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Changing oil industry's bad-boy image

Article - April 24, 2012
Working with local communities, Pacific Rubiales takes its eco-responsibilities seriously
RONALD PANTIN, CEO OF PACIFIC RUBIALES

Colombia is now the third largest Latin American exporter of oil to the US. As the largest independent oil and gas producer and explorer in Latin America, Pacific Rubiales Energy Corporation’s (Pacific Rubiales) spread covers an area of nearly 7 million hectares. Pacific Rubiales was the first international company to be listed in the Colombian Stock Exchange (BVC), and is also present in the Toronto and Brazilian stock exchange markets.  

Prior to co-founding Pacific Rubiales in 2008 and becoming its CEO, Ronald Pantin had worked in the Venezuelan oil industry for 24 years. “We came here looking for the Orinoco Oil Belt and we found it. That belt doesn’t just stay in Venezuela, it goes through Colombia, Ecuador and Peru,” he explains.

The knowledge and expertise of heavy oil production Mr. Pantin brought to Colombia contributed greatly to optimizing its production in the country. “We went from producing 14,000 barrels per day (bpd) to 245,000 bpd. That was achieved mainly by using better technology,” he adds.

Heavy oil represents the largest part of Colombia’s production – with current production averaging 800,100 bpd – and it is expected to increase to 2-3 million bpd during the next decade.

The best way to change the bad perception of the oil industry is with reality, by showing people what is really happening today at oil installations.

Ronald Pantin,
CEO of
Pacific Rubiales

Orlando Cabrales Segovia, President of ANH (National Hydrocarbon Agency), is confident that immediate production targets will be met, saying: “Evidently, there has been a substantial improvement in recent years in every security indicator, thus a better environment is perceived and investors can feel it. Having a very favorable contractual regime from an economic perspective, Colombia offers competitiveness levels that attract investment to our sector; therefore, we are confident that we will be able to surpass the 1 million bpd mark this year.”

Pacific Rubiales relies on a technological advantage over competitors that could quadruple Colombia’s reserves of 2 billion barrels, and help  transform the country into a world leader for heavy oil production. Moreover, it could enhance the recovery rates that currently leave an average of 85% of oil resources in the subsoil.

“There are certain technologies with which we have a lot of experience because we have been using them in Venezuela since the 60s, especially one that is the intellectual property of Pacific Rubiales called STAR (Synchronized Thermal Additional Recording). We plan to use that technology to make recovery go from 15% to 50% or 70%,” says Mr. Pantin. “This technology is used all over the world but the way we do it, using synchronization, is part of the Pacific Rubiales patent.”

Responsible development

In just five years Pacific Rubiales has become one of Latin America’s largest independent oil producers while firmly upholding corporate social responsibility programs and sustainability policies to fulfill its goals of creating economic, social and environmental value.

Aware that the global energy sector is under constant scrutiny due to the social and environmental impacts caused by disasters such as the 2010 oil spill in the Gulf of Mexico, Pacific Rubiales’ sustainability policies are envisioned through a series of commitments that include acting with consistency and transparency, promoting respect for human rights, and contributing to society by improving the quality of life in communities where the company operates, while ensuring the continued well-being of all its stakeholders.

As part of its commitments, in January 2011 the company signed the United Nations’ Global Compact (UNGC), adopting its policies on human rights, labor, environment and anti-corruption into the company guidelines.

Sustainability initiatives include waste management activities, reutilizing industrial and domestic wastewater, and monitoring the condition of flora and fauna within company fields. More recent accomplishments include ongoing reforestation and replanting of trees in areas affected by the company’s developments, and the installation of an incinerator to treat non-reusable domestic waste.

In Colombia, Peru, Guatemala, and other areas where Pacific Rubiales is present, the company is committed to operating in collaboration with local communities and implementing their right to prior consultation when projects are carried out within their territories, so as to ensure indigenous protection and integrity.

The company’s positive relationships with local communities are a vital part of its success, as is maintaining a satisfied workforce. With this in mind, the Pacific Corporate University (PCU) was created to ensure that competitive market advantages are upheld.

Furthermore, Pacific Rubiales is also working to clear the industry of the bad image it has been tarnished with in the past. “The best way to change that perception is with reality, by showing people what is really happening today at oil installations,” points out the company’s CEO. “Today, the world understands the importance of the environment, and it understands that things can be done the right way.”

Branching out

With a total of 40 blocks (35 in Colombia, two in Guatemala and three in Peru), Pacific Rubiales is the sole owner of Pacific Stratus and Meta Petroleum Limited, which operate and own interests in the Rubiales and Piriri oil fields of the Llanos Basin and La Creciente natural gas field, both in Colombia.

“We are also the biggest gold producers in Colombia with Gran Colombia Gold. We are in the coal business with Pacific Coal, which has a production of about 2 million tons.

“Our new iron company, Pacific Iron, is going to produce iron minerals. We are going into the biodiesel area with 30,000 hectares of African palm. We also have important lime mines that we use as fertilizer for our palm plantation,” explains Mr. Pantin.
Furthermore, the company has invested hundreds of millions of dollars in the construction of the Bicentenario pipeline, in which it holds a 33% interest. The project is expected to add 450,000 bpd to the existing capacity of the pipeline systems connecting the Llanos Basin with export markets.

  1 COMMENT



James Thame
24/07/2013  |  23:36
100% of 1

Where can we learn more about the Synchronized Thermal Additional Recording methodology??