©

Biodiversity programs and the pilot

assessment of ecosystem services.

BU Peru

Repsol. HSE. March/2015.

Repsol. HSE. March/2015.

Disclaimer

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© REPSOL, S.A. 2015

Repsol, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or

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a request for an offer of purchase, sale or exchange of securities in any other jurisdiction.

This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current

expectations of Repsol and its management, including statements with respect to trends affecting Repsol’s financial condition, financial ratios, results of operations,

business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These

forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and

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Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected

performance, conditions or events expressed or implied therein will not be realized.

The information contained in the document has not been verified or revised by the Auditors of Repsol.

Repsol. Commercial Division. 2015/04/23.

© 3 Repsol. HSE. March/2015.

1. Block 57 in Peru

2. Biodiversity Management. BU Peru

o Key Objectives

o Project approach. Enviromental Impact Assesment

o Ecosystem Approach (BAP and BES)

o Ecosystem services approach benefit

o Biodiversity mitigation and enhancement measures

o Biodiversity and Ecosystem services pilot

©

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• Department of Cuzco province of the convention, Echarate district, along the Urubamba River.

• Logistics operations center in Block 57, has an airfield, heliports, river boarding areas and camp.

• The operation is "offshore inland", no roads are used.

1. Block 57 in Peru Introduction

Repsol. HSE. March/2015.

© 5

Tropical Andes

One of the 34 biodiversity

hotspots

Presence of natural areas

protected by the

Government

Ancestral area of

continuous use by Native

communities (Machiguenga

y Caquinte)

Area of international and

national concern

Repsol. HSE. March/2015.

1. Block 57 in Peru Challenges

HOTSPOT

Biodiversity

Native

Communities

©

2. Biodiversity Management BU Peru

Key Objectives

6

Building a culture of care and protection of biodiversity in

our operations.

Assess biodiversity impacts beyond projects life and area.

Distinguish short-term fluctuations long-term trend.

Increase knowledge on biota, their interactions and

possible threats.

Develop ecosystem services approach.

Contribute to the scientific community, local communities

and government agencies.

Repsol. HSE. March/2015.

KEY OBJECTIVES OF BIODIVERSITY MANAGEMENT IN PERU IN LINE WITH

CORPORATE POLICY

© 7

PROJECT

BIODIVERSITY COMMUNITIES

LANDSCAPE

2. Biodiversity Management BU Peru Project approach. EIA

Repsol. HSE. March/2015.

© 8

Biodiversity

Local Communities Project

LANDSCAPE

Environmental

license to operate

Social license to operate

Repsol. HSE. March/2015.

2. Biodiversity Management BU Peru Ecosystem Approach (BAP and BES)

© 9

Allows us to understand more holistically the

environments where we operate and

integrating ecological, social and economic

considerations.

Evaluate trade-offs that affect different

ecosystem services and stakeholders;

Assess oil and gas dependencies that may

otherwise be overlooked (e.g. use of water,

and reliance on flood control);

Identify impacts (particularly on natural

regulating services) that may otherwise be

missed.

2. Biodiversity Management BU Peru Ecosystem services approach benefit

Repsol. HSE. March/2015.

© 10

PBI PBI

PBI PBI

A

M

A

R

M

A Hábitat

Mapping

Residual

Impact

Net (+) Impact

Management Tools on

Biodiversity impacts

Positive

Impact

Negative

Impact

BaseLine

Off shore

in land

Canopy

Bridges F & F Rescue

BD

Monitoring

BD Studies

Erosión Control and Revegetation

Conservation Actions

Agreements with CC NN

Offsets

PBI: Predicted Biodiversity Impact

A : Avoidance M: Mitigation

R: Restauration O: Offset

The Mitigation hierarchy

Source: adapted from Rio Tinto, 2009

Co

mm

un

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g

Repsol. HSE. March/2015.

2. Biodiversity Management BU Peru Biodiversity mitigation and enhancement measures

© 11

Identification of Ecosystem

services

Communities dependencies

Prioritization of Ecosystem

Services

Ecosystem services mapping

Integration of Ecosystem

Services into our units

Perú – Block 57

Understanding potential

impacts to Ecosystem

services Methodology applied: WBCSD+IPIECA+ IFC PS6

Fauna & Flora international (FFI) works with the

private sector to build long –term strategies for

enviromental management

2. Biodiversity Management BU Peru Biodiversity and Ecosystem Services pilot

Repsol. HSE. March/2015.

©

Actions This project is an innovative approach to understanding threats to the

ecosystem services that people depend on across a landscape.

Results

Next Steps

Repsol is working with Fauna & Flora international at Repsol Sagari Project

to identify:

o which ecosystem services the project directly depends on

o which ecosystem services the project’s activities are likely to affect and how

this could, in turn, affect local communities. To do so, the company’s recently

commissioned social and biodiversity baselines have been reviewed, project

operations have been visited, and a multi-disciplinary workshop with key staff

has been conducted.

The study has provided a number of recommendations that aim at

strengthening Repsol’s environmental systems to incorporate ecosystem

services reviews.

The result and learning from this project undertaken for Peru are

feeding into Repsol’s management system.

2. Biodiversity Management BU Peru Biodiversity and Ecosystem Services pilot

Repsol. HSE. March/2015. 12

THANK YOU

© Repsol. HSE. March/2015

©

Biodiversity programs and the pilot

assessment of ecosystem services.

BU Peru

Repsol. HSE. March/2015.