sustainability report 2017 - plus petrol · pluspetrol resources corporation b.v. is the parent...

Sustainability Report 2017 • A

Sustainability Report 2017

B • Pluspetrol Sustainability Report 2017 • 01

LETTER FROM THE CEO GRI 102-14

Claudio de DiegoCEO

In 1977, engineer Luis A. Rey’s visionary spirit drove forward the creation of Pluspetrol. By that time he used to claim: “My dream is to build a 100-year-lasting company, to yield work, values, energy and innovation for the generations to come”. Four decades later Pluspetrol keeps that dream alive more than ever before. And it is against this great historical value background that I am entrusted to take over the CEO position of the company where I developed my whole professional carreer, where I entered in 1986. We had just two assets by that time in Argentina: Ramos, in Salta, and Centenario, in Neuquen. From then on, I had the opportunity to take part in this case of success, and by summing up organizational capacities we were able to approach new challenges such as Camisea, in Peru. The most important oil field of the region provided us with the knowledge and confidence to wager on huge scale projects. But far from treasuring what we were able to do, these achievements represent today what we will be able to do from here onwards, playing for high stakes on large scale projects, such as Vaca Muerta, in Argentina.

Engineer Rey dreamed Pluspetrol as a 100-year-lasting company. By then, I foresee it sharing the stage with the world’s biggest companies.

In this direction, our strategy is sustained on three important pillars: the strengthening of the production operations upon the existing assets; the development of profitable projects focussing on the main assets; and the assessment of new business opportunities.

The characteristics of the industry and an increasingly more complex and dynamic context require more lively and complementary views, so we should also reinforce our decision-making model and the collaborative work, being sustainability the great challenge to our growth. We must work to keep and empower our environmental and social performance surrounding our operations, preserving the safety of our employees, our facilities and the local communities. Thereupon, Pluspetrol’s sustainability policy accompanies our steps into the future: we work together with the stakeholders to achieve the best result in, social, environmental and economic terms, being aware of the importance of balancing our actions with the sustainable development overall goals.

We are proud to continue positioning ourselves as a leading company in the industry, challenging ourselves on the way to the development of present and future generations, with an innovation framework and the continuous search for efficiency as our basis.

With great pleasure, I offer you Pluspetrol’s tenth sustainability report.

Cover: Ramos Oil Field, Argentina

Inside back cover:Malvinas Gas Plant.Camisea, Peru

INSTITUTIONAL

Letter from the CEO

PLUSPETROLIN NUMBERS

ABOUT PLUSPETROL

Company profile

Areas of operation

Governance

Vision, purpose,

values and strategy

Keys to its growth

Associations

Awards and

acknowledgements

Supply chain

CHALLENGESOF SUSTAINABLE DEVELOPMENT

Global overview

SDG

Cultural approach

PARTNERS:OUR PEOPLE’SDEVELOPMENT

Directly hired employees

Employment

Employee training and

development

Our employees’ health

LOCALCOMMUNITIES

Social investment

Grievance and complaint

handling mechanism

Indigenous communities

ENVIRONMENT

Environmental regulations

Emissions: climate change

and energy efficiency

Natural resources

Environmental impact

management

ABOUT THESUSTAINABILITY REPORT

Sustainability report

formulation

Materiality analysis

Stakeholders

Material topics

SAFETY ANDINTEGRITY

Commitment

and leadership

Understanding

Hazards and risks

Risk management

Learning from

the experience

Incident monitoring

and process events

FINANCIALAND ECONOMICMANAGEMENT

Anti-corruption policy

Procurement practices -

Joint task

01 02 10 12

16 18 22 26

34 39GRI/DOS INDEX

40PLUSPETROL40 YEARS

42

RETURN TO THE INDEX

Sustainability Report 2017 • 32 • Pluspetrol

ABOUTPLUSPETROL NETHERLANDS

AMSTERDAMHEAD OFFICE

U.S.A.HOUSTONBUSINESS OFFICE

COMPANY PROFILEGRI 102-1, 102-2, 102-3, 102-5, 102-6, 102-7, OG1

WE ARE A PRIVATE, INTERNATIONAL COMPANY WITH A 40 YEAR’S EXPERIENCE IN HYDROCARBONS EXPLORATION AND PRODUCTION. WE DEVOTE OURSELVES TO THE DEVELOPMENT OF GREAT NATURAL GAS FIELDS, THE EXTRACTION OF HEAVY CRUDE OIL, THE DEVELOPMENT OF MATURE SITES AND MARGINAL AREAS THOUGH SECONDARY RECOVERY, AS WELL AS TO THE DEVELOPMENT OF NON-CONVENTIONAL HYDROCARBONS.

EVERY DAY, WE SEEK TO ACHIEVE OUR GROWTH AND SUSTAINABILITY GOALS WITH A LONG TERM VISION. THUS, WE CURRENTLY PROMOTE ENERGY DEVELOPMENT AT AN INTERNATIONAL LEVEL, THROUGH OUR PRESENCE IN ANGOLA, ARGENTINA, BOLIVIA, COLOMBIA, THE UNITED STATES OF AMERICA, THE NETHERLANDS, PERU, URUGUAY AND VENEZUELA.

ON THIS FRONT, WE APPLY CREATIVITY AND COMMITMENT IN ORDERTO UNDERTAKE EACH OPERATION’S COMPLEXITIES, AND WE BOLSTER MANAGEMENT INNOVATION AND CAPACITY TO CONDUCT BUSINESS.

VENEZUELANATURAL GAS EXPLORATION

COLOMBIAEXPLORATION

PERUEXPLORATION AND PRODUCTION OF NATURAL GAS AND OIL

BOLIVIAEXPLORATION AND PRODUCTION OF NATURAL GAS AND OIL

URUGUAYMONTEVIDEOOFFICES

ARGENTINAEXPLORATION AND PRODUCTION OF NATURAL GAS AND OIL

VENEZUELA

COLOMBIA

PERU

BOLIVIA

ARGENTINA

ISLAS MALVINAS (ARG)

URUGUAY

ANGOLAEXPLORATIONAND PRODUCTION OF OIL

References

Offices Exploration Production PFLGNAndean basins

1. 1 MMBOE = 1,000,000 BOE.2. 1 MMSCF = 182,910 BOE.3. Data from Pluspetrol’s operated areas is included.

AREAS OF OPERATIONGRI 102-4

The data included in this Report contains those activities

in which Pluspetrol operates. They are located in Angola,

Argentina, Bolivia and Peru.


NET PROVEN RESERVES OPERATED BY PLUSPETROL: 738 MMBOE

The methodology used for the reserve certifications at Pluspetrol is the one used in the Petroleum Resources Management System (PRMS) regulation.

• 73% GAS • 27% OIL

LIQUIDS AND NATURAL GAS PRODUCTIONBY COUNTRY (MBOE) - 2015 TO 2017 PROGRESS

200

150

100

50

0

• 2017 • 2016 • 2015

ACTIVITIES AND RESULTS3

AngolaArgentina

Bolivia PeruPluspetrol

Pluspetrol Resources Corporation B.V.is the parent company. Legal form: Dutch closed stock company.

40YEARS IN THE INDUSTRY

121MBBL/D OF LIQUIDSPRODUCTION

1,659MMSCF/D2 OF GAS PRODUCTION

155MMBOE1 OF TOTALOPERATED PRODUCTION

1,721DIRECTLY HIRED PEOPLE

OIL REFINERIES NATURAL GAS DISTRIBUTORS ELECTRIC ENERGY GENERATORS NATURAL GAS LIQUEFACTION PLANTS

CLIENTS

CRUDE OIL NATURAL GAS GLP (PROPANE AND BUTANE) OTHER NATURAL GAS LIQUIDS (MIDDLE DISTILLATES AND FUEL)

PRODUCTS

OIL AND NATURALGAS PRODUCTIONIS PERFORMEDIN DIFFERENT ENVIRONMENTS,FROM THE ARGENTINE PATAGONIA TO THE PERUVIAN AMAZON RAINFOREST.

AT PLUSPETROL WE DEVELOP OUR PRODUCTION AND EXPLORATION ACTIVITIES WITH THE BEST SAFETY AND EFFICIENCY PRACTICES, FOCUSINGON THE RESPECT FOR THE ENVIRONMENT, THE NATURAL SURROUNDINGS AND THE LOCAL COMMUNITIES.

OIL AND NATURAL GAS EXPLORATION EXTENDS FROM THE CURRENTLY OPERATED AREAS TO NEW REGIONS IN COUNTRIESIN WHICH THE COMPANY DOES NOT PERFORMANY ACTIVITY YET. THE CONSTANT SEARCH FOR NEW OPPORTUNITIESIS A FORWARD-LOOKING STRATEGIC ACTIVITY.

PRODUCTION EXPLORATION

••••

••••

Sea Terminal.Fractioning Plant.Pisco, Peru

0.5

1

26

4

137

168

24

23

0.4

2

137

165

1

130

155

RETURN TO THE INDEX

Crisis Committee The Crisis Committee is responsible for coordinating

a response from the Company’s different areas in

case of a crisis situation. Its composition, as

well as its performance, is ruled by an internal crisis

management procedure and by regulations

complementary to the contingency plans and safety

procedures in place in each Business Unit.

Ethics Committee The Ethics Committee analyzes the complaints about

behaviors or actions which contradict the good

practices defined in our Company’s Code of Conduct

and determines the actions to be taken.

It is chaired by a member of the Board (an

independent director with non-executive tasks), and

it is additionally formed by the Director of

Internal Audit and Compliance, the Vice President

of Human Resources and the General Counsel.

SUPPORT FOR ETHICAL BEHAVIOR

Ethics LineVia Pluspetrol Ethics Line, it is possible to report any

behavior from the company’s employees or officers,

or contractor’s personnel, contrary to the provisions

of the Code of Conduct and the good practices,

such as conflicts of interest (economic or relational),

company’s asset and work time misuse, disclosure

of the company’s confidential information and other

improper behaviors.

In addition to the Ethics Line, at Pluspetrol we have

other channels available to file a complaint, such as

the direct contact with a member of the Ethics

Committee, or the communication with a

superintendent, 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.

Regardless of their level, whoever receives an

observation, claim or complaint must immediately

report it to the Ethics Committee.

IF YOU WANT TO MAKE A COMPLAINT,PLEASE GET IN TOUCH WITH US:

WEBSITEWWW.ETHICSLINE.PLUSPETROL.NET

[email protected]

PHONE NUMBERSARGENTINA: 0800-122-0441BOLIVIA: 8001-0-0985COLOMBIA: 0180-0752-2263NETHERLANDS: 0800-022-5872UNITED STATES OF AMERICA: 1-800-304-5395PERU: 0800-0-0831URUGUAY: 0004-0529-6681VENEZUELA: 0800-100-5786

ONE OF OUR CORPORATE GOVERNANCE

SYSTEM’S PRIMARY GOALS IS TO STRENGTHEN

THE ORGANIZATION’S STRATEGIC CAPACITY

AND APPROACH, BY FOCUSING ON THE BUSINESS

SUSTAINABLE DEVELOPMENT, BOTH ON THE

IMMEDIATE AND ON THE LONG TERM CONTEXT.

TO ACHIEVE THIS, PLUSPETROL’S DIFFERENT

EXECUTIVE BODIES ACT SUPPORTED BY

THE PILLARS OF TRANSPARENCY, ETHICS AND

INTEGRITY, TO BOTH GUIDE THE STRUCTURE

AND THE FUNCTIONING OF ALL THE COMPANY

AREAS, AND ESTABLISH THE STRATEGIC AND

OPERATIONAL PLANS.

CORPORATE GOVERNANCE

Governing BoardOur Corporate Governance is headed by the Board

of Directors, the body that sets the Company’s

goals and strategic pillars, supervises the internal

mangement and evaluates the organizational

performance. It is formed by three independent

members appointed by the Shareholders Meeting.

Executive Committee The 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

the employees. It is chaired by the Executive Director

and other three Senior Management members.

04 • Pluspetrol Sustainability Report 2017 • 05

GOVERNANCEGRI 102-16; 102-18

Claudio de DiegoCEO

Christián Garzón MacedaSenior

Vice President of Corporate Services and CFO

Roberto Díaz CoralSenior

Vice President of Global Producing Assets

Francisco PulitSenior

Vice President of Corporate Development

Code of Conduct The Code of Conduct defines the basic rules of the

daily behavior which must normally and regularly

be observed by those who provide services or carry

out an activity in any area of our Company. It is

applicable to all Pluspetrol’s employees, regardless of

their rank, and extensive to contracting companies,

subcontractors, suppliers and consultants.

Its infringement may lead to disciplinary actions,

which can even include the termination of the

employment relationship.

The last Code of Conduct certification was made

in May 2017, in a personal and safe manner,

via the Employee Self Service self-management

environment, hosted in our intranet. As a result,

it is worth highlighting that no conflict of interest

was recorded.

Likewise, for this reporting period, the Code of

Conduct was circulated among the 500 most

important suppliers and all the clients, banks,

insurance companies and other financial entities.

Finally, it is worth pointing out that at each

tender procedure, the applicants are informed

about our Ethics Line.

VISIONTO EXCEL AS A BENCHMARK AMONG

INDEPENDENT INTERNATIONAL UPSTREAM

ENERGY COMPANIES.

PURPOSE CREATE VALUE MEETING THE NEEDS AND

EXPECTATIONS OF ALL THE STAKEHOLDERS

RELATED WITH OUR ACTIVITY (SHAREHOLDERS,

EMPLOYEES AND THEIR FAMILIES, PARTNERS,

SUPPLIERS, CLIENTS, GOVERNMENTS AND

COMMUNITIES OF THE COUNTRIES IN WHICH WE

OPERATE), MAINTAINING OUR OWN IDENTITY.

VALUES BEING PERSISTENT.

THINKING BEYOND POSSIBILITIES AND TAKING

ACTION DESPITE UNCERTAINTY TO CAPITALIZE

ON OPPORTUNITIES.

ACHIEVING SUSTAINABLE GROWTH BY

PRIORITIZING SAFETY, EFFICIENT USE OF

RESOURCES, OPERATIONAL EXCELLENCE,

COMMUNITY RELATIONS AND ENVIRONMENT

PRESERVATION.

BEING GUIDED BY INTEGRITY AND GOOD

PRACTICES IN OUR DECISIONS AND BEHAVIORS.

WORKING IN TEAMS AS A WAY OF LIBERATING

IMAGINATION AND CREATIVITY.

DEVELOPING OUR HUMAN TALENT WHILE

MAINTAINING OUR IDENTITY.

Given the nature of our operations, at Pluspetrol

we manage risk as an essential part of our activity,

making proper decisions based on the risk level

in each case, minimizing the negative impacts and

optimizing the benefits and opportunities generated

through our actions during the projects’ life cycle.

In this way, we seek to operate in a safe and

responsible way, with a preventive approach, which

aims to avoiding all kinds of incidents and

minimizing the adverse impacts on the personnel,

the environment and the local communities. As a

part of this, we incorporate the best available

technologies, adequated to the risk level as the case

may be, in order to encourage the efficient use of

energy and natural resources.

VISION, PURPOSE,VALUES AND STRATEGY GRI 102-11; 102-16

RESPECT FOR THE DIVERSITYBEHAVIOR AT THE WORKPLACEATTIRE AND PERSONAL APPEARANCEBAN ON SMOKING AND THE ALCOHOL AND DRUG CONSUMPTION

GIFTS, FAVORS AND BUSINESS COURTESIESABUSE OF INFLUENCEPUBLIC SECTORPRESSEXTERNAL MEETING TO THE WORKPLACECOMMUNITY RELATIONS, ENVIROMENTAL CARE AND OTHERS POLICIES

GOODS SUPPLIED BY THE COMPANYPROPRIETARY INFORMATIONPRIVACY OF PERSONAL INFORMATION

CONFLICTS OF INTERESTREPORTING OBLIGATIONINSIDE INFORMATIONPROFESSIONAL TASKS

•••

•

•

••••

•

•

••

••••

INTERPERSONAL RELATIONS

THIRDS PARTY RELATIONSHIP

COMPANY’S ASSETS

POSSIBLECONFLICTS OFINTEREST

RETURN TO THE INDEX


CORPORATE STRATEGY

Since its beginnings, Pluspetrol has kept its

aspirations for growth intact, and today we keep

on working in order to consolidate ourselves

as a reference company. To achieve this, we focus

primarily on the production and the assets we

operate with, which implies an efficient use of capital.

Projects come in a second instance, which at

the moment include non-conventional production

alternatives. Finally, we seek new growth

opportunities associated to our capacities.

It is in this same growth spirit that we develop our

long term plans, an indispensable strategy tool for

our management. The Long Term Plan (LTP) is made

upon the Master Asset Plan (MAP) consolidation,

oriented to the reserve and contingent resources

development, the Master Exploration Plan (MEP),

oriented to exploratory projects, and the Non

Upstream Plan (NUP) oriented to other opportunities.

These plans are created on a 5-year horizon and

they are periodically reviewed in order to adapt them

to the situation at that time.

With this longer term thinking and upon the basis

of our Sustainable Development vision, since 2015

we count with a framework that takes into account

our stakeholders’ expectations, focusing on the

triple bottom line (economic-social-environmental).

That framework is our Sustainability Policy,

through which we commit ourselves to perform our

activities improving the good practices permanently

and searching for excellency in each of the

processes. The Sustainability Policy also helps us to

develop an ethical business management that

incorporates, for the decision making, the economic,

social and environmental aspects of the operations.

For the management of an oil and natural gas asset,

it requires a comprehensive vision, where the key

is the multidisciplinary involvement to improve the

competitiveness and the more complicated decision

processes. In particular, we focus our efforts on the

safety of the operations and the risk management,

in order to enhance our activity’s benefits and

opportunities, preserving our people’s wellbeing,

protecting the environment and respecting our

surrounding communities.

KEYS TO ITS GROWTH

During our 40th anniversary we ratify our

commitment with the sustainable growth, within

the context of an increasingly challenging industry

around the world, which represents defiances

and opportunities, and therefore we must keep on

working to optimize our operational excellency.

That is why our operation model is moving towards

the pursuit of focus, agility, efficiency and quality in

the policy-making, aspects which are the key to

development. In this line we count with the Master

Asset Plan (MAP), our medium and long term plan

oriented to development projects and operational

assurance, that will allow us to improve the decision

making regarding the production, the operating

costs and the associated investments throughout our

assets’ life cycle.

The organization of teams within a dialogue, respect

and confidence ambiance is another key part

that comes in response to this planning. They aim

at the asset’s comprehensive development or at the

efficient management of the ongoing operations.

Finally, the interrelation between the different areas

of our business is also a key. The Integrated Asset

Development area is responsible for managing

the growth, the oil reserve addition and the business

continuity of assets projects. Whilst the Production

Asset Operations area focuses on the operational

management of the production, by analizing

and proposing improvements, and ensuring the

maintenance, reliability and integrity of the

production system. All within an integral safety

management framework.

This form of organizing ourselves allows us to be

prepared to capitalize on a challenging-world new

opportunities. Because the desire to grow is rooted

in our Company’s DNA since its very beginning.

And our commitment to growth has not changed.

PROGRESS IN DIFFERENT COUNTRIESTHROUGHOUT 2017

ARGENTINAIN THE “JAGÜEL CASA DE PIEDRA” AND

“CNQ-7” AREAS, IN THE PROVINCE OF

MENDOZA AND BELONGING TO THE NEUQUEN

BASIN, TWO EXPLORATORY WELLS WERE

DRILLED. THE “MONSA X-1” WELL WAS

ABANDONED AND DEEMED NON-PRODUCTIVE

DURING THE TESTING, WHILE THE

“EL COMPLEJO X-1” WELL DISCOVERED OIL

DURING THE TESTING-, DEFINED AN

EXPLORATION WELL (EXTENSION) FOR 2018.

IN THE “PUELEN” AND “SIERRA DEL NEVADO”

EXPLORATORY BLOCKS, LOCATED AT THE

SOUTH MENDOZA NEUQUEN BASIN, 7 WELLS

WERE DRILLED AIMED AT OBJECTIVES IN THE

“CENTENARIO” AND “GRUPO NEUQUEN”

FORMATIONS, WITH DEPTHS RANGING FROM

600 TO 1,000 METERS. THE WELLS AT PUELEN

INDICATED NO EVIDENCE OF HYDROCARBONS

AND THE ONES AT SIERRA DEL NEVADO

DOCUMENTED CERTAIN RESERVOIRS OF VERY

HEAVY OIL WITH NO FLOW DURING THE TESTS.

NEW CAMPAIGNS ARE RAISED FOR BOTH

CASES FOR NEXT YEAR.

IN THE “LA CALERA” AREA, THE “LA CALERA

X-3001 (H)” WELL WAS DRILLED IN TWO

STAGES, WITH A NON-CONVENTIONAL TARGET

IN THE “VACA MUERTA” FORMATION. THE

TERMINATION TEST, SCHEDULED IN AN

EXTENDED FORM, WILL START NEXT YEAR.

BOLIVIATESTS IN THE “TACOBO X-1001 ST” WELL WERE

STARTED TO PROVE THE EXISTENCE OF

NATURAL GAS IN THE RESERVOIRS FOUND.

THIS WELL WAS DRILLED IN 2016, AT A DEPTH

OF 6,802 METERS, WITH A GAS TARGET

TO THE “SANTA ROSA” DEVONIAN FORMATION.

DUE TO THE HIGH DENSITY OF THE MUD LEFT

IN THE WELL PENDING FOR ITS TERMINATION,

THERE WAS A LOW FLOW RESPONSE AT

THE SURFACE AT THE BEGINNING OF THE TEST

AND THERE ARE STILL NO CONCLUSIVE

RESULTS TO DETERMINE ITS PRODUCTIVITY.

BY THIS TIME, THE WELL IS CLOSED AND

OPERATIONAL ALTERNATIVES HAVE

BEEN CONSIDERED IN ORDER TO IMPROVE

THE TESTING RESPONSE AND TO DEFINE

CONTRIBUTION OF THE TARGETED AREAS.

PERUIN BLOCK 108 TWO SURFACE GEOLOGY

CAMPAIGNS WERE PERFORMED IN

ANTICIPATION OF THE “BOCA SATIPO ESTE-1X”

EXPLORATORY WELL, WHICH WILL BE DRILLED

IN THE “ENE” BASIN IN 2018. THIS WELL, WITH A

DEPTH OF 2,650 METERS, IS THE FIRST ONE IN A

BORDER AREA AND ITS GOAL IS TO PROVE THE

PRESENCE OF HYDROCARBONS IN THE

CRETACEOUS AND PALEOZOIC AGED

RESERVOIRS.

IN BLOCKS 56 AND 88 FROM THE “CAMISEA”

AREA A GEOLOGICAL FIELDWORK CAMPAIGN

WAS CONDUCTED WITH FOCUS ON THE

STUDY OF DEEP HORIZONS -AT COPACABANA,

TARMA, AMBO-, WITH PALEOZOIC UNITS THAT

COULD REPRESENT RESERVOIRS LOCATED

UNDERNEATH THE CAMISEA OIL FIELD’S

PRODUCTIVE ASSETS.

RETURN TO THE INDEX


MANAGEMENT OF ENVIRONMENTAL, SOCIAL AND SAFETY ISSUES WITH CONTRACTORS

During this reporting period we kept on working

on the project started in 2016 for the definition

and implementation of corporate guidelines

associated with the safety, environmental and

social management carried out together with our

contractors.

At Pluspetrol, more than 80% of the personnel

required to perform the different activities of our

production cycle is provided by contractors,

which has a direct impact on our Company’s

performance.

Through this project, we seek to improve the

essential aspects to jointly take a responsible

management forward.

The project is structured around a series of

controls aimed to successfully managing a contract

throughout the life cycle, from the contractual

process to the end of the business relationship.

SUPPLY CHAIN GRI 102-9, 102-10

Our supply chain is comprised of the Supplies,

Logistics and Warehouses functional areas. Regarding

Supplies, each procurement unit is formed by buyers

of different specializations, who aim at agile, efficient

and integrated-to-the-business operations,

anticipating the demand management and focusing on

the risk containment and mitigation.

The main procurement units are located in Argentina

and Peru, in harmony with the complexity of the

operations performed there. Because of that, during

2017, purchases of materials were made from

1,123 suppliers in Argentina, and from 802 in Peru.

Likewise, the major portion from the total volume of

procurement was under services for the same period:

84% in Argentina and 90% in Peru.

AWARDS AND ACKNOWLEDGEMENTS

AMONG THE AFOREMENTIONEDSTEPS OR CONTROLS, THE FOLLOWINGCAN BE QUOTED:

RISK ANALYSIS. COMPETENCE ASSESSMENT. REQUIREMENTS OF SAFETY, INTEGRITY, ENVIRONMENTAL AND SOCIAL CONTROLS FOR THE CONTRACT. EXAMINATIONS PRIOR TO THE MOBILIZATION TO THE CONTRACT EXECUTION SITE.

INSPECTIONS DURING THE MOBILIZATION. ASSURANCE OF EHS ASPECTS DURING THE CONTRACT EXECUTION. AUDITS. STATISTICS AND KEY INDICATORS REPORT. EXAMINATIONS DURING THE DEMOBILIZATION. PERFORMANCE ASSESSMENT.

OPERATIONAL PLANNING

EXECUTION, PROCESS, CONTRACT MANAGEMENT

IDENTIFICATION OF NEEDS

BID EVALUATION

NEGOTIATION AND ADJUDICATION

CONTRACT OPERATIONAL START-UP

CONTRACT EXECUTION

CONTRACT CLOSING PROCESS

•••

•

••

••••

SAFETY, INTEGRITY, ENVIRONMENTAL AND SOCIAL CONTROLS

ASSOCIATIONS GRI 102-12, 102-13

As part of our commitment to the sustainable

performance and the adoption of the industry’s best

practices, we participate in different national and

international level organizations:

The Association of Companies from the Oil, Natural

Gas and Biofuels Sector in Latin America and the

Caribbean (known in Spanish as ARPEL): it

comprises companies and institutions from the oil,

natural gas and biofuels sector. We are members

since 2006 and we currently hold the Second

Vice Presidency position, through Sr. VP of Global

Production Assets. Likewise, we actively participate

in several technical working committees: Exploration

and Production; Environment, Health and Industrial

Safety; Corporate Social Responsibility, etc.

International Oil and Gas Producers (IOGP): its

members identify and share the best practices in

terms of Health, Safety, Environment, Social

Responsibility, Engineering and Operations. We

are part of this prestigious association since 2014.

Extractive Industries Transparency Initiative (EITI):

it is a global standard to promote the transparent

and responsible natural resources management.

The standard intends to address the key topics

of governance for the oil, gas and mining sectors.

Our operations in Peru contribute to its National

Conciliation Report.

Center for Chemical Process Safety (CCPS): it

identifies and establishes the necessities for the

safety in the chemical and oil industry’s processes,

in cooperation with the American Institute of

Chemical Engineers. We are members since 2014.

National Association of Corrosion Engineers (NACE):

it has over 36,000 members from 140 countries and

it is recognized world-wide as the leading authority

in corrosion control. Its mission is to protect the

people, the assets and the environment from the

corrosion effects. We are members since 2015

We are associated with no external non-legally binding initiatives.

GREEN LATIN AMERICA AWARDS 2017

WITH THE INTER-AMERICAN DEVELOPMENT BANK (KNOWN IN SPANISH AS BID) AND CONSERVATION

INTERNATIONAL SPONSORSHIP, THE SOCIO-ENVIRONMENTAL INITIATIVES OF LATIN AMERICA ARE

REWARDED IN 10 CATEGORIES ALIGNED WITH THE SUSTAINABLE DEVELOPMENT GOALS (SDG). FROM AMONG

OVER 2,400 INITIATIVES FILED, WE WERE FINALISTS INTWO CATEGORIES: “FORESTS AND FLORA”, FOR THE

“BIODIVERSITY MONITORING PROGRAM (KNOWNIN SPANISH AS PMB)” AT BAJO URUBAMBA,CUSCO; AND “OCEANS”, FOR THE “FUND FOR

THE REGENERATIVE MANAGEMENTOF PARACAS RESERVE

(PARACAS FUND)”.

SUSTAINABLEDEVELOPMENT AWARD 2017

THE NATIONAL SOCIETY OF MINING, OIL AND ENERGY (KNOWN IN SPANISH AS SNMPE)

RECOGNIZES THE BEST BUSINESS INITIATIVESIN THE SOCIAL AND ENVIRONMENTAL FIELDS.

WE OBTAINED A HONORABLE MENTIONIN THE CATEGORY “SOCIAL MANAGEMENT”

FOR THE “COLLABORATION FOR THEMARICULTURE DEVELOPMENT - SHELLFISH FARMING

AT PARACAS - PISCO”.

THE AMERICAS MARITIME AWARD 2017

THE INTER-AMERICAN COMMISSION ON PORTS (KNOWN IN SPANISH AS CIP) FROM THE

ORGANIZATION OF THE AMERICAN STATES (OAE), WHICH IS REPRESENTED IN PERU BY THE NATIONAL PORT

AUTHORITY, RECOGNIZES THROUGH THIS AWARD THE SUCCESSFUL PRACTICES IN THE MARITIME AND

PORT SECTOR AMONG THEOAE’S 35 MEMBER STATES. WE OBTAINED THIS AWARD IN THE CATEGORY

“AWARENESS RAISING AND COMMUNITY OUTREACH”, FOR THE “COASTAL

AND MARINE MONITORING PROGRAM IN PARACAS”.

90%SERVICES

OF PROCUREMENTS

PERU

802MATERIALPROCUREMENT

SUPPLIERS

84%SERVICES

OF PROCUREMENTS

ARGENTINA

1,123MATERIALPROCUREMENT

SUPPLIERS

SUPPLIERS 2017

In the context of the continuous process improvement

and aimed at the Sustainability, in 2017 we started

working to harmonize the whole Organization’s

approach towards shared goals for the Material

Management. Accordingly, and in order to provide the

best service level to our internal customers, action

plans with guidelines for the quality assurance and the

working capital optimization were defined.

There were no significant changes in the supply chain during 2017.

•

•

•

•

•

RETURN TO THE INDEX


CHALLENGESOF SUSTAINABLE DEVELOPMENT

In November 2017 the 23rd UN Framework

Convention on climate change (known in Spanish as

COP 23) was held in the German city of Bonn, to

proceed with the implementation of the 2015 Paris

Memorandum of Understanding resolutions as its

primary goal4.

Among the outstanding results, a program to speed

up the climate action in order to limit the increase

in global temperature was set off. The conversation

will contemplate a preparatory and a political stage:

member states shall report a renewed version of

their national contribution during COP 24 so they are

already elaborating their reduction plans.

On their behalf, companies have started to align their

sustainability strategies to the Sustainable

Development Goals (known in Spanish as ODS). In

fact, their influence to inform the policy-making and

to guide the business strategy, to help boost the

innovation and to create new values along the value

chain is increasingly bigger.

After 40 years of experience, Pluspetrol has the

capabilities to perform complex operations.

That is why sustainability has become our great

challenge, and we address it through an excellence

management, in day-to-day operations as well

as in our projects. At every step we prioritize the

safety in our activities, the care for the environment

and the communities surrounding our operations,

and we make our growth targets meet the

Sustainability principles.

SUSTAINABLEDEVELOPMENT GOALS

The Sustainable Development Goals (SDG) were

defined by the United Nations through the 2015

Summit on Sustainable Development. This involves

17 goals which direct the efforts of over 190 countries

that adopted the 2030 Agenda to move forward a

sustainable world.

Through 169 internal goals, SDG seek to promote

a strategic economic growth, with attention to

certain social neeeds, such as education, health,

gender equality, social protection and employment

opportunities. Additionally, SDG are raised as a

response to the climate change in pursuit of the

environmental protection.

At Pluspetrol we consider that these goals call for

companies to examine their business purpose

with regards to the economic, social and

environmental impact of their activities. That is

why we are committed to review their guidelines

in our management, which will help us work

for the sustainable development of our actions,

and at the same time contribute to ensure equal

access to a safe, modern and affordable energy.

Throughout this Sustainability Report, our

management efforts on the alignment of activities

to diverse SGD may be noted.

CULTURAL APPROACH TOA SUSTAINABLE OPERATION

At Pluspetrol we have been working hard to

develop and manage our Culture for a Sustainable

Operation, which is articulated on two key concepts:

on one side, the risk management transversality,

concerning all aspects of our everyday actions and

on the other side, a proper culture management by

the organization leaders. The purpose of our culture

is to bolster a consistent and mutual trust context,

to favor a risk-aware-leadership development and to

promote our collaborators’ autonomy, improving the

risk management towards “A Generative Culture”,

in which:

Leaders make risk-based decisions, inspire their

partners and boost their autonomy, leading by

example.

Collaborators are empowered and have competence

to manage risks autonomously, observing rules and

procedures.

Tools are structured around continuous improvement

cycles and they provide value to the system.

At Pluspetrol this culture is portrayed in the shared

attitudes and behaviors which allow us to manage

risks properly for a sustainable operation.

GLOBAL OVERVIEW

4. The Paris Memorandum of Understanding is a United Nations agreement uponthe climate change that sets measurements for the Greenhouse Gases (GHG) reduction through the ecosystem mitigation, adaptation and resilience for thepurpose of the Global Warming. It was adopted on December 12th, 2015 and mightbe applicable as of 2020, upon the Kyoto Protocol termination.

•

•

•

Malvinas Gas Plant.Camisea, Peru

RETURN TO THE INDEX


MATERIALITYANALYSIS GRI 102-46

This Report contents were defined from a materiality

analysis, through which the most relevant issues

have been aknowledged, as they may be of particular

importance for our stakeholders (internal and

external).

We describe the procedure performed to collect the

material topic of our activity:

ABOUT THESUSTAINABILITYREPORT

SUSTAINABILITY REPORT FORMULATION GRI 102-48, 102-49, 102-50, 102-51, 102-52, 102-53, 102-54

This report was developed in compliance with the

GRI5 Standards: Essential option, and its Oil and Gas

Sector supplement and the Reporting Guide: Oil and

Gas Industry Guidance on Voluntary Reporting were

contemplated, as stated by IPIECA6, API7 and IOGP8.

in its third version.

It is also worth stressing that the Sustainable

Development Goals aligned to our management are

duly identified for each material topic.

The scope of this report comprises the primary

areas and activities operated by Pluspetrol: Angola,

Argentina, Bolivia, Netherlands, Peru, Uruguay,

Colombia and Venezuela, providing a full result detail

in matters of economic, environmental and safety,

and social (human resources and communities)

performance in relation to our tasks.

For questions regarding this Report contents,

any interested party may contact

[email protected]

There have been no relevant changes in Pluspetrol’s

organization, nature of business, or measurement

methods concerning the last Sustainability Report

(year: 2016).

5. Global Reporting Initiative.6. International Petroleum Industry Environmental Conservation Association.7. American Petroleum Institute.8. International Oil and Gas Producers.

MATERIALITYANALYSIS

WE CONSOLIDATE THE RESULTS THUS RECOGNIZING OUR REPORT MATERIAL

TOPICS

WE WORK ONTHE IDENTIFICATION

OF THE TOPICS THATTAKE PART IN PLUSPETROL’S

SUSTAINABILITY

WE HAVE COLLECTED

THE IDENTIFIED ISSUES ASSESSMENT

FROM OUR INTEREST GROUPS THROUGH SURVEYS

Trompeteros.Block 8, Peru

Neuquen, Argentina

RETURN TO THE INDEX


STAKEHOLDERSGRI 102-40, 102-42, 102-43, 102-44

Pluspetrol’s main stakeholders, their importance,

and the material topic noted by them

for the reporting period are listed hereunder.

To carry out the materiality analysis we focused

on the main external stakeholders, including

partner companies, leading global suppliers and the

indigenous organizations from Peru (given the

importance of our operations in their lands), as well

as international NGOs.

Company’s managerial level opinions were collected

internally.

Our interest group expectations for the materiality

definition were collected through on-line polls,

for the 2017 annual period, and formed the basis to

our Sustainability Report, establishing the Material

topic on which we work.

INT

ER

NA

L /

PL

US

PE

TR

OL

Collaborators

Partners

Clients

Providers and contractors

Governmententities

Local communities and NGONon-Governmental Organization)

Media andopinion leaders

Pluspetrol’s collaborators represent an essential assetthat promotes businessgrowth, delivering productivity, excellence and leadership.

Partners provide capital and industry knowledge. They manage resources, plan short, medium and long term Company’s operability. They assess their investments, assets and liabilities in the market.

Clients represent a valuable component in the valuechain for the Company’s growth.

They are a strategic component in the value chain. Their capabilities are the keys for the operations scattered all over the world.

Government entities set the market conditions in which the Company operates. Likewise,they regulate industry sensitive issues, such as biodiversity,water, emissions and wastes or communities.

Local communities and NGOs help generate sustainable growth and they arouse better business relationships. Additionally,they monitor the Company’s performance in order to generate positive impacts.

Media share their knowledge on industry trends and innovations. They influence the market,with impact on the Company’s corporate image.

Economic interests:- Economic performance- Amount and type of proved, estimated and production reserves - Anti-corruption

Environmental interests: - Emissions - Effluents and wastes - Regulatory compliance - Water Social interests: - Local communities - Health and safety at work

Economic interests:- Economic performance- Procurement practices(local suppliers)- Anti-corruptionEnvironmental interests:- Biodiversity - Water- Emmisions and wastes- Regulatory complianceSocial interests:- Local communities - Rightsof indigenous peoples- Home involuntary resettlement

MATERIAL TOPIC INTEREST GROUP WHY PLUSPETROLIS IMPORTANT TO ITSSTAKEHOLDERS?

WHY STAKEHOLDERSARE IMPORTANTTO PLUSPETROL?

EX

TE

RN

AL

/ P

LU

SP

ET

RO

L

There have been no significant changes upon the material topics norin their coverage, being continued with the annual information report.

SOCIAL 401 EMPLOYMENT 403 HEALTH AND SAFETY AT WORK 404 TRAINING AND EDUCATION 411 RIGHTS OF THE INDIGENOUS PEOPLES 413 LOCAL COMMUNITIES

ENVIRONMENTAL 303 WATER 304 BIODIVERSITY 305 EMISSIONS 306 EFFLUENTS AND WASTES 307 COMPLIANCE

ECONOMIC 201 ECONOMIC PERFORMANCE

204 PROCUREMENT PRACTICES 205 ANTI-CORRUPTION

MATERIAL TOPICS GRI 102-46; 102-47

FROM THE RECORDED OPINION ANALYSIS THE

MATERIAL TOPICS TO BE ADDRESSED IN

THIS SUSTAINABILITY REPORT WERE DEFINED,

WHICH REFLECT THE COMPANY’S ECONOMIC,

ENVIRONMENTAL AND SOCIAL IMPACTS,

AND HAVE INFLUENCE ON OUR INTEREST GROUP

DECISIONS:

WE HAVE ELABORATED THE SUSTAINABILITY REPORTON CERTAIN CRITERIA IN TERMS OF CONTENT ANDINFORMATION QUALITY:

INTEREST GROUP INCLUSIONWE IDENTIFY THEM AS A COMPANY’S FUNDAMENTAL PILLAR AND WE RECORDED THEIR EXPECTATIONS AND NECESSITIES.

SUSTAINABILITY CONTEXTWE MADE OUR EFFORTS TO MEASURE OUR PERFORMANCE WITHIN THE ECONOMIC, ENVIRONMENTAL OR SOCIAL LIMIT AND DEMAND CONTEXT, AT A SECTORAL, LOCAL, REGIONALAND INTERNATIONAL LEVEL.

MATERIALITYWE IDENTIFIED THE REPORT MATERIAL TOPICS BASEDON OUR DIFFERENT INTEREST GROUP EXPECTATION AND NECESSITY RECORDING.

COMPLETENESSWE DESCRIBED VARIOUS MATERIAL TOPICS IN PURSUIT OF IDENTIFYING THE SIGNIFICANT ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS.

The Report suggests the development of these material

topics, which are managed through different programs

of the Company, as it will be shown hereinafter.

Their coverage takes into account the impacts throughout

the Company’s value chain, including Pluspetrol’s own

activities as well as the performance of the contractor

companies.

PRECISENESSWE WORKED TO DISCLOSE THE INFORMATION IN A PRECISEAND DETAILED WAY.

BALANCEWE AIM TO DEVELOP OUR IMPACTS IN A BALANCED WAY.

LEGIBILITYWE SEEK TO DEVELOP THE REPORTED INFORMATION IN A COMPREHENSIBLE WAY.

COMPARABILITYWE COUNT ON RESULTS FROM PREVIOUS YEAR COMPARATIVE TABLES BY THE END OF THE REPORT.

RELIABILITYWE AIM TO EXPOSE THE INFORMATION OBTAINING METHODS.

TIMELINESSWE PROVIDE OUR RESULTS ANNUALLY.

Due to its profile and operation areas, the Company provides challenges and growth opportunity for its collaborators’ professional development.

Pluspetrol’s organization structure, throughout offices and operations in countries of the region and worldwide, provides them an excellent environmentto develop their management and leadership capability.

Pluspetrol leads hydrocarbon exploration and production, which entails excellence management. It promotes innovations to accompany the growth of energy demand, ensuring its activities and operations.

Pluspetrol prioritizes suppliers and contractors surrounding its operations for its supply chain. Besides, it promotes their development, as it requires high quality standards and excellence from their services.

Pluspetrol contributes to the industry development, creates new job posts and promotes local community economic growth.

The Company encourages the local community human and socio-economic development. It delivers its point of view upon necessities and participates in the actions taken to generate positive social impacts.

The Company provides information on its environmental, economic and social management.

RETURN TO THE INDEX


ANTI-CORRUPTION POLICY GRI 205-1

Through our Ethics Committee (see “About the

Sustainability Report” - “Governance” - “Ethics

Committee”), at Pluspetrol we manage any claim

about actions that could oppose to what established

by our Code of Conduct, which includes thematic

areas related to Corruption.

We consider 100% of the inquiries / claims filed.

For confidentiality reasons, the total of considered operations is omitted.

PROCUREMENT PRACTICES - JOINT TASKGRI 204-1

It is of utmost importance for us the adjudication

of purchases and contracts of our operations

to local suppliers, on equal technical and commercial

conditions with the rest of offerors. Our benefit is to

work with companies that have knowledge of the

areas which we operate in, allowing us a degree of

flexibility and understanding of the wholesale

market’s operating and administrative context,

devising strategies to reach competitive prices and

implementing a proper negotiation to achieve a

transparent management at the time of the contract

signature.

In Peru we also promote local suppliers contracts,

creating direct economic and social development

opportunities for the native communities. One

of the key goals is hiring services from community

members pooled under the mechanism of

Communal Companies, for the passenger and small

cargo transportation during the fall of rivers’ periods.

Thus, the Local Employment promotion incorporates

the shared value approach to the Supply Chain,

making a benefit for all the involved parties.

Among this approach’s advantages, we highlight the

contractors’ development capacity strengthening

and that of the communities who must deploy goods

or services to satisfy the companies’ requirements;

the operating costs reduction, such as transportation

and personnel accomodation; the income generation

to the local population; and the local economies

improvement.

In 2017, 99% of the acquisitions recorded in

Argentina and 91% of the booked in Peru were from

local suppliers. In Argentina, this represented 85% of

the services procurement total amount and 15% of

material procurement. On their behalf, Peru’s local

suppliers represented 93% of the services

procurement total amount and 7% of material

procurement.

In this way, from Pluspetrol we favor the local

suppliers’ development and we observe the “Local

Purchase” provisions, as established by national,

provincial, municipal laws and/or contractual

obligations which have effect on our purchases and

contracts.

By “Local” we mean the operations’ direct and indirect

areas of influence.

85%OF THE SERVICES PROCUREMENT AMOUNT

ARGENTINA

15%

99%

OF MATERIAL PROCUREMENT AMOUNT

OF LOCALSUPPLIERS

93%OF THE SERVICES PROCUREMENT AMOUNT

7%OF MATERIAL PROCUREMENT AMOUNT

PERU

91%OF LOCALSUPPLIERS

PERMANENT MONITORING,

NOTIFICATION AND INTERACTION BETWEEN

CONTRACTOR,CONTRACT MANAGER AND SOCIAL TEAM (THE LATTER,

WHEN CONTRACTINGPEOPLE FROM NATIVE

COMMUNITIES ONLY)

INCLUSION OFLOCAL EMPLOYMENT PROMOTION IN THE

CONTRACTMANAGEMENT

NOTIFICATIONAND DISCLOSURE OF THE

LOCAL EMPLOYMENTPROGRAM

AND PROCEDURE

SUPERVISIONAND AUDITING

MANAGEMENTOF LOCAL

EMPLOYMENT

FINANCIAL ANDECONOMIC MANAGEMENT

A COMPANY PRODUCING WORK, PRODUCINGVALUE, PRODUCING ENERGYENG. LUIS A. REY

Block 88.Camisea, Peru

RETURN TO THE INDEX


DIRECTLY HIRED EMPLOYEES GRI 102-8, 102-41

PLUSPETROL IS A COMPANY THAT GROWS

WITH A VISION OF MANAGEMENT EXCELLENCE,

ACCEPTS NEW CHALLENGES AND TRANSFORMS

ITSELF. DOWN THIS PATH, HUMAN CAPITAL

DEVELOPMENT IS ONE OF THE FUNDAMENTAL

PILLARS TO ACHIEVE OUR SUSTAINABLE

EVOLUTION AND GROWTH. THIS DEVELOPMENT

ENABLES THE BUSINESS EVOLUTION IN A

GLOBAL, DIVERSE AND OPEN ENVIRONMENT,

WHERE HONEST DIALOGUE IS STIMULATED.

PARTNERS: OUR PEOPLE’S DEVELOPMENT

100%

1,721

OF OUR DIRECTLY HIRED EMPLOYESS WORKON A FULL-TIME BASIS

DIRECTLY HIRED EMPLOYEES

Our operations require

contractor work.

Based on the nature of

our activities, we do not

have seasonal working

variations.

The data included in thischapter was calculated viathe SAP system.

OUR DIRECTLY HIRED EMPLOYEES’ PROFILE

TO PRODUCE VALUE FORTHE GENERATIONSTO COMEENG. LUIS A. REY

EMPLOYEES WITH LABOR CONTRACTSBY GENDER

1,400

1,200

1,000

800

600

400

200

0

1,29

5

49

36

9

8

• EFFECTIVE EMPLOYEES • TEMPORARY EMPLOYEES

70%18%

12%

•••

31 TO 50 YEARS OLDAGED 51 YEARSOR OLDERAGED 30 YEARSOR UNDER

DISTRIBUTION BY AGE11

49%18% 17%16%

••••

BETWEEN 5 AND 15 YEARSBETWEEN 2 AND 5 YEARSMORE THAN 15 YEARSLESS THAN OR EQUAL TO 2 YEARS

DISTRIBUTION BY SENIORITY

78%22%

••

MALEFEMALE

EMPLOYEES BY GENDER

TOTAL NUMBER OF EMPLOYEES WITH LABOR CONTRACTSBY GEOGRAPHIC AREA

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

48

722

81

0 15 0 0 7 0 1

727

75

3

1,6

64

0 42

0 0

57

0

AngolaArgentina

BoliviaColombia U.S.A.

Netherlands PeruUruguay

VenezuelaPluspetrol

Men Women

Malvinas Gas Plant.Camisea, Peru

• EFFECTIVE EMPLOYEES • TEMPORARY EMPLOYEES

RETURN TO THE INDEX


EMPLOYEE TRAININGAND DEVELOPMENTGRI 404-1

As part of the long term perspective that aims

to the consolidation of Management Excellence,

at Pluspetrol we conceived the performance

management process (PMP) in a continuous. PMP

is based on each leader’s dialogue with their teams,

and on the definition of goals aligned to the business

(“WHAT”). Annually, we reach more than 90%

compliance in the definition of goals, simultaneously

involving the possibility of generating a culture

of dialogue, by aligning behaviors and team vision

(“HOW”).

THE PERSPECTIVE OF LEARNING AND TRAINING IS UPHELD EACH YEAR

We seek to generate a spectrum of formation

appropriate to the business requirements and the

profiles. Through a 70/20/1012 perspective, we

encourage our professionals to be exposed to real

projects, in their development path. To that end,

we foster the “On the job” training in order to

challenge the theoretical knowledge, and to broaden

the shared perspectives and learnings. During

2017, 32 employees were enrolled in this learning

method, totalizing 1,416 formation hours.

We also have a matrix bulding process for technical

competences required for different specialties and

disciplines, which guide the design of development

and learning activities.

Focused on developing profiles since the beginning,

we designed the “Young Trails” program, which

offers a deep immersion in the industry to young

professionals by means of a theoretical-practical

course. In the reported period, 9 professionals

attended, totalizing 512 classroom training hours,

224 rural school hours, and 80 hours devoted to the

integrating final paper.

personnel. Likewise, low accident and worker

absenteeism rates positively impact on the whole

Company’s motivation and productivity.

With this vision, our health management is aimed at

prevention and medical care, in terms of occurrence

of occupational diseases or work accidents. This

approach is materialized through different control,

training and prevention campaigns, programs and

activities that we implement throughout the period

in all our operations.

OCCUPATIONAL HEALTH

In the “Safety and Integrity” section, the internal

strategy for risk management is described,

which includes our directly hired employees and

contractors.

Here are some examples of these initiatives:

During 2017, in Argentina we conducted an

epidemiological risk groups analysis, simultaneously

putting into effect actions tending to improve

medical emergency response, with the deployment

of external automatic defibrillators in office spaces,

and handling training for the personnel.

In Uruguay we deployed voluntary CPR

(Cardiopulmonary Resucitation) and AED (Automatic

External Defibrillator) workshops, in order to know

how to act in the case of an emergency and how to

use the AED equipment we have in our offices.

In Bolivia, the 4th version of the weight loss Health

Campaign “If you take care of yourself, you take care

of us” was carried out, as part of the occupational

health management system. This program has been

developing since 2014, and today all the PBC

effective workers have accomplished a cumulative

reduction of 742 kg.

In Peru, we reinforced the Prevention and Control

Programs of Metaxenic Diseases in remote locations:

such as the Leishmaniasis Prevention Program

in Block 88 and 56, and the Malaria (Plasmodium falciparum) Prevention Program in Block 8; the main

goal was to prevent and control the risk of work-

related diseases caused by biological agents when

developing activities in endemic areas.

OUR EMPLOYEES’ HEALTH GRI 404-1

At Pluspetrol, we encourage the development of

a proactive health culture, as part of a management

that promotes a safe working environment for

our directly hired employees and the contractors’

120

100

80

60

40

20

0

EMPLOYMENT GRI 401-1

NEW HIRES PERSONNEL TURNOVER

59%41%

••

MALEFEMALE

NEW HIRES BY GENDER

111 NEW RECRUITSDURING 2017

9. Voluntary Turnover rate.10. The turnover rate does not include foreign assignment losses.11. Each benefit has local applicability, according to regualtions in force and effect.12. The 70/20/10 perspective proposes that 70% of traineeship takes place under actual circumstances (on the job); 20% takes place among peers, through shared experiences, and the remaining 10% is facilitatedin classroom.13. Category A includes the positions with staff in charge.14. External training programme for directly hired employees.

60%33%

7%

•••

31 TO 50 YEARS OLDAGED 30 YEARSOR UNDERAGED 51 YEARSOR OLDER

NEW HIRES BY AGE

NEW HIRES BY GEOGRAPHIC AREA

46

3 0

35

24

3 0 0

Total

By gender - Male

By gender - Female

By age - Aged 30 years or under

By age - 31 to 50 years old

By age - Aged 51 years or older

By area - Peru

By area - Argentina

By area - Bolivia

By area - Angola

By area - Uruguay

By area - Netherlands

By area - U.S.A.

By area - Venezuela

By area - Colombia

6.44%

3.83%

2.61%

2.15%

3.83%

0.46%

2.03%

2.67%

0.17%

0.17%

1.39%

0%

0%

0%

0%

NEW HIRES RATE 2017

Total Pluspetrol

Porcentage

84

5%

PERSONNEL VOLUNTARY TURNOVER RATE9

VALUE PROPOSAL FOR EMPLOYEES

With the aim of improving the wellbeing and

commitment of our new employees, at Pluspetrol

we manage a series of benefits as a whole with

the purpose of balancing individual needs in the

framework of the organizational values and local

regulations of each country in which we operate.

Focused on excellence, we manage our value

proposal through tangible as well as intangible

benefits consolidating a diverse and inclusive work

environment, based on mutual respect in order

to contribute with the development, and personal

and professional growth of our employees and

their families.

Namely, some of the benefits11: collective life

insurance, medical insurance during work trips,

nursery, maternity - 30 additional days on top of

the legal license, medical insurance during parental

leave of absence, gifts and aknowledgements on

special dates, personal loans, special 5-day license

for personal issues.

5% TOTAL TURNOVER RATE10

111

Female

26

AVERAGE OF TRAINING HOURS

Male

31

“A” Category13

31

“B” Category

30

Master’s degree

Postgraduate courses

Languages

EXTERNAL TRAINING14

AngolaArgentina

BoliviaColombia U.S.A.

Netherlands PeruUruguay

VenezuelaPluspetrol

0

2.1% PLUSPETROL’S ABSENTEEISM RATE

RETURN TO THE INDEX

Sustainability Report 2017 • 23

BAJO URUBAMBA’S COMMUNITY ENVIRONMENTAL MONITORING PROGRAM (PMAC BU)

Bajo Urubamba’s Community Environmental

Monitoring Program (known in Spanish as PMAC BU)

was the first community monitoring program

developed in Peru, and it arose in response to the

native community raised concerns during the

developed consulting processes.

It comprises a coordinating committee, formed by

the 3 indigenous federations from the area:

the Yine Yami Native Community Federation (known

in Spanish as FECONAYY), the Machiguenga

Native Community Central (known in Spanish as

CECONAMA) and the Urubamba River Machiguenga

Council (known in Spanish as COMARU). It has

a 22-monitoring-technical staff, from 9 indigenous

communities (Camisea, Cashiriari, Shivankoreni,

Segakiato, Kirigueti, Puerto Huallana, Nuevo

Mundo, Nueva Vida and Ticumpinia), and 2 colonist

settlements (Shintorini and Tupac Amaru).

The purpose of the program, which is uninterruptedly

operating since 2003, is to verify the compliance

of the environmental and social commitments

undertaken by the Camisea consortium for its

operations in Blocks 88 and 56. To ensure the quality

and objectivity of the recordings, the monitoring

people are permanently trained on 5 issues:

Environmental monitoring, Education,

Communication, Social monitoring and Environmental

education. Their technical and communicational

abilities (oral and written), for their performance in

the coordination areas within their communities

and public scenarios are also strengthened during

this process. PMAC BU is developed via a strategic

alliance with “Pro-Naturaleza”, a Peruvian non-

governmental organization that delivers the technical

assistance to the program.

FLUVIAL SURVEILLANCE

This participatory program is developed in the

PPC and PPN Business Units in Peru. Its endpoint is

to get the population oversee, in a constant and

objective manner, that the vessel traffic sailing along

the Urubamba, Camisea and Corrientes rivers,

belongs to Pluspetrol or to other companies

operating in the area, merchants, passengers or

communards, as a risk prevention and access control

strategy on the part of the local people.

To this goal, surveillance cabins have been installed

in the coastal communities with the local people

participation, who conduct the spotted vessel daily

records, as well as any anomalous condition, and the

Fluvial Traffic Regulation adherence.

22 • Pluspetrol

LOCALCOMMUNITIES

THE GEOGRAPHICAL AND SOCIOCULTURAL

ENVIRONMENT IN WHICH WE OPERATE,

CONTINUALLY POSES A CHALLENGE OF SOCIAL

MANAGEMENT, AND IN ACCORDANCE WITH THE

DISTINCTIVE FEATURES OF THE COMMUNITIES

THAT WE WORK WITH. AS PART OF THIS

RESPONSIBLE AND SUSTAINABLE MANAGEMENT,

WE ADOPT AN OPEN FRAMEWORK BASED ON

THE EARLY COMMUNICATION, THE TIMELY

DISCLOSURE OF OUR ACTIONS PLANS AND THE

MANAGEMENT OF THE CONCERNS RECEIVED

FROM THE POPULATION.

This dynamic relationship process enriches and

strengthens the interactions with our main

stakeholders, allowing us to identify key synergies,

which result in a feasible social strategy

strengthening that arouses the community

sustainable development and thus their life quality

improvement.

SOCIAL INVESTMENTGRI 411-1; 413-1, OG 9, 11 Y 12

Social investment is a key variable in our social

management that allows us perceive our presence

positive impact in the areas we operate in, through

the contribution to the local actor development

and their competitiveness development while

strengthening the company-population relationship.

Throughout 2017 we invested approximately

USD 5,900,000 in social support endeavors,

allocated in Argentina, Bolivia, Peru and Angola,

and focused to aid development in the health,

education, productivity, capacity and institutional

and organizational strengthening fields.

Throughout 2017, we increased the social investment

with regard to educational infrastructure, which

resulted in the building and improvement of initial

and secondary level educational centers, in the

native communities of Nueva Vida, Peruanito,

Plantanoyacu and Sion (Peru).

See “Pluspetrol in numbers”.

THROUGHOUT 2017 WE SUPPORTED A TOTALOF 84 SOCIAL SUPPORT ENDEAVORS84

TYPE OF COMMUNITY ACTION PROGRAMMES

•

•

•••

48% INFRASTRUCTURE AND REQUIRED BASIC SERVICE SUPPORT17% COMMUNITY PRODUCTIVE CAPACITY STRENGTHENING AND DEVELOPMENT14% HEALTH11% INSTITUTIONAL AND COMMUNITY STRENGTHENING10% EDUCATION

Block 8. Peru

RETURN TO THE INDEX


INDIGENOUSCOMMUNITIES

Operations in which indigenous communities

are present:

There have been no sites with abandonment risk nor

involuntary resettlements.

INDIGENOUS ORGANIZATIONS AND FEDERATIONS PROGRAM

In Pluspetrol we honor and validate the leadership

and representativeness of the indigenous federations

and organizations, at their different levels

(local, regional and national), as speakers of the

communities they represent, thus acknowledging,

the right and respect for the internal organizational

structure of the indigenous communities. To this

effect, interinstitutional strengthening agreements

are signed, providing resources to their activity

sustainability and the contact with their bases, via

the provision of consumables for transportation,

food, meetings with regional or national government

entities, among others.

These agreements propitiate forums of dialogue and

transparency, while being a strong self-governance

mechanism for the indigenous community access

to those rights and benefits granted by the

governments, such as development programs,

intercultural health, education, etc.

Through 2017 we upheld 12 agreements with

indigenous organizations.

INDIGENOUS ORGANIZATIONS AND FEDERATIONS IN RELATION WITH THE INDUSTRY

Since the beginning of the 1960s, the Amazonian

indigenous communities began to arrange and

group to be able to defend their lands and ways of

life. Thus the first indigenous organizations

and federations arose, which represent the native

communities sharing the same ethnicity in a region

or location. Some current examples are FECONACO,

that represents the Corrientes river communities,

in Peru; the Neuquina Mapuche Confederation, that

groups the Mapuche communities of Neuquen,

in Argentina; or the Guarani-North Charagua People’s

Assembly from Bolivia.

Later on, during the seventies, the indigenous leaders

perceived the necessity of coming together and

conforming an additional instance of national level

embodiment. Based on this vision, confederations

that group different ethnicity organizations

from a same country were created. For example,

the Inter Ethnic Development Association of the

Peruvian Amazon -known in Spanish as AIDESEP- in

Peru, which groups 56 organizations.

There are also international bodies, such as the

Coordinator of Indigenous Organisations of the

Amazon River Basin -known in Spanish as COICA-,

which groups organizations from 9 Amazon

countries.

CRAFT PROJECTIN PPC, PERU

The “Yine - Machiguenga Craft Development

Supporting Program” project seeks to promote the

cultural claim of the fabric, craft and painting

activities, as well as encouraging the indigenous

artisans’ entrepreneurial production and

management, in such a way as to contribute to the

household economy, through the production

capacity strengthening and the craft commercial

joining.

With this project a traditionally feminine and

culturally relevant within the community life activity

is encouraged, representing at the same time a

cultural transmission field in which the role of women

is enhanced and the traditional activity productive

development is promoted.

The project has potentiated the partnership working,

arousing innovations in the product, shape and

color creation which talks about the tradition and

history of these ethnicities, whilst mobilizing the

organization of craft fairs with significant economic

results, involving 86 female artisans of 5 native

communities from Megantoni, Peru, of Yine (Miaria)

and Machiguenga (Camisea, Shivankoreni, Kirigueti

and Nuevo Mundo) ethnicities.

Another important achievement of the project, that

transcends the current working group, has been the

formation of a Work Board, in which the Municipality

of Megantoni (Bajo Urubamba), the Ministry

of Culture in Cusco, the Regional Administration

of Foreign Trade and Tourism of Cusco participate,

together with representatives from the native

communities involved in the project and artisan

representatives from other communities in the

region, composing an important area for the rescue,

cultural transmission and promotion of one of

the traditional activities of the native communities

in the region.

We started the project in October of 2016,

and by the end of this report, we generated the

following achievements:

GRIEVANCE-AND-COMPLAINT-HANDLING MECHANISM

Our projects’ sustainability and success are strongly

associated with our stakeholders listening skills and

concern appropriation. In this respect, Pluspetrol

counts with a channel for dialogue, called Grievance-

and-Complaint-Handling Mechanism, that reflects the

Company’s interest to address the local community

concerns, and facilitates the early identification of

social alerts at the same time, allowing a timely and

preventive management of social conflicts and their

impact on the operations.

Through this mechanism, the population’s grievance

and complaint cases are registered and classified due

to their urgency and impact. 100% of the recordings

is addressed, with differentiated resolution times and

mechanisms as per their complexity, encouraging

improvement opportunities in the Company’s social

management.

Although all the Business Units count with this

established procedure, we are developing a

standarization process in order to make each country

adopt the general guidelines according to their social

reality and local operation. Presently, each country

has ended their procedure design and

implementation: Bolivia concluded it in 2014; PPC

and PPN (Peru) updated their version during

the same year; and Argentina is pending approval.

During 2017, a total of 22 grievance and complaint

cases became pending, which are mostly related

to labor claims due to a contractor company’s failure

to honour commitments (18 cases).

The issues generating a larger number of claims are

associated with the contractors’ performance, the

temporary operational activity sound impact and

incidents with fluvial traffic.

OF FILED CLAIMS WERE SETTLED, THE REST IS IN THE RESOLUTION PROCESS63%

BENEFITTED PEOPLE, BETWEEN LEADERS AND FEMALE ARTISANS

132

TRAINING, TECHNICAL SUPPORT AND COUNSELING MEETINGS AND SESSIONS

174

FEMALE ARTISANS HAVE IMPROVEDTHEIR BUSINESS MANAGEMENT PERFORMANCEAND PARTICIPATEIN ASSOCIATIVE PRACTICES

69

FEMALE TRAINED ARTISANS KEEP IMPROVING THEIR TECHNO-PRODUCTIVE PRACTICES IN FABRIC, COSTUME JEWELRYAND VEGETABLE FIBER

34

NEW GARMENTAND ACCESORIES DESIGN COLLECTIONS -OUT OF 50 AND62 PRODUCTS- SUBDIVIDED INTO5 MINI-COLLECTIONS

2

NEW TRADITIONAL PRODUCTS, PROMOTEDAS PART OF THE TRADITIONAL CRAFT COMPETITION

97

YINE AND MACHIGUENGA ICONOGRAPHIES IDENTIFIEDAND REGISTERED INTHE “RESEARCH PROJECT ONTHE YINE AND MACHIGUENGACRAFT SIGNIFICANCE AND SYMBOLIC VALUE”, STILL IN PROCESS.

96

PROMOTIONAL AND MARKETING EVENTS (FOUR LOCAL FAIRS AT MALVINAS AND ONE EXHIBITION FAIR IN LIMA)

5

ARGENTINA

BOLIVIA

PPC PERU

PPN PERU

ANGOLA

TOTAL

FILED

9

4

37

7

2

59

9

4

19

5

0

37

0

0

18

2

2

22

SETTLED IN PROCESS

CAMISEA, PERUBLOCKS 88 AND 56Ethnicities: Ashaninca,

Machiguenga and Yine - Existing

communities: 27

SOUTHCALINDA BLOCK,

ANGOLAEthnicity:

Kongo Family / Bantu Tribe - Existing communities: 4

PPN, PERUBLOCK 8

Ethnicity: Achuar - Existing communities:

27

CURICHE, TACOBO AND TAJIBO AREAS,

BOLIVIAEthnicity:

Guarani - Existing communities: 30

LA CALERA, ARGENTINA

Ethnicity: Mapuche - Existing

community: 1

GRIEVANCE-AND-COMPLAINT

RETURN TO THE INDEX


ENVIRONMENTprocesses, at any stage of the business cycle, but

especially at its development phase, where greater

benefits are acquired by managing energy from its

planning and design. This way, we boost the natural

gas growth on the energy matrix of the countries

we operate in, because of its key and immediate

outcome in the emission reduction. Nevertheless,

it should be noted that the efficiency in the GHG

reduction is directly linked to a proper mitigation of

the methane emissions associated with the natural

gas production.

Finally, we underscore that our operational areas

continuously check the measures to reduce the

vulnerability of operations and those of the local

communities to climate change impacts and risks.

CLIMATE CHANGE

From the Corporate Inventory of GHG Emissions, we

are able to diagnose and plan measures for the

climate change mitigation: on one side, we search for

energy efficiency opportunities, based on

technological enhancements and processes; and on

the other side, we strengthen measures promoting

the reduction in flaring and gas venting.

GHG included in the calculation, product of our activity:CO

2, CH

4 and N

2O.

Calculation: year 2017, this Report period. We do not reckon with CO

2 biogenic emissions.

By referring to the IPIECA, API and IOGP (Spanish

for “Petroleum Industry Guidelines for Reporting

Greenhouse Gas Emissions”) guidebooks, the

methodology we develop allows the GHG emission

calculation for steady sources based on type of fuel

and source, including the CH4 emission calculation

by flash in tanks.

The basis of the Inventory is backed up, on one side,

by the CO2 (carbon dioxide) emission calculation

through stoichiometry, bearing the complete

combustion of different sources, and on the other

side, they are used as emission factors the Protocols

AP-42 (EPA) and IPCC for the CH4 (methane) and

N2O (nitrous oxide) calculations.

In line with our Sustainability Policy, at Pluspetrol we

develop the operations with a defined environmental

strategy, seeking excellence in each of our processes.

We focus our efforts on the rational and efficient

use of the resources, preserving the environment and

operating in a safe and responsible way, while

capitalizing on the opportunities in a continuous

improvement cycle.

Our environmental strategy defines a set of criteria

and minimal environmental guidelines which each

operation must observe. Each Business Unit adds the

particularities associated with the local legislation

and its specific environment to that strategy.

In this way, the environmental performance is aligned

with the Company-wide defined strategy.

By means of the environmental materiality definition

throughout the entire value chain, our strategy

acknowledges energy and clear water as the key

natural resources used in the production processes,

on which our management is focused.

From all the considered variables, we have identified

and prioritized those matters that are regarded as

of high relevance for our stakeholders, related to the

economic, environmental and social impacts, either

potential or real.

Thereupon, the issues we collect for this Report are

the following:

Emissions: climate change and energy efficiency

Natural resource management

Environmental impact management

ENVIRONMENTAL REGULATIONGRI 307-1

Throughout 2017 no significant fine or monetary

sanction was imposed to us due to the

non-compliance of environmental regulations.

EMISSIONS: CLIMATE CHANGE AND ENERGY EFFICIENCY GRI 305-1

Our growth strategy contemplates the climate

change mitigation, through the reduction of

Greenhouse Gas (GHG) emissions. Since 2010,

at Pluspetrol we have implemented the

Corporate Inventory of GHG Emissions based on

emission estimators built for each Business Unit.

GHG emission management is supplemented the

continuous search for energy-efficiency-promoting

20

6.2 434

.3

14.1

1,518

.2

2,172.9

AngolaArgentina


2,500

2,000

1,500

1,000

500

0

GHG EMISSIONS (KTON EQ CO2)

•••

Block 88.Camisea, Peru

RETURN TO THE INDEX


NATURAL RESOURCES

Our operations are located in areas that provide

different ecological services through high

biodiversity ecosystems. Taking into account the

activity particularities, an efficient use of the

natural resources is a priority, which allows mitigate

prospective impacts on the biodiversity during

the plannification and development of our projects.

We focus the natural resource management on two

fundamental axes: water and biodiversity.

Water management is aimed at optimizing the fresh

water consumption (surface and groundwater)

for the operational processes, as well as increasing

the recycling of treated and production water, when

generated.

With regard to biodiversity, we work on the

development of tools to assess, avoid or mitigate

impacts, through the application of interrelated

management practices that we incorporate to the

business standards and processes. We conduct

monitoring to measure the biodiversity indicators

and the associated ecosystem services. We consider

the stakeholder expectations and we develop

baselines to comprehend what we must protect first

and foremost.

WATER MANAGEMENT

FRESH WATER GRI 303-1; 303-2

In our operations, the consumption of fresh water

is aimed to the production improvement, as well

as to perform the stimulation of the conventional

and non-conventional assets.

The objective of the water management is to ensure

the legal compliance of the water resource,

optimizing its consumption and assuring a correct

treatment of used waters previous to disposal.

Likewise, it also seeks to establish reutilization

options along the value chain.

The definition of the factor applied to each case is

made taking the most representative emission source

(per number of units) into account. When there is

no predominant source type, the one with the most

conservative factor must be selected; in other words,

the one delivering the highest emission.

All calculations are made with focus on the operational controlof the activities

We promote the search and assessment of actions

that allow the recovery of gas associated with our

production, either for reutilization purposes or the

reduction of emissions from flaring and/or venting.

Where it is not possible to recover and exploit it,

the associated gas is flared or vented as

set out in the local regulations for each operation,

and appropriately communicated to the regulatory

government bodies.

Our commitment with the water resource includes

the accuracy in the source or suplly point diagnosis,

and of the prospective impacts of the activities;

the risk associated with the resource regarding its

availability, quality and value; the efficiency in

use; and the actions to ensure the proper treatment

to the waters used in the processes, encouraging

its reutilization.

As per the control processes of the activities

performed in the oil fields, we conduct in a

continuous way the monitoring of the surface and

ground water resources in the areas we operate in.

These endeavors allow to preserve the water

resource quality and availability minimizing any

potential impact on the water extraction source.

BIODIVERSITYGRI 304-1, OG4

In order to prevent and minimize negative impacts

in highly sensitive environments, with international

protection or high biodiversity categories, at

Pluspetrol we promote the assessment of potential

risks and impacts to the biodiversity through

the analyses of sensitivity maps, biological baselines

and impact assessments.

The following maps show Pluspetrol’s areas of

operation and their location with regard to

protected and non-protected areas of great value

for biodiversity.

The oil and gas production blocks operated by

PPN and PPC in the Peruvian Amazon region, as

well as the processing plant of gas and

concentrates, located at Pisco, are located in

highly environmentally sensitive sites.

Environmental impact assessments have been

carried out, from which control and mitigation

measures have been established.

In the case of Paracas Bay (Pisco) and Blocks 88

and 56 (Malvinas), biodiversity monitoring programs

have been continually implemented, which allow to

evaluate the changes that take place at these sites

due to our own or third-party activity, and to apply

the corresponding mitigation actions.

NORTH DISTRICT,

ARGENTINA

PPC,PISCO,

PERU

PPC,MALVINAS,

PERU

PPN,PERU

COLORADO RIVER

DISTRICT, ARGENTINA

Total operation area: 135.2 km2

Total operation area: 0.56 km2

Total operation area: 2,019.8 km2

Total Operation Area: 1,823.5 km2

Total operation area: 1,909.3 km2

20

6.2

5

0.0

06

14.9

0.113

220

.2

6.3

0.0

08

1.5

0.0

05

4.2

0.0

21

Angola

Angola

Argentina

Argentina

Bolivia

Bolivia

Peru

Peru

Pluspetrol

Pluspetrol

250

200

150

100

50

0

0.12

0.10

0.08

0.06

0.04

0.02

0

VENTED AND FLARED GAS (SCF/BOE)GRI OG6

WATER EXTRACTED PER PRODUCTION UNIT(M3/BOE/YEAR)

Angola

92,490,897

420,000

220.2

Flares and vented gas (SCF)

BOE

Vented gas (SCF/BOE)

Argentina

343,229,479

23,000,000

14.9

Bolivia

7,756,013

1,230,000

6.3

Peru

200,720,891

130,000,000

1.5

Pluspetrol

644,197,281

154,650,000

4.2

Angola

0

92,490,897

Vented gas (SCF)

Flared gas (SCF)

Argentina

81,939,780

261,289,699

Bolivia

0

7,756,013

Peru

26,839

200,694,052

Pluspetrol

81,966,619

562,230,662

GAS VENTED AND FLARED IN OPERATIONSFRESH WATER EXTRACTION (M3/YEAR)*

3.5

3

2.5

2

1.5

1

0.5

0

Millions

AngolaArgentina


- Surface waters correspond to river waters.- There is no rain water collected, nor residual waters fromother organization no municipal water supply nor others.- Data correspond to flowmeter measurements.

There are no water sources significantly affected by water extraction.

2,5

86

,272

626

826 3

42,0

69

2,9

29

,79

3

1,9

61

22,0

98

9,2

10 374

,79

2

40

8,0

61

• SURFACE WATERS (M3/YEAR)

• GROUNDWATERS(M3/YEAR)

Z.Z. Yanesha de San Matias San Carlos

BLOCK56

PERU

Uyacali

B.A. Alto Purus

“Alto Purus” National Park

“Del Manu”National Park

Madre de Dios

“Megantoni”National Shrine

B.A. Megantoni

B.A. Megantoni

B.A.Machiguenga

Buffer Area

“Pacaya Samiria”National Reserve

AllpahuayoMishana

Buffer Area

“AllpahuayoMishana”NationalReserve

PayacaSamiria

“Ramsar” Site“Pastaza” Ream

Buffer Area

Pucaruro

“Pucaruro”National Reserve

B.A.Ashaninka

“El Nogalar de los Toldos”National Reserve

Santa Victoria

“Baritu” National

Park“Biosfera delas Yungas”

Reserve

San Ramonde la

Nueva OranSalta

Jujuy

RAMOSGeneral

Jose de San Martin

Multiple-Use Natural ReserveLand Portions 50 and 51 of Fiscal Block Nr. 3

Multiple-Use Natural Reserve

“Acambuco” Flora and Fauna

Reserve

Multiple-Use Natural Reserve

Blocks 1703-1704-4325-4326-4336-19866Multiple-Use Natural Reserve

ARGENTINA

Iruya

BOLIVIA

“Ashaninka” Communal Reserve

“Otishi”National Park

“Machiguenga”Communal Reserve

B.A.Machiguenga

B.A.Otishi

Junin

Ayacucho

Cusco

“Kugapakori-Nahua-Nanti” Territorial Reserve

B.A del Manu

BLOCK 88

“Isla Chincha” National Reserve - North, Center

and South

“Isla Ballestas” National Reserve - North, Center and

South

National Reserveof Paracas

PacificOcean

Buffer Area

Ica

PERU

PISCO

FRACTIONING PLANT

Loreto

BLOCK 8CHAMBIRA

BLOCK 8PAVAYACU

BLOCK 8YANAYACU

BLOCK 8VALENCIA

BLOCK 8CORRIENTES

PERU

“Caverna de las Brujas” Natural Reserve

“La Humada”Natural Reserve

La Pampa

Rio 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

NEARBY ADJACENT WITHIN

*

RETURN TO THE INDEX


The greatest impact of spills has been the soil

affectation.

In each case they were managed in accordance with

the Company’s environmental management policies.

CONTINGENCY RESPONSE

Each Business Unit started the review and update

process of their contingency plans, to ensure their

alignment with the contingency and crisis

management model defined in 2016.

We performed the training multi-annual planning for

the different-level-response and large-event-exercise

teams, and we established a framework agreement

with an external supplier to provide support in their

design and execution.

See “Safety and integrity” - “Emergency management”for more details.

NATURAL RESOURCES

COASTAL AND MARINE MONITORING PROGRAM, CAMISEA, PERU

In recognition of the Coastal and Marine Monitoring

program performed in the framework of the Camisea

Project - Peru, the Inter-American Committee on

Ports (known in Spanish as CIP) from the

Organization of American States (known in Spanish

as OEA) granted us the 2017 Maritime Award of the

Americas, in the category Environmental Awareness

and Community Outreach.

Paracas Bay, the Paracas National Reserve and

the Guano Islands and Capes National Reserve are

natural areas considered to be representative

samples of the main marine-coastal ecosystem of

the Humboldt current in Peru, of great biodiversity

and essential to the maintenance of several biological

cycles which ensure the species conservation.

At the same time, they take part in the area of

influence of the Marine Terminal and the Natural Gas

Liquid Fractioning Plant (known in Spanish as PFLGN)

of the Camisea Gas Project, located in the province

of Pisco, Ica region, 250 km south of Lima.

Since 2003, at Pluspetrol we develop the Coastal and

Marine Monitoring Program, with the sole objective

of obtaining long term information to determine the

biodiversity evolution in the sea and on the coast of

Paracas, systematically assessing the behavior linked

to the marine and terrestrial living conditions and

environmental quality.

Considered to be the most comprehensive and

complete monitoring performed in a coastal zone of

Peru, it counts with 114 sampling stations on islands,

coast and sea. The program, steadily perfomed for

14 years has allowed us, among other achievements,

the continuous follow-up on the population dynamics

of over 20 thousand sea lions (a national interest

species) and the recording of over 100 types of birds

(resident and migratory) that continue to breed

in the area, which confirms that Paracas Bay is in a

good state of conservation.

MEDIUM-AND-LARGE-SIZED MAMMAL MONITORING WITH CAMERA-TRAPS

The monitoring via camera-traps is a contribution to

the limited experience that exists in Latin-American

jungle areas, and particularly to the probable effects

of the hydrocarbon activity in said environment.

Camera-traps are devices with a motion sensor

connected to a digital camera. When an animal with

a temperature different from that of the environment

crosses in front of the camera (it moves), the

detector activates the camera and it is photographed.

This is a minimal disruption non-invasive method to

the target species. It is ideal for the study of difficult-

sighting or nocturnal or crepuscular-habit animals

that usually avoid human presence.

In line with the conservation policy, at Pluspetrol we

have been using this methodology in several

Business Units. The Camisea Consortium keeps its

sustained commitment for 12 years, via the financing

of the Biodiversity Monitoring Program (known in

Spanish as PMB), in the Camisea Project area, in Peru.

Through this program, since 2013 we conduct the

monitoring of medium-and-large-sized mammals,

by using 47 camera-traps placed in the surroundings

of the Malvinas Plant facilities (20 cameras) and

along the conduction lines (27 cameras). In this way

21 species were recorded, which variety and

representation pattern reflect a good structure of the

mammal community, with a large variety of feeding

behaviors and sizes. The abundance of certain large

species, such as tapirs, deers and peccaries, added

to the feline presence, and particularly to one of the

most sensitive species to the human presence such

as the giant armadillo, show a well-preserved forest.

ENVIRONMENTALIMPACT MANAGEMENT

From Pluspetrol we ratify our commitment to the

identification and assessment of the environmental

risks and impacts associated with the different

activities.

We intend all operations to be in balance with

the environment, by managing the assets properly

in order to prevent or reduce the undesired event

(known in Spanish as END) occurrence.

In the same vein, we promote a risk-prevention

proactive culture, at all levels of the Company and

along the whole business cycle (project, operation

and dropout). And we employ the best techniques

and practices available for the prevention, early

identification, valuation and management of such

significance impacts.

Our environmental management extends along the

value chain, ensuring that suppliers and contractors

adhere to the principles set out in our Sustainability

Policy and follow suit Pluspetrol’s high standards in

terms of the environment protection.

Accordingly, in each operation we perform a

continuous follow-up of a series of indicators that

allows the risk-and-impact-management assessment,

for the purpose of establishing improvement

measures on the basis of specific and accurate

information.

SPILL MANAGEMENT GRI 306-3

At Pluspetrol we count with specific systems and

procedures to avoid spills during the crude oil

production, storage and transportation.

Though our priority is to avoid spills, if an event of

this nature takes place, all our operations rely on

specific contingency plans to the regional context,

taking into account the geographical and operational

characteristics.

We are committed with these indicators permanent

improvement, by encouraging asset integrity and

preventive maintenance programs in all our

operations. Additionally, through the implementation

of operating procedures, we seek not only to reduce

the probability of generating environmental

incidents, but also to achieve the associated volumes

to be considerably lower as well.

TOTAL OF PLUSPETROL’S SPILLS IN 201782

We boost the researchs of all the environmental-

incident-related undesired events, promoting the

continuous improvement based on learning.

0

25.2

74

0.9

175.279

5

18.3

43.4

74

0.9

1,0

04

.3

AngolaArgentina


SPILLS (BBL)

• MIX (BBL) • OTHER SUBSTANCES (BBL)

• HYDROCARBONS (BBL)

34

.1

RETURN TO THE INDEX


DRILLING WASTE MANAGEMENT GRI OG7

During drilling activities, a total of 50,140 tons of

drilling waste was generated, 97% of which

corresponds to water base drilling mud, and 3%

to oil base drilling mud.

The drilling cuttings and the settled sludge receive

different treatments, and in all cases they are

disposed according to the existing legislation and the

technologies available in each country we operate in.

Occasionally, cuttings can be dried up outdoors

and once verified their harmlessness used as filling

material; either treated through the landfarming

technique or can be reinjected into disposal wells.

As regards the sludges, they can be treated in

treatment plants and reutilized in another drillings.

SOLID AND LIQUID WASTE MANAGEMENT

At Pluspetrol we set ourselves a waste management

which allows us to minimize the production,

encouraging their reduction at source, reuse,

valorization and recycling.

The reduction of the hazardousness, as well as a

proper storing, transport and final disposal of wastes,

that ensures the minimization of the associated

environmental risks, are this management’s

fundamental goals.

This management’s continuous improvement,

from better practices upon the matter, represents

a Company’s priority.

Hereunder we set out for guidance purposes the

different ways to manage waste and the actions

associated with each treatment, according to the

priorities we encourage for Pluspetrol’s operations.

As for hazardous waste, the treatment option and

final disposal choices are evaluated in accordance

with the following criteria:

Waste characteristics.

Environmental area features in which the treatment/

final disposition will take place.

Generation mass or volume (rate of generation).

Risks and results of its appliance from the

environmental and security point of view.

Authorization of the technology by the enforcement

authority on the matter.

Method cost/efficiency.

Technology availability in the local area.OF TOTAL WASTES IS TREATED UNDER 3 R’S:- REUSE- RECYCLING - REDUCTION

26%

ORGANIC WASTE TREATMENT THROUGHTHE COMPOSTING PROCESS(PLUSPETROL NORTE, PERU)

Throughout 2017 we put into practice the organic

waste treatment through the composting process

in the Pluspetrol Norte (Peru) operations.

This way of managing them seeks to reduce the final

disposal of household organic wastes generated

in the Operation; to transform via composting the

organic wastes into subproducts, for multiple uses;

to reduce the risks of environmental damage derived

from the organic waste in block landfills; to reduce

the utilization of incinerators; and to reduce the GHG

emission generation.

In the reported period we generated a total of

172 tons of organic wastes, 68% of which has been

treated for compost.

Once the composting process is over, the compost

is packed into sacks to be distributed and used

in bioremedation internal processes, and donated

to the communities for its utilization in gardening,

or exploited in farming.

62%38%

••

NON-HAZARDOUSHAZARDOUS

TYPE OF WASTE SOLID WASTE MANAGEMENT

•

•

•

•

•

•

•

PREVENTION AND MINIMIZATION

Reduction at source

Substitution of raw materials

Good operational practices

Separationat source

Process modification / priorization

Reutilization

As raw materials

Recycling

Reutilization in operational processes

Utilization in energetic processes

TREATMENT

Biological

Physico chemical

Thermal

DISPOSAL

Final disposal in authorized place

BOLIVIA

0

574

1,100

0

48,576

1,564

PERU PLUSPETROLARGENTINA

47,476

990

ANGOLA

0

0

DRILLING WASTE

WASTE GENERATED (IN TONS)

• NON-HAZARDOUS WASTE (IN TONS)

• HAZARDOUS WASTE (IN TONS)

7

3

954

509

26

2

3,437

2,199

4,423

2,714

4.2

AngolaArgentina


8,000

6,000

4,000

2,000

0

Cuttings and sludges

Water basis (in tons)

Oil base (in tons)

••

••

•

••

Centenario Oil Field. South District, Argentina

RETURN TO THE INDEX


AUTONOMOUSCOLLABORATORSCOLLABORATORS WHO:

- UNDERSTAND THE VALUE THEIR WORK DELIVERS ON A DAILY BASIS.

- COUNT WITH THE APPROPRIATE SKILLS TO PLAY THEIR ROLES.

- INCORPORATE THE DECISION MAKING CRITERIUM ACCORDING

TO THE HAZARDS AND RISKS. - OBSERVE THE RULES AND PROCEDURES

AND REPORT DEVIATIONS. THEY WORK WITH OPERATIONAL DISCIPLINE.

LEADERSHIP AWAREOF RISKS

LEADERS WHO: - LEAD BY EXAMPLE. - COMPREHEND AND

MAKE DECISIONS ACCORDINGTO HAZARDS AND RISKS.

- INSPIRE AND GENERATE SENSE. - PROMOTE THE COLLABORATORS’

AUTONOMY. - FAVOR AN ATMOSPHERE OF MUTUAL

TRUST WHICH BOOSTS THE REPORTING AND THE LEARNING PERMANENTLY.

- FORM THE BACKGROUND TO RISK MANAGEMENT TOOLS IN

CONTINUOUS IMPROVEMENT CYCLES, - ASSURE THAT THEY ADD VALUE

AND THEY ARE ENFORCED WITH QUALITY.

COHERENT AND MUTUALTRUST CONTEXT

- VALUES FOSTERED THROUGHOUT THE ORGANIZATION.

- MODEL OF LEADERSHIP TO TODAY’S CHALLENGES.

- COMMUNICATION, INTERDISCIPLINARY WORK AND MESSAGE ALIGNMENT.

- PROCESSES AND TECHNOLOGYFOR RISK MANAGEMENT

CONTINUOUS IMPROVEMENT.

SAFETY ANDINTEGRITY Our culture model entails three fundamental aspects:

This model also incorporates the behavior patterns

which have been identified in the industry as

fundamental to reduce the major-incident probability

of occurrence, sorted out in 8 mututally reinforcing

dimensions to guide the evolutionary process towards

a generative Culture for risk management.

COLLABORATORS’ INVOLVEMENT,

DEVELOPMENT AND EMPOWERMENT

STIMULATIONOF OPEN

AND EFFECTIVECOMMUNICATIONS

PROMOTIONOF OPERATIONAL

DISCIPLINEAND A LEARNING

ENVIRONMENT

JOINTMANAGEMENT

WITH OURCONTRACTORS

SUSTAINABILITYIS CONSOLIDATEDAS A VALUE IN THE

ORGANIZATION

DEVELOPMENTOF A CONSCIOUSAND COMMITTED

LEADERSHIP

KEEPINGIN MIND THE

SENSE OF VULNERABILITY

COMPREHENSIONOF AND ACTION

SUBJECT TO HAZARDS AND RISKS

Fractioning Plant.Pisco, Peru

In line with our Sustainability Policy and with the

vision of excellence in management, at Pluspetrol we

work to become a leader company in industry, with

the best practices and international standards on

security and integrity matters, adopted as part of the

Organization’s culture.

For this purpose, we made progress on the safety

management, initially focused on people and their

tasks, towards a broader approach that includes the

safety corresponding to operations and processes.

To incorporate the process safety concepts, we

have taken as a basis the Center for the Chemical

Process Security guidelines -whereof Pluspetrol

is a member-, through four fundamental pillars:

commitment and leadership; hazards and risk

understanding; risk handling; and learning from

experience.

COMMITMENTAND LEADERSHIP

This first pillar is materialized via our culture

development and management for a sustainable

operation.

In this sense, understanding culture as essential so

that leaders can make changes, as of amending

the context in which their collaborators perform in.

This allows to define the proper strategies (tools

and actions) which are necessary to implement for

achieving the desired stage. It is fundamental to

get the organization involved to generate a shared

vision about where we want to be in order to carry

out the defined strategies.

RETURN TO THE INDEX


In 2017 we focused on this model configuration

and on the design of a survey for direct employees

and contractors that will allow us understand

the improvements in our culture for a sustainable

operation.

Said survey shall be implemented in 2018, in order

to update the measurements and to deepen the

understanding of our strengths and opportunities.

We work day-to-day on three main focuses:

To strengthen our operational discipline.

To boost a joint management with our contractors.

To learn permanently.

On the occasion of the International Day of Safety

and Health at work, in 2017 we launched a campaign

on operational Discipline, with the sole objective of

identifying on what we mean by discipline and

what the keys are to make the whole Organization

incorporate it in its everyday life.

In line with the joint management with our

contractors, we continue to develop encounters

with them in order to share the cultural approach

for the sustainable operation, and to agree

actions to accompany the evolutionary process,

to which we provide the corresponding follow-up.

For their part, management visits represent a

valuable communication tool between our

Company’s leadership lines and the collaborators.

During 2017, as in previous years, a management-visit

plan was defined in all the Business Units for the

corporate managers in the operations division.

UNDERSTANDING HAZARDSAND RISKS

In 2017 we strengthened the implementation of

the Operational Risk Management process,

with the objective of ensuring a consistent use in

all the activities and operations.

This process contemplates the following phases:

1. According to the characteristics of the processes

and facilities involved, an interdisciplinary personnel

team is formed for the identification of hazards.

2. Next, the risk assessment phase starts, where the

tolerability and acceptability limits are discussed.

Accidental scenarios are also developed, defining

initiator events, barrier effectiveness, possible

consequences, and the associated severity and

probability.

3. Finally, improvement opportunities in terms

of reduction of the occurrence probability

or their consequence mitigation are specified in

the adequacy and maintenance phase.

The Operational Risk Management is planned

pluriannually for each Business Unit facilities. The

performed analysis generate information for

the major risk annual review, and they are led by

the operation officers before the EHS Committee.

Thus, we can make reported decisions, based on

the risk.

RISK MANAGEMENT

Risk management considers the development of a

logical process which allows us conduct our efforts

to operate at permissible levels.

For that matter, we keep on working to improve

management in three key areas: safe work practices,

asset reliability and integrity and emergency

management.

SAFE WORK PRACTICES

In 2017, work-control Corporate standard was

issued, which comprises in a comprehensive manner

the control tools that we count on at Pluspetrol

to minimize task risks.

This standard defines a classification of actions

according to their complexity, execution frequency

and human factor impact, and it allows to

determine the number and type of controls that

must be applied.

ASSET RELIABILITY AND INTEGRITY

2017 was a successful year for Pluspetrol: we did

not only strengthen practices and disciplines

for different word fronts, but we also established a

management framework in order to achieve optimal

levels of integrity and reliability in the operations.

As part of the improvement process in management

of critical security elements (SCE), by the end

of 2016 we added the indicator that measures the

longevity expressed in months of the pending

maintenance orders (known as Aging). After more

than a year of monitoring, corrective analysis

and actions, we noticed a significant waiting time

decrease in the safety element intervention.

This turned out to be fundamental to assure the

functionality of the elements in-plant deployed,

achieving higher availability and reliability,

and reducing the accident-occurrence probability.

In this reporting period, we also created technical

work groups for the disciplines of corrosion,

pipeline integrity, static equipments, maintenance

and planning, work areas devoted to the knowledge

addressing and conduction as of the participation

of experts and applied practices. This allowed

us to undertake different activities such as

“The Week of Integrity” in Lima, Peru, that included

the participation in the NACE “LatinCorr 2017”

convention.

EMERGENCY MANAGEMENT

Each Business Unit started a review and update

process of their contingency plans, in accordance

with the contingency and crisis management

Model established in 2016.

Besides, we carried out the multiannual planning

on training of teams at different response levels

and those of major event exercises, and we entered

into a framework agreement with an external

supplier which will provide support in their design

and execution.

LEARNING FROMTHE EXPERIENCE GRI 403-1

The formal Health and Security committees from the

Business Units are comprised by the unit leaders,

who are responsible for Health and Security

management, and employee representatives,

providing the 100% workers’ representation through

them. These committees meet regularly during the

year to pose strategies, action plans and to commit

themselves in the issue management within their

competence. A practice that continues to strengthen

itself and forms part of the local committee agenda,

is the analysis of the lessons learned from the own

and industry’s undesired events, increasing the

responsability of everyone in a sustainable operation

development.

At a corporate level, we proceed with the revision

of those undesired events rated as at high potential

(known as HiPo), with the Vice Presidency of

Operations involvement, and its reports. The quality

of researchs underwent a relevant evolution

in the identification of systemic causes and in the

generation of actions to avoid the similar incident

occurrence in other operations.

During 2017 we continued generating spaces for

reflection and learning. This practice aims to enliven

the risk management and to keep sight of our sense

of vulnerability. The backing material, specially

produced for these activities, is shared in workshops

in which the total operational staff participates in

order to reflect on technical matters of interest from

the operations, focused on the importance to

manage risks associated to critical activities properly.

INCIDENT MONITORINGAND PROCESS EVENTSGRI OG13

Throughout 2017 we continued optimizing the

report of process events in all our operations, using

as a point of reference the API-754 guidelines

and the IOGP definitions. The quality of the result

(frequency indicators for the process events) meets

high international standards in the procurement of

safety data.

Likewise, during 2017 we kept on working to

reinforce our indicators on accidents that have

impact on people.

•••

PYRAMYD OF PERSONAL ACCIDENTS

Fatalities

Accident caseswith time loss

Cases with limited work

Cases withmedical treatment

First aid cases

0

14

8

4

129

123Near misses

RETURN TO THE INDEX

38 • Pluspetrol

PLUSPETROL IN NUMBERS

MATERIAL ASPECTS

2015

1,909

79

21

9

159

32

976

2

18,709,034

699,980

3,993,799

9,031,377

673,497

4,310,381

2,024.5

12.1

10.6

1,782.8

0.1

22.3

2

3.8

646.2

40

2.4

411.1

14

2,150.8

3,210

18,733

0.1

29.9

N/R16

7

N/R

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

2,172.9

14.1

4.2

644.2

0.3

43.4

7

6.5

1,004.3

53

4.8

740.9

22

2,714.1

4,423.2

50,140.6

0.1

21

0.02

6

13

2016

1,827

79

21

10

83

34

1,356

1.8

5,051,76715

396,511

608,650

1,996,723

751,372

1,298,511

2,025.6

12.3

3.02

497.9

0.9

163.5

5

4

664.6

50

1.9

313.5

13

2,622.5

4,534.9

13,811

0.1

26.3

0.05

7

18

15. August 2015. Termination of Block 1 AB, Peru license agreement.16. Not detailed, since by 2015 there was no information about contractors.

OUR PEOPLE’S DEVELOPMENT

Total of effective collaborators (number)

Male collaborators (%)

Female collaborators (%)

Total turnover rate (%)

Total new hired (amount)

Average of training hours per collaborator (number)

Total of trained collaborators (number)

Absenteeism rate (%)

LOCAL COMMUNITIES

Social investment - Total (in USD)

Social investment - Education (in USD)

Social investment - Health (in USD)

Social investment - Community development (in USD)

Social investment - Institutional strengthening (in USD)

Social investment - Others (in USD)

ENVIRONMENT

GHG direct emissions (KTON CO2)

Intensity of GHG direct emissions (KTON CO2/MMBOE)

Vented and flared gas per production unit (SCF/BOE)

Total of vented and flared gas (MMSCF)

Volume of hydrocarbon spills per production unit

(BBLS/MMBOE)

Volume of hydrocarbon spills (BBLS)

Number of 100% hydrocarbon spills (number)

Volume of water-petroleum mixed spills per production unit

(BBLS/MMBOE)

Volume of water-petroleum mixed spills (BBLS)

Number of water-petroleum mixed spills (number)

Volume of other substances spills per production unit

(BBLS/MMBOE)

Volume of other substances spills (BBLS)

Number of other substances spills (number)

Generation of hazardous wastes (in tons)

Generation of non-hazardous wastes (in tons)

Drilling wastes generated (in tons)

Fresh water consumption per production unit (MMBBLS/MMBOE)

Total fresh water consumption (MMBBLS)

SECURITY AND INTEGRITY

Annual severity rate (collaborators + contractors)

Total of TIER 1 process events (number)

Total of TIER 2 process events (number)

MONITORING AND FOLLOW-UP

MONITORINGAND FOLLOW-UP PROGRAM

Longevity monitoring in pending maintenance orders SCE’s

ACHIEVEMENTS

Reduction inthe intervention times on safety elements ofpending execution

IMPACTS

Reduction of accident occurrence probability.Higher availability and reliability ofsecurity elements

Sustainability Report 2017 • 39

WORKERS TRIR - EXCLUDING EMPLOYEESTOTAL RECORDABLE INCIDENT RATE:NUMBER OF RECORDABLE INCIDENTS X 1 MILLION / MHW

FREQUENCY INDEXESEMPLOYEES

•• TOTAL OF TRIC RECORDABLE CASES

TRIR RECORDABLE INCIDENT FREQUENCY

0

0

7

1.3

3

9.3

22

1.2

AngolaArgentina

BoliviaPluspetrol

25

20

15

10

5

0

12

0.9

Peru

TRIR EMPLOYEESTOTAL RECORDABLE INCIDENT RATE:NUMBER OF RECORDABLE INCIDENTS X 1 MILLION / MHW

• TOTAL OF TRIC RECORDABLE CASES

• FREQUENCY OF TRIR RECORDABLE INCIDENTS

0

0

2

2.3

0

0

0

0

3

0.8

AngolaArgentina

BoliviaPluspetrol

4

3

2

1

0

Corporation

1

0.6

Peru

LTIR EMPLOYEESFREQUENCY OF INCIDENTS WITH LOST DAYS: NUMBER OF INCIDENTS WITH LOST DAYS X 1 MILLION / MHW

• NUMBER OF INCIDENTS WITH LTIC DAYS LOST

• ANNUAL FREQUENCY OF INCIDENTS WITH LTIR DAYS LOST

Calendar days following the day after the accident are taken into account for the calculation of days lost.

0

0

1

1.1

0

0

0

0

1

0.3

AngolaArgentina

BoliviaPluspetrol

1

0.8

0.6

0.4

0.2

0

Corporation

0

0

Peru

EVENT FREQUENCY OF TIER 1 AND TIER 2 PROCESSES

•• TIER 1 FREQUENCY

TIER 2 FREQUENCY

The Corporation does not have non-employed workers, therefore they are not included in this analysis.

WORKERS LTIR - EXCLUDING EMPLOYEESFREQUENCY OF INCIDENTS WITH LOST DAYS: NUMBER OF INCIDENTS WITH LOST DAYS X 1 MILLION / MHW

• NUMBER OF INCIDENTS WITH LTIC DAYS LOST

• LTIR RECORDABLE INCIDENT ANNUAL FREQUENCY

AngolaArgentina

BoliviaPluspetrol

14

12

10

8

6

4

2

0

Peru

0

0

3

0.6

1

3.1

13

0.7

9

0.7

0

0

0

0

0.3

0.8

AngolaArgentina

BoliviaPluspetrol

0.1

0.07

Peru

3

2.5

2

1.5

1

0.5

0

0.9

2.7

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.

FREQUENCY INDEXESWORKERS EXCLUDING EMPLOYEES

RETURN TO THE INDEX


GRI INDEX GRI 105-22

We prepared the following content index according to

GRI Standards and issues which arose as materials from the

performed analysis.

GENERAL

CONTENTS

Name of the

organization

Activities, trademarks,

products and services

Location of the

registered office

Location of operations

Ownership and

legal form

Markets served

Size of the

organization

Information about

employees and

other workers

Supply chain

Significant changes

in the organization

and its supply chain

Precautionary principle

or approach

External initiatives

Affiliation with

associations/

memberships

Statement from

senior decision makers

Values, principles,

standards and

code of conduct

Governance

structure

List of stakeholders

groups

Collective bargaining

agreements

Identifying and

selecting stakeholders

Participatory approach

of the stakeholders

Key topics and

concerns raised

Entities included in the

consolidated financial

statements

Definition of report

contents and topic

boundaries

List of material topics

Restatement

of information

Changes in reporting

Reporting period

Date of most

recent report

Reporting cycle

Contact point for

questions regarding

the report

Clains of reporting

in accordance with

GRI Standards

GRI contents index

External assurance

Volume and type

of reserves

GRI 102

General

contents

2017

Gas and

Petroleum

sectoral

supplement

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

102-18

102-40

102-41

102-42

102-43

102-44

102-45

102-46

102-47

102-48

102-49

102-50

102-51

102-52

102-53

102-54

102-55

102-56

OG1

GRI STANDARD

CONTENT

2

2

2

3

2

2

2

19

9

9

5

8

8

1

4,5

4

14

19

14

14

14

N/D

13,15

15

13

13

13

13

13

13

13

40

This report

was not

submitted

to external

assurance

2

PAGE NUMBER

ODS OMISSION

MATERIAL TOPICS

ECONOMIC

PERFORMANCE

Economic performance

PROCUREMENT

PRACTICES

Explanation of material

topic and its coverage

Management approach

and its component

elements

Evaluation of

management approach

Expenditure proportion

at local suppliers

ANTI-CORRUPTION



Management approach

and its component

elements

Evaluation of

management approach

Operations assessed

on risks related

to corruption

WATER


topics and its coverage

Management approach

and its component

elements

Evaluation of

management approach

Water withdrawals

by source

Water sources

significantly affected

by water extraction

BIODIVERSITY



Management approach

and its component

elements

Evaluation of

management approach

Operational sites

owned, leased,

managed in, or adjacent

to, protected areas and

areas with biodiversity

values outside of

protected areas

Number and

percentage of important

operating sites in which

the biodiversity risk

has been assessed and

monitored

EMISSIONS

Explanation of topic

and its management

approach

GRI 201

GRI 103

Management

approach

GRI 204

GRI 103

Management

approach

GRI 205

GRI 103

Management

approach

GRI 303

GRI 103

Management

approach

GRI 304

Gas and

Petroleum

sectoral

supplement

GRI 103

Management

approach

201

103-1

103-2

103-3

204-1

103-1

103-2

103-3

205-1

103-1

103-2

103-3

303-1

303-2

103-1

103-2

103-3

304-1

OG4

103-1

GRI STANDARD

CONTENT

17

17

17

17

17

17

17

17

28

28

28

28

28

29

29

29

29

29

27

PAGE NUMBER

ODS OMISSION

8; 12

6; 9; 12; 14

14; 15

9; 12

For

confidentiality

reasons, no

values shall

be disclosed.

Management approach

and its component

elements

Evaluation of

management approach

GHG direct emissions

(Scope 1)

Volume of flared and

vented hydrocarbons

EFFLUENTS

AND WASTES


topic and its boundary

Management approach

and its component

elements

Evaluation of

management approach

Significant spillage

Amount of drilling

waste (drilling sludge

and cuttings) strategy

for their treatment

and disposal

ENVIRONMENTAL

COMPLIANCE



Management approach

and its component

elements

Evaluation of

management approach

Non-compliance

with environmental

legislation

and regulations

EMPLOYMENT



Management approach

and its component

elements

Evaluation of

management approach

New hires and

personnel turnover

HEALTH AND

SAFETY AT WORK



Management approach

and its component

elements

Evaluation of

management approach

Workers’

representation in

formal joint manage-

ment worker-health-

and-safety-committees

Number of safety

process events

per type of activity

EDUCATION

AND TRAINING



GRI 305

Gas and

Petroleum

sectoral

supplement

GRI 103

Management

approach

GRI 306

Gas and

Petroleum

sectoral

supplement

GRI 103

Management

approach

GRI 307

GRI 103

Management

approach

GRI 401

GRI 103

Management

approach

GRI 403

Gas and

Petroleum

sectoral

supplement

GRI 103

Management

approach

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

103-1

103-2

103-3

403-1

OG13

103-1

GRI STANDARD

CONTENT PAGE NUMBER

ODS OMISSION

Management approach

and its component

elements

Evaluation of

management approach

Average hours of

training per year per

employee

RIGHTS OF THE

INDIGENOUS PEOPLES



Management approach

and its component

elements

Evaluation of

management approach

Cases of rights of

indigenous peoples

violations

Operations where

indigenous communities

are present or affected

by activities and where

specific strategies are

in place

LOCAL

COMMUNITIES



Management approach

and its component

elements

Evaluation of

management approach

Operations with

local community

engagement, impact

assessments and

development programs

Number of sites that

have been abandoned

and sites under their

dismantling process

Operations in

which there have

been involuntary

resettlements

GRI 404

GRI 103

Management

approach

GRI 411

Gas and

Petroleum

sectoral

supplement

GRI 103

Management

approach

GRI 413

Gas and

Petroleum

sectoral

supplement

103-2

103-3

404-1

103-1

103-2

103-3

411-1

OG9

103-1

103-2

103-3

413-1

OG11

OG12

GRI STANDARD

CONTENT PAGE NUMBER

ODS OMISSION

9; 12; 14

1; 3; 5; 8

3; 8

4

1; 3; 4; 5;

6; 7; 8

1; 3; 4; 5;

6; 7; 8

1; 3; 4; 5;

6; 7; 8

27

27

27

28

31

31

31

31

33

27

27

27

20

20

20

20

37

37

37

37

37

21

21

21

21

23

23

23

23

23

23

23

23

23

23

23

RETURN TO THE INDEX

HOW FAR WILL PLUSPETROL GO? HOW

CAN PLUSPETROL MOVE FORWARD?

WHAT FUTURE PROSPECT DOES IT HAVE? TEN,

TWENTY YEARS? THIRTY? FORTY? ONE HUNDRED

YEARS? THE LARGEST COMPANIES IN THE

WORLD TODAY STARTED BEING SMALL, MAYBE

AS PLUSPETROL OR EVEN SMALLER, WITH

OTHER CAPITAL STRUCTURES, OTHER SHARE

STRUCTURES, AND TODAY NOBODY WONDERS

IF ONE OF THESE BIG COMPANIES WILL STILL

EXIST IN FIFTY YEARS’ TIME. PARTICULARLY, IT IS

LIKELY THAT YOUNG PEOPLE ASK THEMSELVES:

WILL I KEEP WORKING AT PLUSPETROL JUST

BECAUSE PLUSPETROL WILL STILL EXIST? OR

IS IT THAT WE WHO CONDUCT PLUSPETROL

TODAY WILL BE GONE AND THAT WILL ALSO

MEAN PLUSPETROL’S DISAPPEARANCE? OUR

ASPIRATION IS PLUSPETROL’S FATE TO BE

SIMILAR TO FORD’S, FOR EXAMPLE, WHICH

STARTED AT THE BEGINNING OF THE PAST

CENTURY AND TODAY IS ONE OF THE LARGEST

COMPANIES IN THE WORLD. WHY? BECAUSE IT

HAS ACHIEVED INSTITUTIONALIZATION, CREATED

A STRUCTURE THAT ALLOWED IT TO KEEP ON

GROWING, REGARDLESS OF ITS PEOPLE, OF THE

MEN, TO BE WHAT THEY ARE TODAY. AND WHEN

THE FOUNDER IS NO LONGER AROUND, WHAT

WILL HAPPEN?

WE WANT TO ASSURE ALL THE PEOPLE AT

PLUSPETROL’S THAT PLUSPETROL WILL KEEP ON

EXISTING AND GROWING, JUST AS THE WORLD’S

LARGEST CORPORATIONS HAVE DONE.

PLUSPETROL40 YEARS

MY DREAMIS TO BUILD A 100-YEAR-LASTING COMPANY

2017 WAS A VERY SPECIAL YEAR FOR PLUSPETROL:

IT WAS OUR 40TH ANNIVERSARY. AS IT OFTEN

HAPPENS ON ANNIVERSARIES, LOOKS BECOME

RETROSPECTIVE, WE RECALL MEMORIES AND

REFLECT ON THE EXPERIENCES IN OUR ROAD

TO THE PRESENT. AND AT PLUSPETROL WE

DID ALL THAT TO ATTEST THAT THE VISION OF

OUR FOUNDER, ENGINEER LUIS A. REY, IS STILL

ALIVE AND ACTIVE IN EACH OF US. HE STARTED

THIS ADVENTURE DREAMING OF A COMPANY…

“THAT WOULD LAST 100 YEARS, CREATE WORK,

PRODUCE VALUE; PRODUCE ENERGY AND

INNOVATION FOR GENERATIONS TO COME”.

THROUGHOUT THESE YOUNG 40 YEARS, WE HAVE

DEVELOPED A NATURE OF OUR OWN, FACING

CHALLENGES THAT FEW DARED TO UNDERTAKE,

SORTING OUT LOGISTICAL, ENVIRONMENTAL AND

SOCIAL COMPLEXITIES; ADAPTING OURSELVES

THROUGH THE INNOVATION AND SEARCH FOR NEW

PRODUCTION TECHNIQUES AND GROUNDBREAKING,

SUSTAINABLE AND ECONOMICALLY VIABLE

ENERGETIC MODELS.

TODAY, PLUSPETROL IS A YOUNG, THRIVING AND

INNOVATIVE COMPANY, THAT AIMS TO REACH

ONE HUNDRED YEARS PLAYING THE LEAD ROLE

AMONG THE BIG ENERGY COMPANIES. HENCE,

OUR FOUNDER’S WORDS, WHICH EXPRESSED

HIS VISION OF A SUSTAINABLE COMPANY, HAVE

NEVER BEEN MORE VALID BEFORE:

OPPORTUNITIES ARE WHEREOTHER PEOPLE SEE DIFFICULTIESENG. LUIS A. REY


THE VISION OFTHE FOUNDER

RETURN TO THE INDEX


The assumptions, initiatives, descriptions, programs, processes and other activities referred to in this Sustainability Report do not correspond to, and it 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.

Edition and Coordination:

Management of Corporate

Social Responsibility

Design and Production:

Chiappini + Becker

Phone +54 11 4314 7774

www.ch-b.com

RETURN TO THE INDEX

www.pluspetrol.net

AngolaVia AL5, Predio Cellwave, 3º Andar, Bairro Talatona, Luanda - Angola Phone: 244-222-309-302 Fax: 244-222-309-091

ArgentinaLima 339 - C1073AAG Buenos Aires - Argentina Phone: 54-11-4340-2215 Fax: 54-11-4340-2215

BoliviaAv. Grigota intersection withLas Palmas Street Santa Cruz de la Sierra - Bolivia Phone: 591-3-359-4000 Fax: 591-3-354-8080

ColombiaCarrera 7 #72-52, floor 9 Tower B Bogota - Colombia Phone: 57-1-746-7000

United States of America5599 San Felipe Suite 1000 Houston, Texas 77056 United States of AmericaPhone: 1-713-961-1095 Fax: 1-713-961-1097

NetherlandsMuiderstraat 7A 1011 PZ Amsterdam - Holland Phone: 31-20-662-2199

PeruRepublica de Panama Avenue 3055, floor 8 San Isidro, Lima - Peru Phone: 51-1-411-7100 Fax: 51-1-411-7120/7142

UruguayDr. Luis Bonavita 1266 World Trade Center - Tower IV, floor 15 11300 Montevideo - Uruguay Phone: 598-2-1838-3200

VenezuelaTower Forum, GF office “B” Guaicaipuro intersection withPpal. de las Mercedes Avenue Urb. El Rozal, Caracas (1060) - Venezuela Phone: 58212-952-8475/953-8112

RETURN TO THE INDEX

sustainability report 2017 - plus petrol · pluspetrol resources corporation b.v. is the parent...

Documents