Deal #3923

Location #1

Spatial accuracy level
Coordinates
Location
Puerto Gaitán, Meta, Colombia

Latitude
4.2159
Longitude
-74.9331
Facility name
Buganviles
Target country
Colombia
Contract area
Comment on location
The map seen in this platform contains all the current area that is conceded to Frontera Energy or its subsidiaries, is already in a production stage and was granted by the government after the year 2000. In total, the company has under concession more than 3 million hectares in Colombia for exploration or extraction. It must be said that this area is not necessarily for extraction, but also for exploration. This amount of land is distributed under different concession contracts, some which were signed at different times. It could also happen that Frontera Energy, previously known as Pacific Rubiales, might have acquired land by the acquisition of some companies and not directly the land. The polygons and all this information was extracted from the Agencia Nacional de Hidrocarburos and its latest update was in February 2019. To extract the original shapefile look at: www.anh.gov.co/Asignacion-de-areas/Documents/Tierras_FEBRERO_220219.zip

Land area

Size under contract (leased or purchased area, in ha)
[2019-02-22, current] 66868
Comment on land area
This numbers come from the Agencia Nacional de Hidrocarburos. It represent all the land that is managed by Frontera Energy, previously Pacific Rubiales and all of its subsidiaries. Some of the concessions and extraction sites might be administered with other companies or institutions, they might be Ecopetrol or the Agencia Nacional de Hidrocarburos itself. The size in hectares represent the area that was conceded from the government and has permission for oil extraction. After comparing the polygons with satellite imagery, it is possible to see that most of this land is under different uses, some of them for agricultural production (clearly not by the company). Source 8 and Source 9

Intention of investment

Intention of the investment
[current] Oil / Gas extraction
Comment on intention of investment
The company started their presence in Colombia with land concessions since 2007, with the joint management of Rubiales oil site together with Ecopetrol. The company does not administer this oil field any longer. Source 5

Negotiation status

Negotiation status
[2000-09-18] Concluded (Contract signed)
Comment on negotiation status
The oldest contract in which Pacific Rubiales is involved is the one known as Buganviles. It is exploited in association with Ecopetrol.

Implementation status

Implementation status
[2000, current] In operation (production)

Contract #1

Comment on contract
See source 8 for all the details in any contract. Document in Spanish

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of employees (domestic)
[2017] 1076
Current number of daily/seasonal workers (domestic)
[2017] 3597
Comment on jobs created (domestic)
These numbers come from Source 10, which is the sustainability and financial report published by the company. It is uncertain if the number 3597 refers to seasonal workers or labor outsourcing, the last meaning that are not directly employed by the company itself but by third parties. This number refers to all employees of the company in Colombia and not specifically to a determined area.

Operating company

Comment on investment chain
See source 10 for more details

 

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Data source #1

Data source type
Media report
File
Date
2013-05-10
Comment on data source
In the attached information source referred to a committee will conduct follow-up to monitor operciones company Pacific Rubiales in the department of Meta - Colombia.

Data source #2

Data source type
Media report
File
Date
2013-07-13
Comment on data source
You will find information on both territorial and environmental problems that the company Pacific Rubiales Sikuani the indigenous community, this complaint appears by pollution generated by the company to its rivers and water sources in the area where the multinational operates.

Data source #3

Data source type
Company sources
File
Date
2011-01-01
Comment on data source
Even the website of the company with respect to the information on the operations account in Colombia is under construction, but confirm with operations in that country.

Data source #4

Data source type
Media report
File
Date
2013-01-29
Comment on data source
The company Pacific Rubiales presented in early 2013, a sustainability report to cushion against populations damage surrounding its operations, which argues that will invest around $ 30 million.

Data source #5

Data source type
Company sources
File

Data source #6

Data source type
Company sources
File

Data source #7

Data source type
Media report
File

Data source #8

Data source type
Company sources
File
Date
2019-02-22
Comment on data source
Official distribution of land concessions by the Agencia Nacional de Hidrocarburos: www.anh.gov.co/Asignacion-de-areas/Documents/listado%20areas_220219.xls

Data source #9

Data source type
Government sources
File
Date
2018-12
Comment on data source
Distribution of contracts of the Agencia Nacional de Hidrocarburos

Data source #10

Data source type
Company sources
Publication title
Sustainability Report 2017
Date
2017

Data source #11

Data source type
Media report
File
Publication title
Pacific Rubiales: la caída de un gigante

Data source #12

Data source type
Media report
File
Publication title
Frontera Energy cumplió su objetivo de producción para 2017
Date
2018-01-23

Data source #13

Data source type
Media report
Publication title
Nuevamente petrolera Frontera Energy les incumple a comunidades del bloque Cubiro
Date
2018-05-16

Data source #14

Data source type
Media report
File
Publication title
No hay premio para Pacific
Date
2013-10-04

Data source #15

Data source type
Media report
File
Publication title
Los supuestos pecados de Pacific Rubiales en Puerto Gaitán
Date
2016-07-12

Names of communities / indigenous peoples affected

Comment on communities / indigenous peoples affected
All the indigenous ethnicities but the Sikuani were obtained from comparison the intersection of the conceded area to Frontera Energy and the area recognized by the government to the Indigenous groups in Colombia. It might occur that the area of influence of Frontera Energy are relatively close to an indigenous reserve, but they don't collide. If that is the case, this indigenous group is not in this list. The map with the indigenous communities can be downloaded from https://www.datos.gov.co/Agricultura-y-Desarrollo-Rural/Resguardos-Ind-genas/2wvk-ve5b. Some other sources indicate that there were collisions between Pacific Rubiales and the Sikuanis. See Source 2

Recognitions status of community land tenure

Recognition status of community land tenure
Indigenous Peoples traditional or customary rights recognized by government

Consultation of local community

Community consultation
Not consulted
Comment on consultation of local community
Under law legislation, the exploration for minerals does not require the consultation with minority groups. This is just a requirement once there is extraction. Nevertheless, there have been clashes with different indigenous groups. One of them occured in the Cabildo indígena El Turpial-La Victoria because the company started to build an oil pipeline without consulting the native communities. Besides this, it seems that the company started to make consultations with the Sikuanis once the clashes near the Quifa oil field had already started. See source 10 and Source 14

How did the community react?

Community reaction
Rejection
Comment on community reaction
There have been several clashes with indigenous communities close to the oil fields

Displacement of people

Displacement of people
Yes
Comment on displacement of people
The Sikuani community has suffered of displacement due to the presence of Pacific Rubiales and the oil extraction they execute. The number of displaced people is unknown. Source 2

Negative impacts for local communities

Negative impacts for local communities
Environmental degradation
Displacement
Comment on negative impacts for local communities
Source 2 and Source 14. It seems that the company has been dumping its industrial wastes in a larger amount that allowed by the authorities.

Promised benefits for local communities

Promised benefits for local communities
Roads
Comment on promised benefits for local communities
The company has invested USD 28.5 Million in Puerto Gaitán in 2012. Additionally, the company started the "Gaitán Pass", a form of trade stamps so that the trading in the local region is fostered by the presence of their workers.

Materialized benefits for local communities

Materialized benefits for local communities
Education
Comment on materialized benefits for local communities
Environmental: 1635 hectares for reforestation 23 productive projects, benefiting 38000 people (number might be uncertain) Reinforcement of economic activities different to oi-related income Labor trainings Public goods: electrification and aqueduct services Housing: 232 beneficiaries Food programs: 1274 beneficiaries

Former land owner (not by constitution)

Former land owner
State

Detailed crop, animal and mineral information

Resources area
Hydrocarbons (e.g. crude oil)
Resources yield
[2017-12-31] Petroleum (71015 tons)
Comment on resources
The company produced 71015 bpe per day by the end of 2017. This refers to all extraction contracts in Colombia, not to a specific area. Source 12

Use of produce

Has domestic use
Yes
Has export
Yes

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Groundwater
Surface water ()

How much water is extracted?

Water extraction amount
488342
Comment on how much water is extracted
Number obtained in 2017. Source 10
Water footprint of the investment project
The company is emitting 475458 Tonnes of CO2Eq

Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)

Application of Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)
No
Comment on VGGT
The company was not doing the proper consultations to the local communities for land use change.

Overall comment

Overall comment
Pacific Rubiales entered the Colombian oil sector by the beginning of the 2000s, but it took relevance once they could exploit the Rubiales oil field, jointly with Ecopetrol. The company was listed in Canada, but the starting capitals came actually from Venezuela, Brazil, Colombia and the United States. The main actors in the consolidation of this company were some high hierarchy employees of PDVSA, the Venezuelan oil company. They left the country once they clashed with the raise of Hugo Chávez. They used their knowledge and expertise in the extraction of heavy oil, which was mostly found in the Colombian Eastern Plains. The company became the 5th largest company of Colombia and the biggest oil private company of Latin America. Nevertheless, by the end of 2014, due to the fall in the oil prices and bad administrations, the company went bankrupt. They changed its name to Frontera Energy and during the last years is regaining the importance it has had during some years. The land conceded to this holding is more than 3 million hectares (for exploration), although not all of them are under production. There have been clashes with labor unions and indigenous groups, which contradicts the affirmations of the company regarding its social responsibility and sustainability.

June 28, 2019, 4:24 p.m.

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May 14, 2018, 9:43 p.m.

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April 7, 2016, 2:28 a.m.

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July 18, 2013, 7:31 p.m.

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July 18, 2013, 3:27 a.m.

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