Since entering Colombia seven years ago, PAREX has been building strong foundations that have led in 2016 to valuable growth and investment opportunities in new Colombian regions as well as in the areas where the Company already has operations.
Letter from the president
The past few years have been challenging for the Company and, in general, for the entire hydrocarbon sector in Colombia. However, PAREX has found sufficient motivation and opportunities to continue to grow with its partners, relying on the support of its human talent and the good decisions made by a corporate team that believes in Colombia and its institutions, as well as the Company’s ability to take on big challenges.
Thanks to a talented and committed team, we are growing across Colombia, a country that welcomed us seven years ago beginning in Casanare, a place where we continue to showcase the best of what we are and what we do at PAREX.
About this report
This report outlines the economic, environmental, and social management of PAREX’ exploration and production operations in Colombia during 2016. For the third consecutive year, reporting has been prepared using the Global Reporting Initiative (GRI) methodology. Information provided in this report reflects the Company’s activities in all the locations where the Company operates.
Operational excellence
As a company listed on the Toronto Stock Exchange (TSX), PAREX’ financial results are public and subject to annual auditing, promoting the transparency of the information provided to its stakeholders.
In 2016, due to a low oil price environment, PAREX rolled out a program in which capital expenditures were lower than funds flow from operations.
A responsible company
PAREX believes that social responsibility is a corporate commitment based on values, principles, and good practices discussed with stakeholders with the purpose of creating and sharing benefits.
Letter from the President & CEO
Boasting a favorable investment environment, Colombia has proven to be a positive outcome operation for PAREX. Despite the economic and social challenges faced by the industry globally and locally, PAREX’ growth outlook in Colombia is positive, strengthening our commitment to expanding operations in locations where we can share our knowledge and expertise.
Our operational and financial results in 2016, publicly-reported periodically, were the result of clear goals, effective cost management, and wellplanned and responsible resource management. We exited 2016 with no bank debt and an undrawn credit facility of COP 533,921 million (USD $175 million).
Certifications
In its first audit PAREX achieved the international certifications ISO 14001:2004 and OHSAS 18001:2007. These certifications confirm the Company’s strong commitment to safety, occupational health, and environmental management in activities related to oil exploration, production, trading, and transportation from producing fields to several facilities in Colombia.
About PAREX
PAREX is an energy company that conducts oil and gas exploration, development, and production activities in Colombia. PAREX’ corporate headquarters are located in Calgary, Canada, and it has an administrative office in Bogotá. Its operations in 2016 were mostly located in the Casanare and Arauca regions, as well as in the Middle and Lower Magdalena Valleys. PAREX has holdings in 22 exploration and production blocks in Colombia. The properties are located within the Llanos and Magdalena basins, totalling 1.7 million gross acres. PAREX’ common shares are publicly traded on the Toronto Stock Exchange (TSX) under the symbol “PXT”.
Corporate governance
At PAREX, our corporate culture is driven by a corporate governance that promotes transparency in our operations towards shareholders, markets, and key stakeholders. Through its Corporate Governance, Compensation and Human Resources (HR), Operations and Reserves, and Finance and Auditing Committees, PAREX ensures efficacy in its governance, aligning the performance of human talent with corporate goals.
Effective management practices and internal controls are fundamental elements in PAREX’ governance framework. The Board of Directors, through its committees, monitors these practices and ensures that the systems created, operate properly and following the legal requirements.
Sustainable environment
Environmental management at PAREX is comprehensive. Caring for natural resources and ecosystem biodiversity that coexist with our operations requires special attention and environmental management strategies. We have developed an environmental baseline study of physical, biotic, and socioeconomic components to ensure environmental sustainability and compatibility with operations.
