CNPC in Latin America: A Responsible Investor

By staff reporter AN XINZHU

China National Petroleum Corporation (CNPC) acquired in November 2014 the entire Peruvian assets of Petrobras, Brazil’s state-controlled oil company. The deal marked CNPC’s biggest ever acquisition in Peru.

The world’s fourth largest petroleum company, CNPC has carried out oil and natural gas investment business in 38 countries. In Latin America, CNPC has launched oil and natural gas cooperation projects with such countries as Venezuela, Ecuador, Peru, Costa Rica, Columbia, and Cuba.

Its market share aside, CNPC’s outstanding management, technology, and social responsibility have earned trust and commendations from both its oil sector counterparts and host communities in Latin America. The company’s conscientious protection of rainforest throughout its Andes oil project in Ecuador also won CNPC the HSE (Health, Safety, and Environment)/Sustainable Development Award from World Oil magazine.

A SAPET employee at a community school the company funded.

Commitment to Safety and Environmental Protection

The Amazon rainforest, the largest of its kind on Earth, is the habitat of many indigenous peoples. The rainforest’s special geographic location and diverse eco-environment make it the focus of prominent international environmental protection organizations.

Some CNPC Latin American projects are in the Amazon rainforest hinterland, whose annual precipitation exceeds 5,000 mm. The Ecuador and Peru ventures are also located amid rainforests, and the Venezuela oilfield is on Lake Maracaibo. These field operations exert high demands on CNPC workers.

Stringent eco-environment and environmental protection policies obligate CNPC to abide by local laws and meticulously implement international standards in this respect. The company has gradually established project operations and perfected the HSE management system to suit local conditions, according to Wang Yana, researcher at the CNPC Research Institute of Economics and Technology. CNPC uses the best electrical machinery possible to minimize air pollution and so achieve “zero pollution,” “zero discharge,” and “zero accidents.”

Half of the CNPC-Sinopec Andes Petroleum joint-venture oilfield in Ecuador is in a national nature reserve – one of the world’s environmentally sensitive areas. CNPC formulated a three-year rainforest pollution control plan upon undertaking management of field operations. It stipulated that Andes Petroleum submit environmental reports at every link of its production. Specific measures included safe disposal of waste mud, re-injection after appropriate treatment of all water produced into underground formations, the use of associated gas produced to generate electricity, and the guaranteed restoration of landforms in the shortest possible time after field operations. To achieve the maximum cyclic utilization of resources, CNPC constructed a comprehensive waste disposal center. Its functions include converting organic waste into organic fertilizer earmarked for local vegetation, collection and appropriate disposal of inorganic waste prior to dispatching it to government-designated recycling centers, and application of integrated wastewater treatment works that achieve zero discharge of oilfield sewage. CNPC has also set up nursery gardens in nearby communities to cultivate seedlings that will restore vegetation.

CNPC discovered high safety and environmental protection risks when it started work on the Lake Maracaibo oilfield in Venezuela. There was thick sludge at the bottom of the lake, and on its surface lay a jumble of pipelines, electrical cables and other equipment. After assessing the risks at every link of production, CNPC laid down risk prevention regulations, so putting an end to blowouts and at the same time achieving proper waste disposal. Lake Maracaibo is now crystal clear from surface to bed.