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Indigenous communities

For the second year running, we continued to carry out studies on social performance in our operations involving indigenous communities, on this occasion in Ecuador. In November we implemented the first action plan arising from the study carried out last year in Peru and Bolivia.

Repsol is committed to respecting and observing the rights of indigenous peoples, in adherence of own values and commitments, as well as to comply with existing legislation and international treaties and agreements, such as Convention 169 of the International Labour Organization (ILO), whether or not they are incorporated into the legislation of the countries where we operate.

In 2011, we continued to implement and deploy our policy on indigenous communities, approved in 2009 and applicable to new projects and the expansion or closure of existing projects. In particular, we carried out campaigns to raise awareness of this policy among employees and contractors, and we also made it known to certain indigenous communities.

Relations with indigenous communities affected by Repsol's operations in 2011

Country Operation Number of communities and approximate population Ethnic group Dialog and consultation Agreements reached
Argentina Loma la Lata (development) Four communities: Paynemil, Kaxipayi, Purrn and Cortes. Mapuche - Dialog committee made up of YPF staff to arrange joint activities with the Mapuche Paynemil and Kaxipayi communities
- Several rounds of dialog to clarify the communities' most urgent needs
- Collaboration agreements with the Paynemil and Kaxipayi communities to provide education and charity relief for the elderly, to supply gas and energy, maintain irrigation equipment and provide comprehensive medical attention
Bolivia Margarita (development) Five communities directly affected and 32 indirectly affected. (2,000 people) Guaran - Consultation to approve the drilling of a borehole for water in Campo Margarita
- Consultation to approve the laying of collection and drainage pipes and access routes
- Renewal and integration of the Margarita-Huacaya environmental licenses
- Consultation to approve the drilling of boreholes W-5 and W-6
- Environmental impact study relating to the drilling and operation of the MRG-8 well and the construction of collection pipelines
- Consultation to approve the installation of collection pipes for the MRG-5, MRG-6 and MRG-7 wells
- Consultation to approve the construction of a gas station to supply the vehicles of the Campo Margarita development and drilling project
- Implementation and adherence to the Zone III Itika Guasu communities agreement
- Direct support focused on immediate needs in terms of health, education and productive development in communities in the directly affected area
- Friendship and cooperation agreements 2011-2012, which prioritize needs identified by the town's authorities, such as the Ancahuasu community bordering on the activities of the Huacaya X1 well
- Friendship and cooperation agreements 2011-2012, reached in line with the principal needs of the indirectly-affected communities of Palos Blancos and Iguirati, on health and education, training, awareness raising and prevention of domestic violence, sexual violence, teenage pregnancy and alcohol abuse
Paloma ?Surub (development) 10 communities Aymara and Quechua - Information provided on Repsol's intention to sell the asset with the intention of maintaining good relations
- To date, the asset has not been transferred
- Implementation of the inter-institutional agreement signed with the town of Entre Ros in Cochabamba and the agricultural and livestock union federation Mamor-Bulo Bulo, entailing a range of activities
Itatiqui Five communities Guaran - Communication on plan for abandoning and closing the Itatiqui-X1 well - Closure agreement in collaboration with the community covering erosion control and reforestation of the platform and access route to the Itatique-X1 well
Increase in pipeline capacity in the area operated by Petrobras 45 communities Wenhayeek - Consultation with the aim of increasing capacity of transfer lines in the 28" gas and oil pipeline loop - Friendship and cooperation agreement with the indigenous Weenhayeek people to implement the development plan for the Caipipendi area and support the implementation of the Development Plan for Indigenous Peoples (PDI) of the La Costa community
Increase in pipeline capacity in the area operated by Petrobras One community Guaran - Consultation with the aim of increasing capacity of transfer lines in the 28" gas and oil pipeline loop - Friendship and cooperation agreement with the indigenous Guaran La Costa-San Antonio community, to implement the development plan for the Caipipendi area and support the implementation of the Development Plan for Indigenous Peoples (PDI) of the La Costa community
Ecuador Block 16 (production) - Five directly affected communities: Dikaro, Yarentaro, Timpoka, Guiyero and Peneno, Timpoca, Waoran Communities (400 inhabitants)
- Two communities affected by logistical activity: Pompeya and Indillama (850 inhabitants), of the Kichwa ethnic group.
Waorani and Kichwa - Consultation and collaboration with the indigenous people in the Environmental Impact Study: Reassessment of the Ex-post Environmental Impact Study for the development and production phase of Block 16, the Tivacuno fields and unified Bogi-Capirn field and the Pompeya y Shushufindi pumping stations, to drill 24 development wells
- Collaboration on the 2011 annual operating plan to implement the Friendship, Respect and Mutual Support Agreement, in the areas of health, education, community development and other community priorities proposed directly and through the governing counsel of NAWE. The annual operational plan is jointly agreed and signed annually and is then passed on to the appropriate authorities for monitoring. In addition to this agreement with the NAWE, agreements are also signed from time to time with the intra-block communities, on matters such as compensation for new projects or the expansion of platforms, infrastructure and other kinds of work that require a negotiation process and agreements to be reached.
- Quarterly workshops to monitor the budgetary performance of the annual operational plan signed jointly with NAWE and make necessary improvements
- Follow-up meetings to monitor adherence to the ongoing commitments in the compensation agreements with the intra-block communities
- Agreement to keep stakeholders informed about the monitoring of the jointly agreed annual operating plan
- Agreement with the Nacionalidad Waorani de Ecuador (NAWE), Ecuador's Waorani people, to hire technical experts to assess the application and legal force of the Friendship, Respect and Mutual Support 1993-2013 agreement
Peru Block 39 (exploration) 12 communities (2,190 inhabitants) Arabela and Quechua - Participatory workshops on local hiring for the 454 km expansion of the seismic survey
- Participatory workshops to design community monitoring of the 454 km expansion of the 2D seismic exploration area
- Two informative workshops and one public hearing during the environmental impact assessment (EIA) process and prior to approval of the plan for local participation in the 3D seismic survey and drilling of 21 wells
- Opening of suggestion boxes while the EIA was ongoing for the 3D seismic survey and drilling of 21 wells
Provision of training workshops for those taking part in monitoring the 454 km expansion of the 2D seismic exploration area
Block 57 (exploration and development) 21 communities (10,570 inhabitants) Ashninka, Kakinte, Machiguenga and Yine - Information meetings, visits and internal meetings totaling over 100 meetings and visits pertaining to the exploration project
- More than 25 meetings and visits pertaining to the development project
- Three participatory workshops held in Nuevo Mundo, Camisea and Shivankoreni and two public hearings, in Nuevo Mundo and Camisea
- 10 collaboration agreements were renewed with the indigenous communities and federations and the executors of the contract to administer the Machiguenga and Ashaninka community reserves
- There are 13 other current long-term agreements lasting more than one year. Over the course of 2011, these agreements were implemented according to the terms and conditions agreed with the communities
- Compensation agreements with the Nuevo Mundo, Porotobango, Poyeni, Camisea and Shivankorenii communities
Block 109 (exploration) 24 communities (3,100 inhabitants) Awajn - Information workshops and other consultation processes
- Participatory workshops on local hiring
Initial agreements to carry out geological activity
Venezuela Quiriquire (development) One directly affected (500 inhabitants) Warao - Relationship established through the department for indigenous people's health Monitoring of the social investment programs established in 2010 was begun

Community relations teams

Our community relations teams are responsible for initiating, conducting and maintaining relations with the communities where activity is planned and for creating appropriate conditions and relations with the communities, so that they are aware of the characteristics of projects, their potential impact and the prevention and mitigation measures planned. The communities can also play a role in contributing to the company's full understanding of what the impact might be. Community relations teams are also responsible for aligning the interests of the communities with our social investment principles to bring about compatible projects.

To achieve this, we engage in dialog, information, consultation and negotiation processes.

The people that make up the community relations team are the visible face of the company in the communities. They are responsible for handling relations with indigenous peoples in a friendly and good faith atmosphere. They help to analyze the communities' needs and act as liaison officers between the company and the communities, mediating in potential disagreements and conflicts and seeking an understanding that is beneficial for both parties.

Our community relations people in countries where we have operations in areas inhabited by indigenous communities is detailed below:

Our community relations personnel dedicated to indigenous communities
Permanent Repsol Employees Contractors Total
Argentina 3 0 3
Bolivia 4 2 6
Colombia 1 1 2
Ecuador 7 0 7
Peru 25 3 28
Venezuela 2 3 5
Total 42 9 51

The number of people dedicated to this work is determined by the number of blocks that we operate in each country, by the number of indigenous communities in each block, by the number of communities that could be affected by our activity even if they are located outside the blocks, and by the area that must be covered to respond to all of the communities. Due to these factors, Peru is the country with the largest community relations team.

Research into social integration

We have undertaken to commission studies by independent companies to assess whether or not we adequately adhere to our policy on indigenous communities in the countries where our operations come into contact with such communities.

Last year, the first survey of our operations in Peru and Bolivia was carried out and, in November, we published the action plan outlining our commitments to bring us into line with our new Policy on Relations with Indigenous Communities. The corrective measures include modifying the structure of the community relations area, developing and implementing a plan for relations with indigenous communities, federations and associations, and holding training workshops on social management in our operations.

In 2011, we carried out a second study in Ecuador, with the following methodology, implementation and results:

More information can be found on the action plan for applying Repsol's Policy on Relations with Indigenous Communities in Peru and Bolivia at comunidades.repsol.com
More information can be found on the Policy on Relations with Indigenous Communities and the Code of Practice for Relations with Indigenous Communities at comunidades.repsol.com

Second study in Ecuador.

What disputes have arisen?

In Colombia:

  • In 2010, the Colombian national hydrocarbons agency (ANH), put blocks out to tender in a process known as Open Round Colombia 2010. An exploration and production block known as Cayos 1 and a Technical Evaluation Area (TEA) known as Cayos 5 were awarded to a consortium between the Colombian oil company, Empresa Colombiana de Petrleo (Ecopetrol), and YPF - Repsol.

    On February 16, 2011, the Corporation for Sustainable Development in the San Andrs, Providencia and Santa Catalina Archipelago (CORALINA) brought public proceedings against the ANH aimed at excluding the "Seaflower" biosphere reserve and the protected marine area from exploration and drilling.

    As a result, the ANH issued a communiqu on February 17 indicating that the signing of contracts for hydrocarbon exploration and production would temporarily be suspended in two areas in the vicinity of the archipelago, by mutual agreement with the companies involved in the Open Round Colombia 2010 process; this decision was reflected in resolutions 167 and 168, of March 16, 2011.

    In light of this situation, Repsol agreed to respect the decision of the relevant environmental and legal authorities. This situation ended on October 1 with an announcement by the Colombian president that oil exploration and drilling activities would not take place in this area.

In Peru:

  • On May 15, 2011, the Peruvian energy and mining ministry (MEM), through the department for energy and environmental affairs (DGAAE), approved the environmental impact study (EIA) for the 2D-3D seismic survey and drilling of 22 exploratory wells at Plot Block 57, which lies between the provinces of Satipo (Junn), Atalaya (Ucayali) and La Convencin (Cusco).

    The MEM requires a program of public participation before approval can be given, comprising at least three information workshops and one public hearing. In compliance with current legislation and in keeping with the spirit of the ILO's Indigenous and Tribal Peoples Convention, Repsol held workshops and public hearings with the 16 communities directly affected by the project and organizations that represent them, which include the Organization for the Development of the Kakinte People (ODPK), as well as other community meetings, between March 2009 and September 2010. At these workshops and hearings, Repsol listened to the people's concerns, and included them in the EIA that was finally approved by the DGAAE.

    After this approval, on June 13, 2011, the ODPK sent a letter to the MEM and to Repsol, saying that the Kakinte people, authorities and organization had observed and disapproved of the seismic prospecting project. This same letter also mentioned that on July 18, 2010, the Tsoroja community had held a meeting at which the Kakinte people had rejected the EIA of the Repsol project.

    On August 11, 2011, at the request of the Tsoroja community, a meeting was held in the community at which the Tsoroja people, the director of the DGAAE and representatives of the company were present to explain the process of approving EIA's and the legislative mechanisms in place to ensure that the opinion of the communities, as expressed at the workshops and public hearings, is taken into account.

    On August 15, 2011, the ODPK issued a communiqu unilaterally suspending all dialog and dealings with the company. Repsol, while respecting this decision, waited expectantly to resume dialog with the organization, which occurred in October 2011. Since that date, Repsol and ODPK have re-established dialog and mutual collaboration.

    In November 2011, an agreement was signed in which the Tsoroja community gave Repsol permission to begin work on the camp and fitting-out the platform for drilling the Mapi LX well, which is located in the community's territory.