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.
Social investment
A responsible companySocial investment
Continuous interaction with the community has shown PAREX that the path to investing in communities must start with open channels of communication that help to identify community interests and needs. For this reason, our priority regarding these communities is to provide clear and timely information, and to continuously and collaboratively ensure that programs are executed well.
At PAREX, we believe that dialogue has and always will be an essential path to building trust. This is the reason we operate in areas where communities are beneficiaries of the added value and the benefits created by our Company and our value chain.
In 2016, social investment was COP 5,190 million (USD $1.7 million) to support the implementation and audit of our social programs. Even though this investment was lower than that of 2015 as a result of the economic challenges for the oil sector (leading to the suspension of operations in certain PAREX fields), social investment resources were used for programs that benefited nearly 22,000 individuals and 4,000 families.
Social investment in 2016 was extended to more areas. The first projects were implemented in Arauca based on the needs identified by the Company and stakeholders. In the Middle and Lower Magdalena areas, PAREX has also identified specific needs and use of resources to implement social investment projects during 2017.
Economic development
COP 911 218 131
0
0
Community strengthering
COP 1 213 317 178
0
0
Institucional strengthering
COP 329 196 055
0
0
Development plan support
COP 2 424 630 149
0
0
Culture, recreation and sports
COP 33 464 040
0
0
Capachos Block: A two-way commitment
PAREX aims to build bonds of trust through dialogue and fulfillment of agreements, laying the foundations for starting operations where the company has identified an opportunity. In Arauca, PAREX is committed to sharing the successful experiences gained in other regions to promote local development.
The Capachos Project, developed in partnership with Ecopetrol, has become a new milestone in our track record in Colombia. During the first year of our presence in this eastern region of Colombia, our relationships with authorities and communities became stronger. We have made good progress in finding and hiring local suppliers, which were key steps in making our relationships with stakeholders stronger regarding our operations.
We deepened our knowledge of neighboring rural and ethnic communities by working together with those communities. We created opportunities to foster trustworthy relations to encourage community growth hand in hand with the oil industry. Those opportunities have been supported by a social investment program exceeding COP 800 million (USD $262,210) in projects to improve school and community infrastructure, recondition rural roads, and promote community-driven projects.
“
PAREX is a company that has respected the Tame communities, and ever since they first arrived here, they have been willing to listen to the communities as many times as necessary.
”
Alexa Milena Quirife
Secretary of Government and Citizen Coexistence of Tame.
Building trust is a progressive and ongoing enterprise. The cycle of dialogue and agreements to advance this project has involved different players who have been building trust in our stakeholderss across the region. The presence of representatives of the Embassy of Canada and delegates of the national government along with the support provided by territorial and local authorities have made possible to put into action the Capachos Project in an environment that facilitate mutual understanding.
At PAREX, we have ensured to maintain standards in our operations that consider social dynamics. In 2016, as stated by Luis Fernando Ulloa, Advisor for the Territorial Hydrocarbons Strategy of the Ministry of Mines and Energy: “PAREX is a very disciplined company in social and environmental matters, strongly aware of the need to do things well”.
Albeiro Caicedo, Vice President of Asojuntas, adds: “PAREX’ relationships stand out because of their respect not only for the communities located close to their operations, but also for everyone in general. After the first social investment experience, we feel grateful for their contribution to improving certain basic needs”.
The Company has always had one single goal: achieve and advance under the highest principles of respect for the current legal regulations, build transparent relationships, and provide contributions that result in better conditions for community development.
Stories of progress
Better housing, better quality of life
“A home is the foundation to have a good quality of life; it is an improvement that allows people to live better.” This is how Nancy Álvarez explains the Materials Supply for Housing Improvement Project that helped her in 2016. Over the past 20 years, she has lived in the rural district of Platanales in the municipality of San Luis de Palenque. Thanks to the building supplies she received, Nancy improved the housing conditions for herself and her family, expanding the kitchen and bedrooms.
Very close to Nancy’s home, in the rural district of Barquereña, 23 other families worked together to renovate their homes using materials provided by PAREX in the amount of COP 97 million (~ USD $31,793). For Estela Meche, who lives in this rural district, this project has meant more security for her family. She used the materials to build a fence around her house which is located near the main road; a long-term improvement that is possible thanks to the effort made by the community and PAREX.
Home improvement is part of the Development Plan Support program provided by PAREX. This program is similar to other programs implemented by municipal administrations. Projects of this nature are an immediate source of progress and social development for recipients because they have access to a better quality of life and improved housing.
PAREX’ Housing Improvement Plan, part of the Development Plan Support program, was implemented in six blocks in the department of Casanare. In total, 609 families in 20 rural districts benefited from this program.
Social investment lines that PAREX has defined within the framework of its Corporate Social Responsibility strategy, are the way to support the materialization of families’ plans, rural settlements or municipal projects which make PAREX’s economical contribution and support, new life chapters.
Drinking water for Buenos Aires Alto
As part of the Development Plan Support program, PAREX have worked together with the Villanueva Town Hall and the Community Action Board of the rural district of Buenos Aires Alto to make their water treatment plant functional. The plant treats water from the local aqueduct, supplying this vital liquid to the homes of 50 families.
This treatment plant makes it possible for these families to have high quality water that has a direct and positive impact on their health, especially for children and the elderly, who are more vulnerable to diseases. Flahuber Arias Buitrago, Secretary of Public Works of Villanueva, describes this project as “the main contribution provided by PAREX in cooperation with the Municipal Administration that benefits a community that was in need of a better aqueduct”.
Alliance for the benefit of the people of Tauramena
PAREX believes that engaging all parties creates better solutions to the social problems that may arise. Together with two other companies from the sector, Geopark and Pacific (currently Frontera Energy Corporation), and the continuous support of the Municipal Town Hall, PAREX has provided the Public Service Company (Empresa de Servicios Publicos) of Tauramena with a garbage compactor vehicle. This contribution addresses a clear need of the municipality for adequate waste collection management.
The manager of Empresa de Servicios Publicos of Tauramena, Omar Morales, highlights this important contribution, as well as the benefit this represents to the community. Waste management has many direct impacts on the health and well-being of individuals.
