrine
Megantoni
B.A.
Machiguenga
B.A.
B.A.
Ashaninka
Ashaninka
Communal Reserve
Otishi
National Park
Machiguenga
Communal ReserveJunín
Bosque de
Protección
Pui Pui
Pui Pui
B.A.
AyacuchoHuancavelica
Cusco
Kugapakori-Nahua-Nanti
Territorial Reserve
Del Manu
Z.A
BLOCK
88
BLOCK
108
Yanachaga
Chemillén
B.A.
PERUUyacali
El Sira
B.A.
San Matias-
San Carlos
Protected forest
Pasco
NORTH
DISTRICT,
ARGENTINA
Operated Area:
135.2 km2
El Nogalar de los Toldos
National Reserve
Santa Victoria
Parque
Nacional
Baritú
Reserva
Biósfera de
las YungasSan Ramón
de la
Nueva OránSalta
Jujuy
RAMOS
General
José de San MartínMultiple-Use Natural Reserve
Multiple-Use
Natural
ReserveFlora and
Fauna
Reserve
AcambucoMultiple-Use Natural Reserve
ARGENTINA
Iruya
BOLIVIA
Multiple-Use
Natural
Reserve
BIODIVERSITY MANAGEMENTGRI 304-1, OG 4
EFFLUENTS AND WASTES
SPILL MANAGEMENTGRI 306-3
At Pluspetrol, we set out to work in order to prevent
spills during production, storage and transportation
of crude oil. To that end, we have specific procedures
that consider, among other things, investments in
facility integrity, maintenance and improvement.
Likewise, we have a comprehensive system of
emergency and crisis management that encompasses
the best practices in the industry and context-
specific contingency plans, taking into account the
geographical and operational specificities that define
the way to act and respond when an event occurs.
Additionally, we manage updated data and indicators
that enable us to work in cycles of continuous
improvement. With that objective, in the case of loss
of containment, leak or spillage, investigation
mechanisms are set into motion to establish new
improvement actions in order to prevent the event
from repeating. This tools support our continuous
commitment in the search for ways to minimize
impacts to the environment and to people.
During 2019, 95% of all spillages were lower than 10
barrels, and 71% of the total lower the 1 barrel.
40 • Pluspetrol Sustainability Report 2019 • 41
PARACAS BAY MARINE COAST MONITORING PROGRAM
The Marine Coast Monitoring Program is being
performed since 2003 to provide a representative
coverage of the Paracas Bay environment, with the
objective of obtaining long-term information to
determine the evolution of biodiversity in the sea and
the coast area.
This program performs the follow-up of the main
biological communities and populations, among
which, two populations of sea lion species and the
avifauna community stand out, making Paracas a
very special place.
The main results associated to the abundance and
diversity of sea lions in 2019 were:
the population of South American fur seals was of
2649 individuals, which were mainly registered in
Punta Arquillo within the RNP (Paracas National
Reserve), with a predominance of adult females and
pups mainly in March, in Punta Arquillo, and in June
in Punta Lagarto and Punta Lechuza.
the population of South American sea lions was of
135,329 individuals in the San Gallán Islands and the
Chincha Islands, in the National Reserve of Islands,
Isles and Guano Points System (RNSIIPG), and the
Morro Quemado station in the RNP, with a
predominance of adult females and pups mainly in
the summer (March).
The avifauna assessment results in 2019 were:
In the area of influence of the Marine Terminal and
the Natural Gas Liquids Fractionation Plant (PFLGN),
the Scolopacidae family was the most representative.
At a species level, the Semipalmated sandpiper,
Calidris pusilla, was the most abundant, followed by
the northern migratory Franklin’s gull, Leucophaeus
pipixcan.
In the Paracas National Reserve, which includes the
Paracas Bay station, the Amazon migratory Black
skimmer, Rynchops niger, was the most abundant,
being registered along the whole monitoring. The
northern migratory Franklin’s gull, Leucophaeus
pipixcan, was the second most abundant species and
it was registered during the months of January-April
and November-December, which is their time of
migration to the area.
In the National Reserve of Islands, Isles and Guano
Points System (RNSIIPG), the most representative
species were the Peruvian booby, Sula variegata,
followed by the Inca tern, Larosterna inca, and the
Guanay cormorant, Phalacrocorax bougainvillii, which
were registered in higher density during the summer
(March).
WATER AND DISCHARGE MANAGEMENTGRI 303-1, 303-2, 303-3, 303-4, 303-5
The purpose of water management is to optimize the
consumption of fresh water (surface and
underground) for operative processes, as well as to
increase the reuse of treated and produced water.
Ensuring water provision in quality and quantity is
essential to continue operations in all our facilities.
That is why, in Pluspetrol, we focus on the resource
sustainability, seeking to reduce the intensity of use
per produced barrel of crude oil, to be more efficient
and make a rational use of water.
In our unconventional operations, were the water
resource plays a core role, we seek to optimize
consumption and we work with alternative fresh
water sources, for instance, leveraging the water
originating in the fracturing return.
In our crude oil production assets, we consider
production water to be a valuable resource in the
production process, reusing it after treating it, and
incorporating it to the secondary recovery process.
Additionally, we carry out a responsible water
management in compliance with all regulations and
standards associated to the water resource,
minimizing its use and optimizing its consumption,
while ensuring proper treatment of used waters prior
to its disposal.
Superficial water corresponds to river water.There is no collected rainwater, nor residual water from another organization, nor municipal water supply.The data correspond to flow meter measurements.
We continue to apply the best practices in the
monitoring of the superficial and underground water
resources present in the areas were we operate,
which allows us to preserve the quality and
availability of the water resource, minimizing any
potential impact on it.
Part of the used water is treated and discharged
according to current legal regulations and to the
permits granted by the authorities, adopting the best
practices in the field.
FRESH WATER EXTRACTION (MEGALITERS)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
311
Extraction ofsuperficial water
Extraction of underground water
• 2019 • 2018
3,132
Total extractionof fresh water
2,821
2,503
429
2,931
0.1
10
44
54
Superficial water extraction (megaliters)
Underground water extraction (megaliters)
Produced water extraction (megaliters)
Totalextracted water (megaliters)
2,092
118
13,886
16,095
0.5
8.5
85
95
411
292
18,720
19,423
2.503
429
32.736
35.668
ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROL
2.4
3.4
4.8
100% Hydrocarbon spills per production unit - volume (BBL/MMBOE)
Water and oil mix pills per production unit - volume (BBL/MMBOE)
Other substancesspills per production unit - volume (BBL/MMBOE)
2.8
27.9
15
0
0.8
0
1.9
0
3
7
32
22
ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROL
10Total water discharge (Megaliters)
2,209 - 18,884 21,104
ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROL
44Total water consumption (MMBBLS)
13,886 95 539 14,.564
ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROL
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
• 2019 • 2018
Angola
44 37
GENERATED PRODUCTION WATER (MEGALITERS)
Argentina
13,88
6
14,85
2
Bolivia
85 81
Peru
18,72
0 22,28
0
Pluspetrol
32,73
6
37,25
1
TOTAL SPILLSPLUSPETROL 2019259
SPILLS (BBL)
1,000
800
600
400
200
0100% Hydrocarbon spills
per production unit - volume
Water and oil mix pills per production unit -
volume
• 2019 • 2018
Other substances spills per production unit -
volume
58
190
325
175
526
972
•
•
•
•
•
42 • Pluspetrol Sustainability Report 2019 • 43
SOLID AND LIQUID WASTES
One of the fundamental principles of our
Sustainability Policy is minimizing risks and negative
impacts to the environment and to people, fostering
a proper waste management.
In the framework of Operational Excellence, we
stimulate activities to be developed increasing the
service life of the materials, products and resources,
in order to reduce waste generation.
Additionally, we seek to reduce waste hazards,
complying with the current legal regulation that
governs wastes treatment and final disposal, with the
goal of a minimum impact on the environment.
PROCESS SAFETY
GENERATED WASTES
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
• HAZARDOUS WASTES • NON-HAZARDOUS WASTES
2018
3,062
2019
7,634
6,744
6,816
3.2
5.3
Hazardous wastes (TON)
Non-hazardous wastes (TON)
253
1,087
0.7
10
2,805
5,713
3,062
6,816
ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROL
-
-
-
Generated drilling wastes (TON)
Drilling wastes, water-based cuts and muds (TON)
Drilling wastes, oil-based cuts and muds (TON)
69,064
41,191
27,871
-
-
-
760
760
-
69,823
41,951
27,872
ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROLWASTES CLASSIFICATION
31%
69%
••
HAZARDOUS WASTES
NON-HAZARDOUS WASTES
DRILLING WASTES MANAGEMENTGRI OG7
Drilling wastes contain chemical additives or
hydrocarbons that, if not disposed of in a controlled
fashion, may adversely impact on the environment.
During 2019, less than 10% of used drilling fluids were
oil-based. Below, a report of the generated amounts
of these wastes, according to handling type,
depending on fluid used in drilling activities.
Drilling cuttings and remnant muds receive different
treatments, and, in every case, are disposed of
according to current legislation and available
technologies in each country and asset where we
operate.
In some cases, the cuttings can be dried out in the
open and, once safety is verified, used as filling
material, treated with the land farming technique,
or reinjected.
Regarding muds, they are treated, and their reuse in
other drillings is stimulated.
GENERATED DRILLING WASTES (TON)
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
02018 2019
42,25
7
69,82
3
OF TOTAL WASTES IS TREATED WITHTHE 3R: REUSE, RECYCLING, REDUCTION. THIS TREATMENT REPRESENTS 5%OF THE HAZARDOUS WASTES AND 11%OF NON-HAZARDOUS.
9%
Sustainability Report 2019 • 45
In order to continue moving towards a Sustainable
Operation, we kept working on the commitment and
understanding of leaders regarding the importance
of risk and impact management, and concerning the
need to understand and foster a generative culture
that supports the projected changes, while leading
by example.
To achieve a sustainable management, we developed
management systems with defined processes and
developed competences in the whole organization,
so we can operate safely, responsibly and with
environmental awareness, preventing undesirable
events. In 2019, we worked keenly on mapping and
defining the necessary competences.
CULTURAL MANAGEMENT FOR A SUSTAINABLE OPERATION
After the first survey on culture for risk management,
carried out in 2018, different activities and encounters
took place in all Business Units and assets in which we
operate, to share its results. Action plans were defined
for each Business Unit of the company, actions plans
that aimed at working on closing the gaps identified in
our path towards a generative culture for risk
management. Additionally, we began working on
defining the pillars and contents of the second internal
campaign on the subject.
EMPLOYEES’ COMMITMENT AND INVOLVEMENT
Proper development and continuous improvement of
risk and impact management require the active
participation of the employees from all levels of the
organization. To that end, we stimulate their
commitment, involvement and sense of belonging
towards the cultural evolution process. We worked on
and reinforced three main points:
In 2019, as in previous years, management visit plans
continued, as well as the strengthening of all Business
Units and the Corporation, involving the operations
area as well as the support/staff areas. Additionally,
during July, the Global Contractors Forum took place
in Montevideo, encounter that was led by our CEO,
and to which our main contractors and internal
leaders attended.
LEGAL COMPLIANCE - ENVIRONMENTAL REGULATIONGRI 307-1
In line with the PSM defined for the company, during
2019, the existing process was formalized, and the
Legal Compliance and EHS Obligations Standard was
published. It defines the guidelines to be followed in
order to: identify legal requirements and other
obligations in terms of EHS, manage the actions that
enable its implementation, and assets compliance,
including the management of actions that allow to
remedy deviations. Launch of this document was
supported by communication and training actions,
with the purpose of facilitating its understanding and
incorporation into our daily work.
The process of identifying, implementing and
assessing the compliance of legal requirements and
other EHS obligations constitutes a key tool for our
management. Its proper adoption and implementation
contributes to the consolidation of a sustainable
operation.
In 2019, we did not receive significant fines or
monetary penalties15 due to environmental regulation
non-compliances.
UNDERSTANDING HAZARDSAND RISKS We continued to strengthening the implementation of
the Operational Risk Management Process, as a tool
to maintain risk at tolerable levels, involving
employees from different areas and including logistics
and non-operational aspects (social, among others).
The risk review annual cycle determines the
semiannual follow-up that the company performs
during EHS Global Committees, where the status of
major events scenarios is presented and analyzed for
each Business Unit (identified changes, state of
barriers and evolution of applied improvements).
Each Business Unit shares this evaluation with the
Company management in the EHS Global Committee.
In general terms, the most relevant scenarios are
related to the release of flammable substances in
processing plants, terminals or pipelines, where
people, communities or the environment could be
affected. However, scenarios related to logistics
operations, particularly people transportation, require
special attention. This way, there is a constant
follow-up of the state of the barriers (practices and
process safety elements for prevention, emergency
response systems) and the controls that ensure their
effectiveness, which are mentioned in the following
section.
In January 2019, the Process Safety Management
(PSM) Framework was approved and published,
enabling us to continue working on safety
management with a focus on operations and
processes, taking into account our cultural stage.
The PSM was developed based on the guidelines of
the Center for Chemical Process Safety (CCPS), an
organization Pluspetrol is a member of. Its purpose is
to ensure a formal approach to process safety
management in our operations, and it is structured
on four essential pillars: I Commitment and
Leadership, II Understanding Hazards and Risks, III
Risk Management and IV Learning from experience.
During 2019, we worked on implementing the PSM
via an interdisciplinary work from all areas, and a
sustained commitment to consolidate risk
management as a key element for the long-term
growth and sustainability strategy, implementation
that will span several years. To that end, each
Business Unit, based on their needs and realities,
selected the Elements to be prioritized at the
beginning of the Framework implementation,
elements that were worked on during 2019.
HANDLING RISKS AND MANAGING IMPACTS
In order to ensure tolerable risk levels, we continued
to work on five key areas: EHS working practices,
assets reliability and integrity, contractor
management, change management and emergency
management.
EHS WORKING PRACTICES
In 2019, the development and publication of EHS work
practices continued. During this year, the following
work practices where developed and communicated:
Management visits
Management of Preventive Observations
Energy Isolation.
The Environmental Regulations Standard was also
developed and published, a series of basic rules that
encompass the operational practices associated to the
protection of the environment, and that strengthen
awareness in order to carry out our operations in an
environmentally sustainable fashion and in harmony
with our surroundings. The dissemination campaign is
expected for 2020, although the rules were
introduced during the Reflection space of the 2019
World Environment Day.
Lastly, in 2019, the Task Discontinuation Policy was
also re-launched, leveraged by the “Take Control”
Campaign. This campaign aimed at empowering all
employees to discontinue a task (Take Control) as an
effective barrier to prevent accidents when:
Minimum safety requirements of Life Saving Rules
are not met.
Safe working practices or operational procedures
are not met.
The team members do not understand the risks
involved in the task.
Changes occur in the operational or environment
conditions, which add risks to the task.
Provisions of a work permit are not completely
complied with.
A piece of equipment presents an unsafe condition
or is begin operated outside its safety limitations.
A situation occurs with the potential to negatively
impact on people, the environment, assets and/or the
company’s reputation
15. By “significant fines or monetary penalties due to environmental regulation non-compliances”, we understand those that, having been effectively paid, have individually exceeded the amount of USD 3,000,000.
44 • Pluspetrol
COMMITMENT AND LEADERSHIPGRI 403-1, 403-4
STRENGTHENINGOUR OPERATION
DISCIPLINE
BOOSTING A JOINT MANAGEMENT WITH OUR
CONTRACTORS.
PERMANENT LEARNING
•
•
•
•
•
•
•
•
•
•
Sustainability Report 2019 • 4746 • Pluspetrol
ASSETS RELIABILITY AND INTEGRITY
During the past year, Reliability and integrity
processes in the facilities have continued their
implementation and development process through
the work areas and roles in charge.
Likewise, as part of the continuous improvement
cycle, in 2019, we designed and implemented an
evaluation process for the Maintenance, Reliability
and Integrity management, based on the industry’s
best practices, and which allows to perform a
comparison of best practices between the different
business units. The model has 5 levels of maturity: (1)
Innocent, (2) Conscious, (3) In Development,
(4) Competent and (5) World Class. To set the
baseline, the measurement result places the
company in level 3: “In Development”.
According to the assessment model, the level
“In Development” indicates an understanding of the
needs and requirements of typical Maintenance,
Reliability and Integrity processes; likewise, even
when the asset care strategy incorporates
preventive maintenance practices, it is essentially
based on manufacturers’ recommendations and site
experience.
CONTRACTOR MANAGEMENT
During 2019, we continued to work on
communicating, understanding and training on the
EHS Aspects Standard in Contractor management,
which was published in 2018. The purpose of this
document is to ensure that the control mechanisms
in terms of EHS are incorporated in the Registration
and Evaluation processes for Suppliers, Purchases
and Procurement, and for Contract Management.
This way, selection, acquisition, use and monitoring
of the procured services are aligned with the
operation’s EHS requirements and the Company’s
performance objectives. This standard also
contributes to the implementation of practices to
ensure that the workers from contractor companies
are proficient enough to perform their tasks safely,
and that the procured services do not increase the
level of risk and/or impact on the operations.
This standard was one of the pillars approached
during the 2019 Global Contractors Forum. The
purpose of this encounter was to create a shared
reflection space in which to establish constructive
dialogs and share the main guidelines for EHS
Management. Pluspetrol’s top management
participated in the encounter, together with the top
management of the main contractor companies. In
this opportunity, 34 contractor companies
participated (90 attendees in total, between
Pluspetrol and the Contractor Companies). This is the
second global forum Pluspetrol carries out with
Contractors.
MANAGEMENT OF CHANGE
Continuing the actions developed in 2018, in 2019,
we deepened the Management of Change (MOC)
implementation. During this year:
the MOC chart was developed as a guide, detailing
the processes and representatives to properly
manage the different types of change defined by
Pluspetrol.
with the purpose of improving the Management
Of Change implementation for Facilities, a technical
practice was created to establish a homogeneous
workflow for any change requirement in Pluspetrol’s
operations. The practice identifies the different
process stages, the participants and the review and
approval stages, introducing the concept of
Technical Authorities, as the representatives in the
stages of request technical validation, and
incorporating a higher level of thoroughness in the
analysis. The practice will be implemented during
the following year.
Additionally, to celebrate the World Day for Safety
and Health at Work, in 2019, an audiovisual piece was
developed to reflect on the importance of Managing
Changes, starting with the need of identifying the
moment in which we face change, with the premise
of knowing we can only manage that which we make
visible. The main message was focused on conveying
that the Management Of Change is essential to
manage risks and significantly reduce the probability
of occurrence of an incident, reinforcing the sense of
vulnerability.
EMERGENCY MANAGEMENT
A key aspect of emergency management is the
continuous update and revision of the contingency
plans performed by the teams in each asset,
following the Contingency Management Model.
In this line of work, we continue to execute the
multi-annual training plan for the different response
level teams, and the execution of major event
simulations.
In 2019, all the planned simulations for each Business
Unit were complied with, allowing us to continue
strengthening the practice. Additionally, two major
event exercises were performed:
La Calera, Argentina BU.
This exercise allowed the activation of all the
response levels defined in the contingency and
crisis management system, including the corporate
support team, whose main purpose is to guarantee
business continuity during emergency situations of
the highest complexity.
Malvinas Plant, PPC, Peru BU.
This exercise allowed for a correct notification
and assessment of the incident, as well as a proper
plan review and equipment activation in said
Business Unit.
WORLDCLASS
COMPETENT
IN DEVELOPMENT
CONSCIOUS
INNOCENT
Operational Excellence:maintenance strategy focused on comprehensive asset management.
Engineered Reliability:risk based maintenance strategy (RBM).
Organizational excellence:predictive maintenance based strategy.
Proactive maintenance:preventive maintenance strategy (vendor’s requirements).
Planned maintenance / Reactive.
•
•
•
•
Sustainability Report 2019 • 4948 • Pluspetrol
LEARNING FROM EXPERIENCE
Learning from our own events, and those of the
industry, allows us to capitalize experiences to
achieve a safer operation, with less impact on our
employees, and those of the contractors, the
environment and the communities. During 2019, we
continued disseminating the “Lessons to be learned”
from investigations, the link that allows the transmis-
sion of recommendations, and contributes to
preventing the occurrence of similar events.
Likewise, reflection and learning spaces, the EHS
committees and the safety moments when starting
operational meetings are activities that still function
as learning instances, within our company.
Lastly, in order to boost internal learning, the EHS
site was adjusted to facilitate its use as a consulta-
tion, management and communication tool, in our
path towards operational excellence.
INCIDENT INVESTIGATION
During 2019, Pluspetrol continued working and
reinforcing their processes for investigation, creation
and communication of lessons to be learned from
undesirable events, in order to turn incidents and/or
experiences into opportunities of improvement,
which ensure an efficient learning, considering the
following aspects:
1) Performing investigations that allow identifying the
roots of the incidents.
2) Correcting these causes by implementing syste-
mic actions.
3) Disclosing learned lessons, including from other
organizations.
4) Developing a culture and infrastructure to help
spread the lessons and apply them in the future.
5) Measuring performance and continuously impro-
ving areas that present significant risks.
At corporate level, 28 undesirable events, classified
as High Potential (HiPos), received feedback. The
vice presidency of operations and the EHS Manage-
ment were involved in these feedbacks. The quality
of the investigations experienced an important
evolution in the identification of systemic causes and
in the creation of actions to prevent the occurrence
of similar events in other operations.
Likewise, with the purpose of continuing to reinforce
the investigation processes, during the first semester
of 2019, Incident Analysis trainings were performed
via TASC Tools (DNV) in four Business Units (Angola,
Argentina, Bolivia and Peru) and in the Corporation,
through five workshops, with 175 attendees.
MEASUREMENT AND METRICS
In the management reporting and statistics proces-
ses framework optimization, a project for a Global
EHS Management Tool began; the project is expec-
ted to begin implementation in the coming years.
One of the first stages required the revision and
implementation of improvement opportunities on the
current management tools, and the development and
implementation of Safety Variables within the
Environmental and Social Variables Tool, today
known as EHS Variables. Likewise, different EHS
Management Dashboards were developed and
implemented to allow the whole organization to
visualize in a comprehensive, agile, dynamic and
simple fashion the current balance sheet, increase the
quality of the data, and prioritize actions based on
on-line information. All this, from the same platform,
the same place and in homogeneous fashion for the
whole company (both at Corporate level and at
Business Unit and Asset level).
Likewise, a parallel process was under work to
digitize the POC cards, a project, complementary to
the global tool, that allows Pluspetrol to improve the
deviation report and management, via a digital
platform, in search of operational excellence.
Implementation is expected by the second semester
of 2020.
OPERATIONAL RISKS MANAGEMENT
We continued working to outline indicators that
allow an active management monitoring to preventi-
vely identify deviations. These are some of the main
indicators: process documentation status, intended
activities follow up, actions follow up to reduce risks,
change of path, investments for risk reduction and
follow up of gap closing plans, among others.
INCIDENT AND PROCESS EVENTS MONITORING GRI 403-9, OG13
In 2019, we continued working to strengthen our
indicators for accidents with impact on people,
always in the framework of the IOGP recommended
practices.
Likewise, we continued to optimize process events
reporting in all our operations, taking the API-754
guidelines and the IOGP definitions as a reference. To
that end, the “SIRI Dashboard” was elaborated and
published, a dashboard that allows the whole
organization to access the incident data in real time,
facilitating its management and follow-up.
TRIR EMPLOYEESTOTAL RECORDABLE INCIDENT RATE:NUMBER OF RECORDABLE INCIDENTS X 1 MILLION/MHW
FREQUENCY INDEXESWORKERS EXCLUDING EMPLOYEES
FREQUENCY INDEXESEMPLOYEES
TRIR NON-EMPLOYEES OR CONTRACTORS TOTAL RECORDABLE INCIDENT RATE:NUMBER OF RECORDABLE INCIDENTS X 1 MILLION/MHW
LTIR NON-EMPLOYEES OR CONTRACTORSLOST TIME INCIDENT RATE: NUMBER OF INCIDENTS WITH LOST DAYS X 1 MILLION/MHW
LTIR EMPLOYEESLOST TIME INCIDENT RATE: NUMBER OF INCIDENTS WITH LOST DAYS X 1 MILLION/MHW
Calendar days following the day after the accident are taken into account for the calculation of days lost.
TIER 1 AND TIER 2 PROCESS EVENTS FREQUENCY
The Corporation does not have non-employed workers, therefore they are not included in this analysis.
0
18
16
14
211
214
Fatalities
Accident cases with time loss
Restricted work cases
Medical treatmentcases
First aid cases
Almost-Accidents
2018
This indicator refers to the Total Recordable Cases. It includes the recording of all the events classified as “medical treatment,limited work and incidents with overhanging days”, pursuing the objective to achieve zero recordable events.
ANGOLA
ARGENTINA
BOLIVIA
PERU
CORPORATION
PLUSPETROL
SITE
0
0
0
0
0
0
NUMBER OF RECORDABLE CASES (TRIC)
0
0
0
0
0
0
TRIR INDEX
0
0
0
0
1
1
NUMBER OF RECORDABLE CASES (TRIC)
0
0
0
0
1.6
0.2
TRIR INDEX
2019 2018
ANGOLA
ARGENTINA
BOLIVIA
PERU
CORPORATION
PLUSPETROL
SITE
0
8
1
18
0
27
NUMBER OF RECORDABLE CASES (TRIC)
0
1.8
6
1
0
1
TRIR INDEX
1
11
0
35
0
47
NUMBER OF RECORDABLE CASES (TRIC)
4.2
1.9
0
1.5
0
1.6
TRIR INDEX
2019
2018
ANGOLA
ARGENTINA
BOLIVIA
PERU
PLUSPETROL
SITE
0
3
0
8
11
NUMBER OF CASES WITH LOST DAYS (LTIC)
0
0.6
0
0.5
0.5
LTIR INDEX
0
4
0
13
17
NUMBER OF CASES WITH LOST DAYS (LTIC)
0
0.7
0
0.6
0.6
LTIR INDEX
2019
2018
ANGOLA
ARGENTINA
BOLIVIA
PERU
PLUSPETROL
SITE
0
0
0
1.3
0.1
TIER 1INDEX
0
0.2
0
0.5
0.1
TIER 2 INDEX
0
0
0
0.1
0.09
TIER 1INDEX
4
2.1
0
0.2
0.6
TIER 2 INDEX
2019
2018
ANGOLA
ARGENTINA
BOLIVIA
PERU
CORPORATION
PLUSPETROL
SITE
0
0
0
0
0
0
NUMBER OF CASES WITH LOST DAYS (LTIC)
0
0
0
0
0
0
LTIR INDEX
0
0
0
0
1
1
NUMBER OF CASES WITH LOST DAYS (LTIC)
0
0
0
0
1.6
0.2
LTIR INDEX
2019
50 • Pluspetrol
2COUNTRY OR BU LEVEL
COMMITTEE: IN THIS SPACE,
THE EHS MANAGEMENT
VIEW INTEGRATES ALL THE
BU AREAS; IT IS LED BY THE
BU TOP MANAGER AND IT
MEETS EVERY THREE OR
FOUR MONTHS
3CORPORATE OR EHS
CENTRAL COMMITTEE: IT IS A
COMMITTEE THAT SHARES
MAJOR EHS MANAGEMENT
GUIDELINES, ANALYZES COUNTRY
RESULTS AND CONCERNS, AND
SPECIALLY CONTROLS THE WORK
PLAN IMPLEMENTATION TO
MITIGATE MAJOR RISKS IN
THE OPERATIONS
1ASSET LEVEL COMMITTEE:
LED BY THE ASSET TOP
MANAGER
Sustainability Report 2019 • 51
MANAGEMENT REVIEW AND CONTINUOUS IMPROVEMENT
With the purpose of continuously improving the
process safety performance of the operations
through Management routine reviews, in Pluspetrol
we have -among other tools– the EHS Committees.
The EHS Committees are a response to a need for a
pause in the urgent pace of the day-to-day, and to
invest quality time and space in reflection; they allow
to build and maintain a quality work environment
where the EHS management is given visibility and
the Management commitment with risk management,
and that of the different leadership levels, is materia-
lized. This is also an opportunity for the leader to
provide genuine feedback to their employees about
the EHS management in their realm of responsibility,
creating exchange and synergy environments,
ensuring the integration of the EHS management and
its technical basis with the specific activities of the
business. This reflection space is a proactive tool that
allows to improve planning prioritizing actions,
properly assign resources and make decisions based
on risks, establishing a cycle of continuous improve-
ment in the management.
PLUSPETROL IN NUMBERS
16. 2018 Social Investment values were restated as this Report includes the social investment amounts for Pisco, not contemplated in the previous report
17. 2018 GHG direct emission values were restated due to a calculation error in the emissions for Argentina.
ASPECTO MATERIAL
2017
1,721
78
22
5
111
30
1,291
2.,1
5,905,830
1,397,394
398,235
1,683,498
713,624
1,713,080
2,173
14
4
644
0.3
43
7
6.5
1,004
53
4.8
741
22
2,714
4,423
50,141
22
3,339
0.8
1.2
0.3
0.7
0.3
0.8
2019
1,890
79
21
7
277
20
968
1.7
9,017,812
2,202,196
781,617
4,147,313
1,014,603
872,083
3,156
22
31
4,514
7.1
58
42
32
526
98
22
325
119
3,062
6,816
69,823
20
2,931
0.2
1.7
0.2
0.6
0.1
0.6
2018
1,775
79
21
10
245
28
1,249
1.7
9,765,08516
1,681,148
1,222,475
4,032,213
1,890,922
938,327
3,07817
21
26
3,835
1.3
190
14
1.2
175
73
6.6
972
97
7,635
6,744
42,257
21
3,132
0
1.3
0
0.5
0.1
0.1
DEVELOPMENT OF OUR PEOPLE
Total actual employees (quantity)
Male Employees (%)
Female Employees (%)
Total Turnover Rate (%)
Total hires (quantity)
Training average hours per Collaborator (quantity)
Total trained employees (quantity)
Absenteeism Rate (%)
COMMUNITY
Social Investment - Total (USD)
Social Investment - Education (USD)
Social Investment - Healthcare (USD)
Social Investment - Community Development (USD)
Social Investment - Institutional Strengthening (USD)
Social Investment - Others (USD)
ENVIRONMENT
GHG Direct Emissions (KTON CO2)
GHG Direct Emissions Intensity (KTON CO2/MMBOE)
Vented and Flared Gas by production unit (SCF/BOE)
Vented and Flared Gas total (MMSCF)
Hydrocarbon spills volume by production unit (BBLS/MMBOE)
Hydrocarbon spills volume (BBLS)
100% Hydrocarbon spills quantity (quantity)
Water-oil mix spills volume by production unit (BBLS/MMBOE)
Water-oil Mix spills volume of (BBLS)
Water-oil mix spills quantity (Quantity)
Other substances spills volume by production unit (BBLS/MMBOE)
Other substances spills volume (BBLS)
Other substances spills quantity (quantity)
Generation of hazardous wastes (TON)
Generation of non-hazardous wastes (TON)
Generated drilling wastes (TON)
Water consumption by production unit (Megaliters/MMBOE)
Total fresh water consumption (Megaliters)
PROCESS SAFETY
TRIR Index- Employees
TRIR Index - Contractors
LTIR Index– Employees
LTIR Index- Contractors
Process events frequency– TIER 1 Index
Process events frequency– TIER 2 Index
C O N T I N U O U S I M P R O V E M E N T
C O N T I N U O U S I M P R O V E M E N T
EHS CommitteesAccording to the scope or area of application, at
Pluspetrol, three types of EHS Committees are
planned:
In 2019, the company CEO chaired two global
corporate level EHS committees, to perform a review
on the major risks in each Business Unit, and to cover
strategic safety topics, asset integrity, operational
risks, social issues and corporate social responsibility.
Complementarily, different committee meetings are
carried out at BU and asset level, to comply with
routine review processes and the tools available to
that end.
Lastly, due to its relevance and because we are
convinced that we all walk Pluspetrol’s path to
excellence, during 2019, we started to present annual
acknowledgments in the Peru and Argentina
Business Units to highlight the EHS Management that
contributes to the Company’s Sustainability. This
practice started in these units and, in the coming
years, we expect to formalize and replicate it at a
corporate level and in all Business Units.
Sustainability Report 2019 • 5352 • Pluspetrol
Not
performed
For matters
of confiden-
tiality, this
content is not
reported.
GRI INDEXGRI 105-22
We developed the following content index, according to GRI
standards and the issues that arose as material in the performed
analysis.
GENERAL
CONTENTS
COMPANY
PROFILE
Name of the
organization
Activities, brands,
products and services
Headquarters location
Operations
location
Ownership and
legal form
Served markets
Size of the
organization
Information on
employees and
workers
Supply Chain
Significant changes in
the organization and its
supply chain
Precautionary principle
or approach
External initiatives
Associations affiliation
STRATEGY
Declaration from high
executives responsible
of the decision-making
ETHICS AND INTEGRITY
Values, principles,
Conduct standards
and regulations
Counseling
mechanisms and
ethical concerns
GOVERNANCE
Governance structure
ENGAGEMENT OF
STAKEHOLDERS
List of
stakeholders
Collective negotiation
agreements
Stakeholders
identification and
selection
Approach for
stakeholders
engagement
Mentioned key issues
and concerns
PRACTICES
FOR REPORT
ELABORATION
Entities included in the
consolidated financial
statements
Definition of report
contents and Issue
coverages
List of material topics
Restatement of
information
GRI 101
Fundamen-
tos 2016
GRI 102
Contents
generales
2016
GRI 102
Contents
General
2016
GRI 102
Contents
General
2016
GRI 102
Contents
General
2016
GRI 102
Contents
General
2016
GRI 102
Contents
General
2016
102-1
102-2
102-3
102-4
102-5
102-6
102-7
102-8
102-9
102-10
102-11
102-12
102-13
102-14
102-16
102-17
102-18
102-40
102-41
102-42
102-43
102-44
102-45
102-46
102-47
102-48
GRISTANDARD
CONTENT
2
2, 3
2, 3
2, 3
2, 3
2, 3
2, 3
23
18
18
7, 8, 9
12
12
1
5, 6, 7
5
4
15
23
15
15
15
N/A
15
15
52
PAGE NUMBER/RESPONSE
SDG OMISSION
Changes in report
elaborations
Report target
period
Date of last
report
Report elaboration
cycle
Contact point for
questions about
the report
Statement of report
elaboration in
compliance with GRI
Standards
GRI contents
index
External verification
MATERIAL TOPICS
ECONOMIC
ECONOMIC
PERFORMANCE
Direct economic
value, created and
distributed
DIRECT ECONOMIC
IMPACTS
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Significant indirect
economic impacts
PURCHASING
PRACTICES
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Share of expenditure
in local suppliers
ANTI-CORRUPTION
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Operations
assessed for
risks related to
corruption
RESERVES
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Volume and type of
reserves
GRI 201
Performance
Economic
2016
GRI 103
focus
Management
2016
GRI 203
Indirect
economic
impacts
2016
GRI 103
focus
Management
2016
GRI 204
Purchasing
Practices
2016
GRI 103
focus
Management
2016
GRI 205
Anticorrup-
ción 2016
GRI 103
focus
Management
2016
Reserves
102-49
102-50
102-51
102-52
102-53
102-54
102-55
102-56
201-1
103-1
103-2
103-3
203-2
103-1
103-2
103-3
204-1
103-1
103-2
103-3
205-1
103-1
103-2
103-3
OG1
GRISTANDARD
CONTENT
52
52
52
52
52
52
53, 54
-
29
29
29, 33
29, 32
18
18, 21
18
18, 19
4, 6
6
6
6
10, 11
10, 11
10, 11
3
PAGE NUMBER/RESPONSE
SDG OMISSSION
8.5, 10.3
16.3
16.3
8.8
For matters
of confiden-
tiality, this
content is not
reported.
1.2, 3.8, 5.4,
8.2, 8.3, 8.5,
9.1, 9.4
8.3
16.5
DEVELOPMENT OF THE SUSTAINABILITY REPORTGRI 102-48, 102-49, 102-50, 102-51, 102-52, 102-53, 102-54
Since 2008, we took on the commitment to develop
our Sustainability Report, a communication and
management tool that allows us to analyze and share
our economic, social and environmental
performance. To the inside of the Company, the most
significant value it provides us is the collaboration in
the development of a management shared across the
Company, with our crosshair in maximizing the
positive impacts and minimizing the negative ones,
working in and organic comprehensive fashion.
This year, we present the 12th Pluspetrol
Sustainability Report, corresponding to the period
from January 1 to December 31, 2019. It includes the
activities developed in Angola, Argentina, Bolivia,
Colombia, United States, Netherlands, Peru, Suriname
and Uruguay. It is important to point out that the
reported quantitative indicators correspond to the
areas in production and where Pluspetrol is an
operator.
This Report was developed in accordance with the
GRI (Global Reporting Initiative) Standards: Core
option, and with the Oil and Gas Industry Guidance
on Voluntary Reporting guidelines, drawn up by
IPIECA18, API19 and IOGP20 in its third version.
Reports are presented annually, with the last
published one corresponding to the 2018 fiscal year.
Any restatement of information is indicated in the
Report.
For inquiries regarding the contents, you may
contact: [email protected]
18. International Petroleum Industry Environmental Conservation Association 19. American Petroleum Institute20. International Oil and Gas Producers
ABOUT THE SUSTAINABILITY REPORT
54 • Pluspetrol Sustainability Report 2019 • 55
ENVIRONMENTAL
WATER AND EFFLUENTS
Interaction with
water as a shared
resource
Management of impacts
related to water
discharges
Water extraction
Water discharge
Water consumption
BIODIVERSITY
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Owned, leased or
managed operation
centers, located within
or next to protected
areas or protected
areas but of great
value for biodiversity
outside.
Number and percentage
of significant operating
sites in which
biodiversity risk has
been assessed and
monitored
EMISSIONS
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
GHG direct emissions
(reach 1)
Volume of
lared and vented
hydrocarbon
EFFLUENTS
AND WASTES
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Significant spillages
Amount of drilling
waste (drilling and
cutting mud) and
strategies for treatment
and disposal.
ENVIRONMENTAL
COMPLIANCE
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Non-compliance
with environmental
legislation
and regulation
EMPLOYMENT
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
New hires
and personnel
turnover
GRI 103
focus
Management
2018
GRI 303
Water and
effluents
2018
GRI 103
focus
Management
2016
GRI 304
Biodiversity
2016
GRI 103
focus
Management
2016
GRI 305
Emissions
2016
GRI 103
focus
Management
2016
GRI 306
Efluentes
y residuos
2016
GRI 103
focus
Management
2016
GRI 307
Cumplimien-
to ambiental
2016
GRI 103
focus
Management
2016
GRI 401
Employment
2016
303-1
303-2
303-3
303-4
303-5
103-1
103-2
103-3
304-1
OG4
103-1
103-2
103-3
305-1
OG6
103-1
103-2
103-3
306-3
OG7
103-1
103-2
103-3
307-1
103-1
103-2
103-3
401-1
GRISTANDARD
CONTENT PAGE NUMBER/RESPONSE
SDG OMISSION
OCCUPATIONAL
HEALTH AND SAFETY
Health and Safety at
work Management
System
Workers involvement,
inquiries and
communication on
occupational health and
safety
Injuries in work accident
TRAINING AND
EDUCATION
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Average annual
training hours per
employee
Percentage of
employees who receive
periodic performance and
professional develop-
ment assessments.
LOCAL
COMMUNITIES
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Operations with
local community
participation, impact
assessments and
development programs
INDIGENOUS
PEOPLES RIGHTS
Explanation of material
topic and its coverages
Management approach
and its components
Management approach
Assessment
Cases of violations
to indigenous
peoples rights
Operations where
indigenous communities
are present or
affected by activities
and where specific
engagement strategies
are in place.
SECTOR
SUPPLEMENT
Management focus
Asset integrity and
processes safety
GRI 103
focus
Management
2018
GRI 403
Occupational
Health and
Safety 2018
GRI 103
focus
Management
2016
GRI 404
Training and
education
2016
GRI 103
focus
Management
2016
GRI 413
Local
Communities
2016
GRI 103
Enfoque
de gestión
2016
GRI 411
Derechos de
los pueblos
indígenas
Prepared-
ness plans
before
emergencies
Asset
integrity and
processes
safety
403-1
403-4
403-9
103-1
103-2
103-3
404-1
404-3
103-1
103-2
103-3
404-1
103-1
103-2
103-3
411-1
OG9
OG13
GRISTANDARD
CONTENT PAGE NUMBER/RESPONSE
SDG OMISSION
6.4
6.4
6.6, 14.2,
15.1, 15.5
3.9, 12.4, 13.1,
14.3, 15.2
3.9, 6.3, 6.6,
12.4, 14.1, 15.1
16.3
5.1, 8.5,
8.6, 10.3
8.8
4.3, 4.4,
4.5, 5.1, 8.2,
8.5, 10.3
2.3
36,40, 41
40, 41
40, 41
41
41
36, 38
38
39, 40
38
38
36, 37
37
37
37
37
36, 41
41
41
41
42
36, 44, 45
45
45
45
23, 24, 25
24, 25
24, 25
24, 25
44
44
48, 49
23, 25
25, 26
25, 26
26
26
29
29
29
30, 31, 32
29, 34
34
33
33
34
46
49
The assumptions, initiatives, descriptions, programs, processes and other activities referred to in this Sustainability Report do not correspond to, and will not be admitted to be deemed or construed by implication or analogy, as legal, contractual obligations or enforceable commitments, beyond what is stated by the specific or formal sources of legal liability.
They do not constitute or commit their continuity, improvement or deepening under the same or different circumstances, without the existence of an express recognition to that effect.
Editing and
coordination:
Corporate Social
Responsibility
Design and production:
Chiappini + Becker
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