E&P projects are characterized by their impacts on the environment and by a long production period.
Therefore it is very important for the company to keep good social relationships throughout its operational activity.
This paper aims at discussing the impacts of E&P activities on communities and the environment based on Petrobras's experience in Latin America. Due to these impacts, Petrobras has developed its social and environmental policies, presented here based mainly on its intensive experience in Bolivia and Colombia.
Excellence in environmental management is a factor of competitive differentiation among companies as well as an essential strategy for sustainable development1. In this aspect, the question is how to quantify economic resources for a company to promote social development and industrial growth, both in a sustainable way.
A methodology for social and environmental responsibility budgeting is presented according to the concept of Sustainable Industrial Growth. Two hypothetic projects are evaluated according to the presented concepts, considering the fiscal and contractual parameters of Argentina, Bolivia and Colombia.
The Petrobras Strategic Plan has been emphasizing growth and profitability in all its businesses, while respecting the environment and increasing its social responsibility awareness2. To achieve this, Petrobras believes it is necessary to improve social and environmental results, ensuring the maximum transparence and reliability in its operations, procedures, products and services.
Social responsibility and the sustainable economic development help reducing the political risk an oil company may run into. E&P projects are characterized by their impacts on environment and are time consuming. Therefore it is very important for the company to keep good social relationships throughout its operational activity. This generates permanent benefits to the surrounding communities, making it a favorable situation for the company's operational activities.
On the other hand, due to the temporary nature of some E&P projects, social responsibility also means fostering sustainable projects to affected communities.
In this paper, Petrobras's social and environmental policies are presented along with its recent practices in Latin America. The examples of a gas field in Bolivia and an oil Field in Colombia are discussed. Next a method is presented, with the example of two E&P hypothetic projects, to define the budget of a company's social and environmental policies by introducing the concepts of BLOCK 4 - - FORUM 21 93
Sustainable Industrial Growth and Uniform Contribution (see Section "Quantifying