sustainability report 2019 - pluspetrol.net

Sustainability Report 2019 • A

Sustainability Report 2019

Sustainability Report 2019 • 1

LETTER FROM THE CEOGRI 102-14

This year has faced us with new challenges and, once again, we have been put to the test and we have challenged our capabilities. We were persistent, we saw beyond the possibilities and, as a team, we managed our projects with a strong commitment to ethics and integrity, fostering our company’s sustainable growth, the efficient use of resources, good relations with our stakeholders and the preservation of the environment.

We strengthened our commitment to sustainable development through the revision and update of our Sustainability Policy and its implementation on the daily activities. Our Policy compels us to think in the long term, working in line with good practices and balancing the economic, social and environmental aspects of our decisions.

Within this framework, we approved the Anti-bribery and Anti-corruption Policy, whose goal is to set general guidelines that reflect Pluspetrol’s commitment to ensuring transparency and ethics in the development of our business. With the purpose of spreading this commitment across our value chain, we developed the Third Parties’ Code of Conduct, defining a set of key principles that highlight the commitment of integrity in commercial relations, and reaffirm the interest to jointly contribute to economic, social and environmental development.

In line with our long term growth strategy, during 2019, we continued our development plans in the operated areas, investing in drilling, secondary recovery and tertiary projects; we started production of unconventional reservoirs in La Calera, Argentina, putting 10 gas wells into production and processing this production in our new plant; we increased our participation in the Camisea project, in Peru, by 17% and integrated a consortium that was the tenderer of 2 offshore exploration blocks in Argentina.

As part of our ongoing sustainable company vision, and in line with our business diversification strategy, we expanded our activities, creating a Mining division, focused on the exploration and development of minerals for high quality batteries.

To support this growth, we have an excelling team, trained and ready to face different situations. We apply our philosophy and values, and prioritize respect towards people and the socio-environmental context, always having in mind a sense of vulnerability, in order to ensure a proper risk management.

In line with our Sustainability Policy, we use indicators to assess, verify and report compliance with set goals, in relation to a responsible corporate behavior. In this context, I am pleased to present our 12th Sustainability Report, which is the result of the involvement of different areas and employees, who I thank for their effort and dedication.

ABOUT PLUSPETROL

Company profile

Areas of operation

Governance

Purpose, vision and values

Cultural approach for a

Sustainable Operation

Excellence in Operation

Management

Corporate strategy

Associations

Awards and Recognitions

•••••

•

•••

INSTITUTIONAL

Letter from the CEO•

Claudio de DiegoCEO

SUSTAINABILITY

Sustainable Management

Stakeholders

Materiality analysis

Sustainable Development

Goals

••••

OUR PEOPLE

Direct employees

Employment

Value proposal

Learning and development

Healthcare

•••••

SUPPLY CHAIN

Supply structure

Local purchases

•

•

COMMUNITY

Social investment

Dialogue with local

communities

Indigenous Communities

••

•

ENVIRONMENT

Energy and Climate Change

Biodiversity Management

Water and Discharge

Management

Effluents and wastes

•••

•

PLUSPETROL

IN NUMBERS

PROCESS

SAFETY

Commitment and Leadership

Understanding hazards

and risks

Handling risks and managing

impacts

Learning from experience

••

•

•

ABOUT THE

SUSTAINABILITY REPORT

Development of the

Sustainability Report

GRI Index

•

•

2 • Pluspetrol Sustainability Report 2019 • 3

ABOUT PLUSPETROL

AREAS OF OPERATIONGRI 102-4

The scope of this Report includes all the areas

operated by the Company in Angola, Argentina,

Bolivia and Peru.

1. 1 MMBOE = 1,000,000 BOE.2. 1 MMSCF = 182.9 BOE.3. Proved+probable

SURINAMOFFSHORE EXPLORATION

COLOMBIAOIL EXPLORATION

PERUOIL AND GAS EXPLORATION AND PRODUCTION

BOLIVIAOIL AND GAS EXPLORATION AND PRODUCTION

ARGENTINAOIL AND GAS EXPLORATION AND PRODUCTION

URUGUAYMONTEVIDEOOFFICES

SURINAM

USAHOUSTONOFICINA COMERCIAL

COLOMBIA

PERU

BOLIVIA

ARGENTINA

ISLAS MALVINAS (ARG)

URUGUAY

NETHERLANDSAMSTERDAMHEADOFFICE

ANGOLAOIL EXPLORATION AND PRODUCTION

References

OfficesExplorationProductionPflngAndes basins

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

+40YEARS IN THE INDUSTRY

OIL REFINERIESNATURAL GAS DISTRIBUTORSELECTRIC POWER GENERATORSNATURAL GASLIQUEFACTION PLANTSINDUSTRIES LPG FRACTIONAL COMPANIES

CLIENTS ••••

•

108MBBL/D OF TOTAL LIQUIDS PRODUCTION

CRUDE OILNATURAL GASLPG (PROPANE AND BUTANE)OTHER NATURAL GAS LIQUIDS (MIDDLE DISTILLATES AND FUEL)

PRODUCTS••••

1,252 MMSCF/D2 OF GAS PRODUCTION

142.5 MMBOE1 OF TOTAL OPERATED PRODUCTION

1,890 DIRECT EMPLOYEES

MMBE OF 2P NET RESERVES3

1,060

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

WE ARE A PRIVATE ENERGY COMPANY WITH OVER 40 YEARS’ EXPERIENCE IN HYDROCARBON EXPLORATION AND PRODUCTION. WE HAVE INTERNATIONAL PRESENCE, WITH ACTIVITIES IN ANGOLA, ARGENTINA, BOLIVIA, COLOMBIA, PERU AND SURINAME, AND OFFICES IN THE UNITED STATES, NETHERLANDS AND URUGUAY.

OUR BUSINESS IS THE DEVELOPMENT OF GREAT GAS FIELDS, EXTRACTION OF HEAVY CRUDE OIL, DEVELOPMENT OF MATURE SITES AND MARGINAL AREAS WITH SECONDARY RECOVERY, AS WELL AS THE DEVELOPMENT OF UNCONVENTIONAL HYDROCARBONS, APPLYING CREATIVITY AND INNOVATION TO FACE THE SPECIFICITIES OF EACH ACTIVITY.

PRODUCCIÓNLA PRODUC-

CIÓN DE PETRÓLEOY GAS SE

REALIZA EN DIFERENTES

ENTORNOSDESDE LA

REGIÓNPATAGÓNICA

ARGENTINAHASTA LA

SELVA AMAZÓNICAPERUANA.

EXPLORACIÓNLA EXPLORACIÓN DE PETRÓLEO Y GAS SE EXTIENDE DESDE LAS

ÁREAS OPERADAS ACTUALMENTE

HASTA NUEVAS REGIONES

DE PAÍSES ENLOS QUE LA COMPAÑÍAAÚN NODESARROLLA ACTIVIDADES.

LA CONSTANTE BÚSQUEDA

DE NUEVASOPORTUNIDADES

ES UNA ACTIVIDAD ESTRATÉGICA CONPROYECCIÓN A FUTURO.

EN PLUSPETROLDESARROLLAMOS

NUESTRAS ACTIVIDADESDE PRODUCCIÓN Y EXPLORACIÓN

CON LAS MEJORES PRÁCTICASEN SEGURIDAD Y EFICIENCIA,

ORIENTADAS A RESPETAREL MEDIO AMBIENTE,

LOS ENTORNOS NATURALESY LAS COMUNIDADES

LOCALES.

PLUSPETROL’S NET 2P RESERVES (PROVED+PROBABLE) 1,060 MMBOE

74%

26%

••

GAS

OIL

2019 LIQUIDS AND GAS PRODUCTION BY COUNTRY (MMBOE)

150

100

50

0

ACTIVITIES AND RESULTS

Angola Argentina Bolivia Peru Pluspetrol

0.2

20

0.6

121

142

MINING DIVISION

IN LINE WITH THE BUSINESS DIVERSIFICATION STRATEGY, PLUSPETROL CREATED A MINING DIVISION, WITH THE PURPOSE OF FOCUSING ON THE EXPLORATION AND DEVELOPMENT OF MINERALS FOR HIGH QUALITY BATTERIES. AIMING TO EXPAND THEIR PRESENCE IN THE SO-CALLED “LITHIUM TRIANGLE”, IN THE ARGENTINE NORTH, PLUSPETROL ACQUIRED LCS LITHIUM CORPORATION’S STOCKS PACKAGE, CONSOLIDATING A PORTFOLIO OF OVER 300,000 HECTARES OF LITHIUM-RICH SALT PANS, IN THIS REGION, THUS BOOSTING THE STRATEGIC AND SUSTAINABLE DEVELOPMENT OF THIS KEY INPUT. AS OF NEXT YEAR, THE MINING ACTIVITIES WILL BE INCLUDED IN PLUSPETROL’S SUSTAINABILITY REPORT.

Sustainability Report 2019 • 54 • Pluspetrol

ONE OF THE MAIN OBJECTIVES OF OUR

CORPORATE GOVERNANCE SYSTEM IS TO

STRENGTHEN THE ORGANIZATION’S STRATEGIC

CAPABILITY AND APPROACH, FOCUSING ON THE

BUSINESS’ SUSTAINABLE DEVELOPMENT, BOTH

ON THE IMMEDIATE CONTEXT AND THE LONG-

TERM CONTEXT. IN ORDER TO ACHIEVE THIS,

PLUSPETROL’S DIFFERENT EXECUTIVE BODIES

ACT SUPPORTED BY THE PILLARS OF

TRANSPARENCY, ETHICS AND INTEGRITY, EITHER

TO GUIDE THE STRUCTURE AND FUNCTIONING

OF ALL COMPANY AREAS, AND SET FORTH

STRATEGIC AND OPERATIONAL PLANS.

CORPORATE GOVERNANCE

Board of DirectorsPluspetrol’s Corporate Governance is chaired by the

Board of Directors, which sets the Company’s goals

and strategic pillars, supervises internal management

and evaluates the organizational performance. This

body is formed by three independent members,

appointed by the Shareholders’ Meeting.

Executive CommitteeThe Executive Committee is responsible for the

alignment of the Company’s different projects with

the corporate strategy. Additionally, it facilitates

communication between different sectors and with

employees. It is chaired by the Executive Director

(CEO) and other three Senior Management members.

Crisis CommitteeIt is responsible for managing and coordinating the

different areas of the Company, in case of a crisis

situation. Its composition and performance are

defined by an internal crisis management procedure

and regulations complementary to the contingency

plans and safety procedures in each Business Unit.

Ethics CommitteeIt reports to the Board of Directors and its function is

to analyze the information that an employee or a

third party associated to the Company may share

about behaviors that are at odds with the Code of

Conduct or that are contrary to good practices,

coordinate the corresponding administrative

investigation, and determine the following actions.

It is chaired by an independent director and formed

by the heads of Legal Affairs, Human Resources, and

Internal Audit and Compliance.

INTERNAL AUDIT

The mission of the area is structured around three

main pillars. Firstly, it assists the Board of Directors

contributing an objective and independent view on

the design and operation of the Company’s internal

control; additionally, it participates in the

improvement of processes and controls; and finally,

at a global level, it collaborates with the achievement

of business goals.

Internal Audit’s scope encompasses both

administrative and accounting aspects, and

operational and technical processes, including

environmental, social and safety issues.

Auditing activities and tasks are agreed and defined

via an annual plan, approved by the Board of

Directors, prioritizing the activities according to the

risks associated to the processes, their economic

relevance, the country of origin, the control

environment and the technological aspects, among

others. The area uses a systematic approach to

assess and improve the effectiveness of the risk,

control and governance management.

During the past 11 years, over 90 internal audits have

been performed, covering all business areas:

corporate, all the countries where the Company

develops its activities, and the non-operated Joint

Ventures.

As a result of the performed audits, more than 2000

improvement actions have been agreed upon, with

over 80% of those implemented thus far. To achieve

this level of compliance, a strict follow-up of the

pending actions is carried out in coordination with

the persons responsible for each action, and their

status is periodically reported to the Board.

Additionally, the concept of continuous audit was

developed through the creation of indicators that

generate alerts for the non-compliance of the

designed controls and procedures.

GOVERNANCEGRI 102-16; 102-18

SUPPORT FOR ETHICAL BEHAVIOR GRI 102-17

Code of ConductPluspetrol has a Code of Conduct that defines the

basic rules of daily behaviors that are expected to be

followed by all employees, regardless of their

hierarchy. Non-compliance may result in disciplinary

measures, which may include termination of the

employment relationship. All employees are asked,

on an annual basis, to be re-certified, in order to

ensure their knowledge and compliance.

Code of Conduct for third partiesDuring 2019 the Code of Conduct for third parties4

was developed, including in its scope suppliers,

contractors, subcontractors, consultants, advisers,

representatives, and any other service supplier and

commercial partner. The document was elaborated in

collaboration by the corporate areas of Compliance,

Corporate Social Responsibility, Community Affairs,

Human Resources, EHS and Legal Affairs,

establishing a set of essential principles that

underlines the commitment of integrity in

commercial relationships, and reaffirms the interest

in contributing to the economic, social and

environmental development of the places where

Pluspetrol has presence. Pluspetrol requires all the

mentioned third parties to accept the Code of

Conduct before procuring their services.

FranciscoPulit

Sr. Vice-President of Corporate

Development

RobertoDíazCoral

Sr. Vice-President of Corporate Production

Assets

ChristiánGarzónMaceda

Sr. Vice-President of Corporate

Services and CFO

Claudiode Diego CEO

4. The document is publicly accessible and it is available in our web site http://www.pluspetrol.net/proveedores.php5. Essential Principles of the CCTP.

PLUSPETROL ETHICS LINE

[email protected]

ETHICSLINEPLUSPETROL.LINEASETICAS.COM

TOLL-FREE PHONE LINES:

ARGENTINA: 0800-122-0441

BOLIVIA: 8001-0-0985

COLOMBIA: 0180-0752-2263

UNITED STATES: 1-800-304-5395

NETHERLANDS: 0800-022–5872

PERU: 0800-0-0831

URUGUAY: 0004-0529-6681

ETHICS LINE

Pluspetrol Ethics Line is a channel through which

it is possible to report any behavior from Company’s

employees or officers, or contractor personnel,

that is possibly in breach of the Code of Conduct

and good practices, such as conflicts of interest

(economic or relational), Company’s assets or work

time misuse, disclosure of Company’s confidential

information, bribery events, corruption, asset

laundering and other improper behaviors.

In addition to the Ethics Line, at Pluspetrol we

have other channels available to file a complaint,

such as direct contact with a member of the Ethics

Committee, or communication with a supervisor,

manager or Human Resources representative.

Likewise, an external third party, such as a

contractor, a supplier, an offeror, or partner can also

report an incident to a Company employee.

ESSENTIALPRINCIPLES5

ETHICS ANDGOOD BUSINESSPRACTICES

ENVIRONMENTAND SAFETY

PHYSICAL, PROPERTY, TECHNOLOGICAL AND INFORMATION SECURITY

HUMANRIGHTS

LOCALCOMMUNITIES

OCCUPATIONALHEALTH


COMPLIANCE GRI 205-1

To foster a solid ethical commitment and

transparency in the conducts and decisions

governing Pluspetrol’s business, with the support of

the top management, the Regulation Compliance

area (henceforth, Compliance) has developed a

management system to prevent, detect and solve

cases of bribery and/or corruption within the

organization, in line with the requirements set by

applicable regulations and internal guidelines against

bribery, corruption, asset laundering and terrorism

financing.

Anti-bribery and anti-corruption policyIn 2019, the Board of Directors approved the

Anti-bribery and Anti-corruption policy6, which sets

the general guidelines that convey the solid and

visible commitment to ensure transparency and

ethics in the development of business. It determines

Pluspetrol’s prohibition of any illicit action associated

to bribery and corruption, in any form, whether

direct or indirect, in both the private and public

domains, in any part of the world.

The policy applies to all companies in the Pluspetrol

Group, with an annual re-certification for all

employees, and it extends to all consortiums in which

Pluspetrol operates. For the businesses in which

Pluspetrol is not the operator, all parties are required

to comply with the applicable anti-corruption

legislation, and the operator is expected to

implement corporate anti-corruption good practices.

Fraud and corruption risk managementBased on the results from the fraud and corruption

risk mapping and assessment in the Argentina and

Peru business units, an action plan was designed in

line with the business, in order to manage fraud and

corruption through control measures. As a

complement, the Risk Assessment Workshop was

launched with corporate scope, including the

centralized management units. This process will

result in a corporate risk matrix. Once the risks are

detected, work will focus on reducing and/or

mitigating them.

Relationship with third partiesAs part of their Compliance management program,

Pluspetrol performs an anti-corruption due diligence

process, surveying and assessing associated third

parties, according to their internal policies on the

subject.

During 2019, the Compliance area issued 247 reports

for internal clients, determining levels of associated

risk, and offering recommendations for the

commercial operation under analysis. Additionally,

the review project of more than 3500 suppliers and

380 clients for potential local and international

non-compliances was concluded. As a result,

remediation actions were promoted with some

specific counterparts.

On the other hand, together with Legal Affairs, the

anti-corruption clause model was reviewed, updating

the general terms and conditions, and other

procurement models with third parties.

Dissemination and trainingThroughout the year, the Anti-bribery and Anti-

corruption Policy and the Code of Conduct were

disseminated among all employees, middle

management, directors, and third parties, via

different internal and external communication pieces.

A training program fosters the exchange of

knowledge, messages and values associated to the

Compliance Program. This process is essential to

create awareness about the risks of corruption, asset

laundering and terrorism financing, which the

Company battles, and also to stimulate the creation

of an ethics and good practices culture in business.

436 employees participated, including most of the

supervisors, bosses and managers in the areas most

exposed to risks.

During the second half of the year, a Compliance

E-Learning Program, mandatory for employees, was

designed, and it covered specific subjects related to

the prevention of fraud, corruption, asset laundering

and terrorism financing.

In regards to third parties, the Compliance subjects

were addressed in the contractor forums.

6. The document is publicly accessible and it is available in our web site http://www.pluspetrol.net Sustainability section – Ethics Line.

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

VALUESBEING PERSISTENT.

BEING GUIDED BY INTEGRITY AND GOOD PRACTICES

IN OUR DECISIONS AND BEHAVIORS.

THINKING BEYOND POSSIBILITIES AND TAKING ACTIONS DESPITE

UNCERTAINTY TO CAPITALIZE ON OPPORTUNITIES.

WORKING AS A TEAM AS A WAY OF LIBERATING OUR IMAGINATION

AND CREATIVITY.

PURPOSETO CREATE VALUE BY SATISFYING THE NEEDS AND EXPECTATIONS OF ALL

THE STAKEHOLDERS RELATED TO OUR ACTIVITY (SHAREHOLDERS,

EMPLOYEES AND THEIR FAMILIES, PARTNERS, SUPPLIERS, CLIENTS,

GOVERNMENTS, AND THE COMMUNITIES IN THE COUNTRIES WHERE WE

OPERATE), MAINTAINING OUR OWN IDENTITY.

VISIONTO EXCEL AS A BENCHMARK AMONG INDEPENDENT

INTERNATIONAL, UPSTREAM ENERGY COMPANIES.

DEVELOPING OUR HUMAN TALENTS, WHILE MAINTAINING

OUR IDENTITY.

ACHIEVING SUSTAINABLE GROWTH BY PRIORITIZING SAFETY, EFFICIENT USE

OF RESOURCES, OPERATIONAL EXCELLENCE, COMMUNITY RELATIONS AND

THE PRESERVATION OF THE ENVIRONMENT.


CULTURAL APPROACH FOR A SUSTAINABLE OPERATION

It is essential to Pluspetrol to foster a sustainable

culture in all corporate levels and processes. Based

on a cultural identity that stems from our origins, we

strive to develop our culture in a way that leverages

the strategy, people and our own identity.

We foster the development of leaders that make

decisions based on risks and lead with example. We

also empowered employees, equipped with

competencies to manage risks and challenges with

autonomy, complying with regulations and

procedures. Finally, we develop tools framed in

cycles of continuous improvement, which add value

to the management systems.

This allows to define the adequate strategies to

reach the desired stage of a sustainable operation,

creating management transversality in all aspects of

our daily operations.

EXCELLENCE IN OPERATION MANAGEMENT

Our operations are guided by Operational

Excellence, a continuous improvement process,

based on organizational capacity, unified processes

and proper technology. This process allows us to

create the required competencies and skills,

developing the business in an efficient way.

Having a culture of organizational excellence, with

leadership based on personal example and

communication, is essential to the Company.

Development of teams and

employees with proper

competencies and skills

Operational model:

consolidation of the

operational model, structuring

the operational continuity and

asset integrated development

teams, under the strategic

goal of profitable projects

with a focus on main assets.

Human capital management:

implementation of second

phase of our talent

management platform,

Growing Together, with the

addition of new modules that

improve the people

development strategy through

learning resources and career

opportunities.

Learning and knowledge

management: we continued

working on the technical

competence matrix and tying

it to work profiles, the initial

development of the electronic

learning tool, technical

committees and learned

technical lessons workshops.

Unified processes that help to

strengthen collaborative work

in the company, and to be

more efficient

Planning: we continue to

strengthen our planning

process, in the medium and

the long term, as an

interdisciplinary effort. This

task contributes to the

definition of company global,

area-specific and employees’

objectives.

Capital Excellence Process

(CEP): We developed an

externally supported

assessment to optimize the

process through the

identification of improvement

opportunities in the

organization, the work process

and the governance.

Contractor management:

We started standardizing

technical services

areas and we continued the

management process for

contractor performance, which

seeks excellence through

better management, based on

the contract risk profile,

mainly for critical contracts.

Proper technology to develop

our business more efficiently

Adoption of technology:

we developed the guidelines

to standardize this process

throughout the company.

Digital domain: a program

to align all those initiatives

that involve the use of

digital technology to improve

process efficiency and

continuous optimization in our

operations. We started the

assessment to determine

the implementation road map.

Document management:

we continued working on the

alignment and standardization

of regulatory documentation,

and we launched a project

team to work on the

management of technical

documents as the basis for the

implementation of data

analysis and data science.

Operational excellence must be developed in an

environment that prioritizes safety, the efficient use of

resources, the relationship with the community, and

the preservation of the environment.

During 2019, we worked on the following pillars

PROCESS SAFETY MANAGEMENT (PSM)We Continue to implement the framework whose

purpose is to manage risks and hazards in our

operation, aimed at reducing the frequency and

severity of operation severe accidents.

During the period, we worked to implement it in the

Camisea project in Peru, and in Argentina operations.

At a corporate level, we worked on the basic levels of

reliability and integrity, and defined the process to

manage the different types of MOC (Management Of

Change).

CULTURE AND LEADERSHIPRegarding organizational culture, we moved forward

sharing the results of the first survey performed in

2018 for each asset and location. This allowed each

business unit to create a specific action plan to help

evolve in order to obtain a better operational risk

management.

GENERATIVE CULTURE FOR A SUSTAINABLE OPERATION

AUTONOMOUSCOLLABORATORSCOLLABORATORS WHO:

• UNDERSTAND THE VALUE THAT THEIR WORK

CONTRIBUTES IN A DAILY BASIS.

• HAVE ADEQUATE COMPETENCES TO FULFILL

THEIR ROLES.

• INCORPORATE THE CRITERIA OF MAKING

DECISIONS BASED ON HAZARDS AND RISKS.

• COMPLY WITH REGULATIONS AND

PROCEDURES, AND REPORT DEVIATIONS.

THEY WORK WITH OPERATIONAL

DISCIPLINE.

LEADERS WHO:

• LEAD BY EXAMPLE.

• UNDERSTAND AND MAKE DECISIONS BASED ON HAZARDS AND RISKS.

• INSPIRE AND CREATE SENSE.

• BOOST COLLABORATORS’ AUTONOMY.

• FAVOR A MUTUAL TRUST ENVIRONMENT THAT FOSTERS

REPORTING AND CONTINUOUS LEARNING.

• FRAME RISK MANAGEMENT TOOLS IN CONTINUOUS

IMPROVEMENT CYCLES, ENSURING THEY ADD

VALUE AND ARE APPLIED WITH QUALITY.

CONSISTENT AND MUTUAL TRUST CONTEXT• VALUES FOSTERED THROUGHOUT THE ORGANIZATION.

• LEADERSHIP MODEL FOR CURRENT CHALLENGES.

• COMMUNICATION, INTERDISCIPLINARY WORK AND MESSAGE ALIGNMENT.

• PROCESSES AND TECHNOLOGY FOR THE CONTINUOUS IMPROVEMENT

OF RISK MANAGEMENT.

ANGOLAORGANIZA-

TIONAL CAPACITY

RISK AWARE LEADERSHIP

PROCESSES TECHNOLOGY

•

•

•

•

•

•

•

•

•


VACA MUERTA

DURING 2019 WE COMPLETED THE EARLY PRODUCTION

PILOT PROJECT STARTED IN 2018 IN LA CALERA,

ARGENTINA. THIS PROJECT CONTEMPLATED THE

CONSTRUCTION OF 9 PRODUCTION WELLS, 1 DISPOSAL

WELL AND 1 MONITOR WELL, TOGETHER WITH THE

CONSTRUCTION OF PRODUCTION FACILITIES FOR

COLLECTION, SEPARATION AND DEHYDRATION OF THE

PRODUCED GAS, WITH CAPACITY OF 3MM M3/D, AND A

DISPATCH SYSTEM FOR GAS AND CONDENSATES,

COMPRISED OF PIPELINES AND TRANSPORT SYSTEM

TIE-IN POINTS.

PLUSPETROL’S COMMITMENT TO DEVELOP VACA MUERTA’S

UNCONVENTIONAL RESOURCES, IN LA CALERA, CONTINUED

THROUGHOUT THE YEAR WITH THE DRILLING OF 12

ADDITIONAL PRODUCTION WELLS, AND THE COMPLETION

OF 3 OF THEM. THE INITIAL ASSESSMENT OF THE

RESOURCES THUS FAR IS OPTIMISTIC IN REGARDS TO THE

QUALITY OF THE RESOURCE, IN VIEW OF A POTENTIAL

LARGE-SCALE DEVELOPMENT.

THE NEXT PHASE OF THE PROJECT, TO BE DEVELOPED IN

2020, CONTEMPLATES FURTHER CONSTRUCTION OF WELLS

IN THE BLOCK AND THE CAPACITY ENHANCEMENT OF THE

PRODUCTION AND SHIPPING FACILITIES.

CORPORATE STRATEGY

In a challenging context, it is essential to us to deeply

understand our assets and projects, and work on the

consolidation and analysis of our portfolio and

business plans. In 2019, the collaborative work

mechanisms that involve the whole organization in

the process were improved. The Long Term Plan

(LTP) was consolidated as the key component in the

management of Pluspetrol’s project and asset

portfolio. Then, consolidating the Action Plan allows

us to establish the goals for the following year, in line

with the LTP. In 2019, we integrated the Action Plan

goals with the objectives definition for employees

who work every day with this clear aim.

Long-term sustainability and growth require that we

guide Pluspetrol in a direction that creates value. To

do so, it becomes essential to envision the future

dynamics of the business in which we participate. In

2019, we contributed to that end, studying the main

trends of the energy industry, to shed light on the

business dynamics under which the company should

operate.

To sum up, during this year, we contributed tools

that guide fact-based quality discussions towards

high-level decision making in the company.

EXPLORATION STRATEGY

IN THE PUELÉN EXPLORATORY BLOCK, THE DOÑA

EDELMIRA X-1 WELL WAS COMPLETED IN

NOVEMBER, THROUGH STIMULATION BY

HYDRAULIC FRACTURING IN THE BASAL CYCLE

(EQUIVALENT TO THE LOMA MONTOSA

FORMATION), WHICH RESULTED IN PRODUCTION

OF WATER WITH TRACES OF HYDROCARBONS.

THE WELL, WHOSE FINAL DEPTH WAS 759

METERS IN THE PRECUYANO CYCLE, WAS

TEMPORARILY ABANDONED.

THE SECOND DRILLING CAMPAIGN IN THE SIERRA

DEL NEVADO BLOCK TOOK PLACE BETWEEN

JANUARY AND FEBRUARY, WITH THE

COMPLETION OF TWO WELLS, PLU.MDN.MYM.X-1

(MOCHO AND MALO), WITH A FINAL DEPTH OF

1,050 METERS IN THE BASE, AND PLU.MDN.BEC.X-1

(BAJO EL CARAPACHO X-1) WITH A FINAL DEPTH

OF 967 METERS IN THE BASE. THE

PETROPHYSICAL AND FOUND FLUIDS (NON-

MOBILE HEAVY CRUDE OIL) STUDIES SUPPORTED

THE DECISION TO RETURN THE AREA BY THE END

OF THE FIRST EXPLORATORY PERIOD (AUGUST

2019).

FOR THE UNCONVENTIONAL EXPLORATION OF

THE LOMA JARILLOSA EAST BLOCK, THE LJE-1020

(H) WELL SITE WAS BUILT (LOMA JARILLOSA

EAST) WITH THE VACA MUERTA FORMATION AS

AN OBJECTIVE, WHICH WILL HAVE 2,000 METERS

OF HORIZONTAL EXTENSION AT THE BASE LEVEL

(“KITCHEN”) OF SUCH UNIT. THE PLAN IS TO

CARRY OUT AN EXTENDED TRIAL TO KNOW THE

PRODUCTION POTENTIAL OF THE WELL, IN

WHICH PLUSPETROL WILL APPLY FOR THE FIRST

TIME AN INTENSIVE HYDRAULIC FRACTURING

METHOD KNOWN AS HIGH DENSITY COMPLETION

(HDC).

SETUP MOVED FORWARD ON THE DRILLING OF

THE FEIJAO-1 EXPLORATORY WELL, IN THE

CABINDA AREA. MANAGEMENT MAINLY

INVOLVED THE ENVIRONMENTAL LICENSING, THE

AGREEMENT ON THE SELECTED LOCATION, THE

PROCUREMENT OF THE DRILLING TEAM AND THE

WELL SERVICES, AND THE APPOINTMENT OF

HUMAN RESOURCES TO EXECUTE THE PROJECT.

DRILLING START WAS SCHEDULED FOR EARLY

2020.

IN OCTOBER 2019, THE CONSORTIUM COMPOSED

BY TULLOW (40%, OPERATOR), PLUSPETROL

(33%) AND WINTERSHALL DEA (27%) WAS

GRANTED EXPLORATION OF OFFSHORE BLOCKS

MLO-114 AND MLO-119, IN THE MALVINAS BASIN,

FOR AN INITIAL PERIOD OF 4 YEARS. THE

COMMITTED WORKS CORRESPOND MAINLY TO

THE ACQUISITION OF 10,490 KM2 OF 3D SEISMIC

SURVEY IN BOTH BLOCKS, WHOSE SURVEY

BEGAN IN DECEMBER 2019.

TWO INTERVENTIONS WERE PERFORMED

IN THE TCB-X1001 ST (TACOBO) WELL, WITH THE

PURPOSE TO REGISTER PRESSURES, INDUCE

NATURAL FLOWING TO MEASURE FLOW AND TO

BE ABLE TO SAMPLE FLUIDS IN THE SANTA ROSA

FORMATION. BY THE END OF THE YEAR, AND

WITH NO ENCOURAGING RESULTS, THE WELL

AWAITED A FINAL DECISION ON ITS FUTURE.

THROUGH A TECHNICAL EVALUATION

AGREEMENT (TEA), THE EXPLORATORY

POTENTIAL OF THE HUAYCO BLOCK WAS

ASSESSED. THE FINAL STUDY WAS SUBMITTED

TO YPFB’S EXPLORATION MANAGEMENT, AS

STABLISHED IN THE CONTRACT.

DURING MARCH, THE 2D SEISMIC ACQUISITION

ACTIVITIES WERE RESUMED IN THE SOUTH-WEST

SECTOR OF THE PUT-12. (PUTUMAYO) BLOCK,

WITH A TOTAL RECORD OF 80 KM. AMONG OTHER

ACTIVITIES, PLUSPETROL RE-ASSESSED THE

BLOCK AND UPDATED THE EXPLORATORY

PROJECTS PORTFOLIO.

IN BLOCK 108 OF THE ENE BASIN, THE DRILLING

OF THE BSE-1X (BOCA SATIPO EAST) WELL WAS

COMPLETED IN FEBRUARY, WITH A FINAL DEPTH

OF 3,020 METERS. EVIDENCE WAS FOUND OF

HYDROCARBON IN SANDSTONE FROM THE

CUSHABATAY FORMATION, ONE OF THE

CRETACEOUS OBJECTIVES, INDICATING THE

PRESENCE OF AN ACTIVE PETROLEUM SYSTEM IN

A COMPLEX STRUCTURAL FRAMEWORK.

A MAGNETOTELLURIC ACQUISITION WAS

PERFORMED THROUGH 439 STATIONS

DISTRIBUTED IN 23 LINES IN THE CENTRAL AND

SOUTH SECTORS OF THE BLOCK, WITH RESULTS

CURRENTLY UNDER ANALYSIS. TWO SURFACE

GEOLOGY CAMPAIGNS WERE ALSO PERFORMED,

IMPROVING THE SURFACE CONTROL AND

CONTRIBUTING TO THE GEOLOGICAL MODEL

UPDATE.

IN BLOCKS 88 AND 56, A STUDY WAS PERFORMED

ON THE EXPLORATORY POTENTIAL OF DEEPER

OBJECTIVES, AS IN THE PALEOZOIC FORMATIONS

OF COPACABANA, TARMA AND AMBO, LOCATED

BELOW THE PRODUCTIVE AREA OF THE CAMISEA

SITES.

DURING 2019, AS PART OF THE COMMITMENT OF

THE CURRENT EXPLORATION STAGE, WHICH

ENDS IN MARCH 2021, COORDINATES WERE

DEFINED FOR THE GVN-1 (GOLIATHBERG/

VOLTZBERG NORTH) WELL, IN BLOCK 47,

LOCATED IN DEEP WATERS OF THE SURINAME/

GUYANA BASIN. THE PROSPECT CORRESPONDS

TO A STRATIGRAPHIC TRAP WITH OBJECTIVE IN

CRETACEOUS SANDSTONE AND AVERAGE

RECOVERABLE RESOURCES GREATER THAN 500

MMBO.

ANGOLABOLIVIA

ANGOLAANGOLA

ANGOLACOLOMBIA

ANGOLAPERU

ANGOLASURINAMANGOLAARGENTINA


THE NATIONALSOCIETY OF MINING,

PETROLEUM AND ENERGY (SNMPE)GRANTED US THE 2019

SUSTAINABLE DEVELOPMENTAWARD, IN THE LOCAL MANAGEMENT

CATEGORY, FOR THE PROJECT “LEARNING FOR GROWING

PROGRAM - PISCO”.

12 • Pluspetrol

AWARDS AND RECOGNITIONSASSOCIATIONSGRI 102-12, 102-13

As part of our commitment with sustainable

performance and the adoption of the industry’s best

practices, we participate in different national and

international organizations, at a corporate level, as

well as by country:

Americas Society and Council of the Americas

(AS/COA)

Regional Association of Oil, Gas and Biofuels Sector

Companies in Latin America and the Caribbean

(ARPEL)

Center for Chemical Process Safety (CCPS)

Argentinean Entrepreneurial Council for Sustainable

Development (CEADS)

Extractive Industries Transparency Initiative (EITI)

Argentine Institute of Oil and Gas (IAPG)

International Association of Oil & Gas Producers

(IOGP)

National Association of Corrosion Engineers (NACE)

Patronato Perú 2021

National Society of Mining, Oil and Energy (SNMPE)

Society of Petroleum Engineers (SPE)

Likewise, in each country, we participate in different

chambers of commerce and other types of initiatives.

•

•

•

•

•

•

•

•

•

•

•

FOR SECONDYEAR IN A ROW,

WE WERE GRANTED THESOCIALLY RESPONSIBLE COMPANYAWARD BY PERÚ 2021 AND CEMEFI

(MEXICAN PHILANTHROPY CENTER),FOR COMPANIES THAT FOSTER THE

INCLUSION OF SUSTAINABILITYAS A MAIN PILLAR OFTHEIR BUSINESSES.

SUSTAINABILITY


2019 SUSTAINABLEDEVELOPMENT AWARD, PERU

2019 SOCIALLY RESPONSIBLECOMPANY AWARD, PERU


ECONOMIC, ENVIRONMENTAL

AND SOCIAL SUSTAINABILITY

RELATIONSHIP WITH COMMUNITIES

SAFE ANDRESPONSIBLEOPERATION

ETHICAL AND TRANSPARENT BEHAVIOR

CONTINUOUS IMPROVEMENT

MEASUREMENTAND REPORTING

RISKMANAGEMENT

ENGAGEMENT WITH STAKEHOLDERS

14 • Pluspetrol

AT PLUSPETROL, WE ARE STRONGLY COMMITTED

TO SUSTAINABILITY, SEEKING CONTINUOUS

IMPROVEMENT IN THE DEVELOPMENT OF OUR

ACTIVITIES, WITH THE PURPOSE TO ACHIEVE AN

EXCELLENCE MANAGEMENT THAT WILL DRIVE US

TO SUSTAINABLE GROWTH THROUGH A

RESPONSIBLE CORPORATE CONDUCT.

THIS PATH REQUIRES A LONG-TERM VISION AND

AN ETHICAL MANAGEMENT OF THE BUSINESS

THAT ALLOWS US, NOT ONLY TO BE IN HARMONY

WITH THE ENVIRONMENTAL AND SOCIAL

SURROUNDINGS, BUT ALSO TO CONTRIBUTE TO

THE PROGRESS OF THE COMMUNITIES WE HAVE

RELATIONS WITH, AND TO THE DEVELOPMENT OF

ALL PEOPLE AND STAKEHOLDERS CONNECTED

TO OUR COMPANY, CREATING SHARED VALUE.

DURING THIS PERIOD, WE HAVE REINFORCED THE

FOUNDATIONS OF OUR COMMITMENT CREATING

THE SUSTAINABILITY COMMITTEE AND UPDATING

THE SUSTAINABILITY POLICY

SUSTAINABILITY IN MANAGEMENT

During 2019, we continued to work on consolidating

our path towards sustainable management, creating

the Sustainability Committee, whose function is to

advise the Executive Committee in regards to the

Company’s performance in matters of sustainability

and responsible corporate behavior, to monitor

compliance with the Sustainability Policy across

Company and to analyze the main trends in the

subject.

Likewise, in 2019, we reviewed our Corporate

Sustainability Policy, the highest hierarchy document

in the Company’s documental pyramid. This revision

allowed us to update the commitments and defined

pillars, incorporating our stakeholders’ expectations

and the trends of the Oil & Gas industry.

In line with this, we started a due diligence analysis on

Human Rights, in conformity with the United Nations

Guiding Principles on Business and Human Rights,

and we developed the Physical and Property Security

Standard, in line with the Voluntary Principles on

Security and Human Rights.

We acknowledge that a responsible management

aimed at sustainable development is a dynamic

process that should be sufficiently flexible to address

the needs of the context and capitalize on

opportunities that arise, to optimize the creation of

shared value. In this challenge that we take on as a

Company, following our corporate values,

sustainability is the path we chose to grow.

MATERIALITY ANALYSISGRI 102-46; 201-47

Materiality is the principle that allows us to define the

relevant topics for a sustainability-oriented Company.

Through an inquiry process, we selected and

prioritized the topics that reflect the economic,

environmental and social effects on the Company,

and that are relevant for our stakeholders. This

process allowed us to assess how our activities affect

these groups, as well as the sustainability risks and

opportunities they create.

The relevant topics for the 2019 period are addressed

in this Sustainability Report, aiming to satisfy the

stakeholders and the Company’s need for

information.

In this framework, we strive to maintain an internal

and external inquiry process, through which we

validate the relevant topics every year. For this

Sustainability Report, we performed an internal

review with the corporate areas to adapt the content

of the Report to the Company’s management, and we

inquired the external stakeholders to prioritize and

validate such topics. These inquiries were performed

via on-line surveys, in which partners, employees,

suppliers and contractors participated.

Based on our stakeholders’ opinions and the analysis

of the corporate areas, we define the material topics

that reflect the effect of the Company in the

economic, social and environmental surroundings.

Coverage of such analysis takes into account the

effects along the value chain, including Pluspetrol’s

activities, framed by the principles of our

Sustainability Policy.

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

Aware of our stakeholders expectations for our

activities, we foster the creation and maintenance of

trust relationships with our employees, partners,

contractors, suppliers, the communities from the

areas in which we operate, and other stakeholders,

creating shared value and favoring their quality of life

and sustainable development.

They represent an essential asset that promotes business growth, delivering productivity, excellence and leadership.

They contribute capital and industry knowledge. They help collaborate with manageable resources, and planning short, medium and long-term Company operability.

They represent a valuable component of the value chain for the Company’s growth.

They are the strategic part of the value chain. Their capabilities are key for the execution of operations in different countries.

They set the market conditions in which the Company operates. Likewise, they regulate sensitive topics of the industry, such as biodiversity, water management, emissions, and wastes, among others.

We seek to jointly enhance development opportunities and minimize negative aspects.

They share knowledge about trends and innovations in the industry. They influence the market and have an effect on the Company’s corporate image.

Employees

Partners

Customers

Suppliers and Contractors

Governmententities

Local Communities and NGOs

Mass Media and opinion leaders

ETHICAL AND TRANSPARENT BEHAVIOR ANTI-CORRUPTION

RELATIONSHIP WITHTHE COMMUNITIES RELATIONSHIP WITH LOCAL COMMUNITIES INDIGENOUS PEOPLES RIGHTS

ECONOMIC, ENVIRONMENTAL AND SOCIAL SUSTAINABILITY RESERVES LOCAL SUPPLIERS PROCUREMENT ECONOMIC PERFORMANCEECONOMIC IMPACTS ON THE COMMUNITYEMPLOYMENT PRACTICESTRAINING AND DEVELOPMENT

SAFE ANDRESPONSIBLE OPERATION ENVIRONMENTALCOMPLIANCEEFFLUENTS AND WASTESWATER MANAGEMENT EMISSIONS BIODIVERSITYASSET INTEGRITY ANDPROCESSES SAFETYPREPAREDNESS PLANSBEFORE EMERGENCIESOCCUPATIONAL HEALTHAND SAFETY

••

••

••

•

•

•••••

•

•

•

•

SUSTAINABILITYPOLICY

PRINCIPLES


SUSTAINABLE DEVELOPMENT GOALS (SDG)

At Pluspetrol, we base our operations in behaviors of

a sustainable nature, and we commit ourselves,

through different initiatives, to the growth of the

countries in which we perform our activities.

Companies being part of society, we are aware that

we have an important role in the implementation of

SDGs, and thus, we contribute to the achievement of

the 2030 Agenda.

Due to the nature of our business, our greatest

contribution is reflected by the energy we produce,

the creation of employment and the economic value,

the work in safe conditions, the social investment in

SUPPLY CHAIN

the communities we are related with, and the rational

management of resources.

Based on the principles of our Sustainability Policy,

and supported by the actions we performed during

the period, we started working on the identification

of the SDGs on which we have a greater impact. This

analysis will be completed the coming year, also

identifying the contributions to the SDG goals and

indicators to be measured.

.

OUTSTANDING ACTIONS 2019MAIN ASSOCIATED SDG POLICY PRINCIPLES

CONT

INUO

US I

MPR

OVEM

ENT

ECONOMIC, ENVIRONMENTAL AND SOCIAL SUSTAINABILITY

ETHICAL AND TRANSPARENT BEHAVIOR

MEASUREMENTAND REPORTING

RISK MANAGEMENT

SAFE AND RESPONSIBLE OPERATION

RELATIONSHIP WITHTHE COMMUNITIES

ENGAGEMENT OF STAKEHOLDERS

1890 direct jobs created.Management of purchases and procurement with 2115 suppliers. Over 87% of local purchases.Development of unconventional resources in Vaca Muerta. 72% gas in the year’s total production.Consolidation of the Growing Together platform. Support for production ventures in local communities.

Approval of Anti-corruption and Anti-Bribery Policy.Development of the Code of Conduct for third partiesApproval of the Physical and Property Security Standard, in line with the Voluntary

Sustainability Report Publication.GHG Emissions Inventory.

Programs for asset integrity and preventive maintenance in all our operations.Process Safety Management (PSM) Framework.Human Rights Due Diligence

Contractor forum.Social Investment Program Alliances.Involvement in industry and sustainability associations

Biodiversity Monitoring Program (BMP). Socio-environmental assessments.Waste management - 3R Program.Monitoring of superficial and underground water resources. Energy efficiency programs.

Social investment programs for education and health care. Community development programs for access to energy, fresh water and infrastructure investment. Grievances and complaints mechanism.

• • •

• •

• ••

• ••••

• •

•

• • • • • • •

•

• •


23.6%PURCHASE OF MATERIALS

76.4%SERVICE PROCUREMENT

89.8%OF PURCHASES FROM LOCAL SUPPLIERS







ANGOLAPERUANGOLAARGENTINA ANGOLABOLIVIA

DUE TO THE SPECIFICITIES OF OUR

MANAGEMENT MODEL, CONTRACTORS AND

SUPPLIERS ARE KEY PLAYERS FOR THE

ACHIEVEMENT OF OUR GOALS. CREATING SOLID

RELATIONSHIPS THAT SUPPORT A JOINT WORK,

PRIORITIZING AN EFFICIENT AND RESPONSIBLE

MANAGEMENT OF MATERIALS, EQUIPMENT AND

WORK AREAS, AS WELL AS PERSONAL SAFETY

ARE KEY ASPECTS IN OUR SUPPLY CHAIN

MANAGEMENT.

IN ORDER TO STRENGTHEN OUR RELATIONSHIP

WITH CONTRACTORS AND TO MAINTAIN

CONTINUITY WITH 2018, WE HAVE DEVELOPED

THE SECOND GLOBAL CONTRACTORS FORUM.

SUPPLY STRUCTUREGRI 102-9, 102-10

Pluspetrol’s supply chain is related to supply,

logistics operations, material management and

service procurement. The Company’s main

purchasing units are located in Argentina and Peru,

in line with the complex characteristics and scale of

the operations performed in those countries.

In 2019, we conducted operations with over 2115

suppliers and contractors, out of which 47%

correspond to Argentina, 38% to Peru, 8% to Bolivia

and 6% to Angola.

58% of the suppliers are related to service

procurement, and 42%, to the purchase of materials.

In terms of expenditure proportion, 84% of the

purchases correspond to service procurement.

To manage the supply chain we have the Supplies,

Logistics and Warehouse areas, which allow us to

satisfy the needs and expectations of the

organization, adding value and working

collaboratively in the search for new solutions for the

business.

7. Program 6A, inspired by Japanese methodology 5S, seeks to continuously maintain classification, order and cleanliness of materials and warehouses, via a standardization regulation and discipline.

CLASSIFYING

ORGANIZING

CLEANING

SAFETY

STANDARDIZING

•

•

LOCAL PURCHASESGRI 204-1

In the framework of our Sustainability Policy, we aim

our business to the sustainability of the Company

and the environments in which we operate,

stimulating purchases and procurement with local

suppliers, fostering their development and tailoring

their services to the needs of our activities.

We strive to maintain the requirements for the

technical and commercial conditions of the purchase

and procurement process, adapting ourselves to the

operational context and the conditions in the local

markets in which we work.

We foster the development of local suppliers in the

area of influence of our operations through initiatives

that seek to directly and indirectly influence local

capabilities. The creation of installed capacity in the

regions in which we develop our activities favors the

development of local economies and the sustainable

growth of the Company. In turn, this allows us to

reduce operational costs and comply with the

dispositions regarding “Local Purchasing”,

established by national, provincial and municipal laws

and/or contractual obligations that pertain to our

purchases and procurement.

By “local”, we mean the operation’s direct and

indirect area of influence.

These are the acquisitions registered in the different

operation sites in 2019, which correspond to local

suppliers:

IDENTIFYINGWHAT IS NECESSARY

AND WHAT IS NOT

ADEQUATELYDISPOSING OF

UNNECESSARY THINGS

ESTABLISHINGFACILITIES’

CLEANING PROGRAM

COMPLYINGWITH SAFETY

REGULATIONS AND MMAA

ESTABLISHINGPROCEDURES AND RESPONSIBILITIES

DISCIPLINE

WORK HABIT WITH RESPECT FOR PROCEDURES AND CONTINUOUS IMPROVEMENT

TOTAL AND PERCENTAGE OF SUPPLIERS PER TYPE OF PROCUREMENT AND PURCHASE

2018 2019

• Service procurements • Material purchases

1,818

37%

2,115

63%

42%

58%




Material managementSince 2018, Pluspetrol has a Material Management

Policy, aimed at optimizing work capital and

minimizing wastes, while guaranteeing a

comprehensive vision of the management process,

in the search of value along the whole supply chain.

To give continuity to this process, during 2019,

the 6A7 Program continued to be implemented,

with the purpose to set guidelines that allow

building a culture based on management excellence,

maintaining continuity in classification, order,

cleanliness and safety, via standardization

and discipline, pursuing the efficient management

of materials, equipment and work areas.

This methodology seeks the identification of

inefficiencies, the creation of order and space

leveraging in facilities, reducing the risk of accidents,

the early proposal of facility improvements, and the

focus of resources on aspects that are useful to the

process.

Complementarily, contractors were integrated to the

implementation of this program, with monitoring and

assessment to allow for a follow-up and to maintain

the program’s transparency, quality and safety.

90 contractor employees were trained in the

methodology, and 65 checklist were performed,

which allowed to identify 250 findings.

ANGOLAANGOLA


Pisco – former cable storage area

Malvinas - remaining spares warehouse project

BEFORE AFTER

BEFORE AFTER

Contractor managementA large number of the activities that make up our

production system are developed by contractors,

which has a direct impact on the Company’s

management and performance. For that reason, we

seek to work jointly on the definition and

implementation of corporate guidelines associated to

safety, environment, healthcare and community

affairs management, to develop a responsible

management.

Our commitment with sustainability spreads across

the value chain ensuring suppliers and contractors

adhere to the principles established in our

Sustainability Policy and make the Company’s values

their own.

Another important aspect of managing the

contractors that work in our operations is the

generation of constructive dialog and collaborative

workspaces. In 2019, the second Global Contractors

Forum took place, with the purpose of aligning and

strengthening Pluspetrol’s EHS and risk management,

as well as the main contractors management.

Some of the main topics addressed in the Forum

were: organizational culture, leadership, risk

management and process safety, discipline and

operational excellence, and leaders and employees’

competences.

To reinforce this purpose, we wanted to replicate

these encounters in the rest of the country, focusing

on the planning and follow-up of the agreements

LOGISTICS CONTRACTORS WORKSHOP. PERU

The Logistic team carried out two workshops with

the terrestrial, fluvial and aerial transport contractor

companies with the purpose of deepening the

concepts for a safe and sustainable logistics

operation, creating a joint commitment plan.

Both workshops were attended by Pluspetrol’s

management teams from Community Affairs,

Compliance, Logistics, Environment, Operations,

Safety and Supplies, and by the leaders of the main

transport contractor companies.

These workshops focused on sharing safety statistics

from the internal and external logistics operations,

Pluspetrol’s Task Discontinuation and Sustainability

Policies, as well as on other key concepts in terms

of Compliance, and environmental and social

management.

In each session, a practical exercise about incident

investigation and continuous learning was

approached. The contractor companies presented

their best practices in terms of EHS and the

application of new technologies, finishing with a

workbench activity to create synergy and

commitments for a sustainable operation, such as

sharing the topics approached in this encounter with

all levels of each organization, among others.

Since 2018, we use the EHS Aspects standard in

contractor management. This standard, applied to

the selection, acquisition, use and monitoring of the

procured services, allows us to align the actions of

the contractors with the operation’s EHS

requirements and the Company’s performance

objectives, contributing to the implementation of

good practices in terms of EHS, and minimizing the

level of risk and/or impact on the operations.

THE FOLLOWING ARE

AMONG THE MENTIONED

STEPS OR CONTROLS:

RISK ANALYSIS.

COMPETENCES EVALUATION.

SAFETY AND INTEGRITY,

ENVIRONMENTAL, AND SOCIAL

CONTRACT REQUIREMENTS.

INSPECTIONS PREVIOUS TO

MOBILIZATION TO CONTRACT

EXECUTION SITE.

INSPECTIONS DURING

MOBILIZATION.

EHS ASPECTS ASSURANCE

DURING CONTRACT

EXECUTION.

•••

•

•

•

CONTROLES DE SEGURIDAD, MEDIO AMBIENTE,SALUD Y ASUNTOS COMUNITARIOS

achieved in the Global Forum, and we performed

active workshops to implement the actions in our

operations. In 2019, workshops took place in Malvinas

(Peru) and La Calera (Argentina), and a specific one

was held for logistics contractors in Peru.

AUDITS.

STATISTICS AND INDICATORS

REPORT.

INSPECTIONS DURING

DEMOBILIZATION.

PERFORMANCE EVALUATION.

••

•

•

CONTRACT CLOSINGPROCESS

CONTRACTEXECUTION

CONTRACT OPERATIONAL

START-UP

NEGOTIATION AND ALLOCATION

BIDEVALUATION

EXECUTION,PROCESS,

PROCUREMENT MANAGEMENT

IDENTIFICATIONOF NEEDS

OPERATIONAL PLANNING

Supplies aerial transport.


OUR PEOPLE:TALENT DEVELOPMENT

DIRECT EMPLOYEES PROFILE

Our operations require the

work of contractors. Due to

the characteristics of the

activity, we do not have

seasonal variations.

45% of employees in

Argentina are covered by

collective bargaining

agreements, and 31% in Peru.

Angola

EMPLOYEES BY WORK CONTRACT AND GEOGRAPHIC AREA

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

1,854

Argentina Bolivia U.S.A. Netherlands Peru Uruguay Pluspetrol

41%

26%

17%

16%

••

••

BETWEEN 5 AND 15 YEARS

LESS OR EQUAL

TO 2 YEARS

BETWEEN 2 OR 5 YEARS

MORE THAN 15 YEARS

EMPLOYEES BY SENIORITY

EMPLOYEES BY AGE

71%

17%

12%

•••

31 TO 50 YEARS OLD

MAYOR O IGUAL A 51 AÑOS

AGED 51 OR OLDER

EMPLOYEES BY GENDER

79%

21%

••

MEN

WOMEN

EMPLOYEESGRI 102-8, 102-41

IN 2019, WE CONTINUED DOWN THE

CONSOLIDATION PATH OF THE HUMAN CAPITAL

MANAGEMENT PROCESSES, IN LINE WITH THE

COMPANY’S VISION OF EXCELLENCE, SEEKING

TO DEVELOP A SUSTAINABLE VIEW THAT,

AMONG OTHER THINGS, WOULD ENSURE HAVING

THE PROPER TALENT IN THE PRECISE MOMENT

TO ACHIEVE THE BUSINESS GOALS AND TO BE

PREPARED FOR THE COMING CHALLENGES.

WE KEPT OUR FOCUS ON MOVING FORWARD

WITH THE DEFINITION OF OUR PROCESSES AND

THEIR MANAGEMENT IMPLEMENTATION VIA THE

GROWING TOGETHER PLATFORM. THIS ALLOWS

US TO HAVE CONSISTENT, RELIABLE AND TIMELY

(JUST IN TIME) INFORMATION OF THE TALENT

MANAGEMENT PROCESSES AT A GLOBAL LEVEL,

IN THE PATH TO INTEGRATION; AND WE

COMPLEMENTED THE PLATFORM WITH THE

STAFFING (INTERNAL AND EXTERNAL) AND

LEARNING PROCESSES.

EMPLOYEES BY YEAR AND GENDER

41

816

54 1

839

97

5 23 0 0 0

1,500

1,000

500

0

DIRECTCOLLABORATORS1,890

• MEN • WOMEN

2018 2019

1,405

370

1,492

398

8 0 366• PERMANENT EMPLOYEES • TEMPORARY EMPLOYEES


EMPLOYMENTGRI 401-1

LEARNING AND DEVELOPMENTGRI 404-1, 404-2, 404-3

PERFORMANCE MANAGEMENT

During 2019, we continued consolidating the

Performance Management Process (PMP). This

cyclical process is leveraged by the quality of

leadership, reflected on the constructive dialog

spaces between leaders and employees, and by the

view of the multiple People Development

Committees (PDC). The whole process is

comprehensively managed within our Growing

Together platform. Our PMP aims to aligning

individual goals with the Company’s strategic goals.

In 2019, 1740 employees participated in this process,

taking into account that most of the business units

develop the performance management through the

Growing Together platform, achieving the key

milestones for goal setting and feedback, through

dialog between the leader and the collaborator.

VALUE PROPOSALGRI 401-2, 401-3

8. New hires and losses do not account for foreign assignments.9. The new hires rate represents the number of hires in the period over the number of employees by December 31, 2019. It does not include new hires in foreign assignments.10. The rate is calculated based on the number of employees that came back after finishing the parental leave. In the case of women, out of the 20 that took leave in 2019, 7 finished it and came back during the period and 11 will finish their leave in 2020. In the case of men, all of them finished their leave during the period.

Employees with parental leave in 2019

Return to work rate 10

50

100%

20

90%

MEN WOMEN

MATERNITY AND PATERNITY LEAVES

ROTACIÓN DE PERSONAL

134 LOSSES

7% TOTAL TURN OVER RATE

In Pluspetrol, every year, we maintain a

comprehensive and differentiated vision: we propose

benefits that tend to balance individual needs

according to organizational values and the

regulations of each country in which we operate.

The following benefits serve as example: collective

life insurance, work travel health coverage, nursery,

extended maternity leave, medical coverage during

extended maternity leave, gifts and

acknowledgments for special dates, personal loans,

special leave days for personal purposes.

277 NEW HIRES8

15% HIRING RATE9

NEW HIRES BY GENDER

78%

22%

••

MEN

WOMEN

HIRES BY AGE

60%

32%

8%

•••

AGED 30 OR UNDER

31 TO 50 YEARS OLD

AGED 51 OR OLDER

Pluspetrol

HIRING RATE BY GEOGRAPHIC AREA

Angola

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0

17

20

0

Argentina Bolivia U.S.A. Netherlands Camisea,Peru

UruguayPPN,Peru

0 0

12

7

14

15

NUEVAS CONTRATACIONES

HIRING RATE BY YEAR

2018 2019

13

1516%

14%

12%

10%

8%

6%

4%

2%

0

TURNOVER RATE BY YEAR

2018 2019

10

7

LOSSES BY GENDER

77%

23%

••

MEN

WOMEN

LOSSES BY AGE

61%

27%

12%

•••

31 TO 50 YEARS OLD

AGED 51 OR OLDER

AGED 30 OR UNDER

TURNOVER RATE BY GEOGRAPHIC AREA

Angola

26%

24%

22%

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0

Argentina Bolivia U.S.A. Netherlands Peru Uruguay Pluspetrol

7

8

0 0

6

26

6

7


Total training hours provided to employees

Average training hours

32,223

22

5,500

14

MEN WOMEN

AVERAGE CLASSROOM TRAINING HOURS BY EMPLOYEE, BY GENDER

37,723

20

TOTAL

Total training hours provided to employees

Average training hours

8,706

23

CATEGORÍA A

AVERAGE CLASSROOM TRAINING HOURS BY EMPLOYEE, BY WORK CATEGORY

29,018

19

CATEGORÍA B

As part of a management that promotes a safe

working environment for our direct employees and

for the contractor companies’ personnel, every year,

we support proposals with a consistent view: the

development of a positive culture of health care and

healthy habits.

Under this vision, our healthcare management

is focused on prevention and medical assistance,

mainly in terms of occurrence of occupational

diseases or work accidents. This approach is

materialized through the different campaigns,

programs and activities for control, training and

prevention implemented throughout our operations.

Some of the recurring actions we develop every

year are those associated to nutrition and healthy

habits (including food, active lifestyle, and prevention

of hypertension and tobacco use). Additionally,

this global perspective is complemented by specific

actions that attest for this healthcare look in each

operation and in the offices, for instance, CPR

courses and specific vaccination campaigns.

Training in diseases, injuries, prevention, first aid, among others

Vaccination campaigns

Occupational medical exams, consultation and controls.

HEALTHCARE ACTIVITIES

1,605

556

2,069

BENEFICIARIES

Days lost due to absenteeism

Absenteeism Rate

5,896

1.43%

MEN

2,239

0.54%

WOMENABSENTEEISM

To reinforce the commitment with the development

of our human capital, during 2019, 14 employees had

the opportunity to refine their knowledge with

financial support for postgraduate courses, master’s

degrees and specializations.

Complementarily, and in line with the 70/20/10

perspective, 19 on the job trainings were performed,

including, for the fourth consecutive year, the Young

Trails program, in which young professionals are

trained in theoretical-practical tools to approach the

industry for the first time. The program had 13

participants –selected after a thorough process- who

took courses in Introduction to the Industry and

carried out extensive field experience. The program

added up to an approximate total of 13,104 hours of

training (512 hours in classroom + 224 hours in field

school + 80 hours in the development of the

integration final work + 6 months on the field).

GOOD PRACTICESAND LEARNING

In line with the comprehensive and transversal view

of the learning processes, in 2019, the contents of the

Code of Conduct and the good practices of the

Company were communicated in a proposal that

took into account different resources, such as:

on-site workshops and virtual trainings, plus

communication pieces and flyers. The support role of

the leaders in the different business units, as well as

that of the members of the Ethics Committee, was

key for the development of this initiative, which

allowed to reach the entire team with information

about the importance of Pluspetrol’s good practices.

To that end, 25 leaders were trained together with

the Human Resources team, in 10 trainers training

workshops. These leaders, in turn, trained 248

leaders, with a total of 21 workshops in all units.

Complementarily, an ad hoc course on Good

Practices and Compliance for all employees was

created in the e-learning catalog, containing the

required contents, reflections and practice exercises.LEARNING

Continuing with the 70/20/10 learning vision,

Pluspetrol seeks to open opportunities in real

projects and experiences that allow a practical

learning and, in turn, the strengthening of the

self-development vision.

As part of the Learning process re-engineering

strategy, in 2019, we worked on launching the

Learning Management System (LMS) module in

Growing Together, which allows us to incorporate

e-learning resources that give us the capability to

streamline the way to reach all our employees.

During 2019, 968 employees received a total of

37,723 on-site training hours, associated to different

competences required for the business. Some of the

approached core topics were, for instance, training in

contingency plans and crisis management, and

Compliance training.

PERFORMANCE ASSESSMENTS BY GENDER

PERFORMANCE ASSESSMENTSBY WORK CATEGORY

37,723 HOURS OFCLASSROOMTRAINING

13,104 HOURS OF YOUNG TRAILS PROGRAM TRAINING

ABSENTEEISM RATE PER YEAR

2018 2019

1.7

1.97

Employees that received a performance assessment during the year

% of evaluated employees

1,385

93%

355

89%

MEN WOMEN

Number of employees that received a performance assessment during the year

% of evaluated employees

378

100%

1,362

90%

CATEGORY A11 CATEGORY B

IN 2019, THE STAFFING PROCESS WAS INCLUDED IN THE GROWING TOGETHER PLATFORM. THIS WAY,WE INCORPORATE A PROCESS THAT ALLOWS TO ARTICULATE A UNIFORM LEADERSHIP VIEW TO ACHIEVE THE ADEQUATE BALANCE BETWEEN THE DEVELOPMENT OF INTERNAL TALENT AND THE INCORPORATIONOF MARKET TALENT. OUR STAFFING MODEL INCLUDES BOTH THE MANAGEMENT OF INTERNAL CAREER OPPORTUNITIES AND THE HIRING OF EXTERNAL PROFESSIONALS, IN ORDER TO ACHIEVE THE BUSINESS GOAL, BOOSTING OUR HUMAN CAPITAL.

HEALTHCARE

11. Category A includes the positions in charge of personnel.12. 10% structured learning, 20% learning with others, and 70% learning from experience.


COMMUNITYCONSIDERING THE HIGH DIVERSITY OF THE

GEOGRAPHICAL AND SOCIO-CULTURAL

CONTEXT OF OUR OPERATIONS, WE SEEK TO

CREATE BONDS THAT FAVOR HARMONY AND

RESPECT WITH NEIGHBORING COMMUNITIES,

FOCUSED ON COOPERATION, TRUST AND

LEARNING RELATIONSHIPS, THROUGH

COMMUNITY RELATIONSHIP PLANS THAT

INCLUDE SUSTAINABLE INITIATIVES AND

PROJECTS, TAILORED TO THE NEEDS OF THE

COMMUNITIES.

IN 2019, WE CARRIED OUT PROJECTS AND

INITIATIVES WITH THE COMMUNITIES LINKED TO

OUR OPERATIONS, WITH THE PURPOSE OF

STRENGTHENING LOCAL ECONOMIES, IMPROVING

HEALTH AND EDUCATION CONDITIONS, AND

CREATING CAPABILITIES THAT FOSTER

DEVELOPMENT.

AS WE SEEK TO ADAPT OURSELVES AND

INTERACT IN A RESPECTFUL MANNER WITH THE

SURROUNDINGS OF OUR ACTIVITIES, WE WORK

EVERY DAY ON THE RELATIONSHIP WITH THE

COMMUNITIES. DURING THE PERIOD, WE CARRIED

OUT OVER 200 MEETINGS, ASSEMBLIES AND

COMMUNICATIONS, REACHING MORE THAN 8400

PEOPLE.

SOCIAL INVESTMENTGRI 203-2, 411-1; 413-1, OG 9

We consider Social investment to be a key

component of our management, boosting the

community relationship plans of our assets. We

develop programs and initiatives that seek to reduce

economic, social and cultural gaps, contributing to

the development of the communities.

Our projects are developed on four main pillars:

education, health, community development and

institutional strengthening, striving to articulate

individual and community social capital in order to

guarantee the success and sustainability of the

projects.

We have social management guidelines for the

implementation of projects based on the

identification of stakeholders and the assessment of

the social situation in the area. We define projects

under mechanisms of participation and strengthening

of stakeholders’ relationships, stimulating local

involvement to ensure the sustainability of the

results, and articulating social investment plans with

different organizations and institutions.

On-the-field high profile multidisciplinary teams,

together with community organizations and

institutions, develop sustainable plans and projects,

aimed at boosting the local population’s skills and

capabilities, with medium and long-term economic

incentives, contributing to local and regional

development, always considering customs, cultures

and traditional values. The different areas of the

company get involved contributing their capabilities

according to the needs of each project and initiative.EDUCATIONINITIATIVES AIMED AT PROMOTING PERMANENCEOF KIDS AND YOUTHS IN SCHOOL, AND ATIMPROVING THE STUDENT’S LEARNING CONDITIONS, STRENGTHENING TEACHER TRAINING, INFRASTRUCTURE AND THE TECHNOLOGY AVAILABLE AT THE INSTITUTIONS. INSTITUTIONAL STRENGTHENING

STRENGTHENING AND ADMINISTRATION OF MANAGEMENT CAPABILITIES OF SOCIAL ORGANIZATIONS, INDIGENOUS GROUPS IN THEAREA OF INFLUENCE OF OUR OPERATIONS, WITHTHE OBJECTIVE OF REINFORCING THEIR ABILITIESAS VEHICLES FOR POSITIVE CHANGES IN THEIRAREAS OF ACTIVITY.

COMMUNITY DEVELOPMENTSUPPORT FOR SUSTAINABLE PRODUCTIVE ENTREPRENEURSHIPS (THROUGH THE PROVISION OF GOODS AND MATERIALS, TECHNICAL SUPPORT AND TRAINING) AND PROJECTS TO IMPROVE BASIC SERVICES INFRASTRUCTURE IN THE COMMUNITY.

HEALTHCAREIMPROVEMENTS IN COMMUNITY ACCESS TO HEALTHCARE, VIA PROJECTS THAT SUPPORT THE AVAILABLE PUBLIC SERVICES, AND THROUGH INITIATIVES THAT FACILITATE MEDICAL ATTENTION, INCLUDING MENTAL HEALTH, IN REMOTE AREAS, WITH LITTLE INFRASTRUCTURE OR PRESENCE OF HEALTH PROFESSIONALS.

28 • Pluspetrol


During 2019, USD 9,017,812 were destined13 to social

investment programs, developed in the countries in

which we operate: Angola, Argentina, Bolivia and

Peru.

Below, we mention some of the developed projects.

We continue to support productive ventures in the

areas of influence of our operations. In Neuquén, we

support occupational education workshops for

teenage students in conditions of social and

economic vulnerability. Likewise, together with the

Centro Pyme ADENEU and the Familia Foundation,

we bolstered the pig production genetic

enhancement via embryo transfer, optimizing the

quality of the meat and significantly improving its

sanitary quality. Additionally, we assist the

Agricultural Professional Training Center supporting

the development of production projects with

technological innovation for production of

vegetables and strawberries.

In terms of healthcare, we maintained the

implementation of the Community Healthcare Plan,

through the mobile medical unit and its team of

specialists in the Centenario area, and we expanded

its scope incorporating the town of Añelo. The

purpose of this program is to collaborate and assist

communities within the area of influence of

Pluspetrol’s operations with medical, pediatric and

ophthalmological services. In 2019, more than 4500

people were assisted via this program.

Regarding the education pillar, we contributed with

infrastructure improvements in the Añelo

kindergarten, in Neuquen, and in four schools in

Tartagal, Salta.

management, with the purpose of providing

specialized training to the local population. Together

with the operators in Vaca Muerta, Pluspetrol

participates financing the project and integrating the

Advisory Council. This Council, whose main goal is

the design and implementation of the educational

policies, ensuring involvement and consensus of the

social players, was officially launched on November

5, with the participation of provincial and local

authorities, and the rest of the operators.

Strengthening of Local Farmers: via an agreement

between the agricultural cooperative Los Pioneros,

Centro Pyme-ADENEU and the Familia Foundation,

we worked with the goal of enhancing pig

production, through the contribution of genetics,

advisory and technical follow-up.

“Libro abierto” Program: in cooperation with Añelo’s

Kindergarten N° 52 and the Leer Foundation, it is

aimed at stimulating reading among kids of initial

level. The program includes the creation of two

totally equipped reading spaces, teachers’ training

and working with the families to leverage the new

available resources.

Institutional strengthening: we created agreements

to equip the physical therapy unit at the Añelo

Hospital and the Volunteer Fire Brigade, in order to

improve the service level of two core organizations

for the local quality of life.

SOCIAL RESPONSIBILITY IN LA CALERA With the purpose of supporting the development of

the La Calera project, fostering sustainable initiatives

for local development, a social baseline was

performed, including the identification and mapping

of stakeholders in the direct and indirect area of

influence of this project.

This social baseline survey, which included fieldwork,

interviews with different players and lab work, was

carried out by a team of professionals with extensive

experience in the subject, and it allowed to identify

two main areas of influence of the project: the area

that corresponds to the site and the town of Añelo,

as the main associated urban center. The first area is

managed by the Community Affairs and the

Superficiaries areas, while the approach to the town

of Añelo was assigned to the Corporate Social

Responsibility (CSR) area.

Part of this work included surveying the expectations

of the stakeholders and, from that point on, defining

the main lines of action to structure CSR programs in

Añelo:

Strengthening of value chain

Enhancement of rural production

Reinforcement of local capabilities

Institutional / infrastructure strengthening

For each of these lines, projects were identified, to

be implemented in the medium and the long term,

with the following standing out, starting

implementation in 2019:

Añelo Institute of Professional and Technical

Education: created via a public-private mixed

13. In the 2018 Sustainability Report, a total amount of USD 4,214,459 was reported, as the investments in the Pisco projects were not included, investments which are included in this chart, both for 2018 and 2019.

In the Lower Urubamba, main area of influence of the

Camisea project, different community development

projects were carried out supported by four pillars:

education, healthcare, support for production

ventures, and infrastructure and institutional

strengthening.

Regarding the educational pillar, we prompted

different initiatives aimed at supporting over 2100

students of initial level, primary and secondary

school, delivering supplies and equipment, and

economic support to pay for studies and teachers’

training. Regarding higher education, we want to

highlight the Integrated Education Program (PIE)

through the Nopoki scholarships to support 38

young people from native communities to study

university courses in the specialties of Bilingual

Intercultural Education, Agricultural Engineering,

Management and Accounting. The students are

academically monitored by the Católica University,

Sapientiae office, in the Atalaya district.

At a healthcare level, pursuant to cooperation

agreements with the Healthcare Regionals

Departments, we collaborated with the management

of emergency evacuations to Lima, accompanying

the patients along their care until their return to the

community, we provided economical support to the

Sepahua Dominican Mission to strengthen service

provision at a local level, and we financed water and

sanitation projects for the communities.

We performed nine institutional strengthening

agreements with indigenous organizations to

collaborate with their administration and

management capabilities, with the purpose of

reinforcing their leadership skills and social programs

management, originating from the regional and/or

central government for the support of their base

communities.

Regarding production ventures, we maintained the

technical-financial support for the Cocoa Crop

Enhancement Project with the Kirigueti community,

in which 28 families participated, achieving the

installation of 14 hectares of crops and recovering

other 3.5 hectares with no harm to the forest.

In Bolivia, infrastructure investment projects were

develop for the acquisition of fresh water, and the

construction of educational centers, community

meeting halls and medical attention centers, as well

as contributions for livestock farming projects.

In Neuquen, we continued to implement the Esto es

Ritmo Program, which uses dancing to foster

freedom of speech and thekids and teenagers’ right

to actively participate in cultural lif.

During the period, other contributions were carried

out, like the delivery of elements, equipment and fuel

to firefighters, hospitals and health centers in the

area of influence, as well as the delivery of foods and

supplies to organizations that provide food aid.

We worked with the Campo Maripe Mapuche

indigenous community, associated with the La Calera

site, in an alfalfa production project performing soil

moving tasks, constructing water channels, and

preparing and sowing 20 hectares. In the Ramos site,

we maintained our support to the Wichi indigenous

community via the contribution of tools, supplies

and technical assistance for community gardens.

SOCIAL INVESTMENT PER AREA IN USD

Education

2,202,196

1,681,148••

2018

2019

Healthcare

781,617

1,222,475

Institutional strengthening

1,014,603

1,890,922

Community development

4,147,313

4,032,213

Other

872,083

938,326

ANGOLABOLIVIA

ANGOLACAMISEA,PERU

ANGOLAARGENTINA

••• •


In Pisco, based on the social investment strategic

plan developed by an independent consultant, we

continued to implement professional training

projects for managers and teachers of initial

education and primary school, and projects with

secondary level institutions to foster learning

improvements, digital education and education for

school technical work via teacher reinforcement and

the provision of equipment and infrastructure. In that

regard, at secondary level, 12 computer rooms and 6

occupational learning centers were equipped, 96,242

educational materials were delivered, and 600

teachers were trained and 180 were certified.

Likewise, 5500 students were certified by the

National Engineering University, thus improving their

productivity and access to the work market.

We participated in a sustainable environmental

education initiative to ensure schools would

incorporate to their curriculum the use of

environmental management technology, which

include greenhouses that allow them to produce

their own food.

In the context of the bicentennial of the

Independence of Peru, we signed an agreement with

the Ministry of Culture to rebuild the house where

General San Martín stayed in Pisco, and which

eventually became the headquarters of the

Liberation Expedition, in order to adapt its facilities

with cultural and museological purposes.

At a healthcare level, we supported the creation of

the Pisco Community Mental Health Center with the

construction of the necessary infrastructure, facilities

and equipment. We also contributed to the

improvement of the drinking water service, through

the construction of infrastructure.

Likewise, we continued to implement the Pisco

Emprendedor project, to strengthen the business,

technical, productive and commercial management

capabilities of 300 young people with on-going

businesses in the Pisco province.

We celebrated financial support and technical

collaboration agreements with 24 mariculture

farmers associations from Pisco, with the purpose of

improving the production and standard of living of

the families linked to the activity.

DIALOGUE WITH LOCAL COMMUNITIESGRI 411-1; 413-1; OG 9, 10, 11 Y 12

COMMUNICATION AND CONSULTATION MEETINGS

At Pluspetrol, we consider that the relationship with

the communities is a key tool for the development of

our activities, which is why the dialog and exchange

with the local population are an essential part of our

community approach.

Communicating and interacting with the communities

give us a broad and intercultural view that helps us

better understand the functioning of our

surroundings and its interaction with our activities.

Constant and close communication also allows us to

identify risks in the environment and share the

strategies the company designs to address them with

the local communities, alerting, educating and

minimizing potential impacts on the communities.

During 2019, different communication and

consultation meetings took place with the members

of the communities, including information workshops

about the operation’s activities and new projects,

awareness workshops about safety, environment,

production and social investment, and meetings

aimed at surveying the needs of the communities and

coordinating aid projects.

The purpose of the exchange and consultation

meetings is to prevent potential negative impacts

associated to our activities and which may affect

interests or the social dynamic of the nearby

communities. In turn, they strive to identify

collaboration opportunities while boosting positive

impacts.

After 3 years of implementation, the “Aprender para

Crecer” Project ended in December 2019, following

the purpose of contributing to the improvement of

teaching and learning in the areas of Communication

and Math, in 29 initial and primary level educational

institutions in the province of Pisco.

Close to 8000 students received learning benefits

thanks to 263 teachers being trained, school

principals/directors strengthening their capabilities

and their parents developing their skills,

accompanying them through the educational

process.

The Project, fostered by Pluspetrol and the Camisea

Consortium, was implemented in collaboration with

the Association of Entrepreneurs for Education, the

Cayetano Heredia University, the Ica Regional

Government and Ica’s Regional Directorate of

Education.

Halfway through the execution of the project, an

independent institution (GRADE) carried out a

performance assessment: at the teachers level, over

90% valued the intervention’s training strategies as

very positive, while 72% of them reached a

“satisfactory” level in the Communication and Math

evaluations. According to the Ministry of Education’s

annual test, in two years, the students improved by

16.44 points their grade in Math (in comparison with

the 3 points of the urban coast schools), and by 7.3

points in reading (in comparison to a general drop in

scores, in the urban coast).

As part of the relationship plan, different social

support programs for the communities were

developed, as well as healthcare programs, technical

studies financing programs, fuel delivery agreements,

school packages and support for furniture and

teachers and students transportation.

At the infrastructure level, we highlight the

construction of a footbridge and the support to

initiatives of improvement to the electrification

system in several communities. Likewise, financial

assistance was granted to production ventures,

including the construction of family fish farms and a

small-animals breeding project.

ANGOLA

ARGENTINA

BOLIVIA

CAMISEA, PERU

PPN, PERU

TOTAL

21

33

10

155

8

227

170

99

66

2,627

5,514

8,476

COMMUNICATION AND CONSULTATION

NUMBER OF MEETINGS

NUMBER OR ATTENDEES

GRIEVANCES AND COMPLAINTS MECHANISM

We have a grievances and complaints mechanism,

through which we proactively and timely manage the

concerns of the local population, public or private

institutions, indigenous communities and other

stakeholders located in the area of influence of our

operations, and which allows us to quickly solve the

conflicts that may arise and foster improvement

opportunities in the company’s social management.

This system functions in all our business units,

adjusted to the local specificities.

Through this system, we receive, record and classify

grievances and complaints, according to their

urgency and impact. Resolution times may vary

depending on the level of complexity of the issue

received and on the players involved. In 2019, 29

grievances and complaints were received, and they

were processed along with 13 pending of resolution

from 2018. The period closed with 36 solved

grievances and complaints, while 6 remained in

process of resolution.

In Bolivia, no grievances or complaints were receive

in the reported period.

14. 2 corresponding to 2018 and 1 to 2017.

ANGOLA

ARGENTINA

BOLIVIA

CAMISEA, PERU

PPN, PERU

TOTAL

0

0

0

10

314

13

1

6

0

16

6

29

GRIEVANCES AND COMPLAINTS

PENDING2018

RECEIVED

1

0

0

5

0

6

INPROCESS

0

6

0

21

9

36

CLOSED

”APRENDER PARA CRECER” – 2019 SUSTAINABLE DEVELOPMENT AWARD,FROM THE NATIONAL SOCIETY OF MINING, PETROLEUM AND ENERGY, PERU

AWARD

ANGOLABLOCK 8,PERU


INDIGENOUSCOMMUNITIES

Pluspetrol’s operations are usually developed in

indigenous communities’ territories, and it is of great

interest to us to preserve their habitat and culture.

That is why our company has a strategy that

prioritizes the protection of the indigenous peoples’

rights, respecting traditional organizational

structures, socio-cultural values, territorial rights and

their decision-making processes and times.

We work constantly in a collaborative way, seeking to

contribute to the sustainable development of these

communities, creating value through a responsible

intercultural management.

Seeking to boost the intercultural approach of our

projects, we stimulate the incorporation of members

of the indigenous communities to our community

relationship teams.

ENVIRONMENT

PERU- LEGENDARY LANGUAGES

In the International Year of Indigenous

Languages, declared by the United

Nations to be in 2019, the “Legendary

Languages” project was developed

through strategic alliances with

important media outlets, supporting the

re-appreciation of the native languages of

the Lower Urubamba with communication

campaigns and the launch of the book

“El libro de nuestra selva”, a collection of

4 bilingual stories for children.

Matsiguenka – Spanish and Yine –

Spanish.

The goal of the project was to support

the re-appreciation of the native

languages of these two cultures,

Matsiguenka and Yine, showcasing them

as cultural heritage of Peru, recovering

their oral narrations and compiling them

into a collection of stories for children.

Likewise, to contribute a resource to

strengthen the sense of belonging and

pride in new and future generations of the

peoples that inhabit the Cusco jungle

area, with the purpose to helping them

maintain the legacy of their ancestors.

This initiative is in the framework of the

on-going program “Re-appreciation of

Cusco’s Amazonian culture”, which is

being implemented since 2015, and

comprises a series of actions aimed at

strengthening and re-appreciating

costumes, cultural traditions, as well as

the languages of the ethnicities that

prevail in the Lower Urubamba area,

Megantoni district, Cusco, area of

influence of the Camisea Gas project,

operated by Pluspetrol.

ANGOLACABINDA SUR BLOCK

ETHNIC GROUPS:KANGA FAMILY-BANTU

TRIBE.COMMUNITIES: 4

PERU PPN BLOCK 8

ETNIA: ACHUARCOMMUNITIES: 39

ETHNIC: CHAYAHUITACOMMUNITIES: 6

PERU CAMISEABLOCKS 88 AND 56ETHNICS GROUPS:

MACHIGENGA, YINEAND ASHANINCA.COMMUNITIES: 27

BOLIVIACURICHE, TACOBOAN TAJIBO AREASETHNIC GROUPS:

GUARANI.COMMUNITIES: 30

ARGENTINALA CALERA

ETHNIC GROUPS:MAPUCHE.

COMMUNITIES: 1


ENERGYGRI 302-1, 302-3

To ensure operational excellence in terms of energy,

we constantly follow-up our energy matrix and its

impact on the carbon emission intensity.

Pluspetrol’s energy management is aimed at

optimizing energy sources, uses and costs, and

minimizing emissions in a reliable and sustainable

manner.

EMISSIONS

GRI 305-1, OG 6

We approach the management of gas emissions

related to our activity, starting with a reliable and

transparent estimation of our GHG emissions.

During 2019, the GHG emissions calculators were

refitted adopting measures aimed at improving data

quality, alternatives of capture and leverage were

analyzed to allow the reduction of emissions derived

from torch flaring and gas venting, technical

practices were designed for the detection,

quantification and mitigation of fugitive emissions

and methane leaks, and alternatives were analyzed to

improve the energy generation matrix.

2018 GHG direct emissions values for Argentina and Pluspetrol were restated due to

a calculation error.

GHG gases included in the calculation produced by our activity: CO2, CH4 and N2O.

We do not have CO2 biogenic emissions.

All calculations are performed with an activity operational control approach

Our environmental management incorporates the

commitments taken on in Pluspetrol’s Sustainability

Policy and strategic goals, in an articulated set of

requirements that guide the systematic and integra-

ted management of the environmental aspects. This

framework takes into account the sensitivity of the

areas where our activities are developed, protects

biodiversity and ecosystems, and makes efficient and

responsible use of natural resources.

All assets of the company adopt the criteria defined

at corporate level, and incorporate the specificities

associated to local legislation and the specific

context of their operations. The objective is to ensure

a standardize environmental performance throug-

hout the Company, in turn, allowing the incorpora-

tion of the specific needs of each asset and business

unit into the daily management.

One of the core pillars of our Sustainability Policy is

economic, environmental and social sustainability. To

that end, the development of our activities incorpo-

rate environmental aspects to decision-making

through conducts and actions that prioritize environ-

mental care. Focus is on prevention and minimization

of possible impacts, rational use of energy, efficient

use of resources, reduction of emissions into the

atmosphere and proper waste management, taking

into account and protecting the biodiversity of the

environment in which we operate.

During 2019, we focused mainly on the following

aspects:

ENERGY AND CLIMATE CHANGE

In line with the pillars of the Sustainability Policy, our

operations are developed monitoring the efficient

use of energy, reducing impacts to the environment

and watching out for their adverse effects on the

climate.

Natural gas plays a fundamental role in the supply of

energy for a global demand, and in the transition into

a future with low Greenhouse Gases (GHG). For that

reason, Pluspetrol collaborates in this energy

transition, fostering the growth of natural gas as part

of the solution to climate change, and contributing,

in turn, a high value, efficient energy resource, in

terms of carbon emissions. During 2019, 76% of

Pluspetrol’s production was gas and 24% crude oil.

Likewise, we strive every day to be more efficient.

We consider energy efficiency to be one of the paths

with highest potential to mitigate GHG emissions,

and thus, we permanently seek to reduce energy and

carbon emission intensity in our operations.

The methodology we designed with the IPIECA, API

and IOGP guides allows the calculation of GHG

emissions for fix sources, based on type of fuel and

type of source, including the calculation of CH4 tank

flash emissions.

On one hand, the basis of the inventory is supported

by the calculation of CO2 emissions by stoichiometry,

assuming full combustion from different sources,

and, on the other hand, by emission factors of the

AP-42 (EPA) and IPCC protocols for the calculation

of CH4 and N

2O.

Routine gas torch flaring is one of the main

components of our GHG emissions. For that reason,

we are constantly looking for and analyzing

leveraging opportunities that allow us to minimize

loss of product. In parallel, we work to incorporate

methane combustion burners of high efficiency,

turning torches in key elements for safety and

environmental protection in all our facilities.

3,114,214,890

876,280

3,554

Flared and vented gas (SFC)

BOE

Vented and Flared Gasby production unit(SCF/BOE)

835,790,769

18,617,900

45

9,770,481

771,560

13

553,963,579

125,055,970

4

4,513,739,719

145,321,710

31

ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROL

4,000

3,000

2,000

1,000

0

GHG DIRECT EMISSIONS (KTON EQ CO2)

Peru

1,505

1,528

Argentina

369

469

Bolivia

12

10

Angola

1,190

1,148

Pluspetrol

3,077

3,156••

2018

2019

ENERGY CONSUMPTION BY SOURCE (GJ)

Consumed electric energy

35

30

25

20

15

10

5

0

millions

1,949

,997

1,939

,901

106 1,8

77,89

0

31,89

3,590

0

Generated energy

Network energy

Gas oil consumption

Natural Gas Consumption

Gasoline consumption

VENTED AND FLARED GAS (SCF)

5,000

4,000

3,000

2,000

1,000

0

millions

4,504

,416,9

33

9,322

,786

3,731

,258,2

12

103,9

93,39

6

• FLARED GAS • VENTED GAS

2019 2018

ENERGY ANDCLIMATE CHANGE

BIODIVERSITYMANAGEMENT

WATER AND DISCHARGE MANAGEMENT

EFFLUENTSAND WASTES


Pluspetrol develops operations in very diverse and

highly sensitive environments, applying tools that

allow us to achieve a proper management of

biodiversity and its ecosystemic services, always

looking out for the wellbeing of the communities and

creating direct results in the conservation and

recovery of the ecosystems and their resilience.

During 2019, we continued the execution of our

terrestrial flora and fauna monitoring programs, as

well as those concerning aquatic life.

In these monitoring programs, we set protocols to

measure the main aspects, as well as the use of

biological indexes and indicators to process the

information. This way, we assess the potential risks

and impacts to biodiversity, via the analysis of

sensitivity maps, biological baselines and impact

evaluations. All this work is aimed at preventing and

minimizing negative impacts in highly sensitive

environments with international protection category

or high biological diversity.

The following maps show the Company’s operation

areas, and their location in relation to the protected

areas, and the non-protected areas of great value to

biodiversity.

Pucaruro

National

Reserve

Buffer Area

Pacaya Samiria

National Reserve Matses

Buffer Area

Allpahuayo

Mishana

Buffer Area

Allpahuayo

Mishana

National

Reserve

Payaca Samiria

Ramsar Site

Pastaza Ream

Buffer AreaPucaruro

National Reserve

Pucaruro

Loreto

BLOCK 8

CHAMBIRA

BLOCK 8

PAVAYACU

BLOCK 8

YANAYACU

BLOCK 8

VALENCIA

BLOCK 8

CORRIENTES

PERUPPN,

PERU

Operated Area:

1,823.5 km2

Caverna de las Brujas

Natural Reserve

La Humada

Natural Reserve

La Pampa

Río Negro

ARGENTINA

JCP

CNQ-7CNQ-7/A

GA-III

Llancanelo Wetland

La Payunia

Reserve

Provincial

Monument

La Payunia

Reserve

Provincial

Shrine

Mendoza

Neuquen Auca Mahuida

Managed Resource

Protected Area

Tromen

National Park

Domuyo

Managed

Resource

Protected

Area

RÍO COLORADO

DISTRICT,

ARGENTINA

Operated Area:

1,909.3 km2

BIODIVERSITY MONITORING PROGRAM (BMP) IN THE CAMISEA PROJECT UPSTREAM AREA

The follow-up of different components of

biodiversity continued, through field and lab

activities. The results of the survey were presented in

public events.

Terrestrial biota component: with the purpose

of assessing the possible impact on the presence

and the habitats of terrestrial fauna during

the construction of the Cashiriari 1 – Malvinas Gas

pipeline, the monitoring of large and medium

mammals was conducted with camera traps. 20

monitoring transects were distributed perpendicular

to the pipeline, which is 31 km long. Monitoring is

expected to continue a year after the conclusion of

the construction, in order to compare records and

assess habitat recovery.

Aquatic biota component: Fish, benthic

macroinvertebrates (larval-phase insects and other

small aquatic animals) and peryphiton (algae and

microorganisms that live stuck to rocks and logs)

were monitored. Likewise, superficial water quality

was assessed in terms of the following parameters:

pH, temperature, dissolved oxygen, conductivity,

total dissolved solids, turbidity, total petroleum

hydrocarbons, sulfates, nitrates, ammonia and heavy

metals. Two field campaigns were carried out,

according to hydrologic cycles: wet and dry seasons.

21 stations, distributed in rivers and ravines of the

lower Urubamba basin, were assessed. These stations

were distributed in Pluspetrol’s areas of operation, as

well as in the territories of native communities and

areas of influence.

Use of ecosystemic services by native communities component: monitoring continued on the typical use

the native communities make of natural resources,

with the focus on fish extraction from rivers and

ravines. Monitoring was carried out with the

collaboration of the families from three Matsiguenka

communities: Ticumpinia, Shivankoreni and Cashiriari.

The families recorded their fishing workdays to

provide information about the extracted species:

common name, weight, size, fishing spot, used

fishing gear, among others. Monitoring was executed

in two campaigns, according to hydrologic cycles:

wet and dry seasons.

Landscape component: the follow-up of the

landscape footprint of each work in the Camisea

Project was reviewed along time, based on high-

resolution satellite imagery and aerial photographs.

Besides determining the footprint on the landscape,

it was possible to define the recovery rates of the

disturbed areas, in terms of vegetation coverage,

which allow to estimate the time needed to close a

project of similar characteristics or conditions. This

data was used to estimate the landscape footprint

for each subproject until 2040, with the purpose of

calculating residual impact by the end of the

operation. Likewise, the current situation of the

recovery in disturbed areas was analyzed in the

following projects: 2014 seismic survey (heliports and

fly camps) in Block 88; Flow line and San Martín and

Pagoreni associated platforms, and Kimaro C

platform. On another note, all the BMP study area

was regionally updated with 2019 images: both

concession blocks (88 and 56) and the Malvinas plant

area, up to the Urubamba River left margin.

On the other hand, a residual impact study of the

Camisea Project was also developed, to align the

project in light of the social and regulatory context

dynamic in Peru, and the international standards. The

study will allow to establish a framework for

environmental offsetting, in order to enable a zero

net loss biodiversity result. In other words, a positive

net balance between the project’s environmental

impact on biodiversity and the reasonably expected

result of applying the mitigation measures; and, if

possible, a net gain.

CAMISEA,

PISCO, PERU

Operated Area:

0.56 km2

Isla Chincha National

Reserve - North, Center

and South

Isla Ballestas National

Reserve - North, Center

and South

National Reserve

of Paracas

Pacific

Ocean

Buffer Area

Ica

PERU

PISCO

FRACTIONING PLANT

CAMISEA,

MALVINAS AND

BLOCK 108,

PERU

Operated Area:

2,019.8 km2

BLOCK

56

Megantoni

National Shrine

Megantoni

B.A.

Machiguenga

B.A.

B.A.

Ashaninka

Ashaninka

Communal Reserve

Otishi

National Park

Machiguenga

Communal ReserveJunín

Bosque de

Protección

Pui Pui

Pui Pui

B.A.

AyacuchoHuancavelica

Cusco

Kugapakori-Nahua-Nanti

Territorial Reserve

Del Manu

Z.A

BLOCK

88

BLOCK

108

Yanachaga

Chemillén

B.A.

PERUUyacali

El Sira

B.A.

San Matias-

San Carlos

Protected forest

Pasco

NORTH

DISTRICT,

ARGENTINA

Operated Area:

135.2 km2

El Nogalar de los Toldos

National Reserve

Santa Victoria

Parque

Nacional

Baritú

Reserva

Biósfera de

las YungasSan Ramón

de la

Nueva OránSalta

Jujuy

RAMOS

General

José de San MartínMultiple-Use Natural Reserve

Multiple-Use

Natural

ReserveFlora and

Fauna

Reserve

AcambucoMultiple-Use Natural Reserve

ARGENTINA

Iruya

BOLIVIA

Multiple-Use

Natural

Reserve

BIODIVERSITY MANAGEMENTGRI 304-1, OG 4

EFFLUENTS AND WASTES

SPILL MANAGEMENTGRI 306-3

At Pluspetrol, we set out to work in order to prevent

spills during production, storage and transportation

of crude oil. To that end, we have specific procedures

that consider, among other things, investments in

facility integrity, maintenance and improvement.

Likewise, we have a comprehensive system of

emergency and crisis management that encompasses

the best practices in the industry and context-

specific contingency plans, taking into account the

geographical and operational specificities that define

the way to act and respond when an event occurs.

Additionally, we manage updated data and indicators

that enable us to work in cycles of continuous

improvement. With that objective, in the case of loss

of containment, leak or spillage, investigation

mechanisms are set into motion to establish new

improvement actions in order to prevent the event

from repeating. This tools support our continuous

commitment in the search for ways to minimize

impacts to the environment and to people.

During 2019, 95% of all spillages were lower than 10

barrels, and 71% of the total lower the 1 barrel.


PARACAS BAY MARINE COAST MONITORING PROGRAM

The Marine Coast Monitoring Program is being

performed since 2003 to provide a representative

coverage of the Paracas Bay environment, with the

objective of obtaining long-term information to

determine the evolution of biodiversity in the sea and

the coast area.

This program performs the follow-up of the main

biological communities and populations, among

which, two populations of sea lion species and the

avifauna community stand out, making Paracas a

very special place.

The main results associated to the abundance and

diversity of sea lions in 2019 were:

the population of South American fur seals was of

2649 individuals, which were mainly registered in

Punta Arquillo within the RNP (Paracas National

Reserve), with a predominance of adult females and

pups mainly in March, in Punta Arquillo, and in June

in Punta Lagarto and Punta Lechuza.

the population of South American sea lions was of

135,329 individuals in the San Gallán Islands and the

Chincha Islands, in the National Reserve of Islands,

Isles and Guano Points System (RNSIIPG), and the

Morro Quemado station in the RNP, with a

predominance of adult females and pups mainly in

the summer (March).

The avifauna assessment results in 2019 were:

In the area of influence of the Marine Terminal and

the Natural Gas Liquids Fractionation Plant (PFLGN),

the Scolopacidae family was the most representative.

At a species level, the Semipalmated sandpiper,

Calidris pusilla, was the most abundant, followed by

the northern migratory Franklin’s gull, Leucophaeus

pipixcan.

In the Paracas National Reserve, which includes the

Paracas Bay station, the Amazon migratory Black

skimmer, Rynchops niger, was the most abundant,

being registered along the whole monitoring. The

northern migratory Franklin’s gull, Leucophaeus

pipixcan, was the second most abundant species and

it was registered during the months of January-April

and November-December, which is their time of

migration to the area.

In the National Reserve of Islands, Isles and Guano

Points System (RNSIIPG), the most representative

species were the Peruvian booby, Sula variegata,

followed by the Inca tern, Larosterna inca, and the

Guanay cormorant, Phalacrocorax bougainvillii, which

were registered in higher density during the summer

(March).

WATER AND DISCHARGE MANAGEMENTGRI 303-1, 303-2, 303-3, 303-4, 303-5

The purpose of water management is to optimize the

consumption of fresh water (surface and

underground) for operative processes, as well as to

increase the reuse of treated and produced water.

Ensuring water provision in quality and quantity is

essential to continue operations in all our facilities.

That is why, in Pluspetrol, we focus on the resource

sustainability, seeking to reduce the intensity of use

per produced barrel of crude oil, to be more efficient

and make a rational use of water.

In our unconventional operations, were the water

resource plays a core role, we seek to optimize

consumption and we work with alternative fresh

water sources, for instance, leveraging the water

originating in the fracturing return.

In our crude oil production assets, we consider

production water to be a valuable resource in the

production process, reusing it after treating it, and

incorporating it to the secondary recovery process.

Additionally, we carry out a responsible water

management in compliance with all regulations and

standards associated to the water resource,

minimizing its use and optimizing its consumption,

while ensuring proper treatment of used waters prior

to its disposal.

Superficial water corresponds to river water.There is no collected rainwater, nor residual water from another organization, nor municipal water supply.The data correspond to flow meter measurements.

We continue to apply the best practices in the

monitoring of the superficial and underground water

resources present in the areas were we operate,

which allows us to preserve the quality and

availability of the water resource, minimizing any

potential impact on it.

Part of the used water is treated and discharged

according to current legal regulations and to the

permits granted by the authorities, adopting the best

practices in the field.

FRESH WATER EXTRACTION (MEGALITERS)

3,500

3,000

2,500

2,000

1,500

1,000

500

0

311

Extraction ofsuperficial water

Extraction of underground water

• 2019 • 2018

3,132

Total extractionof fresh water

2,821

2,503

429

2,931

0.1

10

44

54

Superficial water extraction (megaliters)

Underground water extraction (megaliters)

Produced water extraction (megaliters)

Totalextracted water (megaliters)

2,092

118

13,886

16,095

0.5

8.5

85

95

411

292

18,720

19,423

2.503

429

32.736

35.668


2.4

3.4

4.8

100% Hydrocarbon spills per production unit - volume (BBL/MMBOE)

Water and oil mix pills per production unit - volume (BBL/MMBOE)

Other substancesspills per production unit - volume (BBL/MMBOE)

2.8

27.9

15

0

0.8

0

1.9

0

3

7

32

22


10Total water discharge (Megaliters)

2,209 - 18,884 21,104


44Total water consumption (MMBBLS)

13,886 95 539 14,.564


40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

• 2019 • 2018

Angola

44 37

GENERATED PRODUCTION WATER (MEGALITERS)

Argentina

13,88

6

14,85

2

Bolivia

85 81

Peru

18,72

0 22,28

0

Pluspetrol

32,73

6

37,25

1

TOTAL SPILLSPLUSPETROL 2019259

SPILLS (BBL)

1,000

800

600

400

200

0100% Hydrocarbon spills

per production unit - volume

Water and oil mix pills per production unit -

volume

• 2019 • 2018

Other substances spills per production unit -

volume

58

190

325

175

526

972

•

•

•

•

•


SOLID AND LIQUID WASTES

One of the fundamental principles of our

Sustainability Policy is minimizing risks and negative

impacts to the environment and to people, fostering

a proper waste management.

In the framework of Operational Excellence, we

stimulate activities to be developed increasing the

service life of the materials, products and resources,

in order to reduce waste generation.

Additionally, we seek to reduce waste hazards,

complying with the current legal regulation that

governs wastes treatment and final disposal, with the

goal of a minimum impact on the environment.

PROCESS SAFETY

GENERATED WASTES

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

• HAZARDOUS WASTES • NON-HAZARDOUS WASTES

2018

3,062

2019

7,634

6,744

6,816

3.2

5.3

Hazardous wastes (TON)

Non-hazardous wastes (TON)

253

1,087

0.7

10

2,805

5,713

3,062

6,816


-

-

-

Generated drilling wastes (TON)

Drilling wastes, water-based cuts and muds (TON)

Drilling wastes, oil-based cuts and muds (TON)

69,064

41,191

27,871

-

-

-

760

760

-

69,823

41,951

27,872

ANGOLA ARGENTINA BOLIVIA PERU PLUSPETROLWASTES CLASSIFICATION

31%

69%

••

HAZARDOUS WASTES

NON-HAZARDOUS WASTES

DRILLING WASTES MANAGEMENTGRI OG7

Drilling wastes contain chemical additives or

hydrocarbons that, if not disposed of in a controlled

fashion, may adversely impact on the environment.

During 2019, less than 10% of used drilling fluids were

oil-based. Below, a report of the generated amounts

of these wastes, according to handling type,

depending on fluid used in drilling activities.

Drilling cuttings and remnant muds receive different

treatments, and, in every case, are disposed of

according to current legislation and available

technologies in each country and asset where we

operate.

In some cases, the cuttings can be dried out in the

open and, once safety is verified, used as filling

material, treated with the land farming technique,

or reinjected.

Regarding muds, they are treated, and their reuse in

other drillings is stimulated.

GENERATED DRILLING WASTES (TON)

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

02018 2019

42,25

7

69,82

3

OF TOTAL WASTES IS TREATED WITHTHE 3R: REUSE, RECYCLING, REDUCTION. THIS TREATMENT REPRESENTS 5%OF THE HAZARDOUS WASTES AND 11%OF NON-HAZARDOUS.

9%


In order to continue moving towards a Sustainable

Operation, we kept working on the commitment and

understanding of leaders regarding the importance

of risk and impact management, and concerning the

need to understand and foster a generative culture

that supports the projected changes, while leading

by example.

To achieve a sustainable management, we developed

management systems with defined processes and

developed competences in the whole organization,

so we can operate safely, responsibly and with

environmental awareness, preventing undesirable

events. In 2019, we worked keenly on mapping and

defining the necessary competences.

CULTURAL MANAGEMENT FOR A SUSTAINABLE OPERATION

After the first survey on culture for risk management,

carried out in 2018, different activities and encounters

took place in all Business Units and assets in which we

operate, to share its results. Action plans were defined

for each Business Unit of the company, actions plans

that aimed at working on closing the gaps identified in

our path towards a generative culture for risk

management. Additionally, we began working on

defining the pillars and contents of the second internal

campaign on the subject.

EMPLOYEES’ COMMITMENT AND INVOLVEMENT

Proper development and continuous improvement of

risk and impact management require the active

participation of the employees from all levels of the

organization. To that end, we stimulate their

commitment, involvement and sense of belonging

towards the cultural evolution process. We worked on

and reinforced three main points:

In 2019, as in previous years, management visit plans

continued, as well as the strengthening of all Business

Units and the Corporation, involving the operations

area as well as the support/staff areas. Additionally,

during July, the Global Contractors Forum took place

in Montevideo, encounter that was led by our CEO,

and to which our main contractors and internal

leaders attended.

LEGAL COMPLIANCE - ENVIRONMENTAL REGULATIONGRI 307-1

In line with the PSM defined for the company, during

2019, the existing process was formalized, and the

Legal Compliance and EHS Obligations Standard was

published. It defines the guidelines to be followed in

order to: identify legal requirements and other

obligations in terms of EHS, manage the actions that

enable its implementation, and assets compliance,

including the management of actions that allow to

remedy deviations. Launch of this document was

supported by communication and training actions,

with the purpose of facilitating its understanding and

incorporation into our daily work.

The process of identifying, implementing and

assessing the compliance of legal requirements and

other EHS obligations constitutes a key tool for our

management. Its proper adoption and implementation

contributes to the consolidation of a sustainable

operation.

In 2019, we did not receive significant fines or

monetary penalties15 due to environmental regulation

non-compliances.

UNDERSTANDING HAZARDSAND RISKS We continued to strengthening the implementation of

the Operational Risk Management Process, as a tool

to maintain risk at tolerable levels, involving

employees from different areas and including logistics

and non-operational aspects (social, among others).

The risk review annual cycle determines the

semiannual follow-up that the company performs

during EHS Global Committees, where the status of

major events scenarios is presented and analyzed for

each Business Unit (identified changes, state of

barriers and evolution of applied improvements).

Each Business Unit shares this evaluation with the

Company management in the EHS Global Committee.

In general terms, the most relevant scenarios are

related to the release of flammable substances in

processing plants, terminals or pipelines, where

people, communities or the environment could be

affected. However, scenarios related to logistics

operations, particularly people transportation, require

special attention. This way, there is a constant

follow-up of the state of the barriers (practices and

process safety elements for prevention, emergency

response systems) and the controls that ensure their

effectiveness, which are mentioned in the following

section.

In January 2019, the Process Safety Management

(PSM) Framework was approved and published,

enabling us to continue working on safety

management with a focus on operations and

processes, taking into account our cultural stage.

The PSM was developed based on the guidelines of

the Center for Chemical Process Safety (CCPS), an

organization Pluspetrol is a member of. Its purpose is

to ensure a formal approach to process safety

management in our operations, and it is structured

on four essential pillars: I Commitment and

Leadership, II Understanding Hazards and Risks, III

Risk Management and IV Learning from experience.

During 2019, we worked on implementing the PSM

via an interdisciplinary work from all areas, and a

sustained commitment to consolidate risk

management as a key element for the long-term

growth and sustainability strategy, implementation

that will span several years. To that end, each

Business Unit, based on their needs and realities,

selected the Elements to be prioritized at the

beginning of the Framework implementation,

elements that were worked on during 2019.

HANDLING RISKS AND MANAGING IMPACTS

In order to ensure tolerable risk levels, we continued

to work on five key areas: EHS working practices,

assets reliability and integrity, contractor

management, change management and emergency

management.

EHS WORKING PRACTICES

In 2019, the development and publication of EHS work

practices continued. During this year, the following

work practices where developed and communicated:

Management visits

Management of Preventive Observations

Energy Isolation.

The Environmental Regulations Standard was also

developed and published, a series of basic rules that

encompass the operational practices associated to the

protection of the environment, and that strengthen

awareness in order to carry out our operations in an

environmentally sustainable fashion and in harmony

with our surroundings. The dissemination campaign is

expected for 2020, although the rules were

introduced during the Reflection space of the 2019

World Environment Day.

Lastly, in 2019, the Task Discontinuation Policy was

also re-launched, leveraged by the “Take Control”

Campaign. This campaign aimed at empowering all

employees to discontinue a task (Take Control) as an

effective barrier to prevent accidents when:

Minimum safety requirements of Life Saving Rules

are not met.

Safe working practices or operational procedures

are not met.

The team members do not understand the risks

involved in the task.

Changes occur in the operational or environment

conditions, which add risks to the task.

Provisions of a work permit are not completely

complied with.

A piece of equipment presents an unsafe condition

or is begin operated outside its safety limitations.

A situation occurs with the potential to negatively

impact on people, the environment, assets and/or the

company’s reputation

15. By “significant fines or monetary penalties due to environmental regulation non-compliances”, we understand those that, having been effectively paid, have individually exceeded the amount of USD 3,000,000.

44 • Pluspetrol

COMMITMENT AND LEADERSHIPGRI 403-1, 403-4

STRENGTHENINGOUR OPERATION

DISCIPLINE

BOOSTING A JOINT MANAGEMENT WITH OUR

CONTRACTORS.

PERMANENT LEARNING

•

•

•

•

•

•

•

•

•

•


ASSETS RELIABILITY AND INTEGRITY

During the past year, Reliability and integrity

processes in the facilities have continued their

implementation and development process through

the work areas and roles in charge.

Likewise, as part of the continuous improvement

cycle, in 2019, we designed and implemented an

evaluation process for the Maintenance, Reliability

and Integrity management, based on the industry’s

best practices, and which allows to perform a

comparison of best practices between the different

business units. The model has 5 levels of maturity: (1)

Innocent, (2) Conscious, (3) In Development,

(4) Competent and (5) World Class. To set the

baseline, the measurement result places the

company in level 3: “In Development”.

According to the assessment model, the level

“In Development” indicates an understanding of the

needs and requirements of typical Maintenance,

Reliability and Integrity processes; likewise, even

when the asset care strategy incorporates

preventive maintenance practices, it is essentially

based on manufacturers’ recommendations and site

experience.

CONTRACTOR MANAGEMENT

During 2019, we continued to work on

communicating, understanding and training on the

EHS Aspects Standard in Contractor management,

which was published in 2018. The purpose of this

document is to ensure that the control mechanisms

in terms of EHS are incorporated in the Registration

and Evaluation processes for Suppliers, Purchases

and Procurement, and for Contract Management.

This way, selection, acquisition, use and monitoring

of the procured services are aligned with the

operation’s EHS requirements and the Company’s

performance objectives. This standard also

contributes to the implementation of practices to

ensure that the workers from contractor companies

are proficient enough to perform their tasks safely,

and that the procured services do not increase the

level of risk and/or impact on the operations.

This standard was one of the pillars approached

during the 2019 Global Contractors Forum. The

purpose of this encounter was to create a shared

reflection space in which to establish constructive

dialogs and share the main guidelines for EHS

Management. Pluspetrol’s top management

participated in the encounter, together with the top

management of the main contractor companies. In

this opportunity, 34 contractor companies

participated (90 attendees in total, between

Pluspetrol and the Contractor Companies). This is the

second global forum Pluspetrol carries out with

Contractors.

MANAGEMENT OF CHANGE

Continuing the actions developed in 2018, in 2019,

we deepened the Management of Change (MOC)

implementation. During this year:

the MOC chart was developed as a guide, detailing

the processes and representatives to properly

manage the different types of change defined by

Pluspetrol.

with the purpose of improving the Management

Of Change implementation for Facilities, a technical

practice was created to establish a homogeneous

workflow for any change requirement in Pluspetrol’s

operations. The practice identifies the different

process stages, the participants and the review and

approval stages, introducing the concept of

Technical Authorities, as the representatives in the

stages of request technical validation, and

incorporating a higher level of thoroughness in the

analysis. The practice will be implemented during

the following year.

Additionally, to celebrate the World Day for Safety

and Health at Work, in 2019, an audiovisual piece was

developed to reflect on the importance of Managing

Changes, starting with the need of identifying the

moment in which we face change, with the premise

of knowing we can only manage that which we make

visible. The main message was focused on conveying

that the Management Of Change is essential to

manage risks and significantly reduce the probability

of occurrence of an incident, reinforcing the sense of

vulnerability.

EMERGENCY MANAGEMENT

A key aspect of emergency management is the

continuous update and revision of the contingency

plans performed by the teams in each asset,

following the Contingency Management Model.

In this line of work, we continue to execute the

multi-annual training plan for the different response

level teams, and the execution of major event

simulations.

In 2019, all the planned simulations for each Business

Unit were complied with, allowing us to continue

strengthening the practice. Additionally, two major

event exercises were performed:

La Calera, Argentina BU.

This exercise allowed the activation of all the

response levels defined in the contingency and

crisis management system, including the corporate

support team, whose main purpose is to guarantee

business continuity during emergency situations of

the highest complexity.

Malvinas Plant, PPC, Peru BU.

This exercise allowed for a correct notification

and assessment of the incident, as well as a proper

plan review and equipment activation in said

Business Unit.

WORLDCLASS

COMPETENT

IN DEVELOPMENT

CONSCIOUS

INNOCENT

Operational Excellence:maintenance strategy focused on comprehensive asset management.

Engineered Reliability:risk based maintenance strategy (RBM).

Organizational excellence:predictive maintenance based strategy.

Proactive maintenance:preventive maintenance strategy (vendor’s requirements).

Planned maintenance / Reactive.

•

•

•

•


LEARNING FROM EXPERIENCE

Learning from our own events, and those of the

industry, allows us to capitalize experiences to

achieve a safer operation, with less impact on our

employees, and those of the contractors, the

environment and the communities. During 2019, we

continued disseminating the “Lessons to be learned”

from investigations, the link that allows the transmis-

sion of recommendations, and contributes to

preventing the occurrence of similar events.

Likewise, reflection and learning spaces, the EHS

committees and the safety moments when starting

operational meetings are activities that still function

as learning instances, within our company.

Lastly, in order to boost internal learning, the EHS

site was adjusted to facilitate its use as a consulta-

tion, management and communication tool, in our

path towards operational excellence.

INCIDENT INVESTIGATION

During 2019, Pluspetrol continued working and

reinforcing their processes for investigation, creation

and communication of lessons to be learned from

undesirable events, in order to turn incidents and/or

experiences into opportunities of improvement,

which ensure an efficient learning, considering the

following aspects:

1) Performing investigations that allow identifying the

roots of the incidents.

2) Correcting these causes by implementing syste-

mic actions.

3) Disclosing learned lessons, including from other

organizations.

4) Developing a culture and infrastructure to help

spread the lessons and apply them in the future.

5) Measuring performance and continuously impro-

ving areas that present significant risks.

At corporate level, 28 undesirable events, classified

as High Potential (HiPos), received feedback. The

vice presidency of operations and the EHS Manage-

ment were involved in these feedbacks. The quality

of the investigations experienced an important

evolution in the identification of systemic causes and

in the creation of actions to prevent the occurrence

of similar events in other operations.

Likewise, with the purpose of continuing to reinforce

the investigation processes, during the first semester

of 2019, Incident Analysis trainings were performed

via TASC Tools (DNV) in four Business Units (Angola,

Argentina, Bolivia and Peru) and in the Corporation,

through five workshops, with 175 attendees.

MEASUREMENT AND METRICS

In the management reporting and statistics proces-

ses framework optimization, a project for a Global

EHS Management Tool began; the project is expec-

ted to begin implementation in the coming years.

One of the first stages required the revision and

implementation of improvement opportunities on the

current management tools, and the development and

implementation of Safety Variables within the

Environmental and Social Variables Tool, today

known as EHS Variables. Likewise, different EHS

Management Dashboards were developed and

implemented to allow the whole organization to

visualize in a comprehensive, agile, dynamic and

simple fashion the current balance sheet, increase the

quality of the data, and prioritize actions based on

on-line information. All this, from the same platform,

the same place and in homogeneous fashion for the

whole company (both at Corporate level and at

Business Unit and Asset level).

Likewise, a parallel process was under work to

digitize the POC cards, a project, complementary to

the global tool, that allows Pluspetrol to improve the

deviation report and management, via a digital

platform, in search of operational excellence.

Implementation is expected by the second semester

of 2020.

OPERATIONAL RISKS MANAGEMENT

We continued working to outline indicators that

allow an active management monitoring to preventi-

vely identify deviations. These are some of the main

indicators: process documentation status, intended

activities follow up, actions follow up to reduce risks,

change of path, investments for risk reduction and

follow up of gap closing plans, among others.

INCIDENT AND PROCESS EVENTS MONITORING GRI 403-9, OG13

In 2019, we continued working to strengthen our

indicators for accidents with impact on people,

always in the framework of the IOGP recommended

practices.

Likewise, we continued to optimize process events

reporting in all our operations, taking the API-754

guidelines and the IOGP definitions as a reference. To

that end, the “SIRI Dashboard” was elaborated and

published, a dashboard that allows the whole

organization to access the incident data in real time,

facilitating its management and follow-up.

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

FREQUENCY INDEXESWORKERS EXCLUDING EMPLOYEES

FREQUENCY INDEXESEMPLOYEES

TRIR NON-EMPLOYEES OR CONTRACTORS TOTAL RECORDABLE INCIDENT RATE:NUMBER OF RECORDABLE INCIDENTS X 1 MILLION/MHW

LTIR NON-EMPLOYEES OR CONTRACTORSLOST TIME INCIDENT RATE: NUMBER OF INCIDENTS WITH LOST DAYS X 1 MILLION/MHW

LTIR EMPLOYEESLOST TIME INCIDENT RATE: NUMBER OF INCIDENTS WITH LOST DAYS X 1 MILLION/MHW

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

TIER 1 AND TIER 2 PROCESS EVENTS FREQUENCY

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

0

18

16

14

211

214

Fatalities

Accident cases with time loss

Restricted work cases

Medical treatmentcases

First aid cases

Almost-Accidents

2018

This indicator refers to the Total Recordable Cases. It includes the recording of all the events classified as “medical treatment,limited work and incidents with overhanging days”, pursuing the objective to achieve zero recordable events.

ANGOLA

ARGENTINA

BOLIVIA

PERU

CORPORATION

PLUSPETROL

SITE

0

0

0

0

0

0

NUMBER OF RECORDABLE CASES (TRIC)

0

0

0

0

0

0

TRIR INDEX

0

0

0

0

1

1


0

0

0

0

1.6

0.2

TRIR INDEX

2019 2018

ANGOLA

ARGENTINA

BOLIVIA

PERU

CORPORATION

PLUSPETROL

SITE

0

8

1

18

0

27


0

1.8

6

1

0

1

TRIR INDEX

1

11

0

35

0

47


4.2

1.9

0

1.5

0

1.6

TRIR INDEX

2019

2018

ANGOLA

ARGENTINA

BOLIVIA

PERU

PLUSPETROL

SITE

0

3

0

8

11

NUMBER OF CASES WITH LOST DAYS (LTIC)

0

0.6

0

0.5

0.5

LTIR INDEX

0

4

0

13

17


0

0.7

0

0.6

0.6

LTIR INDEX

2019

2018

ANGOLA

ARGENTINA

BOLIVIA

PERU

PLUSPETROL

SITE

0

0

0

1.3

0.1

TIER 1INDEX

0

0.2

0

0.5

0.1

TIER 2 INDEX

0

0

0

0.1

0.09

TIER 1INDEX

4

2.1

0

0.2

0.6

TIER 2 INDEX

2019

2018

ANGOLA

ARGENTINA

BOLIVIA

PERU

CORPORATION

PLUSPETROL

SITE

0

0

0

0

0

0


0

0

0

0

0

0

LTIR INDEX

0

0

0

0

1

1


0

0

0

0

1.6

0.2

LTIR INDEX

2019

50 • Pluspetrol

2COUNTRY OR BU LEVEL

COMMITTEE: IN THIS SPACE,

THE EHS MANAGEMENT

VIEW INTEGRATES ALL THE

BU AREAS; IT IS LED BY THE

BU TOP MANAGER AND IT

MEETS EVERY THREE OR

FOUR MONTHS

3CORPORATE OR EHS

CENTRAL COMMITTEE: IT IS A

COMMITTEE THAT SHARES

MAJOR EHS MANAGEMENT

GUIDELINES, ANALYZES COUNTRY

RESULTS AND CONCERNS, AND

SPECIALLY CONTROLS THE WORK

PLAN IMPLEMENTATION TO

MITIGATE MAJOR RISKS IN

THE OPERATIONS

1ASSET LEVEL COMMITTEE:

LED BY THE ASSET TOP

MANAGER


MANAGEMENT REVIEW AND CONTINUOUS IMPROVEMENT

With the purpose of continuously improving the

process safety performance of the operations

through Management routine reviews, in Pluspetrol

we have -among other tools– the EHS Committees.

The EHS Committees are a response to a need for a

pause in the urgent pace of the day-to-day, and to

invest quality time and space in reflection; they allow

to build and maintain a quality work environment

where the EHS management is given visibility and

the Management commitment with risk management,

and that of the different leadership levels, is materia-

lized. This is also an opportunity for the leader to

provide genuine feedback to their employees about

the EHS management in their realm of responsibility,

creating exchange and synergy environments,

ensuring the integration of the EHS management and

its technical basis with the specific activities of the

business. This reflection space is a proactive tool that

allows to improve planning prioritizing actions,

properly assign resources and make decisions based

on risks, establishing a cycle of continuous improve-

ment in the management.

PLUSPETROL IN NUMBERS

16. 2018 Social Investment values were restated as this Report includes the social investment amounts for Pisco, not contemplated in the previous report

17. 2018 GHG direct emission values were restated due to a calculation error in the emissions for Argentina.

ASPECTO MATERIAL

2017

1,721

78

22

5

111

30

1,291

2.,1

5,905,830

1,397,394

398,235

1,683,498

713,624

1,713,080

2,173

14

4

644

0.3

43

7

6.5

1,004

53

4.8

741

22

2,714

4,423

50,141

22

3,339

0.8

1.2

0.3

0.7

0.3

0.8

2019

1,890

79

21

7

277

20

968

1.7

9,017,812

2,202,196

781,617

4,147,313

1,014,603

872,083

3,156

22

31

4,514

7.1

58

42

32

526

98

22

325

119

3,062

6,816

69,823

20

2,931

0.2

1.7

0.2

0.6

0.1

0.6

2018

1,775

79

21

10

245

28

1,249

1.7

9,765,08516

1,681,148

1,222,475

4,032,213

1,890,922

938,327

3,07817

21

26

3,835

1.3

190

14

1.2

175

73

6.6

972

97

7,635

6,744

42,257

21

3,132

0

1.3

0

0.5

0.1

0.1

DEVELOPMENT OF OUR PEOPLE

Total actual employees (quantity)

Male Employees (%)

Female Employees (%)

Total Turnover Rate (%)

Total hires (quantity)

Training average hours per Collaborator (quantity)

Total trained employees (quantity)

Absenteeism Rate (%)

COMMUNITY

Social Investment - Total (USD)

Social Investment - Education (USD)

Social Investment - Healthcare (USD)

Social Investment - Community Development (USD)

Social Investment - Institutional Strengthening (USD)

Social Investment - Others (USD)

ENVIRONMENT

GHG Direct Emissions (KTON CO2)

GHG Direct Emissions Intensity (KTON CO2/MMBOE)

Vented and Flared Gas by production unit (SCF/BOE)

Vented and Flared Gas total (MMSCF)

Hydrocarbon spills volume by production unit (BBLS/MMBOE)

Hydrocarbon spills volume (BBLS)

100% Hydrocarbon spills quantity (quantity)

Water-oil mix spills volume by production unit (BBLS/MMBOE)

Water-oil Mix spills volume of (BBLS)

Water-oil mix spills quantity (Quantity)

Other substances spills volume by production unit (BBLS/MMBOE)

Other substances spills volume (BBLS)

Other substances spills quantity (quantity)

Generation of hazardous wastes (TON)

Generation of non-hazardous wastes (TON)

Generated drilling wastes (TON)

Water consumption by production unit (Megaliters/MMBOE)

Total fresh water consumption (Megaliters)

PROCESS SAFETY

TRIR Index- Employees

TRIR Index - Contractors

LTIR Index– Employees

LTIR Index- Contractors

Process events frequency– TIER 1 Index

Process events frequency– TIER 2 Index

C O N T I N U O U S I M P R O V E M E N T

C O N T I N U O U S I M P R O V E M E N T

EHS CommitteesAccording to the scope or area of application, at

Pluspetrol, three types of EHS Committees are

planned:

In 2019, the company CEO chaired two global

corporate level EHS committees, to perform a review

on the major risks in each Business Unit, and to cover

strategic safety topics, asset integrity, operational

risks, social issues and corporate social responsibility.

Complementarily, different committee meetings are

carried out at BU and asset level, to comply with

routine review processes and the tools available to

that end.

Lastly, due to its relevance and because we are

convinced that we all walk Pluspetrol’s path to

excellence, during 2019, we started to present annual

acknowledgments in the Peru and Argentina

Business Units to highlight the EHS Management that

contributes to the Company’s Sustainability. This

practice started in these units and, in the coming

years, we expect to formalize and replicate it at a

corporate level and in all Business Units.


Not

performed

For matters

of confiden-

tiality, this

content is not

reported.

GRI INDEXGRI 105-22

We developed the following content index, according to GRI

standards and the issues that arose as material in the performed

analysis.

GENERAL

CONTENTS

COMPANY

PROFILE

Name of the

organization

Activities, brands,

products and services

Headquarters location

Operations

location

Ownership and

legal form

Served markets

Size of the

organization

Information on

employees and

workers

Supply Chain

Significant changes in

the organization and its

supply chain

Precautionary principle

or approach

External initiatives

Associations affiliation

STRATEGY

Declaration from high

executives responsible

of the decision-making

ETHICS AND INTEGRITY

Values, principles,

Conduct standards

and regulations

Counseling

mechanisms and

ethical concerns

GOVERNANCE

Governance structure

ENGAGEMENT OF

STAKEHOLDERS

List of

stakeholders

Collective negotiation

agreements

Stakeholders

identification and

selection

Approach for

stakeholders

engagement

Mentioned key issues

and concerns

PRACTICES

FOR REPORT

ELABORATION

Entities included in the

consolidated financial

statements

Definition of report

contents and Issue

coverages

List of material topics

Restatement of

information

GRI 101

Fundamen-

tos 2016

GRI 102

Contents

generales

2016

GRI 102

Contents

General

2016

GRI 102

Contents

General

2016

GRI 102

Contents

General

2016

GRI 102

Contents

General

2016

GRI 102

Contents

General

2016

102-1

102-2

102-3

102-4

102-5

102-6

102-7

102-8

102-9

102-10

102-11

102-12

102-13

102-14

102-16

102-17

102-18

102-40

102-41

102-42

102-43

102-44

102-45

102-46

102-47

102-48

GRISTANDARD

CONTENT

2

2, 3

2, 3

2, 3

2, 3

2, 3

2, 3

23

18

18

7, 8, 9

12

12

1

5, 6, 7

5

4

15

23

15

15

15

N/A

15

15

52

PAGE NUMBER/RESPONSE

SDG OMISSION

Changes in report

elaborations

Report target

period

Date of last

report

Report elaboration

cycle

Contact point for

questions about

the report

Statement of report

elaboration in

compliance with GRI

Standards

GRI contents

index

External verification

MATERIAL TOPICS

ECONOMIC

ECONOMIC

PERFORMANCE

Direct economic

value, created and

distributed

DIRECT ECONOMIC

IMPACTS

Explanation of material

topic and its coverages

Management approach

and its components

Management approach

Assessment

Significant indirect

economic impacts

PURCHASING

PRACTICES



Management approach

and its components

Management approach

Assessment

Share of expenditure

in local suppliers

ANTI-CORRUPTION



Management approach

and its components

Management approach

Assessment

Operations

assessed for

risks related to

corruption

RESERVES



Management approach

and its components

Management approach

Assessment

Volume and type of

reserves

GRI 201

Performance

Economic

2016

GRI 103

focus

Management

2016

GRI 203

Indirect

economic

impacts

2016

GRI 103

focus

Management

2016

GRI 204

Purchasing

Practices

2016

GRI 103

focus

Management

2016

GRI 205

Anticorrup-

ción 2016

GRI 103

focus

Management

2016

Reserves

102-49

102-50

102-51

102-52

102-53

102-54

102-55

102-56

201-1

103-1

103-2

103-3

203-2

103-1

103-2

103-3

204-1

103-1

103-2

103-3

205-1

103-1

103-2

103-3

OG1

GRISTANDARD

CONTENT

52

52

52

52

52

52

53, 54

-

29

29

29, 33

29, 32

18

18, 21

18

18, 19

4, 6

6

6

6

10, 11

10, 11

10, 11

3

PAGE NUMBER/RESPONSE

SDG OMISSSION

8.5, 10.3

16.3

16.3

8.8

For matters

of confiden-

tiality, this

content is not

reported.

1.2, 3.8, 5.4,

8.2, 8.3, 8.5,

9.1, 9.4

8.3

16.5

DEVELOPMENT OF THE SUSTAINABILITY REPORTGRI 102-48, 102-49, 102-50, 102-51, 102-52, 102-53, 102-54

Since 2008, we took on the commitment to develop

our Sustainability Report, a communication and

management tool that allows us to analyze and share

our economic, social and environmental

performance. To the inside of the Company, the most

significant value it provides us is the collaboration in

the development of a management shared across the

Company, with our crosshair in maximizing the

positive impacts and minimizing the negative ones,

working in and organic comprehensive fashion.

This year, we present the 12th Pluspetrol

Sustainability Report, corresponding to the period

from January 1 to December 31, 2019. It includes the

activities developed in Angola, Argentina, Bolivia,

Colombia, United States, Netherlands, Peru, Suriname

and Uruguay. It is important to point out that the

reported quantitative indicators correspond to the

areas in production and where Pluspetrol is an

operator.

This Report was developed in accordance with the

GRI (Global Reporting Initiative) Standards: Core

option, and with the Oil and Gas Industry Guidance

on Voluntary Reporting guidelines, drawn up by

IPIECA18, API19 and IOGP20 in its third version.

Reports are presented annually, with the last

published one corresponding to the 2018 fiscal year.

Any restatement of information is indicated in the

Report.

For inquiries regarding the contents, you may

contact: [email protected]

18. International Petroleum Industry Environmental Conservation Association 19. American Petroleum Institute20. International Oil and Gas Producers

ABOUT THE SUSTAINABILITY REPORT


ENVIRONMENTAL

WATER AND EFFLUENTS

Interaction with

water as a shared

resource

Management of impacts

related to water

discharges

Water extraction

Water discharge

Water consumption

BIODIVERSITY



Management approach

and its components

Management approach

Assessment

Owned, leased or

managed operation

centers, located within

or next to protected

areas or protected

areas but of great

value for biodiversity

outside.

Number and percentage

of significant operating

sites in which

biodiversity risk has

been assessed and

monitored

EMISSIONS



Management approach

and its components

Management approach

Assessment

GHG direct emissions

(reach 1)

Volume of

lared and vented

hydrocarbon

EFFLUENTS

AND WASTES



Management approach

and its components

Management approach

Assessment

Significant spillages

Amount of drilling

waste (drilling and

cutting mud) and

strategies for treatment

and disposal.

ENVIRONMENTAL

COMPLIANCE



Management approach

and its components

Management approach

Assessment

Non-compliance

with environmental

legislation

and regulation

EMPLOYMENT



Management approach

and its components

Management approach

Assessment

New hires

and personnel

turnover

GRI 103

focus

Management

2018

GRI 303

Water and

effluents

2018

GRI 103

focus

Management

2016

GRI 304

Biodiversity

2016

GRI 103

focus

Management

2016

GRI 305

Emissions

2016

GRI 103

focus

Management

2016

GRI 306

Efluentes

y residuos

2016

GRI 103

focus

Management

2016

GRI 307

Cumplimien-

to ambiental

2016

GRI 103

focus

Management

2016

GRI 401

Employment

2016

303-1

303-2

303-3

303-4

303-5

103-1

103-2

103-3

304-1

OG4

103-1

103-2

103-3

305-1

OG6

103-1

103-2

103-3

306-3

OG7

103-1

103-2

103-3

307-1

103-1

103-2

103-3

401-1

GRISTANDARD

CONTENT PAGE NUMBER/RESPONSE

SDG OMISSION

OCCUPATIONAL

HEALTH AND SAFETY

Health and Safety at

work Management

System

Workers involvement,

inquiries and

communication on

occupational health and

safety

Injuries in work accident

TRAINING AND

EDUCATION



Management approach

and its components

Management approach

Assessment

Average annual

training hours per

employee

Percentage of

employees who receive

periodic performance and

professional develop-

ment assessments.

LOCAL

COMMUNITIES



Management approach

and its components

Management approach

Assessment

Operations with

local community

participation, impact

assessments and

development programs

INDIGENOUS

PEOPLES RIGHTS



Management approach

and its components

Management approach

Assessment

Cases of violations

to indigenous

peoples rights

Operations where

indigenous communities

are present or

affected by activities

and where specific

engagement strategies

are in place.

SECTOR

SUPPLEMENT

Management focus

Asset integrity and

processes safety

GRI 103

focus

Management

2018

GRI 403

Occupational

Health and

Safety 2018

GRI 103

focus

Management

2016

GRI 404

Training and

education

2016

GRI 103

focus

Management

2016

GRI 413

Local

Communities

2016

GRI 103

Enfoque

de gestión

2016

GRI 411

Derechos de

los pueblos

indígenas

Prepared-

ness plans

before

emergencies

Asset

integrity and

processes

safety

403-1

403-4

403-9

103-1

103-2

103-3

404-1

404-3

103-1

103-2

103-3

404-1

103-1

103-2

103-3

411-1

OG9

OG13

GRISTANDARD

CONTENT PAGE NUMBER/RESPONSE

SDG OMISSION

6.4

6.4

6.6, 14.2,

15.1, 15.5

3.9, 12.4, 13.1,

14.3, 15.2

3.9, 6.3, 6.6,

12.4, 14.1, 15.1

16.3

5.1, 8.5,

8.6, 10.3

8.8

4.3, 4.4,

4.5, 5.1, 8.2,

8.5, 10.3

2.3

36,40, 41

40, 41

40, 41

41

41

36, 38

38

39, 40

38

38

36, 37

37

37

37

37

36, 41

41

41

41

42

36, 44, 45

45

45

45

23, 24, 25

24, 25

24, 25

24, 25

44

44

48, 49

23, 25

25, 26

25, 26

26

26

29

29

29

30, 31, 32

29, 34

34

33

33

34

46

49

The assumptions, initiatives, descriptions, programs, processes and other activities referred to in this Sustainability Report do not correspond to, and will not be admitted to be deemed or construed by implication or analogy, as legal, contractual obligations or enforceable commitments, beyond what is stated by the specific or formal sources of legal liability.

They do not constitute or commit their continuity, improvement or deepening under the same or different circumstances, without the existence of an express recognition to that effect.

Editing and

coordination:

Corporate Social

Responsibility

Design and production:

Chiappini + Becker

Tel: +54 11 4314 7774

www.ch-b.com

www.pluspetrol.net

AngolaEdificio Tensai Business Center, Zona CS8, Gleba Gu22, Talatona 1º Andar Direito Bairro Talatona, Municipio da Samba, Luanda - AngolaTelephone: 244-222-703131

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

BoliviaAv. Grigota esquina calle Las PalmasSanta Cruz de la Sierra - BoliviaTelephone: 591-3-359-4000Fax: 591-3-354-8080

USA5599 San Felipe Suite 1000 Houston, Texas 77056USATelephone: 1-713-961-1095Fax: 1-713-961-1097

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

PeruAv. Republica de Panama 3055 - Piso 8 - San Isidro, Lima - PeruTelephone: 51-1-411-7100Fax: 51-1-411-7120/7142

UruguayDr. Luis Bonavita 1266World Trade Center - Torre IV - Piso 15 - 11300 Montevideo - UruguayTelephone: 598-2-1838-3200

sustainability report 2019 - pluspetrol.net

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