RISK CONTROL REDUCES IMPACTS

Principle 7 Businesses should support a precautionary approach to environmental challenges

Preventive and control measures adopted in its operations reflect the constant effort of Petrobras to minimize environmental impacts.

Ninety-three percent of the units in which this procedure can be applied are certified by Brazilian or international institutions in compliance with ISO 14001 (environmental management) or OHSAS 18001 (safety and health management) standards. In order to measure the application of HSE practices in the company, 52 operational units in Brazil, Argentina, the USA, Peru and Ecuador were assessed.

In order to obtain a license for its operations or activities with potential environmental impacts, Petrobras meets all requirements established by the legislation in force. In Brazil, the process of environmental licensing, under the jurisdiction of the Brazilian Institute for the Environment and Renewable Natural Resources (Ibama) and state institutions, determines that companies submit the measurement of potential risks and impacts of their operations.

Licenses can be granted during the planning of the project or activity, with approval of the location and concept, on the authorization of the facility in accordance with the approved specifications and of the operation after checking the compliance with the previous licenses. For certain licenses it is necessary to undertake the Environmental Impact Assessment/Environmental Impact Report (EIA/Rima) and public hearings with community participation. Besides assessing the potential environmental risks and impacts, the EIA/Rima also covers socioeconomic issues, indicating, case by case, the possible influences of the undertaking in a region.

The environmental licensing of the Rio de Janeiro Petrochemical Complex (Comperj) brought together, for example, 3,600 people to public hearings held in four municipalities. As a result of this process, it was found that the company required to give priority to aspects relating to the reuse of water, atmospheric emissions and the generation of waste in the project.

Among production concessions worth mentioning is the extension of the contract between Petrobras and the Ecuador government for operations in block 18 in that country under an agreement made in October. After a year, a decision must be made either to sign a new contract or return the block to Ecuador, with compensation for the non-depreciated portion of the investments. In December, the exploratory block 31 was returned to the control of the Ecuador government, as agreed between the parties.

ENVIRONMENTAL LIABILITIES AND ACCIDENT PREVENTION

In 2008, Petrobras Holding was notified of 13 records of environmental violation, which are under discussion, totaling R$ 109.15 million (considering only fines of over R$ 1 million), besides a warning sanction, with no pecuniary value. Some of the charges refer to drilling activities without a license from the relevant environmental agency. Four public civil actions were also registered.

In Petrobras Distribuidora, there was no decision of any environmental lawsuit and no sentence in closed proceedings. However, there were 13 charges of infringement in the scope of administrative proceedings, in a defense case up to the end of 2008. Liquigás and Refap had no major fines of an environmental nature or application of any nonmonetary sanctions.

With investments of approximately R$ 100 million since 2001 Petrobras has maintained ten Environmental Protection Centers (CDA) at strategic points of the company’s operation in order to increase the scope of its preventive actions and response to emergencies. Each center has launches, ferries, oil collectors, chemical dispersants, bioremediators, communication equipment and retention and absorption barriers, plus specialized staff always on call for ready action.

Petrobras also has 13 advanced bases of these CDAs, in addition to three boats equipped with the necessary resources for a fast and more effective response in event of oil spills. These vessels are ready at the Brazilian coast, with a crew on board 24 hours a day, and each is able to collect up to 300,000 liters of oil per hour from the sea.

The company signed an agreement with the Brazilian Navy to install an advanced Midwest CDA station. The station is located on the banks of the Paraguay River and will be operated by marines using Petrobras equipment to combat possible oil and byproduct spills in the Paraguay River and its tributaries. The region has heavy traffic of trucks supplying Mato Grosso and Mato Grosso do Sul States, in extremely sensitive environmental areas such as, for example, the Pantanal wetlands.