Environmental and Social Sustainability Report

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1 Environmental and Social Sustainability Report 2010

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3 About the Report Pluspetrol s third Environmental and Social Sustainability Report (ESSR) has been prepared following the guidelines set forth in the second version of the Oil and Gas Industry Guidance on Voluntary Sustainability Reporting, designed by IPIECA 1, jointly with API 2 and OGP 3, and released at the end of The report aims at providing all stakeholders with accurate information on the environmental and social performance of Pluspetrol operations during 2010, as well as on the activities fostered by the Company to achieve an increasingly sustainable management. Pluspetrol was assisted by PwC Argentina in the preparation of this report. Environmental and Social Sustainability Report 2010 Compared to the previous versions, the 2010 ESSR includes the improvements proposed by the new version of the IPIECA s Guidance Report and a broadening of the issues covered. As to the environmental performance, a deeper analysis was performed through the application of ecoefficiency indicators. Also, detailed information on our production activities was incorporated with the purpose of promoting a better understanding on the origin of our environmental impacts, since the variations produced in these activities affect the performance in this area. Concerning our social performance, we have expanded on the information about the indigenous communities related to our operations, and about the activities implemented with the purpose of promoting their development. As in the 2009 ESSR, this document provides information on the performance of the Company as a whole and on each of the productive operations separately. It is thus intended to facilitate the approach and understanding of the diversity and complexity of the operations and their environment, the plurality of the activities developed and the results obtained from each of them. In addition, the 2010 ESSR includes detailed information on the Rio Colorado District, an operation incorporated by Pluspetrol through the acquisition of Petro Andina assets at the end of In this case, and considering that the information available involves the year 2010 only, the data on the District s environmental performance is presented separately from the rest of Argentina, so as not to affect the indicators comparability. With respect to the environmental and social information of the Business Units that are undergoing exploration stage, no performance indicators are detailed. However, progress was made on the analysis of the data and different study cases showing environmental management in these operations were incorporated to the ESSR. We are grateful to all those who have participated in the preparation of this Report, particularly the members of the Environment and Community Affairs of all the Business Units. 1. International Petroleum Industry Environmental Conservation Association. 2. American Petroleum Institute. 3. Association of Oil & Gas Producers.

4 Contents Our People Training Development Health About the Environmental and Social Sustainability Report About Pluspetrol Origin & Development Operated Areas Activities Results Conduct and Ethics

5 Community Relationships Participatory Dialogue Processes Social Investment IPIECA Indicators Community Projects Community and Value Chain Indigenous Communities Safety Occupational Health and Safety Management Systems Safety Risk Control Safety Performance Environment How we work Environmental Management Systems Energy Efficiency Environmental Impact Management Biodiversity

6 Purpose, Vision and Values Our purpose, vision, and values are the fundamental mainstays of our management. They constitute the basic elements in the establishment of our corporate policies and procedures. Purpose Meet the needs and expectations of all the stakeholders and institutions related to our activities (shareholders, employees and their families, partners, suppliers, clients, governments and communities of the countries in which we operate), while keeping our own identity. Vision Excel as a benchmarking company among the international energy companies. Values Think beyond obvious possibilities, taking action despite uncertainty. Be persevering. Work in teams to give free rein to our imagination and creativity. Develop human resources talent. Use resources efficiently, keeping a low-cost mindset. Capitalize on the opportunities. Preserve the environment. 4 Pluspetrol

7 About Pluspetrol

8 About Pluspetrol Pluspetrol is an energy company focused on the exploration and production of hydrocarbons. The projects operated by Pluspetrol are characterized by their complexity as regards the setting, the difficulty of access or the geological and technical complexity; this involves exploitation of giant gas fields, extraction of heavy crude oil in remote areas, exploitation of mature fields and marginal areas with secondary recovery. 180,000 1,800 Liquids Production in Bbl/d Gas Production in MMscf/d 160,000 1, ,000 1, ,000 1, ,000 1,000 82,939 80, , , ,319 20, , ,347 10, Pluspetrol starts its With the production The start of operations in The Palmar Largo and Pluspetrol enters the power With the incorporation of operations in the startup in the Ramos Field, Bolivia increases annual Puesto Touquet Fields, in generation market through Block 1AB to PPN, annual Centenario Field, in in Argentina, the gas operated gas production Argentina, are incorporated the operation of two operated gas production Argentina. production reaches to 145 MMScf/d. The and liquids production gas-fueled Power Plants in adds up to 482 MMScf/d 27 MMScf/d. Liquids incorporation of the Aguada reaches 10,715 Bbl/d. El Bracho, Argentina. and liquid production to Daily production is Production amounts Baguales and El Porvenir The gas production comes 82,939 Bbl/d. 279 Bbl/d liquids and to 5,245 Bbl/d. Fields, in Argentina, up to 170 MMScf/d. Operations start in the 2 MMScf/d gas. increases liquids production north of Peru, with the to 7,347 Bbl/d. production of oil in Block 8 (PPN), which increases the annual operated liquids production to 30,319 Bbl/d. Gas production adds up to 258 MMScf/d. 6 Pluspetrol

9 About Pluspetrol Origin and Development Over the last years, we have experienced an important growth, both in gas and oil volumes produced and in our reserves. This has turned us into one of the private Latin American companies with the largest development in the last decades: We are the largest oil and gas producer of Peru. We are one of the largest oil and gas producers of Argentina. We hold a significant presence in Latin America: Bolivia, Colombia and Venezuela. We are expanding our activities in West Africa. 158,709 1,593 1,355 93,710 98, ,537 81,429 78, Activities begin in Camisea. Production starts in Block Production starts in the Operations begin in the Through the acquisition of Operated production 88 (Camisea) and annual Tacobo Field, in Bolivia. Tajibo Field, in Bolivia. Petro Andina assets, amounts to 1,593 MMScf/d Exploration starts in gas production amounts Pluspetrol incorporates the gas and 158,709 Bbl/d Venezuela. to 576 MMScf/d. Liquid Operated gas volume Gas production adds up to Rio Colorado District to liquids. production is 78,310 Bbl/d. amounts to 909 MMScf/d 950 MMScf/d and liquid Argentina s operations. Annual production is and liquid production production to 98,391 Bbl/d. A commercial oil discovery 522 MMScf/d gas and Exploration begins in amounts to 93,710 Bbl/d. Operated liquid production is made in Angola and 81,429 Bbl/d liquids. the Pagoreni Field (Block Exploration blocks in amounts to 120,537 Bbl/d design of the field 56, Camisea). Colombia are incorporated. while gas production comes development plan begins. up to 1,355 MMScf/d. Environmental and Social Sustainability Report

10 Operated Areas Caracas With the certainty that it is possible to operate in highly complex environments, using the best-proven technologies while respecting both natural environment and local culture, we have developed hydrocarbon exploration and production activities in Argentina, Bolivia and Peru, and have exploration projects in Venezuela, Colombia, and Angola. Furthermore, we operate the El Bracho Thermoelectric Power Plants in Argentina. Quito Colombia Bogota Ecuador Colombia The exploration areas are formed by Blocks CPE-7, CPO-3 and CPO-2, located in the Departments of Guaviare, Meta and Vichada, in the central-eastern part of the country. The Block CPE-7 is located in the Orinoquia region of Colombia, one of the areas with the largest diversity of plant and animal species. The region is also rich in water resources. PPN,Peru Liquids Production (Bbl/d) Thousands Peru Lima In this area 8 indigenous resguardos are settled: Unuma Vichada, Unuma Meta, El Tigre, Caño Jabon, Charco Caiman, Mocuare, Barrancoceiba Laguna Araguato, and Nukat Maku Pisco Project La Paz Bolivia PPN, Peru Located in the Peruvian Amazon, this operation is the country s largest producer of crude oil. The fields in production are Corrientes, Yanayacu, Chambira and Pavayacu (Block 8) and Capahuari Norte, Capahuari Sur, Jibarito, Jibaro, Dorissa, Shiviyacu, Forestal, Carmen, Huayuri and San Jacinto (Block 1AB) ,055 32,810 34,263 The operation is situated in an area characterized by a high biological and cultural diversity. Indigenous communities of the Achuar and Quechua ethnic groups area settled in this area Camisea, Peru Gas Production (MMscf/d) Chile Argentina Camisea, Peru Located in the Peruvian Amazonian jungle, in the Lower Urubamba region, this operation is the third largest gas reserve of Latin America and the first one in Peru. The Cashiriari and San Martin fields, and the Malvinas Gas Processing Plant are located in Block 88, while the Pagoreni field is located in Block 56. The operation also includes a Natural Gas Liquids Fractionation Plant and a Maritime Delivery Terminal, located in Pisco. Camisea is in an area considered as a biodiversity hotspot due to its wide variety of flora and fauna, as well as to its geography and climate. It is also a region with an important cultural diversity. In the operation area, native communities of the Machiguenga, Yine, Ashaninka and Nahua ethnic groups are settled. In addition, the operation is located in the buffer zone of the Manu National Park, one of Peru s largest protected natural areas. About 67% of Block 88 is located within the Kugapakori Nahua Nanti Territorial Reserve. 1,600 1,400 1,200 1,178 1, Camisea, Peru Liquids Production (Bbl/d) Thousands Santiago Buenos Aires Likewise, the natural gas liquid fractionation plant of Pisco is located in the buffer zone of the Paracas National Reserve, the only maritime protected area of Peru Pluspetrol E&P, Peru ,000 80,756 Pluspetrol has exploration blocks 108, 115 and , Pluspetrol

11 Venezuela The exploration areas Tiznado and Barbacoas are located in the Guarico State, in central Venezuela. Bolivia The operation comprises the Tacobo and Tajibo natural gas fields (province of Santa Cruz), Madrejones (Cordillera province), and the Bermejo-Toro oil producing fields (Arce province). The Rio Seco and Huayco Fields are reserve fields that remain inactive. The Tacobo and Tajibo fields are located in the Tierra Comunitaria de Origen - Charagua Norte (TCO) (Original Communal Land), of Guarani indigenous origin. Gas Production (MMscf/d) Liquids Production (Bbl/d) Thousands Brazil 1,600 1,400 1,200 1, Brasilia Argentina Paraguay Asuncion Pluspetrol operations in Argentina are subdivided into Neuquen District, North District, El Bracho Thermal Power Plants and, since the acquisition of Petro Andina at the end of 2009, Rio Colorado District. The exploitation area of the Neuquen District comprises gas and oil fields in the provinces of Rio Negro and Neuquen: Centenario, Aguada Baguales, El Porvenir, Loma Jarillosa Este, Puesto Silva, Puesto Touquet, and Loma Guadalosa. It also involves the exploration areas of Zapala, Laguna Blanca, and Cinco Saltos. Uruguay Montevideo References Exploration Production Natural Gas Liquid Fractionation Plant Power Generation The North District is formed by the Ramos Gas Field and the Caimancito and Palmar Largo oil fields. On the other hand, the Rio Colorado District is located south of the Malargüe Department (province of Mendoza) and west of the Puelen Department (province of La Pampa). The operation comprises the productive areas of Gobernador Ayala and Gobernador Ayala III, Jagüel Casa de Piedra and CNQ 7/A, and the exploration areas CN-VI A/B, La Banda and Gobernador Ayala I. Finally, the El Bracho Thermal Power Plants constitute an energy hub formed by the San Miguel de Tucuman, Tucuman and Pluspetrol Norte Power Plants. Each operation is situated in an area of distinctive complexity. Part of the Centenario Field is located within municipal lands of the Neuquen City, with growing urban settlements are reaching over the production zone. The Ramos Field is located in the ecoregion of the Southern Andean Yungas, an area of great biological diversity. On the other hand, the Palmar Largo Field is the settlement area of Wichi indigenous communities. Gas Production (MMscf/d) 1,600 Liquids Production (Bbl/d) Thousands 160 Power Generation (GWh) Thousands 7 1,400 1,200 1, , ,078 4,309 4, ,382 16, Angola Exploration activities are developed in the South Cabinda Block, in the province of Cabinda, bordering the Democratic Republic of the Congo. This block is located within an area characterized by a highly sensitive environmental and social setting, with presence of traditional communities and located close to the city of Cabinda. Environmental and Social Sustainability Report

12 About Pluspetrol MENDOZA LA PAMPA CN-VI CNQ-7/A Jaguel Casa de Piedra CNQ-7 CNQ-7/A Gobernador Ayala I Gobernador Ayala III Gas Production 2010 (MMscf/d) 1,600 1,400 1,593 Apon (La Banda) 1,200 1, NEUQUEN RiO NEGRO 0 6 Rio Colorado Distrit Argentina Pluspetrol Rio Colorado District At the end of 2009, Pluspetrol acquired the assets of Petro Andina Resources in Argentina. The incorporation of this operation, which is currently part of the Rio Colorado District, allowed Pluspetrol to triple the operated production and be ranked in the 4th place among the main oil producers of the country. With a 16 MBbl/d production, after the acquisition of Petro Andina assets, operations in Argentina increased their liquid production to 43 MBbl/d in Location and Characteristics of the Operation Liquids Production 2010 (Bbl/d) Thousands 158, The exploitation area of Rio Colorado District is located south of the Malargüe Department (province of Mendoza) and west of the Puelen Department (province of La Pampa), in Argentina This zone involves the productive areas of Gobernador Ayala (Mendoza) and Gobernador Ayala III (La Pampa), Jagüel Casa de Piedra (Mendoza) and CNQ 7/A (La Pampa), and the exploration areas CN-VI A/B (Mendoza), La Banda (Mendoza) and Gobernador Ayala I (La Pampa) ,128 43,170 Distinctive Characteristics of the Region 20 This area is characterized by the presence of abundant volcanic material. A major part of the surface is marked by a terraced relief that comes down the Sierra de Chachahuen (Chachahuen Hill) toward the Colorado river. 0 Rio Colorado Distrit Argentina Pluspetrol The area s ecological characteristic is the scarce water availability. The nearest populations are Villa 25 de Mayo (La Pampa), 65 km to the East, and Rincon de los Sauces (Neuquen), 90 km to the South. The area has a very low population density; there are only three posts with permanent inhabitants devoted to goat breeding. Production The operation has 475 producer wells and 190 injection wells. The shallowness of the wells allows for fast drilling of non-consolidated, complex reservoirs with high permeability. The heavy hydrocarbon, obtained through the CHOPS 4 method, shows a high viscosity. This crude oil recovery method consists in the drilling of vertical wells using progressive cavity pumps for the extraction of crude and sand. Daily oil production is delivered through an 85 km oil pipeline to be later processed at the treatment and transfer plant located in Puesto Hernandez, province of Mendoza. The total gas production of the fields is used for domestic power generation. 4. Cold Heavy Oil Production (with) Sands.

13 Non-Operated Areas Salta, Argentina We have a 30% participation in the exploration area of Rio Colorado. The consortium is formed by Petrobras (30%) and Tecpetrol (40%), who is the operator. Magellan, XII Region, Chile The exploration area El Tranquilo is a consortium in which we have a 29% participation. It is formed by Geopark, who is the operator with a 29% participation, Winthershall with 25% and Methanex with 17%. As to the exploration area Otway, our participation is 25%; the operador is Geopark with 25%, Wintershall 25%, Methanex 12.5% and IFC 12.5%. Strategic Partners We sustain an active partnership policy: we seek and develop bonds with partners of international standing. Exploration Projects Peru Colombia Angola Peru Camisea Project Peru Block 8 Argentina Ramos Field

14 Activities Production Camisea Drilling of Cashiriari The increase in the volume of hydrocarbons produced in 2010 was closely realted to a greater operating activity. During the year, a total of 125 producer wells were drilled, 145% more than in , reaching a total of 164,071 meters. On the other hand, we carried out workover 6 tasks in 101 wells, which represented a 25% increase in this activity in comparison with In October 2010, following the Cashiriari 1008D well testing, and within the Cashiriari Field Drilling Plan, the drilling in Cashiriari 3 location was finished. This project began in June 2008 and involved the drilling of ten development wells and two wells for reinjection of drill cuttings from platforms Cashiriari 1 and Cashiriari 3. Drilling Evolution in quantity of wells Workover Evolution in quantity of wells The designs implemented combined Casing Drilling and Air Drilling technologies to drill the directional wells until the objectives are reached. As part of the best practices adopted, several aspects were taken into consideration: the offshore-inland concept for the construction of locations, by which each platform is operated in isolation and accessed by air, thus avoiding the construction of roads; the directional drilling, by drilling several wells from a single location; and the reinjection of cuttings, by placing them in deep wells, a practice in which Pluspetrol is pioneer in Latin America. (See Reinjection of drill cuttings in Cashiriari 1 and 3 in the Environment section). 5. The operating works carried out in the Rio Colorado District contributed to the significant increase shown in the production activity. 6. It is the process by which general maintenance in active oil and natural gas wells (non producers) is performed. The Cashiriari Field, located in Block 88, was not only a great technical challenge but also an important economic investment, thus becoming a milestone within the Camisea Project Pluspetrol

15 Bolivia Expansion of the Gas Plant In February, the expansion of the Tacobo Gas Plant became operational. The purpose of this project, which represented a US$ 35,000,000 investment, was to incorporate the production of well TCB-X1002 and to increase the production of the Tacobo Field from 42.4 MMScf/d to 77.7 MMScf/d. For this project, a dew point conditioning plant for 100 MMScf/d was installed. Other important equipment was installed, such as generators, a sales gas compressor, a condensate storage tank, new safety systems for the Plant, a new production manifold, and a test separator. Also, the existing control room was expanded. Environmental and Social Informe Sustainability de Sostenibilidad Report

16 Exploration During 2010 we progressed through the development of exploration activities in Angola, Venezuela, Colombia, Bolivia and Peru. We drilled four exploration wells, thus reaching a total of 4,782 meters drilled. Drilling Evolution in quantity of wells 5 Colombia 258 km of 2D seismic exploration in Block CPO-2, 249 km in Block CPO-3 and a first phase of 522 km in Block CPE-7 were carried out. The activities developed in Blocks CPO-2 and CPO-3 allowed defining the areas of prospective interest for the development of 3D seismic exploration to be carried out in In Block CPE-7, the first exploration phase allowed identification of the prospective zones in which the drilling of two stratigraphic wells is planned for 2011, simultaneously with the development of the second phase of the 2D seismic exploration, which spans 340 km. Venezuela In 2010, the assessment plan for the incorporation of non-associated gas reserves corresponding to the discovery of Pantanito-1X well in the Tiznado area was developed. This study seeks to quantify the discovery made in 2009 and determine its commercial viability. 3 3 Angola Exploration activities in the South Cabinda Block continued. 2 Camisea We went on with the development of the exploration plan that began in Pluspetrol

17 About Pluspetrol Angola Oil in South Cabinda At the beginning of 2010, the first commercial oil discovery was made in the onshore of the Cabinda province. The discovery resulted from the drilling of the first exploration well under Pluspetrol s operation in the Castanha area. Following this discovery, the field evaluation continued with the drilling and testing of three additional wells (Castanha 2, 3 and 4) with the purpose of verifying reserves that would confirm the feasibility of the field development. The field development plan foresees the drilling of two new productive wells in the area during the second half of 2011 (Castanha X5 and X6), aimed at initiating the field development and confirming the reservoir continuity as well as the distribution of fluids and the verification of their quality. With the purpose of incorporating additional hydrocarbon volumes, 170 km 2 of 3D seismic recording has begun. In addition, the drilling of six wells between years 2012 and 2013 is planned. The field development entails the construction of different facilities: roads, gas and water reinjection flowlines, an oil treatment plant, storage battery tanks, a power plant to use non-associated gas for electric generation, electricity transmission lines between the plant and the productive wells, and an oil pipeline from the area up to the Malongo terminal. The plan execution takes into consideration the environmental and social sensitivity of the area so that the activities envisaged have a minimum impact. Production in the field is planned to start by December 2012, with seven active wells and an initial oil flow estimated in 3,000 Bbl/d. The discovery, made within a short term despite logistics and technical difficulties, is the first important step for Pluspetrol s growth and the opening of new opportunities in West Africa, one of the most prolific regions and with the largest oil potential worldwide. Camisea Full Exploration Plan In 2009, we started the Full Exploration Plan (FEP) in Camisea. This is an exploration plan developed in Blocks 88 and 56 with the purpose of finding hydrocarbons that will allow replacing gas and condensate reserves, thus meeting the resource demand required by the project. In economic terms, the FEP involves the investment of more than US$ 500,000,000 as it includes surface geology, geochemistry, remote sensors analysis, 3D and 2D seismic exploration (both heli-portable, through the jungle, with a minimum environmental impact) and drilling of exploration wells. The program specifically envisages the drilling of four to six wells in Block 56 during 2011 and 2012, and four to six wells in Block 88 during 2013 and With the purpose of finding a location for these wells, a number of geological studies are being conducted to help obtain a better knowledge of the subsoil. The FEP will comprise the following activities: Block 88 Exploration activities with 3D seismic in an area of approximately 500 km 2 in the northern part of the block. Exploration activities of approximately 200 km with 2D seismic in the southern part of the block. Field geology. Aero-gravimetric survey. Drilling of four to six wells (SME-1001, SME-1002, KIM-1001 and ARM-1001) Bock 56 Exploration of 150 km 2 of 3D seismic in the northeastern part of the block. Drilling of four to six wells (MIP-1001, MIP-1002, PAG-W-1001, and SNR-1001). In 2010, progress was made regarding the studies required to obtain the environmental license for the drilling of wells in Block 88 as well as for the development of 2D and 3D seismic exploration. Environmental and Social Sustainability Report

18 Results Operated Production 7 In 2010, we increased the volume of hydrocarbons produced. With the incorporation of the Rio Colorado District (ex Petro Andina) to our operations in Argentina, the total volume of liquids 8 produced was increased by 32% in comparison with 2009, reaching the amount of 158,709 Bbl/d. Gas production, on the other side, rose to 1,593 MMScf/d, 18% more than in 2010, while electric power production remained at 4,141 GWh. Liquids Production (Bbl/d) Thousands , ,537 98, Gas Production (MMscf/d) 1,600 1,400 1,355 1, , ,593 Power Generation (GWh) Thousands 7 5, ,309 4, Proved Reserves 9 Liquids Reserves (MMBbl) The volume of proved liquid reserves at the end of 2010 reached 854 MMBbl. The increase in Argentina s reserves was mainly related to the incorporation of the operation Rio Colorado District, with proved reserves totalling 40 MMBbl. 1, Gas reserves amounted to 13,153 Bcf Argentina Bolivia Camisea Peru PPN Peru Pluspetrol Gas Reserves (Tcf) 16,000 14,000 12,000 13,390 12,340 12,205 14,557 13,475 13,153 10,000 8,000 6,000 4, Includes the total production of operations in which Pluspetrol is the operator. 8. Includes the production of oil and natural gas liquids (NGL). 9. Reserves which can certainly be recovered in a cost-effective manner and using existing techniques. 2, Argentina Bolivia Camisea Peru Pluspetrol 14 Pluspetrol

19 Conduct and Ethics Our commitment with stakeholders becomes evident in our conduct, based on public responsibility and ethical standards. In this respect, we count on different procedures and internal mechanisms that guide the behavior of the people who are part of the Company, with the purpose of achieving a transparent performance, consistent with our corporate values. Code of Ethics The Code of Ethics establishes the policies and procedures that guide our employees in the performance of their tasks in a professional and business environment, under high responsibility standards. Specifically, the code sets a pattern of integrity, discretion and moderation concerning our behavior toward clients, contractors, suppliers and people in general, whether they are part of Pluspetrol or not. All coworkers must sign the Code of Ethics and may refer to HR management, vice presidents, corporate directors and country managers for consultation, should any concern arise. Transparency in the relationship with host governments At Pluspetrol, we foster transparency in the relationship with all our stakeholders. For this reason, in our operations in Peru we participate in the Extractive Industries Transparency Initiative (EITI), which sets guidelines for transparency in the payment of taxes, royalties, etc. that extractive companies make to host governments. Code of Ethics: application The Code of Ethics guides our coworkers in situations that involve: Business courtesies. Business incentives. Conflict of interests. Disclosure of information to contractors, suppliers, the press, publications in general or other people. Professional tasks. Environmental and Social Sustainability Report

20 Participation in this initiative requires the endorsement of each country s government. Peru is the only country in Latin America to have endorsed EITI. Compliance with the initiative s commitments requires the progressive implementation of an action plan. In Peru, the plan included the development of a National Reconciliation Study that involved payments made to the government between years 2004 and 2007 by 24 mining companies and 9 oil companies that operate in the country. Through our operations in Camisea and PPN, we endorsed this transparency initiative in 2009, committing ourselves to deliver information about payments made to the Peruvian State during the period to the party responsible for the National Reconciliation Study and authorizing EITI-Peru to make this information publicly available. During July and August 2010, the French company CAC75 validated the National Reconciliation Study. The results allowed Peru to obtain the Close to Compliant status within the EITI s framework. What is the Extractive Industries Transparency Initiative (EITI)? EITI is an international initiative that brings together governments, extractive industries (mining, oil and gas), a company civil and international organizations to incorporate a transparency of payments that companies make to governments and the revenues that governments receive from these companies so that these resources are used to promote development. EITI asks companies to make public their payments to governments countries where they operate and governments to spread the payments they receive. EITI monitors and reconciles payments from companies to governments and revenueclearly by the governments in each country. The information is validated by an external controller selected by a multi-stakeholder. Sources: eitiperu.minem.gob.pe 16 Pluspetrol

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