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CORPORATE SOCIAL RESPONSIBILITY REPORT SUPPORTING A BETTER FUTURE 2009
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PERENCO AT A GLANCE Perenco is a leading independent oil & gas company with operations in 16 countries across the globe, ranging from Northern Europe to Africa and from South America to the Middle East. Perenco is involved in operations both onshore and offshore. Perenco currently produces 250 000 boepd, of which 180 000 boepd is net to the company and is present in exploration basins in areas such as Brazil, Peru, Northern Iraq, and Australia. Perenco employs more than 4,000 people worldwide and is proud to be a responsible and safe operator and a partner of choice.
Perenco’s success to date has been built upon the solid foundations of responsible practices in all areas of its operations. • Business Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 4 • People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 5 • Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 6 • Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 14
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WORD FROM THE CEO I am proud to issue Perenco’s first Corporate Social Responsibility (CSR) Report. Although this is the first such report for Perenco, Corporate Social Responsibility is not new to us. Throughout our history, fairness, social awareness and community support have been at the heart of Perenco’s approach to conducting business. Our stakeholders, including employees, governments, partners and the financing community, are showing an increasing interest in understanding our CSR activity. It is becoming extremely important to better explain our strategy, and to show tangible examples of positive social actions. At Perenco, we have never seen CSR simply as a way to maintain the company’s short-term reputation. As a responsible operator, whilst we firmly recognise that the longterm future of the Company is best served by respecting the interests of all our stakeholders, we also believe that we have a moral commitment to invest in the social and economic development of the areas where we operate. We remain committed to our focus on sustainable development. Alongside our responsibility to deliver profit and growth, we are committed to continue to be welcomed as a company of choice by the people who live in the areas where we operate. We believe that priority has to be given to health, education and infrastructure projects, but also to help in enabling access to basic services like electricity, and clean water when they are lacking. Considering that our financial and technical support for these community projects has a great
impact on the day to day lives of the local population, it is Perenco policy to ensure that we dedicate the relevant funding for these projects in the overall budget. Wherever we operate, every effort is made to improve the quality of life while preserving traditional cultures and values. We actively look for opportunities to contribute to the wellbeing of the communities in which we operate. Our CSR policy sets out the clear principles we follow. The programmes we have developed, some of which are highlighted in this report, demonstrate how seriously we take our role as a responsible corporate citizen. We also face significant challenges by virtue of the fact that we operate in very remote regions of the world, often in delicate ecosystems that require extreme sensitivity. We recognise the need to conduct our operations with minimum impact, which is why we strive to exceed the high standards set by the industry and international environmental regulations. 'Corporate Social Responsibility' is at the heart of everything Perenco does and we take full account of the impact our work has on people and the environment. I am proud of our achievements in the countries where we operate. I know that the work of ensuring we act responsibly is never finished and have confidence that the coming months and years will show Perenco continuing to have a positive impact around the world. Jean-Michel Jacoulot
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BUSINESS INTEGRITY Our business Integrity goals are: • To promote and maintain honesty, integrity, and high ethical standards • To prevent financial and reputational damage to Perenco and its staff Perenco personnel are committed to achieving these goals: • Managers are responsible and accountable for upholding and communicating this policy and leading by example • All Perenco personnel must comply with this policy and promptly report concerns and violations To ensure compliance with our Ethics & Business Integrity Policy we: • Comply with all laws governing Perenco and its operations as well as Perenco internal policies including those on Health & Safety, Environment, Security and Social Responsibilities • Treat all staff, business partners and local communities fairly and with respect • Ensure we avoid making any illegal payments including to customers, agents, and host governments • Avoid all conflicts of interest including any transactions which could be perceived as conflicts of interest • Ensure all Perenco documentation, including financial accounts and records, are accurate, complete, and truthful • Maintain the confidentiality of commercially sensitive information • Compete fairly • Report all violations and concerns in a spirit of openness and transparency.
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PEOPLE Supporting our most valuable asset We are committed to treating our staff and partners fairly and with respect at all times. Principles which govern our behaviour include, but are not limited to, the following: • being an equal opportunities employer, committed to developing a diverse workforce where everyone is treated fairly irrespective of gender, sex, race, sexual orientation, age, disability, religion or ethnic origin • creating an environment where everyone is encouraged to give their best and realise their full potential, through
the provision of training and career development opportunities • ensuring that employees can discuss any problem connected with their work confident that they will receive a fair, impartial and confidential review of the issue • encouraging highest standards of professionalism and personal development throughout the Group • offering employees clear and fair terms of employment.
DRC Rugby as team building Rugby was a little known sport in the DRC, but over the last year Perenco has successfully attracted many young people into what has fast become a very active and thriving local sports club.
GABON IFP training
Through the introduction of the game, many Perenco employees are learning a new set of team skills and have enjoyed training and playing against other clubs from around the country.
For several years, Perenco Gabon has encouraged its best engineers to develop their skills by offering them training at the IFP in France. Six engineers benefited from this in 2007 (four drilling engineers and two production engineers), three in 2008 (two drilling engineers and one production engineer), and one drilling engineer in 2009. The course lasts four months, and concludes with an individual professional project memoir. At the end of the course, the engineers have a better knowledge of operational equipment in drilling or production, and are able to plan work programmes and be fully responsible for onsite project follow-up.
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COMMUNITY Social outreach is an integral part of Perenco's approach to conducting business. We focus on sustainable development. Wherever we operate, every effort is made to improve quality of life while preserving traditional cultures and values. Our community goals are: • To make a positive contribution to local communities • To respect different cultures and the rights of individuals Perenco personnel are committed to achieving these goals: • Managers are responsible and accountable for upholding our Social Responsibility Policy • All Perenco and contractor personnel must consider Social Responsibility in all their activities, and intervene when these goals are compromised
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To ensure compliance with our Social Responsibility Policy we: • Comply with the laws of the host country • Ensure that all staff and contractors are aware of the Perenco commitment to Social Responsibility • Maintain high ethical standards throughout all interactions with local communities • Communicate Perenco's activities with the local communities taking into account local customs • Identify, in partnership with local communities, social projects where Perenco can make a positive contribution These could include: — Personal and community health support — Local infrastructure and access to sustainable energy and water supplies — Local education, and support for primary schools for all — Sustainable community-led projects: agricultural / fishing / micro credit/etc... • Allocate necessary resources to fulfil our Social Responsibility role • Manage Perenco-led projects in such a way that community expectations are met by: — Defining clear objectives, and promising only what can be achieved — Keeping to agreed schedules — Sharing of knowledge and building of trust • Perform regular audits of all our activities, using these results to drive performance improvements & high ethical standards.
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COMMUNITY Health Improving and supporting health care in our areas of operations is one of our main priorities. In remote areas where we operate, access to basic medical services can be problematic. This is why we work hard to bring health services closer to where people live, or when that is not possible, help those who need care the most to reach the nearest health care resource.
DEMOCRATIC REPUBLIC OF CONGO Perenco DRC was involved in the upgrade of a health centre at Nsiamfumu and in the building of another facility in Ndundji. Both medical centres offer essential primary care for residents of the nearby villages.
thousands of children are born with a cleft, but in the developing world many families cannot afford the corrective surgery. Perenco arranged for the children, who live in Muanda near Perenco’s operations, to be flown with nurses to Kinshasa.
Because of the poor state of repair of the health centre at Nsiamfumu, local people were forced to travel 15km to the city of Muanda, rather than use their local centre. Today the Nsiamfumu facility has been upgraded and over 2 000 people once again have access to a vastly improved health centre in their own village. Similarly, following the construction of a new health care centre in the village of Ndundji, a settlement approximately 30km from Muanda, the people of Ndundji, and also the neighbouring villages of Sikili and Tende, now have access to a modern medical facility without the need to travel long distances.
At Kinshasa’s University Hospital a team of visiting Italian surgeons performed the relatively simple forty five minute procedures. After a day’s rest the children were flown home to a warm reception from their families.
In 2009, the company sponsored much needed improvements to the maternity ward at Muanda’s General Hospital. This is now a much more welcoming place for staff and patients alike following repairs to the leaking roof, an overhaul of the ward’s electrical wiring, and some redecorating. Perenco DRC has helped a group of five young children and teenagers from the DRC receive life-changing cleft surgery. Every year
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PERU Hospital Barge In co-operation with the Regional Government of Loreto and the Peruvian Navy, Perenco launched the “Pastaza Hospital Barge.” The barge, the first of its kind in the region, will serve more than 16 000 people from 86 communities along the Napo, Curaray and Arabela rivers. It has been fully refurbished and equipped with medical equipment by Perenco. The barge provides the communities along the three rivers with medical and dental services and will also have a fully equipped medical laboratory. It is staffed with 17 medical personnel who visit each of the 86 communities at least every 40 days. The launch of the “Pastaza Hospital Barge” sees Perenco Peru, the Regional Government of Loreto and the Peruvian Navy all working closely together to deliver a comprehensive health project in the area.
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COMMUNITY Education Perenco is widely involved in the building or repairing of schools, giving scholarships, books and computers, offering transport and meals to children living near our operations. In total, more than 50 000 children around the world have already benefited from Perenco’s actions.
“A considerable energy was required to follow this project” “In spite of the difficulties, the construction site was opened on time” Jean-Robert Ippet–Letembet Deputy General Manager of Congo
CONGO Studying close to home In order to encourage students to remain in schooling after their fifth grade, Perenco Congo funded the construction of a new school facility for 100 students in the district of Nzambi. The new facility allows students to continue studying close to home, without having to travel to the region’s administrative centre in the heart of the Conkouati National park. The difficult access to the new site presented several logistical challenges, which had to be overcome in order to complete the project on time. The successful completion of this project was testament to the strong partnership between Perenco, the Oil Ministry, the local administrative and tribal authorities and other local organisations. The new facility, which offers students vastly improved conditions for study, was officially opened at a ceremony in July 2009. Many senior politicians, local dignitaries and Perenco E&P Congo’s management team were present.
DRC New school building
GABON School supplies and facilities
In 2009 Perenco undertook the construction of a new school building at The Dizolele Institute. The new brick building replaced one that was constructed from earth and straw. Perenco DRC also helped build primary schools at Kongo and Kitombe for children from local villages, and supplied a number of Muanda schools with benches and other equipment.
In 2009 Perenco donated educational supplies, including text books and computers, to over 1 300 children in 16 schools in the Bendje, Etimboue and Basse Banio regions of Gabon.
A primary school building at the Banana navy base was also upgraded and refurbished.
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The Company was involved in the reconstruction of two dilapidated school buildings, as well as providing housing for teachers and other facilities, including desks, for the South District School in Port Gentil. At Avegombwiri, Perenco contributed to the construction of a new school building.
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UK Musical keys project In 1990 a Norfolk based charity was founded by the parents of children with learning disabilities who discovered that their children responded well to music, irrespective of their level of disability. Children with a full range of special needs and disabilities are now able to gain new skills and further their development through the use of music in a stimulating environment. Perenco provides funding to assist the charity’s running costs.
Fresh Start
“This year’s scheme went really well, the programme was much more structured and all the young people got a great deal out of it, as well as having great fun particularly on the boat trip. All the participants also received a Gold Youth Award for their work during the scheme which can be included in their CV and go towards a Duke of Edinburgh award”. “This year we included a community project which not only allowed the young people to give something back but also involved them working with either the elderly or people with learning difficulties to help break down barriers and stereotypes in the community. We also went on a week long residential trip on a sailing ship along with all the usual activities which entailed the young people working together as a team”. “We could not do any of this without the sponsorship from Perenco. Although Norfolk Police and the Youth and Community Services provide staff, transport and fuel free of charge; the activities are expensive and as you can imagine insurance premiums are very high. Thank you Perenco, I hope you will feel able to keep sponsoring us in future years.” PC Emma DREW Norfolfk constabulary
Fresh Start is a project which has been run as a joint venture by Children’s Services youth work team and Norfolk Constabulary for the past 10 years. 35 students are nominated by their schools, Youth and Community Services and the Police to participate in a range of new challenging activities. It is hoped that this will build their self-esteem and allow them to start the new school year with a ‘Fresh Start’. Through various activities these young people are encouraged to think about themselves and their ability to achieve, as well as to give thought to the needs of others. The project aims to give young adults self confidence and to open their eyes to new opportunities. Two years ago, as a result of a number of referrals, the Project was launched to identify young people at risk from alcohol and substance abuse. A number of young people have since been offered additional support and benefited from the partnership arrangements. Participation in the Fresh Start scheme will continue to give young people the opportunity to achieve accredited awards such as Norfolk Youth Awards and Competent Crew sailing qualifications.
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INFRASTRUCTURE PROJECTS, SUPPORT Infrastructure projects, such as improving existing transport routes, modernising energy supplies or bringing people clean drinking water, are a way of leaving a lasting and positive legacy on the areas in which we operate.
CAMEROON Road to Kombe In Cameroon more than 200 people were temporarily contracted by Perenco this year to help upgrade the road and a bridge near Mvia and Kombe Nsepe. Apart from improving the local conditions, this work allowed access to several villages that had previously been isolated during the rainy season.
Letter of thanks from the Tribal Elders of the Villages of Ekoth, Mpombo, Elogkam and Yambong
GABON Disembarking station
“The collective of the above mentioned villages thanks you very much for the consideration which you were kind enough to show them by having repairs made to the bridges which cross the Otoune and Nkog A Nibih rivers, on the section of road which connects Ekoth and Elogkam.
Perenco Gabon sponsored the construction of a new disembarking station in Batanga, which was designed to improve trade for the local fishermen and to ease movement along the river.
The quality of the work carried out on these structures meets with our approval and reassures us that, in spite of their age, their useful life has been prolonged. We urge you to persevere with similar work in the interest of the communities of Yassoukou Canton, your partner in the Kombe Nsepe project.
DRC Water wells programme Ensuring local communities have access to a safe supply of water is a priority for Perenco. The company has been involved in a programme of drilling water wells in Muanda, DRC. Perenco’s engineers advised the local community on the plans for the new wells and, once the initial work was completed, Perenco organized maintenance training for two young people who had been selected by the village for the role.
We wish you success and we include you in the prayer which we offer to the Lord, that your exploration projects in our forest quickly meet with a happy outcome. Please accept our profound gratitude. For the collective of 4 villages Ekoth, Mpombo, Yambong, Elogkam”.
TURKEY Sahaban Bridge Diyarbakir is situated in Turkey’s more isolated eastern region, known for its harsh environment. The area benefited from the construction and maintenance of essential infrastructure in this remote area. As a major contributor to social and economic infrastructure in the regions in which it operates, Perenco built the Sahaban bridge over the river Tigris and donated it to the local administration. Previously, the local people used a small, light-vehicle river crossing about two kilometres away from the newly constructed bridge. This could only be used during the dry season because it was too low and too weak meaning people had to take a long detour around the river to reach Diyarbakir city centre. Building this bridge shortened the journey by 30km for almost 6 000 people in eight villages, and eliminated the inconveniences and dangers of the river crossing.
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AND ENERGY SUPPLY FOR COMMUNITIES In some areas Perenco has been able to provide free electricity supplies to local villages. For example, in the DRC, Perenco has successfully installed a small power generating facility for local communities. Similarly, in Gabon, the permanent power supply to the village of Batanga serves 80 buildings including houses, businesses, the school, the health centre and the water tower.
PERU
DRC
Perenco Peru has implemented a series of initiatives in support of agriculture. These projects mainly consist of advising on the cultivation of traditional crops, the promotion of poultry farms, the breeding of guinea pigs and pig farms.
In the DRC, Perenco has provided local fishermen with a number of refrigerators in order to improve their trade. The refrigerators, each measuring twenty feet long, were installed in the village of Nsiamfumu 2, approximately 15km from Muanda.
To date approximately 550 families are involved in these programs.
A manager has now been appointed, under the supervision of the local fishermen, to ensure the daily upkeep of the cold room.
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ENVIRONMENT As a global citizen, we are committed to the development and application of best environmental practices industry-wide.
GABON Gorilla conservation project
Our environmental goals are:
For 10 years gorillas have been living on the island of Evengue in the Fernan Vaz lagoon, close to Perenco’s North Gabon operations (Batanga, Mpolunie, Olende). As part of the "Gorilla project", the animals, frequent victims of poaching, were reintroduced to the wild. A local awareness campaign is a key part of the project to ensure the coexistence between the animals and the local population in the western plains of Gabon.
• To minimise our footprint
Perenco participated fully in the project in 2009 and contributed building materials for the extension of the area where the Gorillas live. A new 200m long trench was dug, increasing the space for the gorillas, whilst also allowing visitors better viewing conditions.
• To promote good environmental management in our neighbourhood Perenco personnel are committed to achieving these goals: • Managers are responsible and accountable for environmental matters • All Perenco and contractor personnel remain responsible for their impact on the environment. They must intervene when they encounter environmentally unsound and non-compliant situations To ensure compliance with our Environmental Policy we: • Have in place an Environmental Management System in compliance with all relevant regulatory requirements and with E & P industry standards • Ensure that our Environmental Management System is understood and applied at all levels within the company • Ensure that all employees and contractor's personnel are competent to undertake their work in an environmentally sound manner
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• Emphasise environmental concern both on and off the work site • Assess the consequences of all our activities on the environment and put in place appropriate control measures • Maintain the physical integrity of our facilities to prevent accidental discharges of polluting substances • Adopt the best available and economically viable technologies to minimize our impacts and improve our energy efficiency • Set annual performance targets, with support plans • Maintain current environmental emergency response plans • Undertake regular emergency drills and exercises to test our capability to respond quickly and effectively to any environmental emergency • Report and investigate all incidents, taking appropriate measures in order to prevent their recurrence • Perform regular audits of all our activities, using the results to drive performance improvements.
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GUATEMALA Reforestation program The Perenco Guatemala Reforestation program consists of creating nurseries in communities that are located close to Perenco’s pipeline operations. Since 2001 Perenco Guatemala has sponsored the construction of four nurseries, each with the capacity to grow 55 000 trees. Perenco has donated over 1 200 000 trees to communities, the equivalent of approximately 1 000 hectares. For example in the Raxruhá area Perenco Guatemala implemented a reforestation program at the Transversal del Norte. Perenco donations during 2009 were approximately 200 000 trees given to 50 communities. In addition to the benefits of reforestation, local communities are able to obtain a cash incentive for planting trees from the INAB (The National Forestry Institute).
PERU High Environmental Quality development campaign The Amazonian rainforest is one of the world’s most fragile places. For the development of Block 67 in Peru, Perenco has taken the strictest possible measures to ensure no damage is done to the environment. The following principles will be applied: 1. Local and international standards concerning environmental protection and occupational safety will be strictly followed. 2. All produced water will be re-injected from the beginning of the production phase. 3. Pipelines will be buried. The right of way to be used will be reforested once the pipeline is buried. 4. The offshore type multi-well platform concept will be used, in order to minimize the impact on the ground. 5. It is estimated that block 67 operation will only impact 0.5% of its area. 6. State of the art technologies will be applied during construction and operation of our facilities to ensure no enviromental damage: sensors and measurement devices, control and block valves, SCADA control system, permanent monitoring of operation parameters, optic fiber data transmission, among others. 7. At the completion of production operations, according to the abandonment plan and local regulations, facilities shall be dismantled and the previously occupied areas shall be reforested, as per the company's commitment with the State.
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www.perenco-corporate-social-responsibility.com Graphic design: www.fredericvion.com
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PERENCO 23-25 rue Dumont-d'Urville 75116 Paris Tel: +33 (0)1 53 57 66 00 Fax: +33 (0)1 47 20 38 43
10 Duke of York Square SW3 4LY London Tel: +44 (0)207 9018200 Fax: +44 (0)207 9018230
