CNPC in Latin America: A Responsible Investor
The project has benefited more than 300 local residents, so helping the majority of local families escape from poverty. “Currently villagers have high expectations of the factory’s future development. We intend to reinvest the profits in expanding the factory and cultivation area, and feel confident we can market our products,” said Julio Correa, manager of the cassava processing factory.
Dialogues with Local Communities
Today, more and more Chinese enterprises are entering Latin America. Their competitive advantages include technologies that surpass international standards. They moreover strictly abide by local laws and regulations and, compared to time-honored Western multinational companies, are willing to shoulder more social responsibility.
In 2006 Andes Petroleum bought all of EnCana’s oil and gas assets in Ecuador. Near the oilfield live seven ethnic groups of indigenous peoples in more than 100 communities. As frequent conflicts occurred among these communities, the security situation was dubious.
Andes Petroleum, like other resource enterprises, encountered strong resistance from local residents at the outset of its operations. The company sent deputies to visit local tribal chiefs, listen to what they had to say, and explain to them that CNPC projects could improve the lives of local inhabitants.
Andes Petroleum made innovations in its communications with local communities, building bridges among government, enterprises, communities, and company workers, so establishing relationships among interests-related parties, Wang Yana said. The company has provided job opportunities to local residents and business opportunities to community organizations. It is also proactive in local infrastructure construction and developing agricultural projects.
CNPC has moreover provided funds for the running of school buses, so resolving the commuting problems of 500 or more students whose homes are far from their schools. CNPC has subsidized more than a dozen plantations, so indirectly creating more than 1,500 job opportunities. Meanwhile, Andes Petroleum has made donations to many local foundations and non-governmental organizations in support of juvenile education, health care, disease prevention and treatment, and also community construction.
CNPC’s dedication has won the approbation of local residents. In 2007, through the efforts of Andes Petroleum, local communities started dialogues with one another and reached a “perpetual peace” agreement. Today, Andes Petroleum is regarded as a “dream” foreign enterprise in which to work. The qualification certification workers earn during the time they are part of the Andes Petroleum workforce is recognized by companies throughout the country.
In 2009, the president of Petroecuador, the national oil company of Ecuador, commended Andes Petroleum for the special attention it pays to sustainable development and for being the sole foreign oil company in Ecuador to excel in social development. Residents in the Tarapoa Community, located north of the oilfield, say that CNPC is the first enterprise to enter local communities and diffuse a sense of sincere friendship.
