PAREX and local partners

A Responsible Company

PAREX and local partners

The value chain at PAREX is essential to the development of the areas where we conduct business. A strong value chain promotes local growth through the creation of small-sized and medium-sized enterprises in various economic activities.

Procurement processes developed by PAREX are based on best practices and the principles of legality, inclusion, and fairness. Based on these principles, the Company approaches the local market to identify ideal suppliers who are aligned with the best practices in industrial safety, environmental sustainability, social responsibility, human rights, and ethical standards implemented at the Company.

In 2016, PAREX demonstrated its commitment to local companies, many of which have grown together with the Company, through the procurement of goods and services for COP 58,595 million (USD $19.2 million), out of which COP 53,278 million (USD $17.4 million) was generated in the department of Casanare.

The procurement of goods and services decreased in 2016 compared to 2015 mainly as a result of fewer activities in certain operating areas.

“

PAREX has revitalized the economy in municipalities and rural areas through the procurement of local goods and services. In my community, there is a micro-enterprise run
by a woman that used to slaughter 40 chickens per week, and today she sells up to 400. That is when you realize that it is worth having PAREX supporting local development. We are proud to see local business grow and thrive competitively.

”

Carlos Chaparro
Food Supplier, rural district of La Graciela, Aguazul, Casanare.

Local competitive development together with PAREX

Several local companies contribute to PAREX’ operations. This is how, in 2016, we continued to work together with suppliers and contractors boosting sustainable development, employment generation, and
the industry’s best practices.

Motived by sustainable business growth

PAREX’ social responsibility goals, among others, are to add value to all participants of the supply chain, in which regional companies are very important because they have an impact in the local economy and help to create new opportunities in the region.

Lina Ramírez is a manager at Transpetrocar. She proudly reports that the company, which was created six years, is currently positioned among the best petroleum by-product carriers in Casanare.

She explains that working with PAREX has helped the company achieved higher standards: “We started working with PAREX three years ago, and our company has been growing since then. PAREX’ service quality standards are very high and they have helped us detect potential failures and take preventive actions to minimize road, environmental, and personal injury risks”.

Today, Transpetrocar ranks among 15 Colombian companies that achieved the ISO 39001 certification of Road Safety Management System. “It was because of PAREX that Transpetrocar got this certification, which has been obtained only by a few companies in Colombia. This means innovation and safety for our clients,” she says.

Suppliers creating opportunities

By supporting suppliers, PAREX helps to make companies stronger and supports employment generation locally.

Servicusiana is a company that provides crude oil transportation services. For Julieth Rojas, Manager of Servicusiana, company audits have strengthened its market competitiveness: “A few years ago, PAREX invited local freight transportation companies to participate in specific service contracts. We were audited and tasked with projects that improved our work until 2015, when we started to work directly with them”.

In addition, Ms. Rojas enthusiastically says that PAREX was the first company to give them the chance to provide direct services. This opportunity has increased employment generation within the company, which currently has 27 employees.

“

PAREX was the first company to believe in us and gave us the opportunity to provide crude oil transportation services. We are a local service provider, and we have strived to meet the high safety and quality standards required by the company.

”

Julieth Rojas
Servicusiana Manager, Tauramena, Casanare.

Opportunities to continue growing

Ferreléctricos 2000 and Cocmoelec, companies located in Casanare that provide construction of minor civil works and electrical assembly services, are also suppliers that have grown because of their work with PAREX.

José Peñaloza, Manager of Ferreléctricos 2000, says that because of the opportunity provided by PAREX, they were able to obtain contracts with large companies and expand their business services to the rural district of La Urama, where they currently have a new point of service.

PAREX was the first company to believe in us and gave us the opportunity to provide crude oil transportation services. We are a local service provider, and we have strived to meet the high safety and quality standards required by the company.

In addition, Arnulfo Espitia, Manager of Cocmoelec, says that PAREX was the incentive for their incorporation as a company: “When PAREX came here to present the Kananaskis and Carmentea projects, we were told that there would be opportunities for us if we were a company. This motivated us to incorporate our company to become PAREX’ direct contractors”. For Arnulfo, formalizing the company did not only mean becoming engaged in different PAREX’ projects, but also meant generating employment and drawing up plans to strengthen its services with the aim of being more competitive in the market.

PAREX and local partners