SUSTAINABILITY

REPORT

Energy for a cleaner country

EMPRESA NACIONAL DEL PETRÓLEO

CORPORATE HEADQUARTERS WEB SITE

Avenida Vitacura 2736, 10th Floor www.enap.cl
Las Condes / Santiago - Chile
TAX ID. No.
TELEPHONE 92.604.000-6
(56-2) 2280 3000
MAIN SUBSIDIARIES
P.O.BOX
3556 Santiago de Chile Enap Refinerías S.A.
Tax Id. No.: 87.756.500-9
ZIP CODE
7550597 Enap Sipetrol S.A.
Tax Id. No.: 96.579.730-0

CONTACT
To request further information or to comment on this Sustainability
Report please contact:

Gerencia de Seguridad, Salud, Medio Ambiente y Comunidades

Avenida Vitacura 2736, 10th Floor
Las Condes / Santiago - Chile
(56-2) 2280 3000
repsustentabilidad@enap.cl
 ENAP 2012 | SUSTAINABILITY REPORT 1

Contents

1 SUSTAINABILITY
STRATEGY
Pages 2 - 11
2 ENAP
PROFILE
Pages 12 - 29
3 CORPORATE
GOVERNANCE
Pages 30 - 41

4 STAKEHOLDER
ENGAGEMENT
Pages 42 - 49
5 MARKETS AND
PRODUCTS
Pages 50 - 59
6 ECONOMIC
PERFORMANCE
Pages 60 -69

HEALTH, SAFETY,

7 8 9
ENVIRONMENT REPORT
LABOR AND COMMUNITIES PARAMETERS AND
PRACTICES (HSEC) GRI CONTENT INDEX
Pages 70 - 81 Pages 82 - 125 Pages 126 - 132

ANNEXES:
Acronyms and Glossary,
Validation Report
Pages 133 - 136
 1 SUSTAINABILITY
STRATEGY

Aconcagua Refinery
LETTER FROM THE CHIEF EXECUTIVE OFFICER
ENAP presents its eighth Sustainability Report, an effort intended to present in full the
progress and challenges in areas of strategic importance for the development of its
current and future activities.
As in the previous period and making us responsible for
our commitment to the United Nations Global Compact,
this report meets the requirements of a Communication of
Progress (COP) and realizes how our company, through its
initiatives, complies with its principles.
For ENAP, due respect for the environment and the
communities where it operates is essential. We are a
company where the dignity of the person and care for the
environment are priority values. We must not only take care
of the financial results, but also of the sustainability we want,
which relates to a comprehensive vision that includes our
workers’s safety, respect for the environment and to work
in cooperation with the communities where we operate.
During 2012 ENAP faced a complex scenario. The Refining
and Commercialization Business Line (R&C), was affected
by the high cost of energy (electricity and natural gas),
situation that explained largely the losses for US$319
million registered by the company, which could not be
compensated by the positive result of US$47.8 million of the
Exploration and Production Business Line (E&P), according
to the estimate. Added to this is a heavy financial burden
which ENAP had to assume, equivalent to US$201 million
in interests, as a result of a total financial debt of US$4,155
million as of December 31, 2012.
Aware of this scenario and our commitment to become a
sustainable company, we started the implementation of a
operations management plan and security reinforcement
plan, working together with employees, professionals and
executives.
Thus, the Management implemented a series of measures
to improve the company’s performance. The first was an
adjustment to the organizational structure, to strengthen
the management of the two main businesses, through the
Business Lines Refining and Commercialization (R&C) and
Exploration and Production (E&P), whose mission is to
align the management of the different areas comprising
both business lines in which ENAP participates, generating
viability and sustainability to ENAP in the future.
The business strategy of the R&C Business Line resulted in
investments in high-impact projects, increased operational
efficiency by achieving maximum production levels with
lower energy consumption, and the integration of the
operation of the refineries with the marketing areas, crude
purchase, transport and market development. In 2012 R&C
Business Line promoted a cost reduction plan through the
negotiation of a new contract with the natural gas company
BG, obtaining competitive energy costs for its refineries and
larger volumes of natural gas to be commercialized in Chile;
the start-up of Aconcagua Refinery’s Alkylation Plant, which
will increase gasoline refining margins; and the launching of
San Vicente Terminal, in Talcahuano, that has high technical
standards for the optimization of liquids loading operations.
Meanwhile, the E&P Business Line focused its investments
and efforts in Chile, particularly in Magallanes, to ensure gas
supply for the city on the short and medium term, with a
suitable balance in oil production. The main purpose was to
rebuild the portfolio, adjusting to the risk profile that ENAP
is able to handle. In 2012, 98% of the goals of the production
plan were met, exceeding 15,000 barrels of crude oil per
day in Egypt; and, in Ecuador, ENAP Sipec achieved a total
production of 50 million barrels of crude oil, and works in
parallel on the exploration of the newly incorporated blocks
and in a permanent analysis of new business opportunities.
Aware our business risks, the safety of our workers is
essential. Therefore, and in order to emphasize and create
a real culture of safety, the HSEC Management was created
in 2012. Its purpose is to apply policies and establish the
guidelines aimed at achieving zero accidents and company
that works together with the communities where it is inserted.
However, and despite all the efforts made to improve safety
during 2012 we had to regreat the loss of José Rodrigo
Valenzuela Carvallo and Bernardo Ancapán Caiguán, two
contract workers who lost their lives in labor accidents. This
shows that we still need to strengthen a culture of safety
in all our facilities.
For this purpose, ENAP implemented training, leadership
and field work programs; operational integrity and risks
 ENAP 2012 | SUSTAINABILITY REPORT 5

analysis of the operational work carried out and, above all,
promoted self care in the most simple acts. It is mandatory
that safety becomes part of our consciousness way of
working and our daily routine.
On the other hand, environmental care and effective
conservation of those wetlands located in the vicinity of our
operations, remain a priority responsibility on biodiversity
for our company. Thus, in the fifth year of execution of our
Program on Wise Use of Wetlands, we have reached valuable
achievements for the effective conservation of the Ramsar
Site Bahía Lomas, in Tierra del Fuego.
The implementation of a program of scientific research
on migratory shorebirds and the opening of the Bahía
Lomas Center, located in the Magallanes Region, marked
highly relevant milestones, thus consolidating a successful
process that enables to build a conservation legacy for the
future generations and strengthens our strategic alliance
with the Ministry of Environment, the Ilustre Municipalidad
of Primavera, Universidad Santo Tomás and the Manomet
Centr for Conservation Sciences.
the residents of those localities. This way ENAP is able to
know from first hand what needs matter the most to the
people and find the best solutions together.
I do wish to thank all the members of our ten unions. We have
always worked together with respect and professionalism
for every person who is part of ENAP family.
We went through a period of exciting challenges for
our industry and we have all the potential to succeed,
generate good returns and make a substantial contribution
to communities and the country. Chile has given us the
privilege to manage part of its energy wealth for over 60
years and our commitment is to do it in a responsible and
transparent way.
This report shows a clear decision of the Board of Directors,
Management and ENAP’s workers to move along a path that
enables us to reverse the current situation of the company
and lay the grownds to projecting it into the next decades.

Another initiative carried out in 2012 and that shows our

actual concern for the environment, was the planting of more
than a thousand trees around Bío Bío Refinery’s facilities.
Species such as Australian Blackwood and Monterrey Cypress
can be seen now at the East side of the company, facing
the neigboring localities of El Triángulo, Villa El Triángulo
and Nueva El Triángulo.

On the other hand, it should be noted the work of ENAP

Open House, entity created by our company to provide
culture, training and healthy entertainment to the community
of Concón. Today, more than five hundred people have
benefited from workshops like Theatre, modern dance,
painting, literature and jazz, among others.

The work of our tripartite tables in Hualpén and Concón,

are a sample of collaboration where ENAP. the mayors and Ricardo Cruzat Ochagavía
presidents of the main neighbor councils of those communities Chief Executive Officer
have succeeded in achieving different initiatives relevant for Empresa Nacional del Petróleo
SUSTAINABILITY STRATEGY

SUSTAINABILITY STRATEGY
GRI 1.2

ENAP’s strategy is focused in reversing the financial situation
and ensuring financial and operational competitiveness and
sustainability on the long term, framed within its commitment
to the integrity and safety of people, environment, local
communities and the corporate values and principles.
Management focuses are aimed at achieving operational
excellence, by implementing management measures in all
business and support processes, with a targeted allocation
of resources.
plant for the generation of electric power and steam at
Aconcagua Refinery. This initiative aims at securing electricity
supply to the refinery, improving the availability of energy
and thus, the stability of the refinery’s operation, avoiding
the environmental impacts caused by the lack of security
on the power supply, allowing ENAP Refinerías to reduce
its costs of electric power and steam.

For 2012 and 2013, ENAP defined a set of objectives and

initiatives which, together with integrated work and the
support of all managements, contribute to the stability and
reconstruction of the company’s patrimony, gross margin
and financial situation.

The main objectives of E&P Business Line relate to ensuring

gas supply in Magallanes, which includes an aggressive
drilling campaign and reinforcing a culture of safety in
each operation.

The main objectives of R&C Business Line are to maintain

the competitive procurement of crude oil, secure import
contracts of products at affordable prices, continue working
in the elimination of crude oil import tariff, and continue
developing the market of industrial customers taking into
account the future arrival of nonvehicular diesel.

In addition, the assessment of a plan for the sale of dispensable

assets has been considered as part of the optimization
program; therefore, valuations have been requested to third
parties for submission to the Board of Directors.

This strategy is beginning to show its first fruits, reflecting

a shift in the results. In the first quarter of 2013, ENAP
generated an EBITDA of US$ 212 million and a profit of US$
52 million. The assets of the company increased by US$ 70
million compared to December 2012.

The results have set the foundations to review and update

in 2013 the Strategic Business Plan, with horizon to the year
2020. As part of this Plan it is important to highlight the
project for the construction of a Natural Gas cogeneration

Ricardo Cruzat, ENAP CEO, gave school supplies to students

of the Orellana Province in Ecuador.
 ENAP 2012 | SUSTAINABILITY REPORT 7

Risks

In June 2012, ENAP adopted an Integrated Risk Management
Model, based on international standards and best practices in
the field. The model is based on a corporate policy that aims
to strengthen strategic management and a methodology that
ensures that critical risks are consistently and systematically
identified, assessed and mitigated.
Integrated risk management is applied in all business lines,
business units, areas and processes of the holding. It starts
at the first level of the organization and is applied in all
management areas. It includes all critical risks, whether
they are strategic, operational, financial, of compliance
or reportability, which can affect the vision, mission and
strategic business plan of ENAP and its subsidiaries.
Among the main financial risks managed are losses for
significant variations in the interest rate, the exchange rate,
and those related to inadequate risk transfer in issues of
property insurance.
In Legal matters, risks associated with the management
of trials and conflicts related to the ambiguous wording of
contractual clauses are addressed, as well as those risks
associated with the breach of legal regulations that may
affect the operations and existing contracts.
In the operational area, risks related to liquid and/or gas
hydrocarbons outflow, spills and/or leaks into the ground,
sea or rivers, risks related to harm and/or injury to persons,
inflammations, fires and explosions, and those related to noise
and emissions of particulate materials, are being managed.
EC 2
ENAP has not analyzed the risks and opportunities for the
company related to climate change.

Concerning the areas of compliance, the risks related to

the company’s ethical culture and best practices are being
managed, as well as risks related to the absence and/or
failure to update the company ‘s internal regulations.

ENAP Directors Rodolfo Krause, Carlos Díaz, Felipe Morandé and Ramón Jara, and Ricardo Cruzat,
ENAP CEO, and Ricardo Jungmann, Compliance Manager.
SUSTAINABILITY STRATEGY

Corporate Sustainability Policy

ENAP Corporate Sustainability Policy became effective in 2012. It defines ENAP’s commitment with Sustainable Development
and is based on international standards and industry’s best practices.

ENAP Holding acknowledges Sustainable Development as To accomplish its mission, it aims to be acknowledged as a
one of the four cornerstones of its Strategic Plan and channels leader in sustainable development, and to foster corporate
its value proposal to becoming a company integrated with management maximizing the creation of economic, social, and
the community and environmentally accountable. environmental value, based on the following commitments:

01 Comply with the applicable
regulatory framework as well
as the voluntarily subscribed
principles and agreements.
02 Act within a context of Social
Responsibility, according to
corporate values, the Principles
of the United Nations Global
Compact, international
standards, and industry’s best
practices.
05 Maintain fair labor practices,
a healthy and safe work
environment, and encourage
individuals’ development.
06 Incorporate the best available
technologies; operate in a safe
and responsible manner, and
control impacts of company’s
operations, products, and
services, with a preventive
approach and environmental
efficiency.
09 Maintain a harmonious
coexistence with the
communities in which it is
inserted and contribute to
improve the quality of life and
local development.
10 Ensure fair business practices
with suppliers, contractors and
business partners.
11 Meet customers’ expectations
and requirements agreed on
quality, quantity and timeliness.

03 Promote a culture of integrity, 07 Encourage respect to human

honesty and transparency,
including institutional
accountability.
04 Build and maintain relations of
trust and mutual benefit with
stakeholders, consider their
interests and expectations, and
to seek opportunities to create
shared value.
rights, especially to minorities
and most vulnerable groups, and
reject any kind of discrimination.
08 Participate in cross-sector
alliances to contribute to society
through initiatives related
to knowledge management,
innovation, social inclusion,
environmental education, and
the conservation of biodiversity.
12 Foster continuous improvement
of corporate sustainability
through integrated management
systems, with the use of
indicators that enable to
evaluate, check, and report the
compliance with the objectives
and goals.
13 Distribute this policy to the
company’s stakeholders and
promote its compliance.

The Sustainability Policy constitutes the framework of operations. All the company’s employees are responsible
ENAP Holding’s activities, and applies to all its business for the policy’s compliance.
lines, international subsidiaries, business units and overall
 ENAP 2012 | SUSTAINABILITY REPORT 9

COMPLIANCE WITH 2012 SUSTAINABILITY COMMITMENTS

GRI 1.2

85% - 100% 30% - 84% 29% - 0%

Complied with / Important progress Partially complied with Pending / Not done

2012 Commitment Actions and progress Compliance

• To summon key actors and A Framework Agreement was prepared. Signature is pending.
to articulate an effective
preservation process for the
wetland of Aconcagua River
mouth in collaboration with the
Ministry of Environment and the
Municipality of Concón.

• To support the implementation Bahía Lomas Center was inaugurated on April 12, 2012.
of “Bahía Lomas Center” in
BIODIVERSITY

Primavera district, which provides

for science, education and local
development related to the
preservation of Bahía Lomas
wetland, of global relevance.

• To enable scientific research It supported the program of invertebrate sampling in tidal flat
campaigns on the Red Knot and monitoring of Red Knot (Calidris Canutus), providing hours
migratory bird species at Bahía of helicopter flight for aerial surveys and transportation, lodging
Lomas area (Magallanes), carried and meals to the experts who developed these campaigns.
out by the School of Science of
Universidad Santo Tomás and the
National Wildlife Research Center
- Environment Canada.

• To socialize and implement the The policy was prepared. Its validation, socialization and
Addiction Prevention Policy. implementation is pending.

• To expand the implementation Based on diagnoses at the refineries, prioritary targets were
of the “Strengthening of defined to strengthen the culture of safety during the 2012-
SAFETY AND OCCUPATIONAL HEALTH

Safety Culture ” Program to the 2013 period, specifically on critical risks management, work
refineries. control and programs for the development of competencies
in Visible Leadership in Safety, aimed at the executive and
supervisory lines.

• To implement a Health & Safety Implemented throughout ENAP operations in Chile.

Management System in all ENAP The implementation process was initiated in Argentina during the
operations. last quarter of 2012.
The implementation in Enap Sipec is subject to the results of the
system in the organization during its first year of use.

• To support operations’ The Health, Safety, Environment and Communities Corporate

performance of Occupational Management (HSEC) was created; it establishes management
Health & Safety management and guidelines and provides cross-cutting support throughout the
to develop an Occupational Health organization.
& Safety management model in
accordance with the industry’s
best practices.
SUSTAINABILITY STRATEGY
85% - 100%
Complied with / Important progress
2012 Commitment
• Put into operation restroom
facilities at Bío Bío Refinery
Contractors’ Yard.
SUPPLIERS
• Include clauses on respect for
Human Rights in the agreements
signed with third parties.
• Create a Suppliers Policy.
• Strengthen relationships
CUSTOMERS
and assess new business
opportunities that guarantee
augmenting profitable
participation interests.
• Conclude the stages of integral
risk management methodology at
the Logistics Managements.
RISK MANAGEMENT
• Implement the Integral Risk
Management the Planning
and Management, Sales and
Procurement, Legal and Corporate
Affairs Managements.
ENVIRONMENT
• To carry out an study on air
quality as part of the 2008-2012
environmental coorperation
agreement.
30% - 84% 29% - 0%
Partially complied with Pending / Not done
Actions and progress Compliance
The construction of the Restroom Facilities project was completed
and is waiting the municipal approval for its commissioning.
Contracts with third parties include clauses ensuring compliance
with labor lagislation and th safety and health regulations. The
incorportion of more specific clauses on human rights is pending.
The Suppliers’ Policy was prepared. Its official announcement is
pending.
The production of ENAP’s diesel is placed preferably in the
production centers. The participation in the gasoline market is
substantially improved, achieving the preference of customers,
and supplying almost all of the domestic demand in 2012.
The risk management methodology was implemented.
- Planning and Control: implementation postponed to 2013.
- Sales and Procurement/Refining and Commercialization
Management: strategic risks were identified and assessed, and a
mitigation plan was designed.
- Legal Cousel: methodology implemented.
- Corporate Affairs: the function of managing social and
environmental risks related to the communities was entrusted to
HSEC Management.
No progress reported during 2012.
 ENAP 2012 | SUSTAINABILITY REPORT 11

2013 SUSTAINABILITY COMMITMENTS

GRI 1.2

Scope Commitment

ETHICS • ENAP Holding. Training of 60% of the workers on the Code of Ethics.

• Magallanes. Participation in the implementation of the Bahía Lomas

Management Plan, providing support in the conduct of aereal
censuses with hours of helicopter flight and transportation,
lodging, and meals for the professionals and scientists involved
in the implementation of the Plan.
BIODIVERSITY

• Head Office. To sponsor and provide technical support to two 2013 editions
of the “Course on Biodiversity and Wetland Conservation” offered
by the School of Ecology and Natural Resources of Universidad
Andrés Bello.

• Refining and Commercialization To maintain a high preference from wholesale disttributors in the
CUSTOMERS Business Line. gasoline market.
Encourage the generation of savings in the supply chain.

• Exploration and Production - Difussion and implementation of the Rules for Life, reinforcing
Refining and Commercialization the control of behaviors with potential to cause serious or fatal
Business Lines. accidents.
SAFETY,
HEALTH, Development of a Relationship Model and an implementation plan
ENVIRONMENT with ENAP Communities, articulating the various stakeholders
AND based on transparent relationships and of mutual benefit.
COMMUNITIES Development of programs to strengthen leadership on Safety
(HSEC)
and Occupational Health, promoting an Integrated Safety Culture.
To establish a system of verification and follow-up of the critical
environmental aspects within the operations.

• Exploration and Production Preparation of a framework procedure to investigate incidents.

OPERATIONAL Business Line. Implementation and difussion of regulations and standards for
INTEGRITY suppliers of the subsidiaries.
MANAGEMENT To Strengthen critical risks management through a Hazard
SYSTEM Identification Study (HAZID) and implementation of a corporate
risks procedure.

• ENAP Holding. Update and socialization of corporate policies and/or procedures

HUMAN for processes of Learning Management, Recruitment and
RESOURCES
Selection, Compensations and Travel Management.
 2 ENAP’S
PROFILE

Bío Bío Refinery Emergency Response Brigade.

ENAP’S PROFILE

COMPANY PROFILE
GRI 2.1 - 2.6

Empresa Nacional del Petróleo (ENAP) is a public company, GRI 2.4 - 2.5
owned by the State of Chile. It was created by Organic Law ENAP carries out its activities and operations in five countries:
No. 9,618 of Empresa Nacional del Petróleo, dated June 19, Chile, Argentina, Peru, Ecuador and Egypt. The company’s
1950, and amended by various subsequent laws. It operates headquarters are located in Santiago, Chile.
as a commercial company, under a public law juridical regime
and it has an autonomous management.
Scale of ENAP
ENAP’s main business lines are Exploration & Production, GRI 2.8
and Refining & Marketing of hydrocarbons and their by-
products. PARAMETER 2011 2012 VARIATION

GRI 2.3 Workforce Unit 2,896 2,974 2.7%

ENAP participates in the exploration and production of Net Revenues (MUS$) 10,835 11,612 7.2%
hydrocarbons through its subsidiary Enap Sipetrol S.A.
Total Assets (MUS$) 6,203 6,312 1.8%
and in the refining, transportation, storage and marketing
of petroleum-based products, through Enap Refinerías S.A. Total Liabilities (MUS$) 5,822 6,229 7.0%

Equity (MUS$) 381 83 -78.2%

Sales of Refined Value (MUS$) 9,782 10,240 4.7%

Products Volume (Mm3) 12,534 13,493 7.7%

Elda Arteaga, President of the Union of Neighborhood Councils of Concón; Ricardo Cruzat, ENAP CEO; Julio Bertrand, ENAP Refining and
Commercialization Manager; and Adriana Marinetti, President of the Neighborhood Council Los Romeros.
 ENAP 2012 | SUSTAINABILITY REPORT 15

ENAP WORLDWIDE
GRI 2.4 - 2.5

Egypt
• East Ras
Qattara Block

Ecuador
• MDC and PBHI Blocks
• Block 3J Peru
• Primax • MANU
• Primax

Argentina
Chile • Sipetrol office in Buenos Aires
• Santiago Headquarters
• Sipetrol office in Río Gallegos
• Aconcagua Refinery
• Sipetrol office in Comodoro Rivadavia
• Bío Bío Refinery
• Austral Basin:
• Maipú, San Fernando
- Magallanes Área Block
and Linares Plants
- CAM 2-A Sur
• ENAP in Magallanes
- E2 (ex CAM 1-CAM 3)
• Eastern Island. Vinapu
• San Jorge Gulf Basin:
Terminal for Fuel Storage
- Campamento Central - Cañadón Perdido Block
- Pampa del Castillo - La Guitarra Block

EXPLORATION AND PRODUCTION

GRI 2.3 - 2.5

ENAP is engaged in oil and natural gas exploration,

development and production in four countries: Chile, Argentina,
Ecuador and Egypt. It also participates in the development
of new energy sources, such as geothermal energy.

Exploration and Production (E&P) Management is responsible

for managing the exploration, development and production
of hydrocarbons in Chile and abroad. Outside Chile, ENAP
operates through its subsidiary Enap Sipetrol S.A.
ENAP’S PROFILE

Chile
In Chile, Enap Magallanes operates hydrocarbon exploration
and production assets in the Twelfth Region. It also develops
gas exploration activities through Special Petroleum
Operation Contracts (CEOP in Spanish) in blocks Coirón,
Caupolicán, Lenga and Dorado-Riquelme, in association
with the companies Pan American Energy LLC, Greymount
and Methanex, respectively, all located in the Region of
Magallanes.
In November 2012, the General Comptroller of the Republic
approved two new CEOP between ENAP and Geopark for
the Flamenco and Isla Norte areas.

ENAP MAGALLANES

Gas and oil production in the continental area, Tierra del Fuego island and
Off-Shore in the Magellan Strait.

3.000 Km of oil and gas pipelines.

Gregorio Refinery and

Multi Buoy Terminal
MAIN OFFICE
PUNTA ARENAS Type Atmospheric
distillation

Posesión Plant
Puerto Natales Type Natural gas processing
(Turboexpander)
Esperanza

Monte Aymond Cullen Plant

Type Compressing unit and
Villa Tehuelches BRP dew point adjustment
Daniel

BRC

Nudo Pecket
Percy Cerro Sombrero Cabo Negro – Laredo
Industrial Park
Type LPG Fractionation,
Refrigerated LPG
Maritime Terminal and
Porvenir Fuels Plant, Shipyard
Punta Arenas
and Dockyard.

Head Office Gas Pipelines Network Multi-purpose pipeline network (LPG) Facilities
 ENAP 2012 | SUSTAINABILITY REPORT 17

Argentina
ENAP began its operations in Argentina in 1990 and holds
participation interests in four exploitation blocks and one
exploration block. It has made investments for about US$
1,000 million, and its daily production is about 10,000 barrels
of oil and 2,500,000 cubic meters of gas, adding the four
concessions it operates in this country.
The subsidiary Enap Sipetrol Argentina is operator and holds
50% of the participation interest in the exploitation concessions
in Magallanes Area Reservoir and CAM 2/A Sur Reservoir
(Poseidón Lot); and is also operator and holds 33.33% of the
participaton interest in the exploration concession E2 (ex CAM-
1 and CAM-3); all of which are located in the Austral Basin.
It is operator and holds 100% of the participation interest of
the exploitation concession Pampa del Castillo-La Guitarra,
in the San Jorge Gulf Basin. Moreover, it participates as
non-operating partner, with 50% of the shares in the
exploitation concession Campamento Central-Cañadón
Perdido, operated by YPF.

ENAP SIPETROL ARGENTINA

SAN JORGE GULF BASIN

PROVINCE OF CHUBUT
Campamento Central-
Cañadón Perdido Area
Partner with YPF/Non Operator
Participation Interest
50%
Net Investment

HEAD OFFICE
MUS$ 48,343
BUENOS AIRES Pampa del Castillo Area
100% Holder and Operator
Net Investment
Activities since 1990 MUS$ 138,000
Approx. MUS$ 1,000 1
Investment AUSTRAL BASIN
PROVINCE OF SANTA CRUZ
Production 1,800 m3/day
of
crude oil and E2 Area (EX CAM3 and CAM1)
1,050 Mm3/day
of gas UTE with YPF and ENARSA
Participation Interest
Head Office Buenos Aires
33% Operating Partner
1 Office in Comodoro Rivadavia 2 Magallanes Area
3 Participation Interest
2 Office in Puerto Punta Quilla 50% Operating Partner
3
4 Net Investment
Office in Río Gallegos
MUS$ 120,955
5
4 Battery Reception Magallanes Poseidón Area
6 CAM2-A Sur Block
5 Battery Reception Tierra del Fuego UTE with YPF
Participation Interest
6 Office in Río Grande
50% Operating Partner
Net Investment
Head Office Offices Exploitation Area Exploration Area MUS$ 538
ENAP’S PROFILE

Ecuador
In Ecuador, ENAP Sipec operates service contracts for
exploration and production in blocks Mauro Davalos Cordero
(MDC) and Paraíso Biguno Huachito (PBH) and exploration
areas Intracampos and Block 3 Jambelí, incorporated in 2010
and 2011, respectively.

Enap SIPEC, Ecuador

ENAP SIPEC

Río
Co
ca
PROVINCE FCO. DE ORELLANA

Block Intracampos
Began exploratory phase with 3-D
Fco. de Orellana seismic studies in

2012
o
Nap
Río

Block Mauro Dávalos

Cordero (MDC)

Specific service contracts

HEAD OFFICE Crude oil production with
QUITO EP Petroecuador: Since
Guayaquil
2003
Investment MUS$ 220

Block Paraíso, Biguno y

Approx. 14,000 barrels Huachito (PBH)
Production per day
Specific service contracts
Head Office Quito
Crude oil production with
EP Petroecuador: Since
Golfo de
Guayaquil
Isla Puna
2003
Machala

GULF OF GUAYAQUIL

Block 3 Jambelí
Geological studies awarded
and initiated in
Head Office Exploitation Area Exploration Area
2011
 ENAP 2012 | SUSTAINABILITY REPORT 19

Egypt
In Egypt, Enap Sipetrol participates with a 50,5% stake in
Petroshahd (joint venture between the national oil company
EGPC and the consortium Enap Sipetrol – Kuwait Energy)
for the operational and administrative management of East
Ras Qattara Block.
The withdrawal from the exploration concession of Rommana
Block (operated with 40% of the shares) was carried out in
2012, pursuant the negative results of the exploration well
Jasper-1. The consortium decided to abandon the block and
obtained the approval of the state-owned company EGAS
to request the interruption of the exploration process. The
final withdrawal letter was presented to EGAS on April 12,
2012 and obtained its approval.

ENAP SIPETROL EGYPT

Port Said
Alexandria

Cairo
Suez

HEAD OFFICE
CAIRO

Investment MUS$ 211 Block East Ras Qattara

Net Investment MUS$ 36,243
Head Office Cairo Interest 50.5% with Kuwait
Energy Company
Operating Partner

Head Office Exploration Area

Drilling Rig, Eqypt Miguel Ángel Vargas, Manager of Enap Sipetrol Egypt, at the Intrnational
Congress of Oil Companies held in Turkey.
ENAP’S PROFILE

Hydrocarbon Reserves and Production

OG 1

In 2012, ENAP,s production of crude oil and gas increased ENAP 2012 Volume of Oil and Gas Proven Reserves
14.4 % over the previous year, due to increased production OG 1
of crude oil in Egypt as a result of the successful exploratory
drilling campaign of 2011; an increase of the volume of TYPE OF HYDROCARBON VOLUME (Mm3)
gas produced in Argentina following the commissioning
Oil 10,107.50
of AM-2 platform, which was repaired in 2011, and a good
performance in Ecuador. Natural Gas 8,753.80

2011-2012 Hydrocarbons Production Volume

OG 1

2011 2012 VARIATION 2012 / 2011

COUNTRY TOTAL PETRÓLEO GAS TOTAL
OIL (MBBLS) GAS PETRÓLEO GAS TOTAL
(MBOE) (MBBLS) (MBOE) (MBOE)
Argentina 3,237.6 898.9 4,136.5 3,673.1 2,206.1 5,879.2 13.5% 145.4% 42.1%
Ecuador 4,556.8 - 4,556.8 5,109.3 - 5,109.3 12.1% - 12.1%
Egypt 1,427.9 - 1,427.9 2,425.6 - 2,425.6 69.9% - 69.9%
E&P INTERNATIONAL 9,222.3 898.9 10,121.2 11,208.0 2,206.1 13,414.1 21.5% 145.4% 32.5%
Magallanes (Chile) 833.6 6,192.0 7,025.6 799.2 5,403.4 6,202.6 -4.1% -12.7% -11.7%
E&P NATIONAL 833.6 6,192.0 7,025.6 799.2 5,403.4 6,202.6 -4.1% -12.7% -11.7%
TOTAL E&P 10,055.9 7,090.9 17,146.8 12,007.2 7,609.5 19,616.7 19.4% 7.3% 14.4%

E&P Oil and Gas Production (MM BOE)

OG 1

Oil Gas

25

20

15 7,54
9,8
7,1

10

10,7 10,1 12
5

2010 2011 2012

Aconcagua Refinery

El Tatio Geyser, Second Region.
Geothermal Energy
EN 6
ENAP participates in the development of geothermal energy
sources through the companies Geotérmica del Norte S.A.
(48.6%) and Empresa Nacional de Geotermia S.A. (49%),
both associated with the Italian company ENEL.
The Apacheta concession (Cerro Pabellón Project), owned
by Empresa Geotérmica del Norte (GDN), which is in the
exploitation phase, is expected to initiate the construction of
a condensation plant of 40MW and a binary unit of 10MW.
The deep exploratory phase was successfully completed.
Four wells were drilled to depths between 1300 and 2000
meters, of which the first two wells were successful for
production (8 MW). Regarding the third well, it was decided
to continue drilling in the development phase, and the fourth
well was considered suitable for reinjection.
During the period activities in preparation for the approval
of the Cerro Pabellón Project were conducted, including
proceedings to present the Environmental Impact Study for
the plant, wells, and power lines to the relevant authorities,
as well as beginning the international bidding process for
ENAP 2012 | SUSTAINABILITY REPORT 21
drilling rigs, main equipment, and plant construction. In
April was approved the Environmental Impact Study of
the plant, which includes the wells and the fluids transport
pipeline system.
Superficial geological, geochemical, and geophysical
studies were conducted at the Polloquere-Licancura and
Necul concessions, which belong to Empresa Nacional de
Geotermía S.A. (ENG), during their exploration stage. In the
case of the Licancura concession it is expected to drill the
adamantine well Caritaya 1 during the first half of 2013, and
continue later with the drilling of an adamantine well in the
Polloquere concession.
In late 2011, Geotérmica del Norte (GDN) acquired the
exploratory concessions Ollagüe, Azufre Oeste and Azufre
Norte; and during 2012 it collected bibliography, purchased
satellite images and conducted field recognition studies.
ENAP’S PROFILE

REFINING AND COMMERCIALIZATION

GRI 2.3 - 2.5

Refining and Commercialization (R&C) Management is Aconcagua Refinery, located in the Region of Valparaíso; Bío
responsible for the Refining, Optimization, Logistics, Trading, Bío Refinery, in the Region of Biobío; and Gregorio Refinery,
Market Development and Sales processes. in the Region of Magallanes.

ENAP’s refining and marketing activities are managed by
the subsidiary Enap Refinerías S.A. Its business mainly
consists of the purchase of crude oil in the international
market for its refining and subsequent commercialization
of finished products.
The refineries have the required facilities for the reception
and storage of raw material, among which are five maritime
terminals located in Quintero, San Vicente, Easter Island,
Cabo Negro and Gregorio, the last two are in the Region
of Magallanes.

Enap Refinerías S.A. crude oil supply is obtained mostly The Storage and Pipelines Directorate (DAO in Spanish),
from South America (92%), Europe (5%), Chile (2%), and which administers the logistics infrastructure is responsible
North America (1%). for storage and transportation of liquid and gas fuels, sales
to wholesalers and the export of fuels.
Enap Refinerías S.A. is the only oil-refining company in Chile,
and the most relevant in the Central and South America
Pacific coast. Refining is carried out at three refineries:

ACONCAGUA REFINERY
Start-up: November 12, 1995
Location: Concón District, Region of Valparaiso, Chile
Products: Liquefied Gas, gasoline with different octane ratings,
household and aviation kerosene, diesel, solvents,
fuel oils, asphalt pitch and coke.
Refining Capacity: 104,000 barrels per day of crude oil.
Main Facilities: • Aconcagua Refinery Industrial Complex
• Quintero Maritime Terminal
• Vinapu Terminal – Easter Island

BIO BIO REFINERY

Start-up: July 29, 1966
Location: Hualpén District, Region of Biobio , Chile
Products: Ethylene, propylene, propane butane, gasoline,
household kerosene, aviation kerosene, diesel oil,
fuel oil, asphalt pitch, coke, sodium hydrosulphide,
sulphur.
Refining Capacity: 116,000 barrels per day of crude oil.
Main Facilities: • Bío Bío Refinery Industrial Complex
• San Vicente Maritime Terminal

GREGORIO REFINERY
Location: San Gregorio District, Region of Magallanes and Chilean
Antarctic
Products: Diesel oil, aviation kerosene and naphtha.
Market: Fuels supplier of Magallanes Region and
the rest of ENAP Refineries.
Refining Capacity: 15,700 barrels per day of crude oil.
Main Facilities: • Gregorio Refinery and Multi-Buoy Terminal
• Cabo Negro Fuels Plant and Loading Yard
 ENAP 2012 | SUSTAINABILITY REPORT 23

GAS AND MULTI-PURPOSE PIPELINES NETWORK

MAIPÚ PLANT
Type Storage and Distribution
Plant
Region Region Metropolitan
Storage 23,770 (LPG)
Capacity (m3) 177,171 (Clean Products)

SAN FERNANDO PLANT

Type Storage and Distribution
Refinería Aconcagua Plant
Region Sixth Region
Storage 34,022 (LPG)
Capacity (m3) 55,500 (Clean Products)
Concón

Stgo.
Maipú
Pipelines
Viluco
Graneros
CONCÓN - MAIPÚ (SONACOL)
Clean Products Rosario
Length (Km) 127
MOLINA STATION
San Fdo.
Diameter 16” Type Pumping Station

Flow 520 m 3/h Curicó Region Seventh Region

Liquefied Petroleum Gas

Length (Km) 139.4
LINARES PLANT
Diameter 10 3/4” Linares
Type Storage and Distribution
Flow 430 m 3/h

Plant

SAN FD0. - MAIPÚ (SONACOL) Region Seventh Region

Storage 1,966 (LPG)
Length (Km) 133.13 Bulnes
Capacity (m3) 23,700 (Clean Products)
Diameter 6 5/8”
Flow 100 m3/h

BULNES - CHILLÁN - SAN FDO.

Refinería Bío Bío
Length (Km) 268
CHILLÁN STATION
Diameter 8 5/8”
Type Pumping Station
Flow 140 m3/h
Region Eighth Region

BÍO BÍO - BULNES - CHILLÁN

Length (Km) 81.6
Diameter 10 3/4” PEMUCO PLANT
3/h
Flow 185 m Type Regasification Plant
Region Eighth Region

DAO Multi-purpose pipeline Sonacol Multi-purpose pipeline

Pumping Station Storage and Distribution Plant (DAO)

ENAP’S PROFILE

Development of Second Generation Biofuels

EN 6 - EN 18

Enap Refinerías S.A. participates in the ownership of
two companies focused on second generation biofuel
developments: ForEnergy and Biocomsa.
Both companies conduct feasibility studies to produce
cellulosic fuels from forest industry wood waste, agro-
industrial waste, municipal solid waste and energy crops.
The objective is contributing to Chile’s energy independence,
providing a high quality fuel with low emissions to reduce
greenhouse gases (GHG), based on the existence of a major
diesel market in Chile and one of the world’s largest forestry
sectors; the ability to use cellulosic waste, mainly forest
biomass; the potential to contribute to the development
of rural communities, and the possibility of promoting
energy crops, incorporating currently unused land to the
production activity.
• ForEnergy S.A.
The company was created in 2007 by Enap Refinerías (40%),
Consorcio Maderero (34%), Fondo de Inversión Privado
Esperanza (6%) and Fidelitas Entertainment S.P.A. (20%). It
conducts feasibility studies to produce second generation
biofuel from forest biomass and other raw materials of
domestic origin, in order to install a Second Generation
Biodiesel production plant in Chile.
The project is defined at the conceptual level. The potential
location of the plant and biomass supply assurance is under
evaluation; technological aspects that enable reduction of
the initial investment, which is one of the main barriers to
enter entry of this kind of industry, are being redefined.
Moreover, the price that Chile would be willing to pay for
this fuel of much better quality and lower level of emissions
is being analyzed.
• BIOCOMSA S.A.
Is a Technological Consortium created in 2009, involving Enap
Refinerías S.A. (32%), Universidad de Chile (20%) and Consorcio
Maderero S.A. (48%). It is financed with the contribution of
the partner companies and a subsidy of Innova Chile CORFO.
It’s main objective is to establish the foundations for the
production of biofuels from lignocellulosic materials through
research, development, adaptation of technologies and
marketing products and services.
Currently, it manages nine subprojects covering from raw
matrial, social and environmental aspects, to the definition of
new technologies, and participates as a strategic partner in
the project RoadMap Chile Biorenovables 2012 – 2020, which
seeks to establish a roadmap for the development of biofuels
in the country.

SUBSIDIARIES OF ENAP S.A.

GRI 2.3

SHAREHOLDER SHAREHOLDER
RELATIONSHIP WITH THE PARENT
COMPANY DOMICILE PERCENTAGE PERCENTAGE
COMPANY
2011 2012
Enap Refinerías S.A. Chile Direct subsidiary 99.98% 99.98%

Petro Servicios Corp. S.A. (Argentina) Argentina Direct subsidiary 100.00% 100.00%

Enap Sipetrol S.A. Chile Direct subsidiary 100.00% 100.00%

Gas de Chile S.A. Chile Direct subsidiary 100.00% 100.00%

Enap Sipetrol Argentina S.A. Argentina Indirect subsidiary 100.00% 100.00%

Enap Sipetrol (UK) Limited UK Indirect subsidiary 100.00% 100.00%

Sipetrol International S.A. (Uruguay) Uruguay Indirect subsidiary 100.00% 100.00%

Sociedad Internacional Petrolera Enap Ecuador Ecuador Indirect subsidiary 100.00% 100.00%

Manu Perú Holdings S.A. Peru Indirect subsidiary 100.00% 100.00%

Energía Concón S.A. (Enercon) Chile Indirect subsidiary 100.00% 100.00%

Éteres y Alcoholes S.A. (Etalsa) Chile Indirect subsidiary 100.00% 100.00%

Petrosul S.A. Chile Indirect subsidiary 100.00% 100.00%

Productora Diesel S.A. (Prodisa) Chile Indirect subsidiary 100.00% 100.00%

Compañía Hidrógeno del Bío-Bío S.A. Chile Special purpose entity 10.00% 10.00%
 ENAP 2012 | SUSTAINABILITY REPORT 25

ENAP’S PARTICIPATION IN RELATED COMPANIES

GRI 2.3

COMPAÑIA GASODUCTO
A & C PIPELINE LATINOAMERICANA EMPRESA NACIONAL DEL PACÍFICO
HOLDING BIOCOMSA S.A. PETROLERA S.A. DE GEOTERMIA S.A. FORENERGY S.A. (ARGENTINA) S.A.

49.00%
36.25% 32.00% 40.00% 40.00%

22.80%

900.0 903.0 3,101.2 23,269.0 691.0 55,396.0

GASODUCTO GOLFO DE GUAYAQUIL

DEL PACÍFICO GASODUCTO DEL GEOTÉRMICA PETROENAP COMPAÑIA
(CAYMAN) LIMITADA PACÍFICO (CHILE) S.A. DEL NORTE S.A. GNL CHILE S.A. GNL QUINTERO S.A. DE ECONOMÍA MIXTA

48.60% 40.00%
33.33%
22.80% 25.00% 20.00%

50.0 105,842.0 117,091.0 3,026.0 114,058.0 100.0

OLEODUCTO OLEODUCTO
INNERGY TRASANDINO TRASANDINO PETROPOWER
HOLDINGS S.A. NORGAS S.A. (ARGENTINA) S.A. (CHILE) S.A. ENERGÍA LIMITADA PRIMAX S.A.

42.00% 35.83% 49.00%

35.79 %
25.00%
15.00%

191,513.0 2,758.4 34,686.0 8,621.0 70,461.0 62,820.0

SOCIEDAD NACIONAL COMPAÑIA DE TERMINALES

PRIMAX DE OLEDUCTOS S.A. SOCIEDAD NACIONAL HIDRÓGENO DEL MARÍTIMAS
HOLDING S.A. (SONACOL) MARÍTIMA S.A. BÍO BÍO S.A. ELECTROGAS S.A. PATAGÓNICAS S.A.

49.00%

15,00
15.00 % 13.79%
10.06% 12.97 % 10.00 %

0.8 114,745.0 9,281.0 6,597.0 28,237.1 3,617.1

OTHER COMPANIES

SUBSCRIBED AND PAID CAPITAL (MUS$) Participation interest of subsidiary Enap Refinerías S.A. Includes participation interest
of ENAP and its subsidiaries
Participation interest of subsidiary Enap Sipetrol S.A. Special purpose entity
ENAP’S PROFILE

VALUE CHAIN

DRILLING RIG

PUMP
SEISMIC
TRUCKS
GEOPHONE OIL PIPELINE

GAS

OIL

WATER

EXPLORATION PRODUCTION TRANSPORTATION LOGISTICS

 ENAP 2012 | SUSTAINABILITY REPORT 27

CONSUMPTION

LIGHT
GASES
DISTILLATION
TOWER
PROPANE
GAS
20 Cº

LIGHT BUTANE
GASOLINE
150 Cº
DISTRIBUTORS
HEAVY ETHYLANE TO CUSTOMERS
GASOLINE PROPYLENE
180 Cº

KEROSENE GASOLINE
200 Cº

OIL
GAS OIL AVIATION
400 Cº 300 Cº KEROSENE

DIESEL

CRUDE
OIL
FUEL OIL
OIL DEPOSITS
TANKERS
SULPHUR

FURNACE

OTHER
PLAYERS

S REFINING PRODUCT DISTRIBUTION CONSUMPTION

ENAP’S PROFILE
SIGNIFICANT CHANGES IN ENAP’s SIZE AND STRUCTURE DURING 2012
GRI 2.9
Organizational Restructuring
In 2012 a major restructuring of ENAP was carried out to
focus on the functions and processes of greatest strategic
impact.
Such organizational reorganization began in April 2012 with
the creation of the Refining and Commercialization (R&C)
and the Exploration and Production (E&P) managements.
The integration of both core processes allowed for greater
flexibility and better coordination of each business, facilitating
decision-making and improving competitiveness in the
dynamic market where the industry develops.
Further adaptations were implemented in both managements,
to optimize technical and operational support, speeding
decision making. The main changes occurred in R&C Sales
and Procurement Management, Refineries Optimization
Management, managements of Aconcagua and Bío Bío
Refineries, Management of Enap Magallanes, and E&P Portfolio
Management. The structures of cross-cutting managements
that support the business lines were also adjusted.
In order to strengthen corporate sustainability governance,
ENAP created in 2012 two new managements focused on
strategic issues: a Compliance Management, reporting
directly to the company’s Board of Directors, and a HSEC
(Health, Safety, Environment and Communities) Management,
reporting to the CEO. Both provide cross-cutting support
to the company’s business lines and units.
The Directorate of Corporate Affairs and the Directorate of
Communications joined, creating the Directorate of Corporate
Affairs and Communications, the first transferring part of its
functions to the latter. CSR management and community
relations was taken by the new HSEC Management.
Startup of Bahía San Vicente Oil Dock
In November 2012, ENAP began the trial run of its new
maritime terminal in San Vicente, whose construction involved
an investment of US$ 161,000. The new facilities include a
walkway pier with aerial pipelines for simultaneous loading
and unloading of crude oil and products, electrohydraulic
loading arms, fire detection and fire fighting systems, leak
detection systems, environment monitoring systems with a
weather station, and safety systems approved by the ISPS
(International Ships and Port Security) Code.
The dock is among the most modern in the world and will
become operational during the first half of 2013.
Devolution of the Petroleum Concession
Campamento Central-Cañadón Perdido
in Argentina
In 2012 Enap Sipetrol Argentina was affected by two
events: the suspension of the Petroleo Plus Program, and
the expiration of the concession of the area Campamento
Central - Cañadón Perdido, enacted by the Government of
the Province of Chubut.
On May 21, 2012 the Executive Branch of the Province of
Chubut issued the Decree No. 324/12, provided for the
expiration of the exploitation concession of the area named
Campamento Central-Cañadón Perdido granted to Repsol
YPF, in which Enap Sipetrol Argentina has a 50% stake, as
non-operating partner.
By Decree No. 641, dated June 12th 2012, the same authority
annulled the previous decree. With this measure, ENAP
considered the contingency that affected that subsidiary
settled.
New Sales and Purchase Agreement
between ENAP and BG
ENAP y BG signed, in December 2012, a contract replacing
the Liquefied Natural Gas Sales and Purchase Agreement
signed in 2007. This new contract provides more favorable
operational and economic conditions for ENAP, as it considers
price adjustments to the purchase of larger volumes of
natural gas (price buckets). With this new contract, ENAP
secures the supply of natural gas for its refineries and
energy projects, and to supply retail, industrial and the
thermoelectric sector customers.

Three Special Petroleum Operation
Contracts (CEOP)
ENAP, Geopark and the State of Chile signed in early 2012,
three CEOP’s, corresponding to the blocks Flamenco, Isla
Norte and Campanario, located in Tierra del Fuego. In
November 2012, the General Comptroller of the Republic
approved the new CEOP, for the areas Flamenco (Geopark
TdF S.A. 50% and ENAP 50%) and Isla Norte (Geopark TdF
S.A. 60% and ENAP 40%), formalizing both agreements
and their entry into force.
The investment committed to the CEOP will enable, in the
coming years, to increase hydrocarbons exploration and
production activities in Magallanes, with a very low capital
risk; improve the knowledge of the exploratory potential of
the basin, the technology transfer, the creation of new jobs,
and the development of a services market associated with
the oil activity in the region.
Enap Magallanes.
ENAP 2012 | SUSTAINABILITY REPORT 29
Reinstatement of the Rommana Block in
Egypt
OG 11
The exploration and exploitation concession of Rommana
Block 2 in Egypt was granted in 2006 to the consortium
comprised of Enap Sipetrol, as the operating partner, with
40% of the shares; Centrica, with 30%; and PTTEP, with
another 30%.
The consortium signed a contract with the Arab Republic of
Egypt, represented by the state-owned company Egyptian
Natural Gas Holding Company (EGAS). The block covers
an area of 6,184 Km2 and is located in the northeast region
of Sinai, in Egypt.
The first exploratory phase began in 2007 and ended on
May 12, 2012. The activities carried out included 813 Km2 of
3D seismic and the drilling of three exploratory wells, with
a disbursement by Sipetrol of US$ 14.6 million.
In 2012, after the negative results of the exploratory well
Jasper-1, the consortium decided to abandon the block
and obtained the approval from the state-owned EGAS to
request termination of the exploratory process.
 3 CORPORATE
GOVERNANCE

Enap Magallanes.
CORPORATE GOVERNANCE

BOARD OF DIRECTORS
GRI 4.1 - 4.2 - 4.3 - 4.4 - 4.7

The highest governance body of ENAP is its Board of Directors,
responsible for the top administration of the company. For
this purpose it exercises the powers granted by ENAP’s
Organic Law and the bylaws that rule the company. The
Board of Directors, according to law, it is composed by
eight directors, as follows:
- The Minister of Energy, as Chairman of the Board.
- Four directors appointed by the Corporación de Fomento
de la Producción (CORFO), among which the Executive
Vice-President of CORFO, who serves as Vice-Chairman
of ENAP Board of Directors. Another position is given to
the Chairman of the Federación Nacional de Trabajadores
del Petróleo de Chile, FENATRAPECH (National Federation
of Petroleum Workers of Chile).
- Three directors in representation of the private sector,
named by the following entities:
• Sociedad Nacional de Minería (SONAMI).
• Instituto de Ingenieros de Minas de Chile.
• Sociedad de Fomento Fabril (SOFOFA).
Composition of the Board of Directors ensures due
representation of the owner’s interest in the decisions of
the company and allows fluid communication between
worker representatives and senior management of ENAP.
Committees of the Board of Directors
GRI 4.1
• Audit and Risks Committee
Its responsibility is to oversee the good performance of
the internal control system, the procedures and financial
statements, and the integrated risk management of ENAP.
The corporate comptroller acts as secretary.
• Projects, Business and Investments Committee
Its role is to approve projects, businesses and investments
by amounts over two million dollars and their follow-up.
• Contracts Committee
Its role is to approve contracts and awards ranging between
five and twenty million dollars.
• Safety Committee
Its role is to analyze, study, investigate and propose
initiatives in matters related to personal safety and security
of facilities. It is composed of three directors: CEO, business
lines Managers, Comptroller and HSEC Manager, who acts
as secretary.

Directors must have Chilean nationality; they last three

years in office and may be reelected or removed by their
respective principals. They do not hold executive positions
in the company.

GRI 4.7 / 4.10

There are no processes for determining the required
qualifications and expertise of the members of ENAP’s
board of directors, nor mechanisms for evaluating their
performance.

Composition of ENAP Board of Directors

BOARD OF CHAIRMAN OF THE VICE-CHAIRMAN 3 DIRECTORS 3 DIRECTORS

DIRECTORS BOARD: MINISTER OF OF THE BOARD: EXECUTIVE APPOINTED APPOINTED BY THE
ENERGY VICE-PRESIDENT OF CORFO BY CORFO PRIVATE SECTOR

Financial, Accounting, Administrative
and Disciplinary Control Regulations
GRI 4.9
As a state owned company created by law, ENAP is ruled
by the provisions of Title I of the Organic Constitutional Law
18,575 on the General Rules of the State’s Administration
(Ley No. 18.575 Orgánica Constitucional de Bases Generales
de la Administración del Estado), amended by Law 19,653
on Administrative Probity Applicable to Bodies of the State
Administration (Ley sobre Probidad Administrativa Aplicable
a los Órganos de la Administración del Estado). Pursuant the
above, the principles of lawfulness, continuity and permanence,
responsibility, efficiency and unity of action, hierarchy and
discipline, and the rules on administrative probity, transparency
and access to public information, apply to the Company.
ENAP is subject to a series of public law standards that apply
to the state owned companies, and to the companies in
which participation of the State, or its institutions, agencies
or companies, is equal to or higher than 50%.
- ENAP is subject to the financial, accounting, administrative
and disciplinary control of the General Comptroller of the
Republic.
- Its budgetary and financial regime is ruled by the provisions
of Article 11 of Law 18,196.
- Also apply to ENAP the provisions of Articles 29 and 44,
letter a) of Decree Law 1,263 of 1975 on the State’s Financial
ENAP Cullen Facilities, Tierra del Fuego.
ENAP 2012 | SUSTAINABILITY REPORT 33
Administration, which refers to the powers of the Ministry
of Finance to instruct profit transfers and advances of
the same, and to the requirement of obtaining a previous
authorization by such Ministry to engage public credit,
either through direct indebtedness, guarantees or other.
- According to the provisions of Article 3 of Decree Law
1,056 of 1975, ENAP is only entitled to make capital
contributions to companies, to make deposits or to acquire
capital market instruments previously authorized by the
Ministry of Finance.
- ENAP is voluntarily registered in the Securities Register
of the Securities and Insurances Superintendence, and
therefore, it is subject to the control and supervision of
such entity.
Principles of Good Corporate Governance
GRI 4.6
In 2010, ENAP voluntarily adopted the “Good Corporate
Governance Principles and Guidelines for ENAP’s
Representative Directors in Related Companies”, based on
Chilean regulations applicable to stock companies (Law
18,046) and to international best practice.
These principles guide ENAP’s Directors to avoid conflicts
of interest, and provide guidance to ENAP’s Committee
of Investments in Related Companies (CIER, Comité de
Inversiones en Empresas Relacionadas de ENAP) for
coordination and follow-up.
CORPORATE GOVERNANCE

ENAP BOARD OF DIRECTORS

Chairman of the Board Vice-Chairman of the Board Director

Jorge Bunster Betteley Hernán Cheyre Valenzuela Rodolfo Krause Lubascher
Minister of Energy Executive Vice President of Appointed by Sociedad de
Corporación de Fomento de la Fomento Fabril
Producción (CORFO)

Director Director Director

Fernando Ramírez Pendibene Felipe Morandé Lavín Carlos Díaz Vergara
Appointed by Instituto de Appointed by Corporación Appointed by Corporación
Ingenieros de Minas de Chile de Fomento de la Producción de Fomento de la Producción
(CORFO) (CORFO)

Director Director
Ramón Jara Araya Jorge Fierro Andrade
Appointed by Sociedad Nacional Appointed by Corporación
de Minería (Sonami) de Fomento de la Producción
(CORFO)
 ENAP 2012 | SUSTAINABILITY REPORT 35

STRUCTURE
GRI 2.3

ENAP Organizational Chart

ENAP BOARD OF
DIRECTORS

COMPLIANCE
AUDIT
MANAGEMENT

CHIEF EXECUTIVE
OFFICER

DIRECTORATE
OF CORPORATE
LEGAL COUNSEL
AFFAIRS AND
COMMUNICATIONS

EXPLORATION REFINING AND

AND PRODUCTION COMMERCIALIZATION
MANAGEMENT MANAGEMENT

HEALTH, SAFETY,
PLANNING HUMAN
SERVICES FINANCE ENVIRONMENT
AND CONTROL RESOURCES
MANAGEMENT MANAGEMENT AND COMMUNITIES
MANAGEMENT MANAGEMENT
MANAGEMENT
CORPORATE GOVERNANCE
Chief Executive Officer
The Chief Executive Officer is responsible for the senior
management of the company framed within the functions
and powers of attorney established by Law 9,618, the
company’s bylaws and by ENAP’s Board of Directors. In
particular, he shall implement the resolutions adopted by the
Board, represent the company judicially and extrajudicially,
and oversee its assets and funds. He leads the design and
implementation of the business plan with a strategic vision,
so it can be shared by the whole organization.
Exploration and Production
Management (E&P)
E&P Management reports directly to the CEO. Its responsibilities
are developing exploration and extraction of hydrocarbons
in Chile and abroad. Outside Chile, ENAP operates through
its subsidiary Enap Sipetrol S.A. The main purpose of this
Management is the incorporation of hydrocarbon reserves,
through exploration and optimization of reservoir exploitation.
In addition, it is responsible for the management of the
geothermal assets of the company.
Refining and Commercialization
Management (R&C)
It reports directly to the CEO and operates mainly through
the subsidiary Enap Refinerías S.A. Its functions are:
- Transform crude oil into fuel, petrochemical, and special
products.
- Transport and store crude oil and oil-based products, and
sell the latter to companies, both in Chile and abroad.
- Develop complementary processes of refining, usually in
association with third parties, to produce inputs needed
for operation (hydrogen, steam and electricity) and
chemicals.
- Market crude oil, oil-based products and natural gas, and
supply the refineries.
- Develop the industrial customers and natural gas markets.
- Manage logistical resources to optimize import and export
transportation costs as well as cabotage throughout the
country.
Compliance Management
It reports to the Board of Directors, through the Audit and
Risk Committee. It is a cross-cutting management that
develops actions and initiatives aimed at preventing risks
of regulatory breaches. Consistent with the Law on Liability
of Legal Persons and OECD Standards, among its duties
is the prevention of money-laundering crimes, terrorist
financing and bribe to public officials. This management
seeks to materialize the company’s commitment to best
business practices, ethics and compliance with regulations
and ENAP’s values.
Legal Counsel
Its role is to provide advice on all legal matters in a timely
and efficient manner, to ensure the legality of the company’s
proceedings. It contributes to the effective implementation
of common guidelines and due safeguard of ENAP´s
interests, to allow adequate development in the market.
This management reports directly to the CEO.
Gerencia de Planeamiento y Gestión
It is responsible for coordinating the preparation of the
Strategic Business Plan (PEN, Plan Estratégico de Negocios),
conducting the analysis and ENAP’s integrated strategic
discussion, formulating and adapting the strategy to the
changes in the environment, encouraging change and strategic
alignment, through the active participation of all levels of the
organization. On the other hand, it coordinates the process
of information and implementation of the PEN through
the Annual Plan and Budget, managing ENAP’s integrated
information in a timely and reliable manner, monitoring the
results, and providing feedback to the organization for the
decision-making, ensuring optimal management of ENAP’s
projects that add value, and enable it to implement the
strategy, ensuring business sustainability.
In addition, it conducts strategic management in the
companies where ENAP participates, manages the Geothermal
projects portfolio, and develops studies and joint ventures
on biofuel projects.

Procurement Management
Procurement Management establishes policies, general rules
and corporate procurement procedures, coordinates and
implements the processes of procuring goods and services,
including those goods and services to be used throughout
the ENAP Holding. It also administers the company’s Register
of Suppliers. In addition, this area manages and provides
basic information, technology and communication services
to all users of the holding, and develops, implements and
delivers specialized application software support for the
business processes.
Finance Management
This area is responsible for the administration of the company’s
financial resources and obtaining the funds to finance the
investment plans and working capital. In addition, it is
responsible for implementing and updating the financial
statements of the company, and monitors and controls
income and expenditure of funds. It also manages financial
risk reduction through hedging interest rate, exchange rate,
and commodity price risks.
ENAP 2012 | SUSTAINABILITY REPORT 37
Human Resources Management
Manages processes to optimize the contribution of individuals
and work teams to fulfill business objectives, including work
organization, labor mobility, compensation, development
and performance of workers, and develops labor relations,
based on cooperation, managing opportunities for dialogue
with workers’ representatives.
Provides the organization with the technical essential
competencies for the proper development of productive
and support processes.
Promotes a labor culture based on corporate values aimed
to achieve the strategy goals, and promotes a working
environment that contributes to a higher productivity.
CORPORATE GOVERNANCE

HSEC Management (Health, Safety, This area acts as a specialized unit, to channel the Company’s
information addressed to the international and domestic
Environment and Communities) media, on ENAP’ strategic role, as well as on the Company’s
development plans, on its projects to diversify the country’s
HSEC Management reports directly to ENAP’s CEO. This area is energy matrix and, among others, on the global context of
responsible for defining and supporting the implementation of crude and fuels prices.
the Occupational Health, Safety, Environment and Community
Relations strategy, providing timely feedback regarding HSEC
performance and practices among operations, providing
guidelines for the decision making and the inclusion of BOARD OF DIRECTORS AND SENIOR
company’s and industrial best practices. MANAGEMENT COMPENSATIONS
GRI 4.5
Through its management, it supports the business lines in
the sustainable management of the operations, ensuring
ENAP’s compensations to the Board members, for their
that HSEC risks are timely and properly identified, assessed
attendance to meetings, commissions or committee,s is
and managed.
determined by Law and it is not related to the company’s
results.
The HSEC Manager shall conduct the Sustainability Policy,
ensuring its compliance in all areas, and coordinate the
In the case of its officers, with the exception of the
definition and execution of plans and programs.
Chief Executive Officer, the company applies a Variable
Compensation System, whose purpose is to encourage
It also encourages the relationship with local authorities
value adding to the company, to improve team work and
and implements initiatives of mutual collaboration and
individual performance.
alliances with the community’s institutions, associations
and authorities.
Detailed information of the remunerations of the Directors,
CEO and senior executives of the company are published
Directorate of Corporate Affairs and in the web site of ENAP in http://www.enap.cl/la_empresa/
transparencia_enap_remuneraciones.php
Communications
The Directorate of Corporate Affairs and Communications,
which reports directly to ENAP’s CEO, shall focus on the
implementation and monitoring of the various commitments
associated with the Sustainability Policy, and strengthens
management with various stakeholder groups. In addition,
it shall develop a set of indicators that enable to measure
the performance.

Similarly, the Directorate manages ENAP’s relationship

with governmental and political authorities (Government,
Parliament);, monitors and collaborates public relations
regarding conflicts that may arise with the community;
manages public and institutional relations of project activities
and the company’s projects related to sustainability, and
manages the company’s internal and external communications.

It should also identify and implement risks mitigation plans of

the communications process; provide support in the various
processes of internal dissemination based on the needs of
the company, and establish a communications strategy that
will enable to strengthen ENAP’s image.
 ENAP 2012 | SUSTAINABILITY REPORT 39

ENAP Senior Officers

Ricardo Cruzat Ochagavía

CEO

Hesketh Streeter Evans Julio Bertrand Planella

Exploration and Production Refining and
Manager Commercialization Manager

Carolina Lathrop Lueje Patricio Véliz Möller María Inés Garrido Sepúlveda Ricardo Jungmann Davies
Director of Corporate Legal Counsel ENAP Comptroller Compliance Manager
Affairs and
Communications

Rodrigo Bloomfield Sandoval Miguel Angel Vargas Hernán Errázuriz Cruzat Danilo Kuzmanic Vidal Luis Fuentes Martínez
Planning and Control Services Manager Finance Manager Human Resources Health, Safety, Environment
Manager Manager and Communities Manager
(HSEC)
CORPORATE GOVERNANCE

MISSION AND VISION

GRI 4.8

Mission

ENAP’s mission is to become a leader in energy, by providing products and services that meet its customer’s needs, and
in turn, contribute to sustainable development in the countries and communities in which it is inserted, operating safely,
productively and competitively.

Vision

To accomplish its mission in order to accomplish the following goals:

• To obtain clients’ preference with competitive prices.

• To become the leading logistics and/or business operator.
• To ensure a competitive supply by making part of alliances, even though their production does not physically reach
its refineries.
• To profitably participate in all links of the business chain, minimizing risks.
• To operate under efficiency and reliability levels, to be competitive in all business and business supporting processes.
• To replace and increase reserves.
• To be acknowledged as a leading company in sustainable development.
• To have an efficient, collaborative and committed team.

Bío Bío Refinery.


ETHICS AND COMPLIANCE
The Ethics and Compliance Program is aimed to strengthen
a culture of ethical behavior to protect the Company’s
reputation; to strengthen employees’ protection; to build
relationships with customers, suppliers, contractors, investors,
authorities and internal and external entities; to prevent
legal and regulatory non-compliance, thus avoiding the
costs derived from fines and penalties.
In August 2012 the company launched an internal inquiry
line called “ENAP Responds” that enables workers, suppliers
and contractors, to seek guidance or to report any violation
or breaches, through four channels: e-mail, telephone, in
person or via the intranet. The most used channel was e-mail,
with more than twenty-three contacts made by this means.
2012 Complaints and Queries through ENAP Responds Line
NO. OF NO. OF
UNIT
QUERIES COMPLAINTS
Head Office 5 4
Bío Bío 10 16
Aconcagua/DAO 8 4
Magallanes 4 12
TOTAL 27 36
HR 1 -HR 2 - HR 4 - HR 10 - HR 11 - SO 4
Although the company has not yet established formal
grievance mechanisms, to explicitly address matters related
to Human Rights, through the ENAP Responds line, all kinds
Ricardo Cruzat and Ricardo Jungmann.
ENAP 2012 | SUSTAINABILITY REPORT 41
of queries and complaints have been received. The cases
received in 2012 were related to the human respect and
dignity, including five complaints on discrimination. No
cases of corruption in the holding were reported.
Enap is implementing various initiatives to assess its business
partners, operations, suppliers and contractors in relation
to its performance in these aspects.
SO 2 -SO 3
In 2012, ENAP did not carried out a specific analysis on
corruption risks, nor developed activities to train workers
on anti-corruption policies and procedures.
Code of Ethics
In 2012, as part of the Ethics and Compliance Program and
in order to promote the company’s values and principles,
the company launched, distributed and communicated
ENAP’s Code of Ethics.
The essential values that inspire this code are respect for
humans dignity, responsibility, probity, productivity and
transparency, those that guide decision-making and the
behavior of company’s employees and executives.
 4 STAKEHOLDER
ENGAGEMENT

Daniel Martínez, Aconcagua Refinery Manager (right), at the closing ceremony of one of ENAP’s Open House workshops in Concón.
STAKEHOLDER ENGAGEMENT

INTERNATIONAL PRINCIPLES AND CSR ORGANIZATIONS

GRI 4.11 - 4.12

Since 2006, ENAP adheres to the United Nations Global
Compact, which promotes ten universal principles related
to human rights, labor regulations, environment and anti-
corruption. The Global Compact principles include support
for the adoption of a precautionary approach. Thus, ENAP
is committed to ensuring that its processes, products and
services meet high f health and safety, and environmental
protection standards.
In Chile, ENAP participates in the Global Compact Network
Chile and its various working committees. In 2012, it chaired
the Committee on Transparency. ENAP is also founding
member of Acción RSE foundation, a business organization
working for fostering Corporate Social Responsibility and
sustainable development in the country.

Verónica Díaz, a fire fighter of Enap Magallanes.


SUPPORT TO EXTERNAL SUSTAINABILITY INITIATIVES TO WHICH THE
COMPANY SUBSCRIBES OR ENDORSES
GRI 4.12
• Clean Production Agreement (CPA) Puchuncaví-
Quintero Industrial Zone
Aconcagua Refinery signed in December 2011, with nine
other companies that operate in that industrial area
(Codelco Ventanas, GNL Quintero, AES Gener, Puerto
Ventanas, Gasmar, Melón, Oxiquim, Comercial Catamutún
Energía S.A. and Endesa) a Clean Production Agreement
for Quintero Maritime Terminal facilities-In this agreemnt
the signing parties commit to various common social
and environmental goals and actions coordinated by the
Fifth Region Companies Association (ASIVA Asociación
de Empresas de la Quinta Región).
• Business Hub for Local Sustainability (NEST, Núcleo
Empresarial para la Sustentabilidad Territorial)
ENAP participates in a public-private partnership led
by the Ministry of Economy and the National Cleaner
Production Council (CPL, Concejo de Producción Limpia),
to create the first Business Hub for Local Sustainability in
the country.
The initiative aims to design a long-term strategy to improve
life quality in the Puchuncaví-Quintero bay, declared a
pollution saturated zone in 1994. Under the coordination
of the Clean Production Council, 10 of the 19 companies
based in the area formed a working group to encourage
voluntary agreements on territorial sustainability.
• ChilEnter Foundation
ENAP signed in 2012 an agreement with the Foundation
Todo ChilEnter, an organization that seeks to contribute
to digital inclusion in Chile, providing computer equipment
to the community, to develop skills and promote citizen
participation through the access to information and
knowledge. ENAP committed to donate computer
equipment to be written off as a result of technological
innovation.
• Electricity Generation on Mocha Island
ENAP is working with the Regional Government of Biobío
(GORE Bio Bio) in the development of a project on Isla
Mocha whose goal is to generate electricity using natural
gas from two oil exploration wells drilled by ENAP in the
seventies, which exploitation and operation is carried out
through an administrative concession provided by the
State of Chile.
The project will put the Mocha Norte No.3 well into
production, as main producer, and leave the Mocha Sur
No.2 well as future backup.
ENAP 2012 | SUSTAINABILITY REPORT 45
GORE Bío Bío finished the works for electricity generation
and electrification of the island, which include 2 gas-fired
power generators and the installation of a diesel-fired
power generator; the later already in operation.
After having normalized the surface installations of Mocha
Norte No.3 and Mocha Sur No. 2 wells, which were damaged
by the tsunami in February 2010, and in response to a
request from the Regional Government of Bio Bio (GORE
Bio Bio), ENAP has been collaborating by developing the
Interconnection Project of Mocha No.3 well to the Power
Generation, both installed by GORE Bio Bio.
In this context, ENAP completed engineering studies, the
process of purchasing materials and equipment, and is
currently reviewing the bids submitted by contractors,
for the construction of said interconnection system to be
implemented in 2013.
After completing the construction of this system, its
commissioning includes ENAP’s assistance to the future
operator, during a trial run period.
The materialization of this project will provide electricity
to 210 families, exploiting the natural resources available
in the area.
• First Energy Efficiency Fair
Enap Magallanes and the Secretaría Regional Ministerial
of Energy (SEREMI) organized the First Energy Efficiency
Fair, which was held the 23rd and 24th of November at
the Free Zone in Punta Arenas.
The initiative seeks the efficient energyuse in Magallanes
homes, and gathered small, medium, and large goods and
service suppliers that exposed solar and thermal panels,
wind generators, insulation and LED technology, among
others.
• Cleaning up Caleta Lenga
Bío Bío Refinery helped the Second Naval Zone of the
Navy, the Seremi of Environment and the Municipality of
Hualpén in an activity to clean Caleta Lenga, in the Eighth
Region, organized to celebrate the “International Day of
Beach Cleaning”. The company provided supplies to more
than one hundred students of the commune of Hualpén,
so they could contribute to the collection of waste.
STAKEHOLDER ENGAGEMENT
Membership in Associations
GRI 4.13
• Regional Association of Oil, Gas and Biofuels Sector
Companies in Latin America and the Caribbean,
(ARPEL, in Spanish)
ENAP is a member of ARPEL, an organization formed by
companies’ producers and suppliers of the oil industry,
representing 90% of upstream and downstream operations in
the Region. ENAP participates in the following committees:
Environment, Health and Industrial Safety, Climate Change
and Energy Efficiency, Pipelines and Terminals, Refining,
Exploration and Production, and Human Talent and
Knowledge Management.
• Oil Companies International Marine Forum (OCIMF)
In 2012 ENAP joined the OCIMF, an international marine
forum of oil companies with interest in the transportation and
terminals of crude oil, oil-based products, petrochemicals and
gas. OCIMF is known as the voice of the industry, providing
specialized knowledge for a safe and environmentally
responsible transportation, and the handling of hydrocarbons
in tankers and maritime terminals.
OCIMF has contributed with a significant number of
regulations at the IMO (International Maritime Organization)
aimed at improving the security of ships and protection to
the environment. Also it develops standards and guidelines
to improve the practices of the industry, and serves as a
valuable reference for the preparation of regulations.
• Asociación Gremial de Industriales de Valparaíso y
Aconcagua, ASIVA
Aconcagua Refinery is a member of ASIVA, a multi-sectoral
trade union, main business leader of the Valparaíso Region,
gathering 150 companies of the industrial, productive and
services sectors.
• Instituto Argentino del Petróleo y Gas, IAPG
Enap Sipetrol Argentina is a member of IAPG, the most
important hydrocarbons technical entity of the country. The
subsidiary participates in the commissions of Institutional
Relationships and Legal Matters.
• Cámara de Exploración y Producción de Hidrocarburos,
CEPH
The Chamber groups the major hydrocarbon production
companies in Argentina. Enap Sipetrol Argentina participates
in the Executive Commission.
• Oil Club (Club del Petróleo)
Association that groups the senior managements of
companies and other outstanding professionals of the oil
and gas industry in Argentina. Enap Sipetrol Argentina
has an active participation in their activities.
• Cámara de la Industria del Petróleo, CIP
Cámara de la Industria del Petróleo (CIP), is an organization
that groups the main downstream companies, with which
meetings are held between CIP and CEPH chambers.
• Other memberships of ENAP
Through its subsidiaries and business lines, ENAP also
participates in:
- Cidere Bío Bío, Grupo RSE
- Asociación Gremial de Industriales Químicos de Chile
ASIQUIM A.G.
- Cámara de Producción y Comercio de Concepción, CPCC
- Instituto Regional de Administración de Empresas, IRADE
Public Policy
SO 5
In 2012 ENAP provided advice to the Ministry of Energy in Chile
on, and participated in the preparation of the “Reglamento
de Cierre de Faenas de Hidrocarburos” (Hydrocarbon Site
Closing Regulations), which sets the regulations that will
rule the closing of Hydrocarbon Operations, according to
the provisions of Law 20,551, necessary for the prevention,
minimization and control of health and safety, and
environmental risks .
Political Contributions
SO 6
ENAP does not make, nor is legally enabled to make financial
or in-kind contributions to political parties or similar entities
in the countries where it operates or carries out its activities.
 ENAP 2012 | SUSTAINABILITY REPORT 47

STAKEHOLDER ENGAGEMENT
GRI 4.15 - 4.14 - 4.16

ENAP encourages management based on trusting relationships
with its stakeholders, through instances and formal spaces
for information, consultation, participation and dialogue.
In general terms, each management and functional area of
the company identifies its most relevant stakeholders, both
internal and external.
Type categories are distinguished among the external
stakeholders. In the direct business environment, the company
relates with authorities at national and local levels, regulatory
agencies and supervisory bodies through regular channels.
It also provides formal mechanisms to link systematically
with the financial community, business partners, customers,
suppliers and contractors, industry and business associations,
and other companies that are located within the territories
in which it operates.
In the non-market environment, which includes the general
public, ENAP relates to media, local communities, universities
and research centers, non-profit organizations, NGOs and
civil society in general.
The close relationship with internal audiences is a key aspect
of the business strategy, and focuses on the inclusion of
workers and union leaders in the relevant matters of the
company’s progress.
The relationship with these stakeholders is guided by ENAP’s
Code of Ethics, which seeks to align the behavior of all
organization members with corporate values and principles.

STAKEHOLDERS
GRI 4.15

Providers of
Universities Goods and
and Research Services
Centers State of Chile
(Owner)

Customers

Ministries

Financial
Institutions
Parliamentarians

NGO's Own and

Contractor's
Workers

Trade
Unions Local and
Regional
Authorities
Opinion
Leaders
Media Local
Communities
STAKEHOLDER ENGAGEMENT
AWARDS AND RECOGNITIONS RECEIVED BY ENAP IN 2012
GRI 2.10
INSTITUTION
Government of Ecuador
GE Water & Process Technologies
(treatment and services for water and
industrial processes)
Association of Neighborhood Community
Councils /Government's Ministry Regional
Secretary (Seremi) of Valparaíso Region
Asociación de Empresas de la Región de
Valparaíso (ASIVA)
Asociación Chilena de Seguridad (ACHS)
Asociación Chilena de Seguridad (ACHS)
Asociación Chilena de Seguridad (ACHS)
National Safety Council
Sence of the Biobío Region
RECOGNITION BUSINESS UNIT DATE
“Mejores Prácticas en Inclusión Social Laboral de Personas con
Enap SIPEC February 22
Discapacidad” (Disabled Labor Force Inclusion).
“Proof Not Promises Award” in recognition for two projects developed
in 2011 that enabled to reduce operational costs, environmental
improvements, and a greater operational reliability to the company: Refinería Aconcagua 12 de marzo
• Cooling Water Treatment
• Use of antifoam at the Coker Plant
For the work performed with the neighbors and support to community
organizations as part of the project Strengthening of the association
of Community Organizations at local levels, developed from December Aconcagua Refinery Maarch 19
2011 to March 2012. The initiative allowed neighbors to carry out four
meetings of social organizations at ENAP’s Open House.
For its voluntary participation in the Puchuncaví-Quintero Clean
Aconcagua Refinery May 6
Production Agreement (CPL) signed on December 1, 2011.
For achieving five years without Lost Time Accidents. DAO Plant Linares September 26
“Premio Acción Paritaria Asociación Chilena de Seguridad” (Asociación
Chilena de Seguridad Joint Action Award), in recognition to the effective DAO Plant 16 de octubre
work on Risk Prevention of the Joint Committee on Health and Safety.
For achieving six years without Lost Time Accidents in its facilities. DAO Plant 5 de noviembre
“Esfuerzo en Prevención de Riesgos” (Work in Risk Prevention) award
granted to companies that achieved to reduce by 25% or more their
frequency index compared to the average of the two last years,
Bío Bío Refinery May 31
and the “Consejo Nacional de Seguridad” (National Safety Council)
recognition for reaching the lowest frequency rate of their group
category and whose value is significant.
Corporate Social Responsibility Award for its contribution to the
training of men and women of the Biobio Region and the re-
Bío Bío Refinery December 26
employment program for former workers at the plant Nueva Aldea,
using tax exemption Sence.
For the second consecutive year, ENAP SIPEC was one of 26 companies recognized
by the Government of Ecuador to comply with the “Mejores Prácticas en Inclusión
Social Laboral de Personas con Discapacidad” (Disabled Labor Force Inclusion).
Eduardo Tapia, Manager of Sipec Ecuador, acompanied by the professional Pamela
Salazar, received the award from the hands of the advisor to the Vice Presidency and
the project’s coordinator, Rosángela Adoum.
 ENAP 2012 | SUSTAINABILITY REPORT 49

Enap Sipetrol Egypt drilling rig.

 5 MARKETS
AND PRODUCTS

Laboratory sample at Bío Bío Refinery.

MARKETS AND PRODUCTS

MARKETING STRATEGY MARKET PRESENCE

ENAP’s marketing policy is based on principles of transparency, Purchase of Crude Oil

fostering-competition and the neutralization of potential
GRI 2.7
collusion threats. It aims to supply fuel products to wholesale
distributors, to promote the sale of special products to
ENAP is the only hydrocarbons refining company in Chile. The
industrial customers, and to evaluate and develop new
crude oil processed at the Company’s refineries is 90% from
ventures.
South America, 4% is produced locally, 5% is imported from
Europe and the remaining 1% comes from North America.
The vertical integration of the company, with an increasingly
active role in supplying the industrial customer segment,
Volume of crude oil refined in 2012 (in m3)
provides stability to the domestic fuel market and ensures
the placement of the company’s production in those
NATIONAL 346.012 4%
geographical areas where it is most competitive regarding
the alternative of importing fuel. IMPORTED 9,182,923 96%

SOUTH AMERICA 90%

ENAP privileges to supply to the sales points close to its
Refineries, where the Company maintains adequate logistics EUROPE 5%
capacity, thus maximizing its profit. NORTH AMERICA 1%

TOTAL CRUDE OIL 9,528.935 100,0%

Enap Sipetrol Argentina.

 ENAP 2012 | SUSTAINABILITY REPORT 53

Sales ENAP Sales and Domestic Market Share

2011-2012
GRI 2.7
Sales Sales Share Share
ENAP sells its fuels primarily in Chile, where it distributes 2011 2012 2011 2012
95% of its production. ENAP leads the fuel supply of the 6,000 120
domestic market, reaching 64.3% of market share in 2012.

5,000 98.2 100

The domestic market is open and competitive; there is
freedom to import, market and set the prices of oil-based 83.1 83.4
products; the sole only condition is to comply with quality 4,000 80
70.6 72.2
standards. 77.0
66.3 57.6 66.1
3,000 56.0 60
In recent years the Company has expanded its activities to
include the exportation of these products mainly to Latin 51.7
48.9
American countries. 2,000 40

Fuel products represent 98.5% of ENAP’s total net revenues

1,000 20
for sales; petrochemicals represent 1.1%, and special products

423

358
3,046

4,475
3,787

1,435
1,091

1,250
5,151
1,171

878
0.4%.

791
0 0
The best-selling products in 2012 were gasoline and diesel,
Liquefied Vehicle Kerosene Diesel Fuel Other
of greater value, with 31% and 39% of the total basket share, Gas Gasoline Oil Products
respectively.

Sales to the domestic market were 11.8 MMm3, equivalent

to a market share in the country of 64.3%. The best-selling
product in the domestic market was the diesel oil, with 4.5
MMm3 and a market share of 48.9%; followed by vehicular
gasoline, with a sale of 3.8 MMm3 and a market share of 98.2%

Domestic and International Sales 2011 -2012 (in Mm3)

GRI 2.7

VARIATION
SALES 2011 2012
(%)

DOMESTIC SALES 12,017 11,839 -1.5%

EXPORTS 558 809 45.0%

TOTAL SALES 12,575 12,648 0.6%

76.5% of the total sales volume corresponded to own production.

The remaining 23.4% was supplied by imports and domestic
purchases that amounted to 3.0 MMm3, where the main product
was diesel, with 1.5 MMm3, equivalent to 57.7% of this volume.

As for the origin of the refined products imported in 2012,

these came mainly from the U.S. market, Gulf Coast of Mexico
and Asia.

San Vicente Harbor, Biobío Region.

MARKETS AND PRODUCTS

Pricing Policy

In Chile applies a free market regime for fuel prices. Each
distributor can charge the end consumers the price they
deem appropriate.
ENAP’s pricing policy is based on the alternative cost of
fuel imports from a deep and large scale reference market
such as the U.S. Gulf Coast market, and the application
of different discounts depending on factors such as the
customers’ contractual commitments to purchase a certain
volume and the scheduling of deadlines.
ENAP agrees a price and discount application with distributors
and industrial customers entering into agreements, depending
on the volume scheduled to purchase, product, customer
segment, and place of delivery. This method enables ENAP
to optimize the processes of crude oil purchase, refining,
transportation and storage, which benefits the consumers
as they access to products at a lower cost.
In the case of volumes requested but not associated to an
agreement, ENAP considers a price equivalent to marginal
cost or Import Parity for purchases scheduled over 45 days
in advance, and a Spot price for purchases scheduled at
45 days or a less.
The factors considered to determine the price of products
delivered by ENAP to wholesale distributors are: price at
the reference market, transportation and logistics costs,
import costs or customs fees, insurance, specific taxes and
VAT, evolution of exchange rate and impact of tax or credit
from Oil-derived Fuels Price Stabilization Fund.

Diesel price structure in the Metropolitan Region Diesel price structure in other regions

Concón-Maipú Specific
Specific Pipeline tax
tax 1% 11%
11%

TVA TVA
14% 14%

ENAP price ENAP price

in Concón in Concón
74% 75%

Gasoline price structure in other regions Gasoline price structure in the Metropolitan Region

Specific
Specific tax
tax 31%
32%

ENAP price
in Concón
57%

TVA
TVA 11%
11% ENAP price
in Concón
Concón-Maipú
57%
Pipeline
1%
 ENAP 2012 | SUSTAINABILITY REPORT 55

ENAP’s incidence on fuels final price Customer Satisfaction and Transparent

The final price of fuels to end consumers consists of the
Behavior in the Market
ENAP’s wholesale price, plus the Specific Tax to Fuels, VAT GRI 4.16 - PR 5
and distributors’ gross margin.
The purpose of ENAP’s Marketing Policy is to supply the
ENAP’s incidence on fuels final price domestic energy market of oil-based products with high
quality standards, competitive prices and distinctive services,
PRICE PER LITER through a better programming of the customers’ requirements.
%
(CHILEAN PESOS) The strategy seeks the continued preference of customers,
GASOLINE GASOLINE delivering products and services adjusted to their needs.
DIESEL DIESEL
97 97
ENAP Net Price Maipú In order to comply with fuels’ high quality, quantity and
Plant 01/03/2012 – 447 424 55% 70% timely supply standards, ENAP considers the following
03/07/2013
procedures for wholesale customers: Bi-lateral negotiations
Fuels Specific Tax 233 59 29% 10% and entering into supply agreements with each one of them,
Value Added Tax-VAT 85 80 10% 13%
delivery of weekly price reports, where prices variation of
the main liquid fuels are notified, and meetings to explain
ENAP Price Plus Tax 765 563 94% 93% details on pricing policy.
Distributors' Gross
47 44 6% 7%
Margin (*) PR 6
Average Price to ENAP does not develop advertising or promotional campaigns,
Public in Metropolitan 811 594 100% 100% or mass commercial communication actions. Sponsorships
Region(**)
and outreach activities performed are focused on supporting
(*) ENAP’s incidence on final Price business or academic activities related to its line of business,
(**) Source: SERNAC Liquid Fuels Price National Survey (April 18, 2013). or initiatives of local communities in the territories where
its operational units are located.

Institutional communications relate to inform the public about

the work of ENAP, its projects and its overall performance.
Permanently, the company informs the market about import
parity prices, safety and quality of its fuels.

PR 4 - PR 7 - PR 8 - SO 7
In 2012, ENAP did not record incidents or regulatory breaches
relating to the information and labeling of products and
services; marketing communications, including advertising,
promotion and sponsoring; or claims in relation to the respect
for privacy and leakage of customer data.

In 2012, ENAP was never a subject of judicial actions related to

anticompetitive behavior, anti-trust, and monopoly practices.

ENAP products quality control.

MARKETS AND PRODUCTS

PRODUCTS
GRI 2.2

LIQUEFIED GAS
Propane •
Butane •
GASOLINES
• Gasoline 93 Oct (RM)
• Gasoline 97 Oct (RM)
• Gasoline 93 Oct (RC)
• Gasoline 97 Oct (RC)
• Aviation gasoline (100/130)

KEROSENE
• Household kerosene
• Aviation Kerosene JET A1
DIESEL
Grade A1 Diesel • SOLVENTS
B Diesel • • Turpentine
Antarctic Diesel • • Xylene
Marine Gas Oil • • White spirit
• Mining Solvent

PETROCHEMICALS
• Ethylene
FUEL OILS • Propylene
Fuel Oil No.6 •
Marine Fuel IFO 380 •
Marine Fuel IFO 180 •

SULPHUR

NATURAL GAS
STORAGE
ASPHALTS • Industrial and
Asphalt sealant • household
Asphalt Cement • natural gas

LABORATORY

CRUDE OIL NATURAL GAS SERVICES

ENAP products Products of third parties with raw materials from ENAP Products of ENAP and third parties ENAP services

ENAP’s products are classified into three categories:
1. Fuel products: liquefied gas, gasoline, kerosene, petroleum
diesel , fuel oil and coke.
2. Petrochemical products: ethylene and propylene.
3. Special products: solvents and asphalt-bases.
Of the total net revenues for sales, fuels represent 98.5%;
petrochemicals, 1.1%; and special products, 0.4%.
OG 14
ENAP does not produce or commercialize fuels based on
Non-Conventional Renewable Energy.
 ENAP 2012 | SUSTAINABILITY REPORT 57

Quality of Fuels copper strip corrosion, from No.2 to No.1; minimum density,
from 830 to 820 kg/m3. Moreover, it was established the
EN 27 - PR 1
obligation to inform the content of biodiesel from March
2013.
The fuels produced by ENAP for the Chilean market meet
• Gasoline: The maximum content of sulphur was reduced
the quality standards defined by the Ministry of Energy. In
from 30 to 15 ppm for the entire country, equaling the quality
the cities or regions that have air pollution control plans,
of gasoline for the Metropolitan Region and exceeding
fuels must meet higher standards, issued by the Ministry
the quality of gasolines marketed in the United States.
of Environment.
Vapor pressure was released for gasoline of the Twelfth
Region, from 10 to 12 PSI, facilitating its evaporation in
As from January 2013 became effective the new fuels
cold weather such as the weather of Magallanes.
specifications defined by Supreme Decree No.60 of the
• Household Kerosene: the maximum content of sulphur
Ministry of Energy.
was reduced from 500 to 100 ppm. Also the copper strip
corrosion level was improved from No.3 to No.2.
ENAP made investments to adapt the refining processes
• Fuel Oil No.5 and No.6: the maximum content of sulphur
and comply with the new quality standards defined by the
was reduced from 5% (50,000 ppm) to 3% (30,000 ppm)
authority.
since May 2012.
• Diesel Oil Grade B: Parameter changes incorporate
• IFO Maritime Fuels: the maximum content of sulphur was
international standards and Grade A1 Diesel parameters for
reduced from 4.5% (45,000 ppm) to 3.5% (35,000).
the Metropolitan Region. Water and Sediment parameters
are reduced from 0.10% to 0.05%; Carbon Residue from
The products that ENAP exports to other markets meet the
0.35 to 0.21% m/m; Temperature 90% recovered, from
quality standards effective in those countries.
338 to 350 oC; maximum viscosity, from 5.5 to 4.1 Mm2/s;

Ricardo Cruzat, ENAP CEO, and María Ignacia Benítez, Minister of Environment, launched in Maipú the cleanest gasoline in Latin America.
MARKETS AND PRODUCTS

Mitigation of Environmental Impact of Sulfur content in ENAP fuels as compared to standards’

maximum allowed limits (ppm)
Fuels
EN 26 - OG 8 Aconcagua Bío Bío Magallanes Maximum
Refinery Refinery Limit

Environmental impacts of ENAP products depend on variables

50,000
100,000
such as fuel quality, the technology of the equipment used
in the combustion and their maintenance status.

3,000
10,000
In environmental terms, global efforts have focused on
reducing the sulfur content of all fuels, in addition to the
reduction of benzene and the removal of lead in vehicle

500
1,000
gasoline.

150
In Chile, these improvements have been made in the last

50
100
two decades, through the introduction of unleaded gasoline

30
30
in 1990, which made it possible to renew the vehicular park
with cars equipped with catalytic converter, eliminating the 10

12.700
14.100
use of lead in April of 2001.

10.9

31.4

13.0
13.7

200
238
538
121
93
10

27
31

31
12
11

6
5
In 2012, the household kerosene sold in the Metropolitan 1
Region experienced specification changes, reducing the Gasoline Gasoline Diesel Propane Kerosene Aviation Fuel
maximum sulfur content from 350 to 100 ppm, becoming 93 NOR 97 NOR Oil Butane Kerosene Oil No.6
Unleaded Unleaded Grade B
effective on April.

The change aims to reduce contaminant levels, especially Benzene content in ENAP fuels as compared to standards’
in homes due to the use of kerosene (commonly known as maximum allowed limits (%vol)
paraffin) in heating stoves, as provided in the Air Pollution
Prevention and Pollution Reduction Plan (PPDA, Plan de Aconcagua Bío Bío Magallanes Maximum
Prevención y Descontaminación Atmosférica, in Spanish) Refinery Refinery Limit
in the Metropolitan Region of DS 66-2009 of the Ministry
2.5 2.5
General Secretariat of the Presidency. 2.5

In 2012, the average values of these substances contained

in ENAP fuels in relation to the maximum permissible values 2.0
and quality standards are, in some cases, significantly lower
than the maximum allowed, as a result of the implementation
1.5
of processes to improve diesel and gasoline, which also have
1.0 1.0
collateral benefits for other fuels. However, for the purpose
of processed crude oil availability, the quality of some minor
0.58

1.0
0.70
0.55

0.72
0.75
2.17

0.5

0.5

items is closer to the permitted maximum, but is smoothed

when averaged.
0.5
The lead content in vehicle gasoline is under the limit of
detection capability of chemical analysis equipment used
for their determination. At present, lead is used only in 0.0
gasoline for light aircrafts with propelling engine requiring
Gasoline 90 Gasoline 97 Gasoline 93 Gasoline 97
higher octane ratings. Peru Peru NOR Unleaded NOR Unleaded

Laboratory sample in Aconcagua Refinery.
EN 27
Given the nature of ENAP fuels used in stationary sources,
for industrial processes, electricity generation, boilers,
heating, and in mobile sources, such as vehicles, ships and
aircraft, recycling is not possible. The fuels sold by ENAP
do not use packing materials.
Liquefied Natural Gas - LNG
Pursuant the new agreement signed with BG in 2012, ENAP
receives larger volumes of Liquefied Natural Gas (LNG),
which enables it to increase the sale of this fuel to the power
generation and transport sectors.
LNG will contribute to a cleaner energy matrix, due to its
lower environmental impact compared to diesel and coal.
The main environmental advantage of LNG is less emission
of particulate pollutants in the exhaust gases, mitigating
the impacts on air quality of saturated areas. The vehicle
engines using LNG comply with Euro standards 4 and 5.
ENAP 2012 | SUSTAINABILITY REPORT 59
Information on Product Quality
PR 3
Fuels produced by ENAP are subject to a quality assessment
process at the refineries’ laboratories, which issue a Quality
Certificate for each tank, that is attached to the items sold
and sent to the controlling entity, the Superintendence of
Electricity and Fuels, SEC.
The detail on quality requirements is available at http://www.
enap.cl/comercial_relations/especificaciones_de_productos.
php
PR 2 - PR 9
In 2012 ENAP recorded no incidents or regulatory breaches
related to the impacts of its products and services on
consumers health and safety, neither was subject of fines
for breach of the rules on supply and use of products and
services.
 6 ECONOMIC
PERFORMANCE

Enap Sipetrol Argentina.

ECONOMIC PERFORMANCE

CONTEXT OF ENAP’S FINANCIAL SITUATION

Empresa Nacional del Petróleo ended in 2012 with a negative
result of the exercise and gross margin, and a complex
financial and equity position. The financial situation is due
to structural conditions to which the company is exposed,
such as:
These factors included on the one hand, the need to
increase significantly the stocks of crude oil and products
to guarantee the security of energy and, on the other hand,
a greater cost of energy, which forced ENAP to finance a
considerably increased working capital.

• The decline in competitiveness with international refineries
of the U.S. Gulf Coast, marking the Import Parity Price
ENAP applies to its products, in order to promote a
competitive and open market, associated with the higher
cost of crude oil imports due to existing tariffs reaching
6%.
• The increase in the price of Latin American crude oil
exceeding the increase in the price of Brent crude oil
global benchmark, as a result of the dynamic demand
from China for these crude oils, which led to a relative
scarcity in the region since late 2011.
• High financial burden by the company’s historical debt,
which resulted in interest payments of US$ 200 million.
In Chile, the shortages of natural gas continued during 2007,
with impact on the volume of diesel imports, which added
to a 50% increase in crude oil prices over previous year’s
value, resulted in a significant increase of the company’s
debt, reaching US$ 3,700 million.
In 2008, the international market introduced strong variations
in crude oil prices, reaching a value of US$ 145 per barrel
in July and then falling to US$ 33 dollars per barrel in
December. To this added the domestic energy crisis. This
situation forced ENAP to carry a high financial and logistics
cost, associated with the operations of import of crude oil
and products, which were sold at prices dramatically lower.

The origin of the current financial situation of ENAP dates

back to 2004, when the supply of crude oil from Argentina
to Bío Bío Refinery was suspended, and was replaced by
crude oil from distant countries and higher cost.

In 2006, the Argentine natural gas crisis forced ENAP and

the Chilean electricity sector replace its consumption mainly
with diesel. Thus, ENAP increased the volume of diesel
imports to supply the greater domestic consumption.

Hernán Errázuriz, Finance Manager of ENAP (right), during the placement of

company’s bonds.
 ENAP 2012 | SUSTAINABILITY REPORT 63

DAO (Department of Storage and Pipelines) San Fernando Plant.

As a result, in 2008 ENAP recorded losses of more than US$ Relation with the Financial Community
1,000 million, a debt level close to 3,000 million.
and Investors (Approaches to
During the years that followed, the company has maintained stakeholders engagement)
a high level of investment, mainly aimed at increasing the
GRI 4.16
quality of fuels refined. Additionally, in order to maintain
security of supply, ENAP maintains a stock of inventories
Through the Corporate Finance Management and areas of
whose economic value has grown significantly in recent
Structured Finance & Investor Relations and the Corporate
years, given the increase in oil prices.
Treasury and Financial Risk Management Unit ENAP is in
constant touch with the market.
Finally, international margins -relevant because ENAP
charges international prices for its products, have remained
Through face-to-face meetings or by telephone conferences,
low, due to increased inventories and lower costs in the U.S.,
ENAP maintains an ongoing relationship with banks and
which compares unfavorably with energy costs in Chile.
institutional investors, such as AFP, Insurance Companies,
As a result, the company’s debt has exceeded US$ 4,000
Pension Funds and Investment, among others, both locally
million at the end of 2012.
and internationally.

ENAP publishes quarterly presentations to investors and

the market in general in its web page, giving an account
of the company’s financial and operational results. Also
communicates any material information or information relevant
to the market in the page of the SVS (Superintendence of
Securities and Insurance) and its own website.
ECONOMIC PERFORMANCE

FINANCIAL RESULT

ENAP financial results in 2012 amounted US$ 319 million
loss after taxes. This result was due to the appreciation of
WTI benchmark in Latin America in relation to marker Brent
of reference to determine import parity prices, directly
affecting the reduction in margins during the first quarter.
Debt Refinancing Plan
In 2012, ENAP conducted a plan to refinance liabilities
maturing in the year, for a maximum amount of US$ 600
million. The following transactions were carried out:

The refining margin (income less cost of crude oil), decreased • Signing of an International Club Deal Credit Agreement
16.9% from the previous fiscal year, because the sales pricing
for US$ 300 million to refinance liabilities
policy set by ENAP is based on import parity prices.
In late October 2012, ENAP signed a Club Deal type Credit
Agreement with four international banks (Citibank NA,
Moreover, during the entire exercise energy costs increased
Bank of America NA, JPMorgan and Scotiabank) in the
due to the raise of crude oil prices globally, which is closely
amount of $ 300 million, with a term of three years. The
linked to the production process and operation of the
loan has a principal amortization structure of a single
refineries.
payment at the end of the period. The annual interest
rate agreed is LIBO + 1.65%.
ENAP total assets as of December 31, 2012, amounted to
US$ 6,312 million, 1.8% higher than the US$ 6,203 million
This transaction was considered a success by the market,
as of December 31, 2011. Current and non-current liabilities
given the attractive interest rate agreed, at a time when the
increased 7%, from US$ 5,822 million as of December 31,
international banking showed little liquidity in US dollars
2011 to US$ 6,230 million as of December 31, 2012.
for transactions of this size, and by the rise in spreads
charged by the banks globally.
Total equity of ENAP Holding decreased 78.2% from US$
381 million as of December 31, 2011 to US$ 83 million as of
• Local Bond Placement for UF 6,000,000 (equivalent
December 31, 2012, as per the result of the financial year,
positive movements of reserves and US$ 13 million of to US$ 287.8 million)
accumulated results. In January 2013, the company carried out a successful
placement of two series of bonds in the local debt market
In 2012 ENAP generated an EBITDA of US$ 57 million. for a total of UF 6,000,000 (U.S. $ 287.8 million).

The characteristics of the bond series placed were the

following:
ENAP Risk Rating • Series D Bonds (BENAP-D), in the amount of UF 2,000,000
for a term of five years, with one final repayment agreed
Local Credit Rating for October 1, 2017 and semiannual interest payments.
The coupon interest rate is 3.4% per annum and the
AGENCY RATING OUTLOOK
placement interest rate was 3.75% per annum.
Feller Rate AA+ Stable • Series E Bonds in the amount of UF 4,000,000 at a term
Fitch Ratings AAA Stable of 21 years, with one final repayment on October 1, 2033
and semiannual interest payments. The coupon interest
International Credit Rating rate is 3.7% per annum and the placemnt interest rate
was 4.09% per annum.
Agency Rating Outlook
This placement was the second local issue of the company
Fitch Ratings A Stable
in the last four years, which attracted the interest of many
Moody's Baa2 Negative representatives of AFPs (Pension Fund Administrators),
Standard and Poor's BBB- Stable Brokers, Insurance Companies and Mutual Funds.

With this issue, ENAP confirmed its fluid access to debt

markets at competitive rates, especially considering the size
of the issue, which shows the confidence of the local financial
community and the role it plays in the Chilean economy.
 ENAP 2012 | SUSTAINABILITY REPORT 65

Enap Sipetrol Argentina.

Direct Economic Value Generated and Distributed

EC 1

VARIATION
DIRECT ECONOMIC VALUE GENERATED 2011 2012
(%)

Revenues 10,941,505 11,689,115 6.83%

DIRECT ECONOMIC VALUE DISTRIBUTED

Operating Costs 10,296,901 11,355,146 10.28%
Employee Wages and Benefits 310,368 305,119 -1.69%
Financial Expense 175,315 200,518 14.38%
Taxes 48,252 -6,466 -113.40%
Community Investments (Environment) 15,469 23,924 54.66%
Other owners profit 1,840 1,310 -28.80%
ECONOMIC VALUE RETAINED 93,360 -190,436 -303.98%

NOTE: In accordance with GRI recommendations, the effect of deferred tax charges has been eliminated from the tax section.

• Revenues • Operating Costs

The increase in revenue compared to 2011 is explained by
the increase in the total sales volume, from 12,533.9 Mm3
in 2011 to 13,493.3 Mm3 in 2012, offset by a decrease in
products average selling prices from US$ 122.1 per barrel
in 2011 to US$ 121.3 per barrel in 2012.
• Economic Value Retained
The Economic Value Retained corresponds to the Net
Economic Value Generated, less the Distributed Economic
Value, plus the Fiscal Year Depreciation.
ENAP’s operating costs mainly relate to cost of sales,
administrative expenses, foreign exchange rate and other
expenses by function, less costs to employees, environment
and depreciation. In 2012, ENAP costs increased by 10.3%
compared to 2011, which is mainly due to the 10.5% increase
in the cost of sales, due to higher imports of products,
which increased from US$ 2,019 million to US$ 2,698
million in 2012 (33.6%).
ECONOMIC PERFORMANCE

Strait of Magellan.
 ENAP 2012 | SUSTAINABILITY REPORT 67

Taxes Financial Assistance received from

Servicio Nacional de Capacitación
ENAP Group of Companies is subject to two type of taxes:
a 20% First Category Income Tax; and to a 40% special
y Empleo (National Training and
tax to state owned companies (Article 2, Decree Law Nº Employment Service) in 2012
2,398 of 1978). EC 4

ENAP´s subsidiaries are subject to the general First Category AMOUNT

(In Chilean Pesos)
regime, entitling them to use taxes paid on income from
investments in foreign countries as a credit: In the case Enap (Santiago and Magallanes) $ 193,060,256
of ERSA, for the profits of Manu Peru, and in the case of Enap Refinerías S.A. $ 246,843,528
Sipetrol, for the profit of its subsidiaries abroad. Such credit Enap Sipetrol $ 14,732,105
amounts to 30%, limited to the tax rate as applied in Chile.
TOTAL CONTRIBUTION OF SENCE
$ 454,635,889
TO ENAP HOLDING
ENAP is also subject to the general regime of VAT Law,
which applies a 19% tax to Sales and Services.

Minimum Wage
EC 5
Coverage of the Benefit Plan Obligations
EC 3 ENAP’s minimum wage is high above the entry level wage
established by law in Chile, according to the skill level required
ENAP obligations associated with social benefits coverage in the functions at different areas and units of the company.
to its workers refer to the following: a) Severance payment The minimum wage consists of a base salary, usual gratuity,
according to the criteria established within the legal framework allocations and guaranteed bonuses.
and the collective bargaining agreements signed with the
workers; b) Share of the profits and bonuses to personnel, Entry Level Wage
established in effective collective bargaining contracts or EC 5
work contracts, as appropriate, and c) Other provisions,
other benefits such as vacation allowances, gratuities, and ENTRY
TYPE OF ENAP MINIMUM RATIO
bonuses. LEVEL
CONTRACT BASE WAGE ENAP/ENTRY LEVEL
WAGE
M F M F
TOTAL CURRENT TOTAL NON CURRENT Indefinite 547,675 660,648 193,000 2.8 3.4
CONCEPT
2011 2012 2011 2012 Fixed Term 486,160 624,424 2.5 3.2
Severance Payment 785 583 109,670 119,096

Share of Profits and Bonuses to Personnel 11,063 14,876 - -

Other Provisions 23,746 25,322 246 292

TOTAL 35,594 40,781 109,916 119,388

ECONOMIC PERFORMANCE

MARKET PRESENCE IN LOCAL ECONOMY

Local Supply Management

In 2012 ENAP started implementing an electronic procurement Local procurement of goods and services in 2012
platform, in order to reduce purchasing cycles and to
expand the suppliers market. It was aldo put into operation NUMBER OF PURCHASE PURCHASE ORDERS TOTAL
ORDERS AMOUNT (MUS$)
a virtual platform for management of contracts committees, BUSINESS UNIT

to approve purchases and contracts, enabling integration Total LOCAL % Total LOCAL %

and process traceability. PROCUREMENT OF GOODS IN 2012

Aconcagua Refinery 3,128 478 15% 46,820 1,573 3%

The Digital Work Book application, which is an electronic Bío Bío Refinery 1,928 708 37% 44,165 9,163 21%
platform for instant communication with contractors, was
Enap Magallanes 2,490 233 9% 43,088 2,982 7%
implemented and provides technical and administrative
SUBTOTAL GOODS 7,546 1,419 19% 134,073 13,718 10%
execution of the contracts.
HIRING OF SERVICES IN 2012

EC 6 Aconcagua Refinery 942 395 42% 149,571 59,288 40%

ENAP has no formal policy or procedures to promote Bío Bío Refinery 1,023 567 55% 50,855 32,845 65%
spending on locally-based suppliers. In 2012 the percentage Enap Magallanes 1,112 798 72% 143,338 87,241 61%
of purchase orders to locally based suppliers of goods SUBTOTAL SERVICES 3,077 1,760 57% 343,764 179,374 52%
and services fluctuated between 21% and 43%, depending
GOODS AND SERVICES 2012
on the business unit. The amounts involved in these local
Aconcagua Refinery 4,070 873 21% 196,391 60,861 31%
acquisitions ranged between 31% and 48% of the total.
Bío Bío Refinery 2,951 1,275 43% 95,020 42,008 44%

ENAP defines as “Local Provider” the supplier that has its Enap Magallanes 3,602 1,031 29% 186,426 90,223 48%
origin or office in the region of the respective Business Unit. TOTAL GOODS
10,623 3,179 30% 477,837 193,092 40%
AND SERVICES

NOTE: The information presented in the table considers contracts and orders signed
(ZPMC and ZPNB) during the period 2012. It includes contracts that are common

Local Hiring
to all areas, and their application in the respective Business Units. They do not
include orders or utilities contracts, nor from interrelated companies.

EC 7

ENAP has not established policies nor formal procedures to
promote local hiring. However, in partnership with universities,
technical institutes and technical training organizations, it
makes efforts to empower local communities and improve
their employability, including the development of skills
needed in the company or in its value chain.
In Ecuador, Enap SIPEC hires unskilled labor for sporadic jobs
in order to maintain good relations with local communities.
In Argentina, at least 70% of the workers hired by Enap
Sipetrol in its operations in Santa Cruz should come from
the province, as provided by law.
Suppliers Evaluation
The evaluation of suppliers and contractors is made through
SAP, using criteria of compliance with committed dates,
quality of good or service; and opportunity in its delivery. In
addition, the assessment includes environmental parameters,
risk prevention, health and safety. It also verifies compliance
with labor standards.
HR 2
ENAP contracts do not include clauses relating to respect
for human rights and have not been analyzed regarding
these matters. Similarly, suppliers and contractors and
other business partners have not been evaluated in regard
to compliance with human rights principles.

INDIRECT ECONOMIC IMPACTS
EC 8
ENAP satisfies Magallanes community natural gas requirements
by delivering its production to Gasco Magallanes, in charge
of retail sales to small household consumers and commercial
clients that record a monthly gas consumption up to 25,000
m3 per month. This segment represents 92% of the region’s
inhabitants
ENAP’s natural gas sales price considers a US$ 1.3 bonus
per million BTU(1), for a maximum consumption of 1,000
standard cubic meters of gas.
In 2012, ENAP´s total contribution to Magallanes community,
related to this bonus amounted US$ 49.09 million.
Punta Arenas.
ENAP 2012 | SUSTAINABILITY REPORT 69
EC 9
ENAP pays Gas and Oil Exploitation Rights in the Magallanes
Region to the Fund for Magallanes Regional Development,
FONDEMA, which is managed by the Regional Government,
allocating the resources for promotion and production
development projects, as part of the regional investment
program.
During 2011, ENAP transferred to the Magallanes Regional
Government 2,753 million Chilean pesos for this concept,
corresponding to taxes paid for the term between December
2011 and November 2012.
(1) A BTU is the abbreviation for British Thermal Unit. It is used mainly in the United States.
A BTU is equivalent to approximately 252 calories or 1.055 joules.
 7 LABOR
PRACTICES

Bío Bío Refinery workers.

LABOR PRACTICES

HUMAN RESOURCES MANAGEMENT

The purpose of Human Resources Management is “adding

value to the business as a strategic partner, so that the
Company has the necessary staff and organization as required
by the strategy, deploying its full potential, incorporating
all players, contributing with expert advising, policies, tools
and services. Our task prioritizes individuals’ safety, client
orientation, respect for people and equality”.
People management is performed by the executive line,
which gets specialized technical support and advice from
ENAP’s Human Resources Management, reporting directly
to the CEO.
In 2012, policies and procedures on Recruitment and Selection
were reviewed, Induction and Learning Management, and
Compensations were reviewed, to define a Model of Human
Resource Management and initiatives focusing on business
and core processes needs.
Major risks related to human resources were identified and
the measures to ensure succession plans; to attract and
retain key personnel; deepen critical competencies; optimize
information systems; and strengthen the internal leadership
for a better management of the work climate and alignment
with the strategy.
Human Resource Management was restructured. The areas
of Organizational Development, Innovation and Knowledge
Management, Compensation, Staffing Management and the
Directorate of Employment Relations formed a Corporate
Directorate of Human Resources.
In November, and framed within the restructuring of Enap
Refinerías, ERSA Human Resources Management, which
groups human resources areas of Aconcagua and Bío Bío
Refineries, was created.
The communication and implementation of new policies
and the review of Travel Management, Occupational Health
and relationship with contractors will be carried out In 2013.
Employment
LA 1
In 2012, the total workforce of ENAP Holding increased by
2.7%, as compared to 2011, while the number of contractor
workers decreased by 8.6% during the same period.

Breakdown of total own workforce and contractors’ in 2012, by Business Unit

LA 1

ENAP SIPETROL SIPETROL SIPETROL SIPETROL MANU

TYP OF CONTRACT BÍO-BÍO ACONCAGUA MAGALLANES TOTAL
SANTIAGO NACIONAL ARGENTINA ECUADOR EGYPT PERU

GENDER M F M F M F M F M F M F M F M F M F M F

Own Workforce 618 48 746 69 798 38 127 83 67 17 161 35 89 11 48 13 5 1 2.659 315

Contractors' 1,333 1,745 1,121 104 0 696 11 85 0 5,095

TOTAL OWN
WORKFORCE AND 1,999 2,560 1,957 314 84 892 111 146 6 8,069
CONTACTORS’

NOTE:
- The staff of the Storage and Pipeline Department (DAO) is reported as part of the Aconcagua refinery.
- In addition to ENAP Magallanes own personnel, there is a transitional staff, which in 2012 reached an average of 322 workers.

Breakdown of own staff in 2011, by type of job and business unit

LA 1

ENAP SIPETROL SIPETROL SIPETROL SIPETROL MANU

TYPE OF JOB BÍO-BÍO ACONCAGUA MAGALLANES TOTAL
SANTIAGO NACIONAL ARGENTINA ECUADOR EGYPT PERU

Shift 371 404 499 0 0 67 55 4 - 1,400

Administrative 295 411 337 210 84 129 45 57 6 1,574

TOTAL OWN
WORKFORCE
666 815 836 211 85 196 100 61 6 2,974
 ENAP 2012 | SUSTAINABILITY REPORT 73

Breakdown of employees in 2011, by business unit and type of contract

LA 1

ENAP SIPETROL SIPETROL SIPETROL SIPETROL MANU

TYPE OF CONTRACT BÍO-BÍO ACONCAGUA MAGALLANES TOTAL
SANTIAGO NACIONAL ARGENTINA ECUADOR EGYPT PERU

GENDER M F M F M F M F M F M F M F M F M F M F

Indefinite Contract 574 42 701 67 798 38 122 77 67 7 161 35 89 11 40 9 5 1 2.557 297

SUBTOTAL 616 768 836 199 74 196 100 49 6 2,854

Fixed Term Contract 44 6 45 2 0 0 5 6 0 0 0 0 0 0 8 4 0 0 102 18

SUBTOTAL 50 47 0 11 0 0 0 12 0 120

TOTAL 666 815 836 210 84 196 100 61 6 2,974

Employee turnover rate. by business unit

LA 2

Enap Enap Enap Enap

ENAP
TYPE OF CONTRACT BÍO-BÍO ACONCAGUA MAGALLANES SIPETROL SIPETROL SIPETROL SIPETROL
SANTIAGO
CHILE ARGENTINA ECUADOR EGYPT
New Employees 23 59 70 30 8 26 19 10
Terminations 32 29 25 31 9 14 14 14
TOTAL 55 88 95 61 17 40 33 24
Staff Average 669 799 807 208 85 190 95 63
Turnover Rate 2.22% 11.01% 11.77% 29.33% 20.00% 21.01% 34.7% 30.1%
HIRING RATE 3.44% 7.38% 8.67% 14.42% 9.41% 13.68% 20.0% 15.87%

Social Benefits for Full-Time Employees Return to work and retention after
LA 3 parental leave
LA 15
ENAP’s employees are entitled to the benefits granted in
their respective collective bargaining agreements. Although
In 2012, the rate of return to work after parental leave was
there are differenes among different kinds of agreements,
100% in ENAP business units operating in Chile, as the labor
benefits are alike, and they refer specifically to the following
law protects women who are in this condition.
aspects: Scholarships – contribution of a fixed amount for
their children’s education; reimbursement of a percentage
co-payment for medical and dental care and drug expenses
of the employee and their dependents; general purpose
loans and housing; “Fiestas Patrias”, Christmas, and vacation
bonuses; seniority, transportation, marriage, birth and death
allowances; contribution to anticipated retirement programs,
and permits for justified work leave.

Worker of Aconcagua Refinery.

LABOR PRACTICES

LABOR RELATIONS

Labor relations are essential to ENAP’s strategy. Workers Percentage of employees covered by
and leaders committed to the company’s sustainability are
essential for achieving success. The focus of labor relations collective bargaining agreements
is to get a common vision and to join efforts towards the LA 4
challenges the company faces.
Historically, unionization rates of ENAP workers in Chile
Administration’s relationship with workers is channeled exceed 90%. The lower rate of Santiago Head Office is due
through formal instances and regular dialogue with the to the fact that this unit concentrates most of the company’s
unions. ENAP has an open door policy, in which the company executives, who have positions of trust and are not affiliated
is always available to discuss the workers’ representatives with unions.
requirements.
Percentage of employees covered by collective bargaining
To this effect, ENAP Human Resources Manager meets agreement
regularly with Fenatapech’s and Fesenap’s representatives, LA 4
while Business Units Human Resources Managers meet directly
and regularly with the respective union representatives. UNIONIZATION RATE 2011 2012
Bío-Bío 95.70% 94.89%
In 2012, two collective bargaining processes took place.
Aconcagua 95.03% 96.4%
Both were conducted in an atmosphere of dialogue and
openness, which allowed the signing of new agreements, Magallanes 96.71% 98.1%
with a term of three years in the case of ENAP Magallanes’ Enap Santiago 54.98% 50.00%
Workers Union, and of 37 months, for ENAP Refinerías S.A. Enap Sipetrol National 72.94% 65.48%
Shift Workers Union.
Enap Sipetrol Argentina 9.7% (2) 68.37% (3)
TOTAL AVERAGE 81.3% 78.87%

(2) The percentage of workers covered by collective bargaining agreements is 72%,

although the affiliation rate is that shown in this table.
(3) The effective unionization rate in Sipetrol Argentina is 10%. The percentage of workers
subject to the benefits agreed with the unionized workers is 68.37%.

Fenatrapech Directors.

Danilo Kuzmanic, ENAP Human Resources Manager (center) with Fesenap directors.
Minimum Notification Period Regarding
Organizational Changes
LA 5
The organizational changes made by ENAP’s management,
based on business strategy approved by the Board, are
communicated to the workers through regular communication
channels.
There is no formal procedure to notice these organizational
changes. However, historically, and through management´s
regular communication mechanisms with unions, different
subjects of interest to workers are addressed, which include
ongoing organizational changes or adjustments.
Health and safety topics covered in
formal agreements with trade unions
LA 9
Workers’ collective bargaining agreements ensure coverage
of several programs to improve workers’ physical, emotional
and mental well-being. Health care programs include:
Annual health preventive examination; Cardiovascular risk
ENAP 2012 | SUSTAINABILITY REPORT 75
prevention; Occupational health; Mental health prevention;
Anti-flu vaccine; Healthy nutrition; Hearing conservation;
Health encouragement and protection; Health Care and
urgency; ENAP’s and contractors’ workers’ health control.
The health care and urgency medicine service is available
to all workers, 24 hours a day during the entire year.
Relationship with Contractors’ workers
Bío Bío Refinery concluded in 2012 the construction of
Restroom Facilities at the Contractors’ Yard. The facilities
consist of showers, restrooms, lockers and dressing rooms.
This facility will enable to serve 1,000 workers, improving
working conditions and mitigating risks of accident.
HR 5
Although ENAP does not intervene in contractor’s labor
relations, the company favors the relationship with those
contractors that prove total compliance with applicable
labor regulations. The “ENAP Responds” line is available
to be used by contractor workers to perform queries and
complaints.
LABOR PRACTICES

TRAINING AND EDUCATION

Training and Skills Management

LA 10

Training is a prior activity to incorporate skills, expertise

and to foster personal development. In 2012, the amount
invested in training was US$ 2.247.911.

The guiding principles for training are focus on business

priorities, responsibility of the supervision line in planning
and facilitation of activities, value of internal knowledge,
and people and company joint efforts in acquisition of
knowledge and training.

Training hours average at ENAP was 43.4 hours per employee.

ENAP prioritized training in the operations area, where male
staff is greater than women´s, which explains the higher
average of men training hours in all business units.

Broken down by type of contract, the average of non-

executive personnel training hours exceeds largely the
average of executive training in Bío Bío Refinery and Enap
Sipec Business Units. In the other Business Units this
difference is narrower.

Danilo Kuzmanic, ENAP Human Resources Manager.

2012 Training Hours Average, by gender and employee category

LA 10

BUSINESS UNIT TOTAL MEN WOMEN NON EXECUTIVES EXECUTIVES

Enap Refinerías Aconcagua 31.2 32.4 18.1 31 35.5
Enap Refinerías Bío Bío 97.3 101.9 37.0 99.5 27.1
Enap Magallanes 26.4 26.3 27.7 26.4 22.9
Enap Santiago 8.6 6.6 11.6 8.4 8.8
Enap Sipetrol 24.9 27.4 14.9 26.5 20.5
Enap Sipetrol Argentina 18.5 23.5 18.4 24.0 8.0
Enap Sipetrol Egypt 13.0 16.3 3.2 13.5 12.8
Enap SIPEC 62.7 59.9 2.9 66.7 3.57
TOTAL ENAP 43.4
 ENAP 2012 | SUSTAINABILITY REPORT 77

LA 11
The annual training cycle includes planning (Plan Annual ENAP Innovation and Knowledge
de Capacitación), at the business line, with support of the
human resources areas, which also provide support in their Center
application and follow-up.
CICE Foundation is a tool managed by ENAP CICE
HR 3 - HR 8 (Centro de Innovación y Conocimiento); whose main
ENAP does not have a training policy or special procedures objective is to channel and analyze opportunities in
related to human rights. Personnel involved in security in obtaining resources through competitive bidding for
ENAP facilities receive general training in organizational financing initiatives aimed at the strategic objectives
policies and procedures related to respect, fairness and of ENAP.
dignity.
During 2012, ENAP’s Human Resources Management
2012 Training contents developed initiatives to close gaps and/or strengthen
LA 11 necessary and critical skills for the business. In the
sphere of Knowledge Management, it provided
DISTRIBTION HOURS support in the design and development of training
TYPE OF CONTENT
2012 2012 programs aligned with the strategic objectives. These
Technical (4) 76.2% 94,710.2 include: Strategic induction for 25 professionals and
new executives, a program of Special Operations
Management 8.4% 10.478.5
Contracts for Corporate Audit, which was attended
Languages 0.4% 524-5 by 20 professionals, and the Program of Business
Information Technologies 10.7% 13,345.0 Knowledge Transfer for 35 employees of the Sales
Other 4.2% 5,192.2 and Procurement Management.
TOTAL 100% 124.251
In the field of innovation, and to add business value,
(4) Technical training is defined as the one that directly approaches business processes Aconcagua refinery promoted the InnovaChile project
or critical processes, such as Marketing and Logistics, Exploration and Production, of CORFO, “Integration of comprehensive innovation
Finance and Accounting, Risk Prevention, and Reliability, among others.
capabilities for the management”, with focus on
procedures and safety culture. The objective was
In the collective bargaining agreements, ENAP has committed to capture new ideas in safety issues, using specific
to support its workers technical and professional education innovation methodologies.
in all business units, through financing totally or partially
their careers and post-graduate studies.

2012 Training contents Performance Reviews

LA 11 LA 12
Information
Technologies
10,7%
In 2012, ENAP continued implementing its Performance
Languages Management System (Sistema de Gestión del Desempeño),
0,4%
whose purpose is to improve employees’ performance by
Management establishing individual and group goals. As of December
8,4% 2012, 95.5% of the workers included in the SGD (2,282),
complied with the monitoring stage of the performance
Other
4,2% review process.

Technical
76,2%
LABOR PRACTICES

DIVERSITY AND EQUAL OPPORTUNITY

LA 13

ENAP’s Boards of Directors, both of the parent company

and the subsidiaries Enap Refinerías S.A. and Enap Sipetrol
S.A., are composed solely by men.

An 89.79% of company’s total workforce are men, and

10.21%, women. Such composition has remained relatively
constant during the last years, due to nature of hydrocarbon
activities that require capabilities and skills mostly found in
men. However, at Santiago headquarters gender distribution
of workforce is more equitable, with 39.5% of women and
60.5% of men.

There were no significant changes in workers’ age composition.

Luis Fuentes, ENAP HSEC Manager, received the ACHS award given
to Enap Sipetrol.

Employee’s breakdown as of December 31, 2011, by gender and business unit

LA 13

ENAP ENAP ENAP ENAP

ENAP
BREAKDOWN BÍO-BÍO ACONCAGUA MAGALLANES SIPETROL SIPETROL SIPETROL SIPETROL TOTAL %
HEADQUARTERS
CHILE ARGENTINA ECUADOR EGYPT
Women 48 69 38 83 17 35 0 13 303 10.21%
Men 618 746 798 127 67 161 100 48 2,665 89.79%
TOTAL 666 815 836 210 84 196 100 61 2,968 100%

Workers’ breakdown as of December 31, 2011, by age and business unit

LA 13

ENAP ENAP ENAP ENAP

ENAP
AGE BÍO-BÍO ACONCAGUA MAGALLANES SIPETROL SIPETROL SIPETROL SIPETROL TOTAL %
HEADQUARTERS
CHILE ARGENTINA ECUADOR EGYPT
Age < = 36 169 218 107 57 14 70 46 36 717 24.16%
Age 37 – 51 330 386 221 105 39 93 42 18 1,234 41.58%
Age 52 – 65 167 211 508 48 31 33 12 7 1,017 34.27%
TOTAL WORKERS 666 815 836 210 84 196 100 61 2,968 100%

Ratio of basic salary and remuneration of women and men

LA 14

The guaranteed income level in ENAP Holding is determined Average of base salary as of December 2012
on basis of the different positions, roles and responsibilities. LA 14
There are no salary differences as per gender.
TYPE OF CONTRACT MEN WOMEN RATIO W/M
Among a total of 26 executive officers -the segment of
Non-Executive $889,958 $963,692 1.08
higher remuneration- as of December 2012, there was only
one woman; this explains the difference in wages by type Executive $5,588,219 $4,625,107 0.83
of position held, rather than directly by gender.
 ENAP 2012 | SUSTAINABILITY REPORT 79

Good Labor Practices for Gender Disabled Labor Force Inclusion

Equality
For the second consecutive year, Enap SIPEC stood out for
its compliance with “Best Practices on Disabled Labor Force
In its business units in Chile, ENAP promotes the Gender
Inclusion”, one of the main objectives of the Vice-Presidency
Equality Labor Practices Program, promoted by SERNAM
of the Republicof Ecuador, to generate a profound change
(Servicio Nacional de la Mujer). The program received
in Ecuadorian business society.
permanent technical advice from SERNAM. It aims to promote
gender equality through voluntary programs of good work
Since 2008, Enap SIPEC incorporates workers with some
practices in recruitment and selection processes, and career
degree of disability at work teams in the areas of Production,
development and access to training, among others.
Human Resources, Finance and Technologies.

Exercises of women firefighters at DAO Maipú Plant.

LABOR PRACTICES

COMPLIANCE WITH LABOR REGULATIONS

HR 6 - HR 7

In all countries where it operates, ENAP complies with
national regulatory frameworks, including human rights
standards, international conventions and treaties signed
by governments, among which the Universal Declaration
of Human Rights.
In addition, ENAP adheres to the United Nations Global
Compact and its principles of Human Rights and Fair Labor
Practices.
In view of the above, there is no risk of child labor or forced
labor incidents ENAP’s operations and activities.

Monetary sanctions for non-compliance with laws and regulations in 2012

SO 8

MONETARY VALUE
PARTIES Nº OF LAWSUIT COURT ISSUE DESCRIPTION
OF SANCTION
ACONCAGUA REFINERY
Through exempt resolution No. 387 of 24 November
2011, the Superintendence resolution to sanction
ERSA with a fine of 250 UTM for the charges in
Enap Refinerías S.A. Corte de
Judicial Complaint administrative process related to accident of August
vs. Superintendencia ROL: Apelaciones de
of Administrative 24, 2011, in which a worker of ERA was injured 150 U.T.M.
de Electricidad y C-2116-2011. Valparaíso (Court
Fine. during the maneuver of alignment of gasoline load.
Combustibles. of Appeals).
The fine was reduced by judgment of the Court of
Appeals of Valparaiso, which was ratified by the
Supreme Court.
Writ of protection
The worker was dismissed due to company needs
for violation of
and files a demand for violation of the guarantees
fundamental Payment of
Chaparro Moreno, María Juzgado del Trabajo of Article 19 No. 1 of the Constitution of Chile
ROL: right in a case a unique and
Antonieta, vs. de Valparaíso on the right to life and personal integrity, and
T-132-2011. of dismissal, total amount of
Enap Refinerías S.A. (Labor Court). discrimination according to Article 2 of the Labor
unfair dismissal Ch$23,000,000
Code. By agreement of the parties to the trial was
and payment of
terminated.
benefits.
Writ of protection
The worker was dismissed due to company needs
for violation of
and files a demand for violation of the guarantees
fundamental Payment of
Juzgado del Trabajo of Article 19 No. 1 of the Constitution of Chile on the
Navarro Sáez, Pilar, vs. ROL: right in a case a unique and
de Valparaíso right to life and personal integrity, discrimination
Enap Refinerías S.A. T-140-2011. of dismissal, total amount of
(Labor Court). according to Article 2 of the Labor Code, and the
unfair dismissal Ch$30,000,000.
guarantee of compensation. By agreement of the
and payment of
parties to the trial was terminated.
benefits.
On July 21, 2011 dies Juan Bernal, worker of the
company INTECMA Ltda, while performing manual
Superintendencia maintenance of power lines. By Resolution No.
Superintendencia de Electricidad 252 of August 10, 2012, the SEC applied a fine
Indictment for
de Electricidad y Resolution y Combustible of 1000 UTM for breaching Article 15, paragraph
breach of technical 500 UTM
Combustible vs. 252 of 2012. (Superintendence 4 of standard NSEG 5 E.n. 71 “Reglamento de
regulations.
Enap Refinerías S.A. of Electricity and Instalaciones Eléctricas de Corrientes Fuertes”
Fuels). (Regulations on Electrical Installation of Dangerous
Currents). A judicial claim to this resolution was filed
and the fine was reduced.
BÍO BÍO REFINERY
Contractor Worker (EMSE SA) files a demand to ERSA
as a result of an accident occurred at the workplace
Segundo Juzgado on November 6, 2010, suffering serious injuries. ERSA commits
Standard procedure
ROL: Civil de Talcahuano On March 9, 2012 the court declared incompetent to pay a single
Balboa vs. ERSA. civil lawsuit for
1094-2010 (Second Civil for trial, and ordered to send the case to the labor amount of
damages.
Court). court. On November 29, 2012 a settlement was Ch$7,000,000.
presented. On November 30, 2012 the settlement
was approved in all that is not contrary to law.
 ENAP 2012 | SUSTAINABILITY REPORT 81

MONETARY VALUE
PARTIES Nº OF LAWSUIT COURT ISSUE DESCRIPTION
OF SANCTION
ENAP
Worker appraised with a fixed term contract
Empresa Nacional Juzgado de Letras
to expire on April 30, 2012. In preparatory
del Petróleo vs. RIT Nº del Trabajo de
Maternal immunity. hearing settlement is achieved in the sense that
Triviño Almonacid, O-33 -2012 Punta Arenas
employment will remain in effect until the end of the
Andrea Edith. (Labor Court).
maternity leave, i.e. up to 12 weeks after delivery.
Worker appraised with a fixed term contract to
Juzgado de Letras
Empresa Nacional del expire on July 31, 2012. In preparatory hearing
RIT N° del Trabajo de Regular labor:
Petróleo vs. Rocha Cid, settlement is achieved in the sense that
O-41-2012 Punta Arenas Maternal immunity.
Yanina Marcela. employment will remain in effect until the end of the
(Labor Court).
maternity leave, i.e. up to 12 weeks after delivery.
2° Juzgado de A worker who suffered a labor accident in July 2010,
Payment of
Letras del Trabajo demands compensation for moral damage. On March
Maldonado vs. Empresa RIT N° compensation
de Santiago 9, 2012 judgment of the same date is notified, the $50,000,000
Nacional del Petróleo. O-3724 -2011 for work-related
(Second Labor demand is accepted and ENAP is sentenced to pay a
accident.
Court). fine for moral damages.

Administrative Sanctions for non-compliance with Labor Regulations in 2012

SO 8

DATE OF FINE IN
ENTITY ISSUE RULING / BRIEFING
OCURRENCE/NOTICE UTM

Infringement to Labor Code and Regulation No. 969/33. The Administrativ Resolution
Labor Inspection of attendance record of a worker has not been kept properly and 3010-2011-006-1 (left
11-26-2011 36
Magallanes the exceptional resolution authorizing work and rest distribution without effect) and -2
system for the same worker has not been met. (lowered)

Labor Inspection of Attendance record has not been kept properly (anticipated Administrativ Resolution
10-18-2011 24
Tierra del Fuego signature). 3368-11-007-1

Labor Inspection of Attendance record has not been kept properly and rest has not Administrativ Resolution
07-24-2012 51
Tierra del Fuego been provided at the termination of the cause. 4488-12-001-1 y -2

Labor Inspection of Attendance record has not been kept properly, wages have not Administrativ Resolution
11-09-2012 48
Tierra del Fuego been paid and non compliance with the resolution authorizing role. 8349-12-012-1,- 2 y -3

Labor Inspection of Administrativ Resolution

Not having resolution authorizing exceptional day of work and rest. 28-11-2012 30
Magallanes 3995-12-022-1
8
HEALTH,
SAFETY,
ENVIRONMENT
AND COMMUNITIES
(HSEC)

Bío Bío Refinery.

HEALTH AND SAFETY

HEALTH, SAFETY, ENVIRONMENT

AND COMMUNITIES (HSEC)
STRATEGY

In 2012 ENAP created the Health, Safety, Environment and
Communities (HSEC) Corporate Management, replicating
this integrated model in its subsidiaries.
Due to the nature and location of ENAP’s operations, HSEC
risks are considered an essential component of the company’s
sustainability strategy.
ENAP understands that its business will be successful; to
the extent it is able to manage properly risks to people, the
environment and the local communities. This approach aims
to ensure that production goals are developed prioritizing
Health and Safety at work, that environmental aspects, as
well as neighboring communities’ interests and expectations,
are fundamental in the decision making process.
The main focuses of HSEC management during 2012, are:
• Strengthening a Safety Culture in the company, ensuring
that the entire organization understands that safety is a
non-negotiable principle and an essential condition to
carry out any activity.
• Managing lessons learned, through analysis of accidents
and high potential incidents; sharing main findings of
events with real or potential injury to people, ensuring
that controls are applied simultaneously where similar
risks are present.
• Identifying critical HSEC risks, verifying and monitoring
controls.

HSEC risks are identified and managed through the company’s • Planning compliance of environmental commitments in
Integrated Risk Management Methodology, updated during Chilean operations, aligned with requirements of the new
2012. It addresses risk management in a comprehensive way, environmental institutionality.
enabling a clear definition of responsibilities, investment
priorities and critical controls that must be monitored, to
ensure a reasonable control and adequate mitigation plans.
During 2012, each business unit identified its HSEC critical
risks, which are permanently monitored and controlled.

Lenga Wetland, Eighth Region.

 ENAP 2012 | SUSTAINABILITY REPORT 85

OCCUPATIONAL HEALTH AND

SAFETY
One of ENAP’s values is healthe safety and of own and ENAP Severity Index (IG, Indice de Gravedad)
contractors’ workers.
Own Personnel Contractors' Personnel Consolidated
The main goal of Occupational Health and Safety
2,000.0
management is a steady decline in accident rates, aiming
at having zero serious or fatal accidents. Due to the nature
of the operations, risks in this area are varied and complex.
Preventive management focuses on those risks with potential
1,500.0
to cause serious or fatal accidents.

No. of Lost Time Accidents per men hours

A priority is the strengthening of Safety Leadership at all
levels of the company, in which executive and supervisory 1,000.0
lines create a safety culture through example. An appropriate
safety setting becomes an essential requirement for all
activities, so that self-care and responsible action are a

1.690.0
1.592.0
constant behavior of all workers.

1.871.0

1.101.0
500.0

200.0

766.0
247.0

164.0
218.0
As main indicators for measuring safety performance, ENAP
uses Frequency (IF) and Severity (IG) indexes, which are
calculated on the basis of Lost Time Accidents, per million 0.0
hours worked. 2010 2011 2012

Contractors’ and Own Personnel Accident Rates 2012 ENAP Frequency Index (IF)
LA 7
Own Personnel Contractors' Personnel Consolidated

BUSINESS OWN/ LOST LOST TIME

FATALITIES IF IG 12
UNIT CONTRACTOR’S DAYS ACCIDENTS

Aconcagua O 290 5 0 3.3 191

Refinery C 612 22 0 5.0 140 10

Bío Bío O 373 1 0 0.6 228

Refinery C 369 10 0 4.2 155 8
No. of Lost Time Accidents per men hours

DAO (Storage O 0 0 0 0.0 0

and Pipelines
C 0 0 0 0.0 0 6
Department)

E&P O 399 15 0 6.8 182

Magallanes C 200 12 2 6.2 6,289 4

Sipetrol O 62 2 0 4.9 151

Argentina
10.0

C 423 3 0 1.8 260 2

4.0

4.0
4.5

3.3
6.1

3.7
5.5
7.7

O 0 0 0 0.0 0
Enap SIPEC
C 3 1 0 0.7 2 0

O 0 0 0 0.0 0 2010 2011 2012

Sipetrol Egypt
C 0 0 0 0.0 0
HEALTH AND SAFETY
In 2012 IF index for ENAP’s own and contractors’ workers
decreased significantly compared to 2011 rates, from 5.5
to 3.7. Despite reduction in accident rates, in 2012 two
contractor workers lost their lives while performing their
duties in Enap Magallanes.
On June 10, 2012, José Rodrigo Valenzuela Carvallo, worker
of the contractor company Nexxo, died due to an explosion
occurred while welding in a drainage chamber for gas
pipelines liquids.
On July 25, 2012, Bernardo Ancapán, worker of the contractor
company Transporte Vojnovic, died due to injuries caused
when the truck he was driving on the public road Y-545
turned over, due to a mechanical failure of the vehicle.
Both accidents were investigated to identify its causes;
corrective actions were implemented and the case was shared
with all operations in order to incorporate the learning and
to take preventive actions in similar processes.
Incident Management System (IMS)
OG 13
In June 2012, ENAP launched the Incident Management
System (IMS), a tool for incident reporting and management
throughout the company, available on the Intranet. It is a
unique database to which all employees have access.
One of the pillars of preventive management is the timely
reporting of incidents and this tool points for this purpose.
ENAP is in the process of standardizing the definitions
of operational incidents according to the best practices
promoted by API (RP 754), in order to implement shared
criteria between operations, and to establish a benchmarking
framework for the oil industry.
Operational Integrity Management
System (OIMS)
In 2012, the Exploration and Production Business Line continued
implementing the Operational Integrity Management System
in its subsidiaries.
The management system consists of 12 elements and 84
crosscutting expectations, defined on the basis of industry’s
best practices. It aims to strengthen the safety culture in
the company, to reduce operating risks and to continuously
improve the way it operates.
Elements of Exploration & Production Operational
Integrity Management System
1 Leadership and accountability
2 Risk Assessment and Management
Organization, Training, Instruction and Competences
3
4 Management of Suppliers and Contractors
5 Design, assembly and abandonment of facilities
6 Operations and maintenance
7 Management of Change
8 Information and documentation
9 Communication with the community and other stakeholders
10 Crisis and emergency management
11 Prevention and incident analysis
12 Evaluation, Assurance and Continuous Improvement
 ENAP 2012 | SUSTAINABILITY REPORT 87

Life-saving rules

In 2012, ENAP implemented a set of twelve mandatory

safety standards, which offer basic guidance to mitigating
risks and reducing fatalities by providing clear, simple and
consistent communication regarding risks in the workplace
and the proper use of barriers and safeguards to protect
the workforce.

The life-saving rules where developed and implemented by

adopting OGPs standards, by means of reviewing serious
injuries, work-related fatalities and high potential events
that occurred in ENAP operations between 2002 and 2012,
and identifying common factors to determine which rules
are most effective in reducing risks.

The life-saving rules were communicated to all staff and

rolled out throughout the organization, ensuring that the
basic controls and barriers to prevent or avoid fatalities
are in place.

Hesketh Streeter, ENAP E&P Manager.

ENAP Life-saving rules

Permit Energy Hazardous Confined Working

to Work Isolation Atmosphere Control Spaces Excavations at Hights

Overriding or No alcohol or
disabling critical Lifting Avoid working “in Driving drugs while
safety systems Operations the line of fire” safely No Smoking working
HEALTH AND SAFETY

Education on Risk Prevention

ENAP training hours on risk prevention during 2012
LA 8

N° OF TRAINED TRAINING HOURS

COUNTRY
WORKERS PER MEN HOURS

Chile 1,908 67,345

Argentina 358 13,138
Ecuador 101 1,365

Enap Magallanes Safety Leadership

Workers of Bío Bío Refinery. Program
The Safety Leadership Program was implemented in Enap
LA 6
Magallanes in 2012, as a result of advice from the Mutual de
In 2012, 13 committees operated regularly in ENAP’s business
Seguridad, the French Institute of Safety Culture (ICSI, Institut
units, as shown in the table below.
pour une Culture de Securité Industrielle) and Universidad
Operational Health and Safety Coverage Adolfo Ibañez. Its objective is to promote organizational
transformation processes to create and strengthen a safety
LA 6 culture and to improve performance.

COUNTRY COMMITTEE N° COVERAGE LEGAL FRAMEWORK The diagnostic phase of the project involved 1,350 employees
100% Law 16,744, Art. and contractors, including executives, supervisors and
In 2012 the 66 requires that all operators, who identified the need to strengthen monitoring
Joint
Joint Committee industry or work site capabilities to lead safety in their areas.
Committees
Chile 10 of Quintero with more than 25
of Health and
Maritime workers must have a
Safety.
Terminal was Joint Committees on In 2012, 78 supervisors and executives were trained. The
created. Health and Safety. program will continue to be developed in 2013.
Committee of
Ecuador Occupational 1 100% 100%
Health.
HSEQ There is no legal Programs of Occupational Health and
Argentina 1
Committee. obligation.
Hygiene
In Egypt the law
Own and obliges to have
Committee The purpose of ENAP’s Occupational Health Program is to
contractors’ safety and health
Egypt of Health and 1 identify, assess and control physical, chemical, biological and
personnel at the committees in
Safety.
work site. organizations with ergonomic agents that represent a risk to workers’ health,
more than 50 workers.
and to prevent occupational diseases.

ENAP develops occupational health monitoring and follow up

programs in all workplaces, according to health risks inherent
to each role. Operations have updated occupational health
risk maps, exposure monitoring programs and epidemiological
surveillance programs, according to the risks’ nature.

Preventive Health Program
ENAP annually develops a Preventive Health Program that
establishes worker’s health condition and trend, as well as
company’s health profile and trend.
It provides a standard battery of tests for all workers, and an
extra battery, depending on gender, age and/or risk of each
person, aimed at the prevention of risk factors and/or early
research of diseases related to the two country’s leading
Workers of Bío Bío Refinery.
ENAP 2012 | SUSTAINABILITY REPORT 89
causes of morbidity and mortality, which are cardiovascular
disease and cancer.
Preventive action is reinforced, individually and collectively,
trough health education lectures and workshops, focused on
strengthening a preventive culture and self-care behaviors
among workers, to keep a healthy lifestyle.
ENVIRONMENT

ENVIRONMENTAL MANAGEMENT

ENAP’s Environmental Management Strategy focuses on
timely identification and control of environmental risks,
compliance with existing regulations and development of
plans and actions to compensate and mitigate operational
impacts on neighboring communities and the environment.
The company has environmental monitoring programs in
place, to control and proactively verify compliance with
general and sector standards and regulations applicable
to its operations.
ENAP’s exploration, production and refining activities are
carried out based on international standards for environmental
management; some operations are ISO 14001 certified.
During 2012 MDC operations in Enap SIPEC and Pampa
del Castillo, in Sipetrol Argentina, successfully passed their
external audit follow up processes, to keep the ISO 14001
certification effective.
During 2012, ENAP performed a study to establish the level
of environmental compliance of all operations in Chile. It
systematized the contents of all the Environmental Permits
(RCA, Resolución de Calificación Ambiental), carrying out
a follow-up on commitments of each of them, and defining
monitoring and control procedures. The mentioned studies
were developed jointly with external experts.
Management of Environmental Permits
In 2012, ENAP filed 23 Environmental Impact Studies (EIS)
with the Environmental Impact Assessment System (SEIA)
related to projects to be carried out in Magallanes and Bío
Bío Refinery.
ENAP committed to the environmental authority to publish,
in 2013, the list of its environmental permits (RCA) in the
Superintendence of Environment (SMA, http://snifa.sma.gob.
cl), website, designed for this effect,, thus becoming part
of the first virtual library on Latin American environmental
obligations.
Puchuncaví–Quintero Industrial Zone
APL Goals Compliance
In December 2011, Aconcagua Refinery and ten other
companies from the Quintero-Puchuncaví industrial quarter,
subscribed an Acuerdo de Producción Limpia (APL, Clean
Production Agreement), and committed to improving the
environmental conditions in this area, by establishing goals
and concrete actions, through public and private efforts, to
achieve cleaner and more productive processes.
In July 2012, the first APL intermediate audit was carried
out, which stated that Aconcagua Refinery complied with
all commitments related to its facilities at the Quintero
Maritime Terminal.
The goals achieved relate to improvements in environmental
management, incorporation of best available technologies
(BAT) to processes, implementation of cleaner production
measures and alternative solid waste recovery, promoting
Corporate Social Responsibility actions within the community,
and protecting biodiversity in the Quintero bay and Campiche
estuary.

JORGE ALÉ YARAD

EXECUTIVE DIRECTOR OF THE CONSEJO
NACIONAL DE PRODUCCIÓN LIMPIA
(CPL, NATIONAL COUNCIL OF CLEAN
PRODUCTION)

He stressed Enap Aconcagua’s commitment with the APL

“Puchuncaví-Quintero Industrial Zone” voluntary agreement,
which it subscribed –together with other companies– to
prevent unwanted environmental effects, reduce pollution,
and whereas main priority is the community.
The active participation of the company should be noted,
The APL requires the company to comply with 27 actions as it fully complied with agreements signed. carrying out
within 24 months, which will be independently audited and studies and community outreach initiatives, complying with
certified by the Consejo Nacional de Producción Limpia (CPL). all audits conducted.
 ENAP 2012 | SUSTAINABILITY REPORT 91

MATERIALS
EN 1 - EN 2

Crude is the main source of inflow in the refineries. Refining E&P Magallanes Business Line Gas Lift (methane)
does not allow the use of re-processed or recovered materials. consumption (Mm3/Year)

E&P Magallanes
Volume and type of crude processed depends on economic
variables. In 2012, as a result of decrease of refining business
margins, it was more attractive to import finished products, 75,000
69,137
which explains a lower consumption of crude as raw material 69,500 65,861
in the refineries.
64,000

For market reasons, as well, the trend in 2012 was to 58,500 61,557
refine heavier crude, with greater sulfur content, limiting
53,000
the refinery’s processing capacity, based on factors such
as reliability on plants, technological, environmental and 47,500
product specifications.
42,000

At the Gregorio Refinery, in Magallanes, the increased 36,500

availability of hydrocarbons from the CEOP’s led to increased 34,157
31,000
crude oil processing; however, total consumption of materials
24,166
decreased compared to previous years, due to the decline 25,500 23,732

in the raw product supply from Argentine. 23,402

20,000

The main material used in E&P activities is lift gas (methane). 2006 2007 2008 2009 2010 2011 2012
In Magallanes, ENAP reduced its consumption during
the past three years as a result of efforts made to ensure
greater availability of this hydrocarbon for its consumption
in Punta Arenas.

R&C Business Line materials (crude oil) consumption

evolution (Mm3/Year)
EN 1

ERA ERBB R&C Magallanes

1,480

15,000
1,155
779

1,304

1,055

12,500
1,128

724

10,000
5,842

5,953
6,245

7,500
3,830
5,641

4,570
5,011

5,000
5,846
6,394

6,045

4,816
5,345

4,715
5,291

2,500

2006 2007 2008 2009 2010 2011 2012

Claudio Aldana, Manager of Enap Sipetrol Argentina.

ENVIRONMENT

ENERGY

Direct Energy Consumption

EN 3
R&C Business Line Primary Energy Consumption E&P Business Line Primary Energy Consumption Evolution
Evolution (GJ/Year) (GJ/Year)

ERA ERBB R&C Magallanes E&P Magallanes Sipetrol Argentina Enap SIPEC
1,575,414

519,308
424,180
443,155

497,388
40,000,000 160,000
1,358,908

1,196,616

518,522
140,000

2,214,395
35,000,000

919,400
1,231,358

1,310,904
1,046,429
1,365,272

120,000

1,012,665
30,000,000

100,000
17,736,874

25,000,000
16,424,614

20,000,000 80,000
11,886,943

14,447,684

12,282,722

15,000,000 60,000

10,000,000 40,000

10,335,300
12,733,944
12,392,839

11,763,858
10,789,808

11,771,158
10,702,696
16,572,208

13,832,265

11,146,749

5,000,000 20,000

0 0

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Direct energy consumption at Aconcagua and Bío Bío Refineries
is variable. Daily, and based on crude oil price, it is determined
whether to use external energy or refining subproducts.
Fuel Oil (FO) consumption has gradually decreased since
Liquefied Natural Gas (LNG) became available to ENAP. In
Aconcagua Refinery, fuel consumption is composed 45% by
LNG and 55% by FO. Fuel consumption in Bío Bío Refinery
is 15% LNG, 67% FO, and 8% steam (Petropower).
In E&P in Magallanes, reduction of primary energy consumption
(fuel gas), is mainly due to modification in the flow fed by
product to Gregorio Refinery (increase of crude oil) and less
refining at Cabo Negro (decrease of raw product).
In Ecuador, gas consumption to produce energy was
optimized; the generation in Block Mauro Dávalos Cordero
is entirely with gas.
Diesel consumption decreases considerably by using the
gas, that previously was burned or flared, to produce energy.
Blocks Mauro Davalos Cordero and Paraíso-Biguno-Huachito
are interconnected.

Aconcagua Refinery.
 ENAP 2012 | SUSTAINABILITY REPORT 93

Consumed Energy Ratio by unit produced – processed R&C Business Line Primary Energy Indirect
Consumption Evolution (GJ/Year)
R&C Energy by Processed E&P Energy by
Crude Oil (GJ/Mm3) Produced BOE (GJ/MMBOE) ERA ERBB DAO

3,200 1,000,000

27,746
9,000,000
898,716

24,605
900,000

26,668
3,100
8,000,000
743,923
800,000

22,471
738,546 706,430 3,118
3,000 7,000,000
674,347
700,000
6,000,000

3,728,760
2,900 2,937

3,577,339
600,000

2,433,866
2,870 5,000,000

29,639

4,127,589
2,841 500,000
2,800
4,000,000
400,000
2,700 2,737
3,000,000

2,354,913
300,000

3,018,834

4,199,578
3,783,302
2,600

3,911,189
2,000,000
200,000

1,212,025
1,000,000
2,500 100,000

2008 2009 2010 2011 2012 0

2008 2009 2010 2011 2012

Indirect Energy Consumption E&P Business Line Primary Energy Indirect Consumption
EN 4 Evolution (GJ/Year)

Indirect energy consumed by ENAP corresponds mostly to E&P Magallanes Sipetrol Argentina Enap SIPEC
electricity, which is acquired from distribution companies.
The Centro de Despacho de Carga (Load Dispatch Center)
1,384
1,287

1,584
1,993

1,920
at central level determines the type of primary energy source 1,000,000
delivered. In the Bio Bio Refinery, the leading provider of
900,000
indirect energy - electricity and steam is the associated
company Petropower. 800,000

700,000

600,000

500,000

400,000
730,837

724,547

695,328

713,351

182,579 744,819

300,000

200,000
192,849
216,948
209,552

212,343

100,000

2008 2009 2010 2011 2012

Bío Bío Refinery.

ENVIRONMENT

Aconcagua Refinery.

Enap Energy Consumption Distribution in Tierra del Fuego. The feasibility of installing this system
(Direct Energy + Indirect Energy in GJ) in another 15 wells during 2013 is being studied. In addition,
a system for detecting and reducing natural gas leaks was
R&C E&P installed, implementing the use of cutting-edge video
technology.
100%
14,697,070

15,297,619

12,784,260
15,412,980

90%
14,481,814

80%
Non-Conventional Renewable Energy
70%
(NCRE)
OG 2 - OG 3
60%

50% ENAP participates in diverse activities and organizations that

promote research and development of Non Conventional
40% Renewable Energy (NCRE). These projects focus on the
development of second generation biofuels and the exploration
32,047,298
39,451,434

33,870,266
38,762,210

30,616,132

30%
and production of geothermal energy. In addition, ENAP
20% promotes projects of NCRE generation to provide energy
10%
to its own processes.

0 • E&P Magallanes implemented a mixed system of wind

2008 2009 2010 2011 2012 generation and photovoltaic cells to provide energy to
telemetry communications systems in Punta Valle and
the Island-Continent LPG Multipurpose Pipeline.

Energy Efficiency
EN 5 - EN 7
ENAP does not have a corporate policy on energy efficiency.
However, each Business Unit at ENAP promotes its own
direct and indirect energy consumption saving plans.
• Enap SIPEC has a gas-fired power plant in Block Mauro
Dávalos Cordero, connected through a power transmission
line with Block Paraíso-Biguno-Huachito. In this way, it
uses the gas obtained in the production of crude oil, and
reduces the consumption of diesel to generate electricity.

En 2012, E&P Magallanes reduced consumption of natural

gas by replacing the gas lift system through a mechanical
pumping system in 20 oil wells, mainly in deposits located
 ENAP 2012 | SUSTAINABILITY REPORT 95

WATER
EN 8 - EN 9 - EN 10

Water withdrawal by ENAP’s various operations does not Percentage and total volume of water recycled and reused in
affect significantly water sources. 2012
EN 10
• Aconcagua refinery has a closed cooling circuit that allows
recycling the water, minimizing withdrawal. In 2012, water VOLUME
withdrawal from Aconcagua River decreased due to better BUSINESS LINE – BUSINESS UNITS % RECYCLED
RECYCLED (Mm3)
control of cooling water purges.
REFINING AND COMMERCIALIZATION

• Bio Bio Refinery withdraws water directly and continuously Aconcagua Refinery 109,276 94%

from the Biobío River, for heat transfer operations in Bío Bío Refinery 14,714 16%
different plants. EXPLORACIÓN Y PRODUCCIÓN
SIPETROL Argentina 0 0%
• In DAO, the water comes from underground wells and is
Enap SIPEC 0 0%
used in industrial processes, cooling, fire protection systems,
and for irrigation. 95% of consumption is recorded in San
E&P Formation Water 2012
Fernando, where it is used in the cooling process of LPG
tanks. Water for human consumption is treated in the San OG 4
Fernando, Linares, Chillán and Molina facilities. In Maipú
Plant, drinking water (17 Mm3) is supplied by the public E&P FORMATION WATER 2012 (m3/YEAR)
network. E&P Magallanes 435,210
SIPETROL Argentina 11,822,813
• Enap SIPEC has a closed industrial water system and
withdraws a minimum volume of water, about 13 (Mm3). Enap SIPEC 535,717

R&C Water Withdrawal (Mm3)

EN 8

BUSINESS UNIT 2007 2008 2009 2010 2011 2012

Aconcagua Refinery 5,875 5,548 5,914 7,150 7,211 6,637
Bío Bío Refinery 113,589 82,036 109,175 70,557 95,037 90,614
Department of Storage and Pipelines (DAO) 1,146 1,180 1,487 1,109 1,433 1,448
MAGALLANES 81 144 160 170 163 160

E&P Water Withdrawal (Mm3)

EN 8

SUBSIDIARY – BUSINESS UNITS 2007 2008 2009 2010 2011 2012

Without
E&P Magallanes 263 244 296 408 521
information
SIPETROL Argentina 238 245 126 77 122 102
Enap SIPEC 10 13 14 7 9 13
ENVIRONMENT

BIODIVERSITY

Management of Impact on Biodiversity Species under conservation category identified in ENAP

Environmental Impact Studies in Magallanes
EN 12 - EN 14 - OG 5
EN 15

ENAP does not have a corporate biodiversity management

SCIENTIFIC COMMON CLASSIFICATION
strategy. However, it develops mitigation and restoration plans N° CLASS
NAME NAME AND SOURCE
and measures, of impacts its activities may have caused.
Ruddy- Endangered (Reglamento
headed de Clasificación Especies
Chloephaga
Overall, no significant alterations in protected areas, or in 1 Bird Goose (Rules for Species
rubidiceps
areas of high biodiversity value outside protected areas (Canquén Classification) DS 151
colorado) MINSEGPRES 2007).
cause by ENAP have been identified.
Coscoroba
Coscoroba Endangered
2 Bird Swan (Cisne
The main strategies and actions developed in 2012 to manage coscoroba (DS Nº5 MINAGRI 1998).
Coscoroba)
impacts on diversity are the following:
Red Knot Endangered (Reglamento
3 Bird Calidris canutus (Playero de Clasificación Especies
• Aconcagua: Monitoring water quality in the Aconcagua Ártico) DS 50 MINSEGPRES 2008).
River influence area, as a measure of control and follow Magellanic
Vulnerable (from Biobío
up. Campephilus Woodpecker
4 Bird to South DS Nº5 MINAGRI
magellanicus (Carpintero
1998).
Negro)
• Bío Bío: Quarterly campaigns of sediments, water quality
and biota in San Vicente Bay and Biobío River. Peregrine
Falco Falcon Vulnerable
5 Bird
peregrinus (Halcón (DS Nº5 MINAGRI 1998).
• E&P Magallanes: Commitment to not intervene and Peregrino)
safeguard an area of 675 hectares relevant to biodiversity, Magellan
Gallinago Vulnerable
among which are meadows, wetlands and water streams. 6 Bird Snipe
paraguaiae (DS Nº MINAGRI 1998).
(Becacina)
Chilean
Phoenicopterus Flamingo Vulnerable
Implementation of a Geographic 7 Bird
chilensis (Flamenco (DS Nº MINAGRI 1998).
Chileno)
Information System (GIS) in Magallanes Magellanic
Ctenomys tuco-tuco
The Geographic Information System (GIS) is a tool for Endangered
8 Mammalia magellanicus (Tuco
(DS Nº MINAGRI 1998).
environmental protection and biodiversity management in magellanicus Tuco de
Magallanes)
Magallanes, which allowed creating general mapping and
thematic maps, to determine exploration points for E&P Vulnerable (Reglamento
Pseudalopex de Clasificación Especies
activities, as well as sensitive areas that can’t be intervened. 9 Mammalia culpaeus Zorro Culpeo DS 151 MINSEGPRES
lycoides 2007/ DS 33 Ministry of
In 2012, 1500 cartographic maps were generated in Magallanes, Environment 2012).
establishing a database that will be updated along progress Myocastor coypu Vulnerable
10 Mammalia
is made and the projects conclude, with information such coypus (Coipo) (DS Nº MINAGRI 1998).
as archaeological sites, roads, planks, hydrology, pipelines,
and areas with environmental remediation, among others.

Survey reports of five CEOP Blocks in Tierra del Fuego were

made -San Sebastián, Isla Norte, Marazzi Lago Mercedes,
Flamenco and Campanario- with technical information of
existing facilities and environmental parameters.

Geographic Information System (GIS) in Magallanes.


Protected areas, or areas of high biodiversity value outside protected areas, within ENAP’s influence zone
EN 11
SITE NAME/
BUSINESS UNIT
PROTECTION STATUS
Santuario de la Naturaleza
Península de Hualpén
Created by Supreme Decree Nº 556
Bío Bío Refinery of 1976 of the Ministry of education.
Its guardian entity is the Consejo de
Monumentos Nacionales (National
Monuments Council).
Reserva Provincial de Cabo
Vírgenes
Enap Sipetrol Argentina Special Protection Zone under
the “Regime of Environmental
Protection”.
Bahía Lomas Wetland
Ramsar Site (2004).
E&P Magallanes
Hemisphere Reserve for Shorebirds
(2009).
Las Petras de Quintero
Nature Sanctuary, created by
Supreme Decree Nº 278/1993,
Aconcagua Refinery of the Ministry of Education. Its
guardian entity is the Consejo de
Monumentos Nacionales (National
Monuments Council).
Commune Corazón de Oriente,
Hacienda el Cañón de los Monos
and the area between Big 2.
Without legal protection status.
Enap SIPEC
However, experts recommend
conducting activities of forest
reserves and wildlife conservation.
Concón, Fifth Region.
LOCATION AND AREA
North of Biobío River Mouth,
adjacent to San Vicente Bay,
district of Hualpén, province of
Concepción.
2,190 hectares.
Covers a circular area of nautical
miles radius, on the coast, close
to Cabo Vírgenes Lighthouse.
It is located 10 km from the
onshore facilities of Magallanes
Reception Battery (BRM).
East mouth of Strait of
Magellan, Tierra del Fuego.
Located in Quintero air base
of the Air Force, one kilometer
South of the facilities of the
Quintero Maritime Terminal.
It covers a large part of the area
of influence and the guidelines
for the conduction of the Blocks
Mauro Dávalos Cordero (MDC)
and Paraíso Biguno, Huachito,
Intracampos (PBHI).
ENAP 2012 | SUSTAINABILITY REPORT 97
CHARACTERISTICS
Highly fragile lake ecosystem, which includes
Lenga wetland and Pedro del Río park. It houses
endangered species such as the black-necked swan
and white-faced ibis, especially for the stressed due
to the extraction of totora, hunting and poaching.
The lands belong to privates and the Municipality of
Hualpén.
One of the largest penguin areas in the Atlantic
coastline, it houses about 240,000 couples of
Magellanic Penguins (Spheniscus magellanicus),
among over 23 identified bird species nesting in the
area.
Area known worldwide as a shelter for migratory
shorebirds flying over 15,000 km from the Northern
Hemisphere.
The most relevant wintering site of South America
for Red Knot (Calidris canutus rufa) species, under
serious decline issues at hemisphere level and is an
endangered species in Chile.
Swamp-type native relict forest; the main species
are the petra, winter’s bark (canelo) and in a
less extent, peumo, boldo and lun. The access
is restricted, which has indirectly enabled its
conservation.
The area consists mainly of crops and pastures,
with altered secondary forest patches. There is a
significant diversity of mammals, amphibians and
insects. Almost all species are typical of disturbed
ecosystems.
Stable primary and secondary forest relicts are of
great importance for the study and protection, as
they are shelters for all fauna species present in
those areas.
ENVIRONMENT
HABITAT PROTECTION AND
RESTORATION
EN 13
Restoration of Environmental Liabilities
in Magallanes
Since 2005, ENAP has developed a Environmental Liabilities
Restoration Program in Magallanes, to take over 1,010 pits
that were contaminated with hydrocarbons as a legacy of
the historical practices of oil exploration and production
in the area.
The first phase of the project concluded in 2011 with the
delivery and certification of 376 restored wells.
In 2012 a database with relevant information on each one
of the pits was created, which, among other parameters,
indicates the name, location, name of the parcel of land
where it is located, RCA, lab analysis results and current
status. The results of several pilot tests were also analyzed
to prepare the final restoration proposal of the pending
pits. This information will allow to strategically inform the
project’s continuity.
In 2013 results of the analysis to determine the best technology
to remedy the remaining pits, and call for bids to perform
the work, will be available.
Wise Use of Wetlands
Since 2007 ENAP conducts the Program for the Wise Use
of Wetlands to promote effective conservation of these
ecosystems located its operations areas of influence, including
the Ramsar site Bahía Lomas in Tierra del Fuego and La Isla
in the Aconcagua River mouth.
• Ramsar Site Bahía Lomas Conservation
As part of the program, ENAP supports scientific research
in Bahía Lomas, providing logistical support consisting of
helicopter flight hours, lodging and meals, to the experts
developing field campaigns and aerial surveys to monitor
the Red Knot, by researchers of the Department of Science
of Universidad Santo Tomás. These actions led to key
information to feed the hemispheric recovery strategy
of this iconic species.
In 2012, ENAP Magallanes directly supported teams
of researchers from Canada, Argentina and Chile that
implemented a program of seasonal sampling of invertebrates
in the tidal flat area and Red Knot (Calidris canutus rufa)
population monitoring through aerial and ground surveys
(including ringed bird watching).
The year’s most important milestone in this wetland of
international relevance was the opening of Bahia Lomas
Center. On April 20, 2012 it opened its doors to host science,
education and local development, associated with the
conservation of this Ramsar site. This dream was made
possible through a strategic alliance between ENAP, the
Ministry of Environment, the Municipality of Primavera,
Universidad Santo Tomás and the Manomet Center for
Conservation Sciences.
In terms of good governance, the effective conservation
process of Bahia Lomas gave also an important step.
With the active participation of ENAP, key actors and
stakeholders in conservation of this site developed a
valuable technical discussion process to reach consensus
on an official conservation management plan. Thus, during
2013 this site is expected to become a Sanctuary of Nature.
• Capacity-Building for the Wise Use of Wetlands
In regard to capacity-building for conservation, the Wise
Use of Wetlands program sponsored and provided technical
support to the “Course on Biodiversity and Wetland
Conservation” imparted by the Universidad Andrés Bello’s
Department of Ecology and Natural Resources, which
enabled training of more than six hundred professionals
from public agencies, municipalities and companies.
In 2012 the course was imparted twice, one in Santiago
and the other in Viña del Mar.
• Protection of the Aconcagua River Estuary Wetland
ENAP, in a joint effort with the Ministry of Environment and
the Municipality of Concón, advanced to create a framework
cooperation agreement to promote conservation actions
and wise use of La Isla wetland, located at the mouth of
the Aconcagua River. Thereby, the parties commited to
establish a public-private partnership, coordinated by
the Secretaria Regional Ministerial del Medio Ambiente
(Regional Ministerial Secretariat of the Environment) to
perform conservation actions in the area.

Flock of Red Knots (Calidris canutus rufa), Photo Antonio Larrea/Bahía Lomas Center.
Conservation of Humid Tropical Forest in
Ecuador
In Ecuador, Enap SIPEC supports a conservation project of
a primary humid tropical forest, located at the back of the
current Verde Luna reserve, in Coca, Francisco de Orellana
Province, in the Paraíso-Biguno-Huachito Intracampos field
influence area.
The projects strategy is to create a private or protected forest
reserve, to preserve the biological diversity of a remnant of
200 hectares. SIPEC ENAP has provided training and lectures
to raise environmental awareness, as part of two programs:
Ecological Restoration, aimed at adults, and Environmental
Education for children and teachers.
ENAP 2012 | SUSTAINABILITY REPORT 99
Protection of the Ruddy-headed Goose
(Canquén Colorado)
ENAP contributes to the protection of the Ruddy-headed
Goose (Chloephaga rubidiceps, Canquén Colorado),
migratory bird present in Argentina and the southernmost
area of the Chilean Patagonia in Magallanes. The specie,
which uses this environment for nesting and breeding, is
in serious danger of extinction, and is legally protected
in both countries. The worldwide organization Wetlands
International encourages signing of a “Memorandum of
Understanding” between Argentina and Chile, to coordinate
actions for the conservation and management of the species
under the “Convention on the Conservation of Wild Animals
Migratory Species” or Bonn Convention (CMS-UNEP). In
this context, ENAP Magallanes has made commitments
for monitoring and exposing locally the importance of the
Ruddy-headed Goose.
ENVIRONMENT

EMISSIONS

Greenhouse Gas Emissions (GHG) GHG Emissions Aconcagua Refinery (Ton of CO2 equivalent)

EN 16 - EN 17
Direct Emissions Indirect Emissions

ENAP does not have a GHG emissions management

282,035
system in place and has not defined corporate criteria nor

194,678
191,745
the scope for measuring direct and indirect emissions. In
1,200,000

153,000
absence of a common methodology for calculating GHG,

61,420
the emissions reported by Aconcagua and Bío Bío refineries
are not comparable. 1,000,000

Estimates of Aconcagua Refinery emissions are mainly based

800,000
on emission factors from the Environmental Protection
Agency (EPA), “AP-42”. In 2012, direct CO2 emissions
remained within the levels of previous years, while indirect 600,000
emissions increased by 45% compared to 2011.

In Bio Bio Refinery, the above is complemented by mass 400,000

balances in those operations that enable it.

887,054

896,379

889,912
856,329
935,018
200,000
EN 18
In 2012, ENAP Magallanes prompted an environmental
campaign called “Every small action, provokes a big change.” 0
One of its objectives is to demonstrate that an idling engine 2008 2009 2010 2011 2012
causes incomplete combustion, increasing carbon dioxide
and other greenhouse gases emissions into the atmosphere.
This initiative represents a great challenge because its
GHG Emissions Bío Bío Refinery (Ton of CO2 equivalent)
success depends on the willingness and cultural change
of people involved.
Direct Emissions Indirect Emissions

Other Significant Emissions 37,533

1,200,000
OG 6 - EN 19 - EN 20
42,898

129
1,000,000
An emission source of the industry is controlled venting of
hydrocarbons by means of torches, as a safety measure in
production and hydrocarbon refining activities. 800,000

Other significant emissions from refining are carbon monoxide

600,000
(CO), nitrogen oxides (NOx), volatile organic compounds
(VOC), sulfur dioxide (SO2) and particulate matter (PM).
400,000
1,134,986
1,104,467

1,077,754

920,686
893,795

200,000

2008 2009 2010 2011 2012

 ENAP 2012 | SUSTAINABILITY REPORT 101

A measure in 2012, was to reduce ENAP´s PM emissions Volume of Flared and Vented Hydrocarbon in 2012
by closing the perimeter fence of Puerto Ventanas S.A. pet OG 6
coke stockyard with a 400 meters long by 6 meters high
environmental protective screen. BUSINESS UNITS
Gases Diesel
(MNm3/YEAR) (m3/YEAR)

ENAP does not record significant emissions of substances ACONCAGUA REFINERY

that destroy the ozone layer. Flared Hydrocarbon 347.396* 0
BÍO BÍO REFINERY
Flared Hydrocarbons (Furnace, Boilers and Torches) 426 1,259
Vented 0.0183
Significant Emissions of Aconcagua Refinery (Ton/Year) * Fuel gas, NG and LPG.

NOX VOC CO SO2 MP

2,200

1,925

1,650

1,375

1,100

825

550

260
261
257

2,068
2,040
182

1,639
2,092
2,190

1,920

1,441
1,613

187
1,548
1,087

1,326

1,473

1,341
178
158

165
177
132

141
151

275
887

454

606
530

109
553
993

538
0

2006 2007 2008 2009 2010 2011 2012

Significant Emissions of Bío Bío Refinery (Ton/Year)

NOX SO2 MP10

3,200

2,800

2,400

2,000

1,600

1,200

800
2,264
2,592
2,187

2,406
2,375

1,896
2,628

1,690

2,546
1,430

2,578
2,055
1,965

2,927

278
270

255
210

233

400
219

186

2006 2007 2008 2009 2010 2011 2012

ENVIRONMENT

DISCHARGES

EN 25
ENAP operations do not affect significantly water resources Effluents Characteristics R&C Business Line
and habitats, due to its industrial liquid residue or its
discharges into water bodies. ACONCAGUA BÍO BÍO QUINTERO Magallanes
PARAMETER (mg/L)
REFINERY REFINERY TERMINAL (Gregorio)
Aconcagua Refinery discharges its industrial liquid residues
Phenol Index 0.15 <0.01 0.07 0.31
(ILR) into the sea, through sewage pipelines located outside
Oils and grease 8.80 17 10.85 47.95
the shore protection zone in Concón and Quintero. In Concón,
the volume of ILR decreased by 22%, while in Quintero it Total Hydrocarbons 0.26 <10 5.89 20.50
increased over three times as compared to 2010, which Sulphides 0.11 <0.5 0.03 <0.5
could be related to greater water content in crude. The Suspended Solids 23.19 70 25.28 49.64
increase recorded is not above the maximum flow that may
be discharged into the water reception body. The quality
of ILR complies with standards and is verified by external
laboratories.
Spills
The parameters of industrial liquid residue generated by Bío ENAP’s Number of Significant Spills
Bío Refinery are monitored through self-monitoring programs (greater than 5 m3, according to DS Nº 160)
required by the Superintendencia de Servicios Sanitarios
EN 23
(SISS, Superintendence of Sanitary Services), pursuant to
Resolution Nº 1807/2010, and comply with the limits.
BUSINESS LINE/UNIT 2008 2009 2010 2011 2012

Likewise, an accredited external laboratory periodically Aconcagua Refinery 1 0 1 0 1

monitors the quality of effluents at DAO’s plants of Maipú, Bío Bío Refinery 1 0 1 0 1
San Fernando, Linares and Molina Station. Magallanes 1 0 0 0 0
DAO 0 1 2 0 1
In turn, Enap SIPEC’s processes do not discharge a significant
amount of water into the environment, due to the fact that SUBTOTAL R&C 3 1 4 0 3
industrial water is used in a closed system and discharge E&P Magallanes 5 4 0 2 0
is about 13 Mm3. Enap Sipetrol Argentina 1 2 1 1 1
Enap SIPEC 6 1 1 4 1
Total water discharge (Mm3) SUBTOTAL E&P 12 8 3 8 2
EN 21
TOTAL 15 9 7 8 5
Bío Bío Refinery Magallanes DAO
Aconcagua Refinery Quintero Terminal

105,152 104,635 4,635

4,500 90.225 100
4,197 4.170

4,100
4,000 87,515
3,627 3,622 80
77,700

3,200
63,161 60

2,400
40

1,600
1,190 1,158
917 856 914 20
800 945
3.046

4.475
3.787

1.435

1.250
5.151
791

286
168 122 121 82 165
0 0
1.04 0.35 0.48 0.97
0.17 0.15

2007 2008 2009 2010 2011 2012

 ENAP 2012 | SUSTAINABILITY REPORT 103

Enap Sipetrol Argentina.

R&C Business - Line Volume of Significant Spills (m3) E&P Business Line - Volume of Significant Spills (m3)

Aconcagua Bío Bío Magallanes DAO E&P Enap Sipetrol Enap Sipetrol
Refinery Refinery Magallanes Argentina Ecuador

refineria aconcagua
refineria bio biomagallanes dao

160
160 250
1

3
140
140
16.0
42.5

200
120
120
7.5

100
100
150

80
52.1

100 7
60
4

40
100.0
70.0

0.2
50
20
50.0

77 227 7 43
1.8
0.0
2.0
0.1

3 2.3
00 0 0.9
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
ENVIRONMENT

WASTE
EN 22 - EN 24

Non-Hazardous Solid Waste Generation by Business Line • In Aconcagua, the hazardous waste generation increased
(Ton/Year) 51%.

R&C E&P • An external disposal service was hired to eliminate 1,524

tons of hazardous waste. These residues underwent
2,500 an inerting process and subsequent confinement in a
security cell of authorized companies.

2,000 • 91% of the spent sulfuric acid generated by the plant,

equivalent to 4.996 tons of spent sulfuric acid, was
delivered to a mining company for reuse in its process
1,500
(an increase of 47% compared to 2011). The remnant was
sent to treatment and disposal in a secured landfill.
29.639

• oil separator mud of the Plant of Concón, the second

1,000
largest residue from total, increased by 100% over the
570

previous year. The sum of spent acid residues and oil

1,800
1,966

1,394
1,928

1,391

separator mud constitute 82% of the solid waste.

340

349

500

Enap SIPEC

0
• Hazardous and non-hazardous solid wastes are delivered
2009 2010 2011 2012 to authorized companies that certify their disposal.

• Non-hazardous waste, such as plastics, debris, glass,

Hazardous Solid Waste Generation by Business Line paper and cardboard, are delivered to a company that
(Ton/Year) reuses these materials to manufacture other products.

BUSINESS LINE 2009 2010 2011 2012

Refining and Commercialization
47,387 25,088
(R&C)
Exploration and Production (E&P) 395 523
Aconcagua Refinery
• In 2012 actions were implemented to avoid, minimize, reuse,
recycle, treat and dispose waste production, prioritizing
a hierarchical strategy for solid waste management.
All workers of the plant were trained in management
practices.
• 10,973 tons of industrial waste were produced, 19% more
than in the previous year, mainly due to plant maintenance
activities conducted during July and August.
• Non-hazardous waste decreased 55%, including catalyst
used in the catalytic cracking plant.
• Organic waste is reused as organic fertilizer for gardens in
the camps and demonstration farms and self-sustaining
34,219 44,986 projects in communities.
237 121
• Heavy scrap – piping, small scrap, reda cable spools- is
placed in bins waterproofed with grease traps on PSO 11
platform. Permission was requested from the Dirección
Nacional de Hidrocarburos to dispose of and sell it to a
steel company.
• The hazardous wastes are delivered to a specialized
manager for its treatment through incineration.
• 2,271 m3 of mud and drilling cuttings of the MDC-23 well
were transported from the pools of temporary storage
to the Centro Integral de Ingeniería Ecológica (CIIE,
Integral Center of Ecological Engineering). The transport
was done according to the regulations on transport of
hazardous wastes.
 ENAP 2012 | SUSTAINABILITY REPORT 105

Petcoke Exports

ENAP managed in 2012 the transfer and export of 100,000 Exploration and Production Drilling Residues 2012
tons of coal petcoke accumulated in Bio Bio Refinery after the OG 7
earthquake of February 27, 2010. Despite petcoke does not
apply to hazardous waste category established in the Basel
EXPLORATION AND PRODUCTION 2012 MUD (m3) CUTTINGS (TON)
Convention on Control of Hazardous Waste Transboundary
E&P Magallanes 3,994 -
Movements and their Disposal, the operation was performed
in compliance with environmental regulations and under SIPETROL Argentina 5,892 2,163.1
tight security and care for the environment. Enap SIPEC 12,729 -

The transfer from the collection site SERVIMAR and from

the Bio Bio Refinery to Coronel port involved the use of 65
dump trucks, whose drivers were trained previously. The
petcoke was mobilized through two shipments to Italy.

Cabo Negro, Enap Magallanes.

ENVIRONMENT

COMPLIANCE WITH ENVIRONMENTAL REGULATIONS

EN 28

Significant fines to ENAP for non-compliance with environmental regulations ended in 2012

MONETARY
Nº OF
PARTIES COURT ISSUE DESCRIPTION VALUE OF
LAWSUIT
SANCTION
ACONCAGUA REFINERY

Petcoke is found in the Estero Campiche that the

wind would have carried, among others, from the
storage yard of Puerto Ventanas S.A. The Health
Enap Refinerías S.A.
SEREMI of Valparaíso Region started the sanitary
vs. Fisco de Chile CDE Fourth Civil Court of Judicial Claim for
C-4407-2010. preliminary proceedings 83/2010 against ENAP 20 U.T.M.
(Consejo de Defensa del Valparaíso. Administrative Fine.
Refinerías S.A. as the owner of petcoke, which
Estado de Chile).
led to the application of the fine. ERSA filed an
administrative appeal, which was rejected by the
Health Authority and confirmed by the Court.

Through Resolution N º 177 of 11/02/2011, the

Comisión de Evaluación Ambiental of Valparaíso
Region (Commission for Environmental Assessment)
sanctioned ENAP Refinerías S.A. with a fine of 400
UTM for non-compliance of RCA No. 159 of 2003,
Enap Refinerías S.A. vs. First Civil Court of Viña Judicial Claim for
C-2788-2012 which authorized the “Industrial Complex to increase 250 U.T.M.
Chilean Tax Authority del Mar. Administrative Fine.
the capacity of the Concon Refinery to produce
diesel and gasoline”. The fine was reduced to 250
UTM, after the administrative motion was accepted
by Res No. 96 of May 2012, of the Commission for
Environmental Assessment.

Following the earthquake that occurred in the area,

Superintendence of
Indictment for on April 14, 2012 there was a leakage from the base
Electricity and Fuels Resolution 362 Superintendence of
breach of technical of the tank T-5044 with output of product IFO-180 300 U.T.M.
against Enap Refinerias of 2012 Electricity and Fuels.
regulations. to the parapet at the Quintero Maritime Terminal. It
S.A.
was decided not to claim.

SIPETROL ARGENTINA

Administrative
Prefectura Naval Prefectura Naval proceedings
The PNA began preliminary proceedings for violating $ 22,500
Argentina (Coastguard) Argentina (PNA, for infringement
08/09 – RGAL. the REGINAVE rules of discharges into the sea, (equivalent to
Vs. Enap Sipetrol Coastguard) Buenos to REGINAVE
resulting from the oil spill at AM3 Offshore Platform. U$S 5,625).
Argentina S.A. Aires and Río Gallegos. (Navigation
Regime).

Administrative Sanctions for non-compliance with Environmental Regulations

DATE OF
ENTITY ISSUE RULING / BRIEFING FINE IN UTM
OCURRENCE/NOTICE

Health SEREMI of Hazardous waste for which authorization is overdue are kept on-site.
06-06-2011 Rol 112/2011 CAUTION
Magallanes Aquittals submitted.

Servicio de Evaluación
Ambiental (SEA, Violation to paragraph No. 3.4.7 of Resolution N º 55/2002 and Exempted
Environmental Resolution N º 56/2002. When Laredo and Cabo Negro Plants 09-10-2012 Resolution 250
Assessment Service) exceeded the parameters and limits in Table 3 of the DS 90./00. N° 178/2012
Magallanes
 ENAP 2012 | SUSTAINABILITY REPORT 107

Enap SIPEC.
ENVIRONMENT

ENVIRONMENTAL IMPACTS ON TRANSPORTATION

EN 29

At ENAP, transportation operations for logistical purposes Terrestrial Transport in 2012

are carried out by maritime and terrestrial means, including
oil pipelines. DISTANCE
PRODUCT TRAVELS VOLUME
TRAVELLED INCIDENTS
TRANSPORTED MADE TRANSPORTED
KMS.
Maritime transport is managed by the Vetting Department,
created in 2011. It incorporated ENAP as a member of LNG 4,374 5,244,000 196,800 (m3) 4
the Oil Companies International Marine Forum (OCIMF), LPG and Petcoke 12,191 1,843,000 317,600 (TNM) 3
an association that promotes safe and environmentally Liquid Fuels 8,200 3,150,000 250,000 (m3) 6
responsible operation of oil tankers, hydrocarbon terminals
and offshore activities. Fuel products’ terrestrial transportation activities are a critical
issue with regard to Health, Safety and Environment risks.
In 2012, ENAP’s logistic activities by sea included crude Through daily management, general risk is kept as low as
oil and products timport by means of 230 ships, and fuel reasonably practicable (ALARP). A series of procedures rule
distribution from Arica to Punta Arenas, including Easter the operations and processes -such as loading, transport
Island, through 8 cabotage vessels. and unloading, etc.- of transporting companies.

Mobilization of fuel products to various terrestrial terminals
is a responsibility of the Land Transport Department, and
includes transport of Diesel Oil, Fuels, Petroleum Coke Coal,
Liquefied Natural Gas (LNG) and Petroleum Liquefied Gas
(LPG). Terrestrial transportation operations are performed
by nine contractors that have own fleets -rigid and semi-
trailer trucks, with capacities of 15 to 35 m3 and weighing
between 20 and 27 tons.
Safety performance of the terrestrial transportation fleet is
monitored daily and monthly. Each transporting company has
an emergency and mitigation plan. Trucks have equipment
that enables control of small incidents, such as threat of fire,
spills and truck failures.
ENAP Magallanes monitored recovery of vegetation cover in
11 pipeline projects and about 35 kilometers, in response to
environmental commitments made in the respective permit.

ENAP’s tanker truck

 ENAP 2012 | SUSTAINABILITY REPORT 109

ENVIRONMENTAL EXPENSE AND INVESTMENTS

EN 30

12.31.2012 12.31.2011
PROJECT DESCRIPTION
MUS$ MUS$
Re-injection water transportation Tierra del Fuego
Riles (liquid industrial waste) - 114
Island
Facilities Standardization Sewage water management Bahía Laredo 45 57
Environmental Permits Management Project environmental permits management 380 625
Environmental liabilities project Restoration of pits 83 40
Tasks carried out by Offshore and Inland
Environmental restoration 1,563 921
Management
Waste management Riles and respel disposal agreement 117 536
Odor monitoring Construction, consulting and equipment contracts - 145
Environmental Agreement 2008 - 2012: soils Construction, consulting and equipment contracts - 40
Environmental cooperation agreement 2008 - 2012: air quality Construction, consulting and equipment contracts 144 328
Environmental Services Consulting 2 708
Diagnose of hazardous substances Construction, consulting and equipment contracts 9 12
Measurement of hydrocarbons in rainfall drainage Construction, consulting and equipment contracts 14 13
Evaluation of compliance with Environmental Qualification Resolutions
Construction, consulting and equipment contracts 205 255
(RCA) in Bío Bío and Aconcagua Refineries
Depreciation Depreciation 169 170
Waste disposal Consulting 2,292 887
Acid plant Plant operational costs 497 498
Sulfur plant Plant operational costs 15 73
URA2 Sulfur plant Plant operational costs 3,683 -
Gasoline desulfurization plant Plant operational costs 4,859 4,716
Diesel desulfurization plant Plant operational costs 970 167
Sour Water Stripper (SWS) Plant operational costs 13 13
Treatment of effluents Plant operational costs 711 706
Remediation of environmental liabilities Mauro Davalos Cordero - Ecuador 1,237 1,030
Remediation of environmental liabilities Paraíso Biguno Huachito Ecuador 1,144 1,274
Remediation of environmental liabilities UTE Área Magallanes - Argentina 741 705
Remediation of environmental liabilities Campamento Central Cañadón Perdido - Argentina 2,641 578
Remediation of environmental liabilities Pampa del Castillo - Argentina 1,951 1,006
Remediation of environmental liabilities UTE CAM2A Sur - Argentina 8 5
Remediation of environmental liabilities Egypt 30 23
Implementation of environmental management system Chile 400 250
TOTAL 23,924 15,895
COMMUNITIES

RELATIONSHIP WITH OUR COMMUNITIES

Long-term engagement with Local
communities
To build and maintain trustful community relations is a
cornerstone of ENAP’s sustainability strategy. ENAP’s
Corporate Sustainability Policy, states the company’s
commitment to maintain a harmonious coexistence with
local communities, to improve life quality and to promote
local development.
Dialogue and permanent response to inquiries from the
public can capture effectively concerns and needs of the
surrounding communities. This has resulted in community
outreach programs and plans, that seek to strengthen trust
and build harmonious relations with a long-term vision.
Community engagement
GRI 4.1 - SO 1

In line with this statement, ENAP created in 2012 a specialized
area responsible for Community Relations, as part of the
HSEC Management.
The new unit has established clear guidelines regarding relations
with its neighbors, to “build and maintain relationships of
trust and mutual benefit” as well as “ to identify opportunities
to create shared value.”
For the purpose of listening and responding to community’s
interests and expectations, ENAP participates in tripartite
tables of Aconcagua and Bio Bio Refineries. In Magallanes,
it promotes a good neighbor policy through the Oficina de
Asuntos Ganaderos (Bureau of Livestock Affairs).

New instances of stakeholder engagement and dialogue,

based on building trustworthy relations have been promoted
by ENAP as part of its good neighbor policy.

Ricardo Cruzat, ENAP CEO (center) during the delivery of 1,000 trees to the community of Hualpén.

Implemented Local Community Engagement
ACONCAGUA REFINERY: TRIPARTITE TABLE ON ENVIRONMENT
In 2012, Aconcagua Refinery Tripartite Table on
Environment celebrated its ninth year of operations,
consolidating relations between company, communal
authorities and the association of neighborhood
councils of Concón.
The Tripartite Table allows to have a formal space
where communities can raise directly their doubts,
complaints, and comments with regard to environmental
issues. In turn, the company has the opportunity to
get to know their concerns and demands.
BÍO BÍO REFINERY TRIPARTITE TABLE ON ENVIRONMENT
It has been operating continuously since 1997. It is
formed by the Municipality of Hualpén, represented
by the departments of Environment and Health;
the companies Petroquim, Petropower and Bío
Bío Refinery; and the leaders of the neighborhood
councils of Sector 4 of Hualpén, which includes El
Triángulo, Villa El Triángulo, Nueva el Triángulo, 18
de Septiembre 1 and 2, Osvaldo Muñoz Carrasco,
Esfuerzo Unido, Patricio Aylwin and Irene Frei sectors.
A second table was formed in late 2012 and is integrated
by Bio Bio Refinery, Petropower, Petroquim, the
Municipality of Hualpén and neighborhood leaders,
representatives of the Neighborhood Councils of El
Triángulo, Villa El Triángulo, Nueva El Triángulo, Bernardo
O´Higgins, 18 de Septiembre and Esfuerzo Unido.
ENAP MAGALLANES UNIT OF LIFESTOCK AFFAIRS
This unit, created in 2007, aims to maintain harmonious
and good relations with neighboring farmers in the
Magallanes region, primarily with owners of the land
in which ENAP operates. One goal is to obtain passage
permits and easements within the established terms,
to develop oil and gas activities.
Dialogue processes are developed to strengthen
good neighbor relations and manage environmental
REGIONAL ROUND TABLE FOR THE DIFFUSION OF ENERGY EFFICIENCY
Since 2012, ENAP Magallanes has participated in the
Regional Round Table for Energy Efficiency, coordinating
a committee to develop a energy efficiency campaign
and diffusion of renewable energy in the region. The
purpose was to educate and sensitize the population
to care for energy, its efficient use and saving.
Magallanes SEREMI on Energy called various agencies
ENAP 2012 | SUSTAINABILITY REPORT 111
The main activities in 2012 were the following:
- Delivery of Information on the “Aconcagua Natural
Gas Power Plant” Project
- Delivery of results of Odor Measurement by means
of Olfactometry
- Inclusion of the Concón Air Quality Monitoring
Network to Sistema de Información Nacional
de Calidad del Aire (SINCA, Air Quality National
Information System) website
- Training provided to the neighborhood leaders to
easily enter and interpret data delivered by SINCA.
The purpose of these tables is to create a space of
two-way dialogue to address environmental, safety and
other issues that raise neighbors concern or affect them.
Example of concrete actions agreed in these tables are
the implementation of security vans in Hualpén, training
courses for neighbors and meetings at the Centro de
Educación e Información Ambiental (CEIA, Center
for Environmental Education and Information, which
aim to improve communication between authorities
of the Municipality of Talcahuano, the company and
the Community, a body to inform and educate the
surrounding community, which constitutes an instance
to inform and educate the surrounding community,
in relation to the refinery’s production processes, its
management and environmental effects and safety.
and social risks and impacts related to company’s
activities in its area of influence.
In 2012 the negotiation with farmers allowed to
drill 9 wells, build sewers and roads, and formalize
authorizations to perform repair activities to wells
and pipelines.
and public and private enterprises to participate in
this committee that made many advances in the field
of energy efficiency.
In this context and among other initiatives, ENAP
promoted and developed the First Regional Fair for
Energy Efficiency.
COMMUNITIES
Management of Impacts on Local
Communities
SO 9 - SO 10
Because of their nature and characteristics, hydrocarbon
activities and operations are considered potentially annoying
and polluting, therefore the processes for obtaining
environmental permits required to operate, are related to
mitigation and compensation measures, seeking to neutralize
the possible negative impacts on the natural and social
environment.
Thus, the primary focus of ENAP management is to ensure
that operations fall within environmental responsibility
criteria, comply strictly with applicable regulations and to
implement mitigation measures and compensatory actions
committed to the communities and the authority.
OG 11 - OG 12
In 2012, the activities of the company did not involve involuntary
resettlement cases. However, residents of Villa El Triángulo
and Nueva El Triángulo, close to Bío Bío Refinery, have made
arrangements to apply for relocation, noting that for years
they have been exposed to odors and pollutants. ENAP
has offered permanent instances of dialogue to listen and
respond to the community’s concerns and has them keeped
informed about progress in implementing the mitigation
plan committed to the health authority.
OG 9 - HR 9
The Company’s operations are neither located in territories
with presence of indigenous people, nor are there any ethnic
villages in areas close to or affected by ENAP’s activities.
Therefore, no events related to the infringement of indigenous
rights were recorded.
SO 1
Regarding unforeseen impacts or in response to requests
from the local community, ENAP develops a series of actions
that allow participatory monitoring, mitigation of actual or
perceived impacts, or compensation, through actions such
as those listed below.
• Odor Measurement by Olfactometry
To determine the perception and presence of odors in
Concón by olfactometry, Aconcagua Refinery implemented
a measurement system based on industry surveys to
neighbors of the old sector of Concón, corresponding to
the units Balneario, Los Romeros, Las Gaviotas, Población
ENAP, Los Troncos, Nueva Concón and Los Tres Esfuerzos.
97% of residents declared to have no odor problems.
• Online Monitoring of Air Quality
In 2012, Aconcagua Refinery made available to the community
online information on air quality in the district of Concón,
through the Sistema de Información Nacional de Calidad
del Aire (SINCA, National Air Quality Information System)
of the Ministry of Environment (http://sinca.mma.gob.cl/).
ENAP has four monitoring stations: two in Concón urban
areas and two in the rural areas of Colmo and Las Gaviotas.
The parameters measured are air quality and meteorology.
• Planting of trees in the Community of Hualpén
Fulfilling the commitment made to the community of
Hualpén in the Tripartite Table, Bio Bio Refinery planted
one thousand trees of the species Australian Blackwood
and Monterrey Cypress in order to improve the perimeter
fence that marks the site of the refinery from the adjacent
districts, with a positive impact on air quality of the whole
area. The trees planted cover an area of more than six
thousand square meters.
• Center for the de Rehabilitación, Treatment and
Libration of Endangered Bird and Marine Wildlife
Species
ENAP contributed with 276 million pesos for the construction
of a Center for Rehabilitation, Treatment and Release of
Endangered Bird and Marine Wildlife Species, unique of
its kind in the country, in the district of Talcahuano.
The facility will operate as a Transitional Care Center. It
has a healing room, cleaning room, another room for
receptions, washing the animals and cures (among others),
and finally a cage sector consisting of five pools for birds
and marine mammals.
The center is located on the lands of the Comité Nacional
Pro Defensa de la Fauna y Flora (CODEFF, National
Committee for the Defense of Fauna and Flora), and
includes facilities, parks, trails and parking.
• Safety Elements for Hualpén
Bio Bio Refinery, as part of the commitments made to the
municipality and Hualpén’s community at the Tripartite Table,
provided communications equipment and safety elements
to 5 vans, to improve communication and coordination
with neighbors in contingency situations, such as natural
disasters, environmental or chemical emergencies.
 ENAP 2012 | SUSTAINABILITY REPORT 113

Social and environmental judicial

appeals
OG 10 - OG 11

A group of residents from El Triángulo of the commune

of Hualpén filed, on July 19, 2012, an injunction before the
Court of Appeals of Concepción, following two bad odor
events from the Bio Bio Refinery, perceived on June 20 and
July 1 of that year.

In a ruling issued in November 2012, the Court of Appeals of

Concepción sentenced ERSA to pay two fines for polluting
the environment: one for 800 UTM and another for 500
UTM, and also condemned it to take mitigation measures
to prevent new episodes of bad odors.
Christmas Party for the Community at Bío Bío Refinery.
The ruling established that the odor neutralization or
mitigation system of Enap Refineries S.A. effluent treatment
plant, had flaws and that it was not operating on July 3 of
the current year. There are no records of consumption or
Social Investment
operation of the system between June 20 and July 1, 2012, SO 1
and it wouldn’t have operated on July 2.
ENAP, voluntarily and in addition to complying with its
The Court gave ENAP a six-month period to hire external mitigation and compensation commitments, develops
experts, to carry out an environmental audit in all areas diverse activities and programs to improve communities
and raw materials and products storage facilities; as well quality of life and to promote local development through
as to processes and effluent treatment systems, to identify social investment.
critical odor emission points; and, therefore, to recommend
ENAP’s Social Investment in the Communities
technological solutions.

A second injunction against Enap Refineries S. A. and the BUSINESS UNIT CONCEPT AMOUNT

Servicio de Evaluación Ambiental del Biobío (Biobío Service Open House 22,000,000
of Environmental Assessment) was filed by neighbors of
Aconcagua Training (*) 70,000,000
Coronel, for the transfer of 50 thousand tons of petcoke for Refinery
their collection and subsequent loading at that port. The School Leveling Program for
8,300,000
appellants aleged that the petcoke was highly polluting, and Contractors
requested to rescind the Exempt Resolution No. 133, dated Subtotal Aconcagua 100.300.000
01.06.2012 , which granted permitting to the “Diversificación de
usos de Petcoke en Refinería Bío Bío” project (Diversification Training (*) 354,000,000
Bío Bío Refinery
of petcoke uses in Bio Bio Refinery). The Court of Appeals Sports Program in Hualpén 39,000,000
of Concepción rejected the injunction on January 30, 2013.
Subtotal Bío Bío Refinery 393.000.000

Enap
Training (*) 33,000,000
Magallanes

Subtotal Enap Magallanes 33.000.000

TOTAL 526,300,000

(*) SENCE Funds.

COMMUNITIES

ACONCAGUA REFINERY COMMUNITY PROGRAMS

SO 1

Open House
Open House is a Corporate Social Responsibility initiative
developed in Concón by Aconcagua Refinery as off
November 2005, supporting community participation and
their access to socio-cultural programs in a space managed
by a nonprofit corporation.

It is managed by a Board of Directors consisting of three

persons appointed by the refinery’s manager. According
to its internal regulations, which were adopted in 2012, the
Board meets once a week.

Open House Activities 2012

TOTAL
ACTIVITIES 2012 WOMEN MEN DETAIL
PARTICIPANTS

Theatre (2), Yoga (2), Glass

fusing (2), Guitar (2), Art
Workshops 318 119 437 for children, Modern Dance,
Jazz, Literature, Pre-ballet,
Capoeira (3)
LORENA SAAVEDRA GODOY
Children Theatre at Teacher of Glass Fusing
Neighborhood Council
Los Tres Esfuerzos
Workshop at ENAP’s Open House
Open House
(5-13 years old).
in your 52 3 55
Fun Dance at Neighborhood
Neighborhood
Councils Los Tres Esfuerzos Through Open House, ENAP makes a great contribution
and Los Trocos
(30-60 years old). to the community of Concón; not any company invests
in the development of its neighbors. Therefore, I say to
Computer Classes: 3 at my students to use the opportunities of access to culture,
Information
94 16 110 advanced level and 7 on
Center art workshops and exhibitions, as well as to develop their
digital literacy.
own businesses, which they can learn here.
Cinema at ENAP Open
Cinema - - 566
House.
In the case of glass fusing, I’m very happy with this experience,
Connectivity Age group: children, teen- because I see people motivated, eager to learn. I’ve seen
6,289 service provisions
to Internet agers, adults and elderly. them come the first day, not knowing anything and afraid
of working with glass, and then they are surprised to see
Requests for meetings,
Requests for their progress. Some even have dared to undertake this
workshops, speeches,
space at Open 79 requests
trainings, seminars, job, selling their products and bringing money home. You
House
rehearsals, among other. realize that it is not only about teaching techniques. It’s
about helping people. Here they find a therapy, a group
that welcomes them and improve their self-esteem.

I also like that Open House welcomes all alike. All the
people here belong to different socioeconomic realities,
but in the workshops they are all equal.
 ENAP 2012 | SUSTAINABILITY REPORT 115

NOLBERTO DÍAZ SÁNCHEZ,

PRESIDENT OF ACONCAGUA REFINERY
WORKERS UNION AND PRESIDENT
OF ENAP OPEN HOUSE

Today, ENAP Open House is a set of initiatives aimed to provide

culture and art to people, and to promote human rights. It
is a project that fills us -as a company- with pride and that Raiza Muñoz Poblete,
has allowed us to deliver multiple services and benefits to 11 YEARS OLD, STUDENT OF THE THEATER
families of fewer resources, especially in periods of economic WORKSHOP OF THE NEIGHBORHOOD
crisis, and workshops such as music and painting classes, COUNCIL “LOS TRES ESFUERZOS”
cinema, digital literacy, dance to those who normally have
no access, among others , through which it promote respect
for people’s rights. I have participated in the theater workshop since 2011.
It has been a very positive experience for me because it
Open House has become an important link with the community. helped me with studies and to improve my memory and
ENAP has consolidated a space for citizens, a space that develop my personality. Before, I was very shy. In addition,
they have made their own, that not only gives them free as the workshop takes place on Saturdays, I still have the
access to all its activities, but also performs many of their weekend free to study. I have even improved qualifications
activities, thus supplying the lack of rooms for events in the at school.
district. It has also been a place where artists of the region
and the commune, especially emerging artists, express their I think it is very positive that a company such as ENAP
artistic proposal. and Open House develope these workshops for Concón’s
neighbors. Children were very shy when the workshop
I believe that ENAP fulfilled its duty. We are rooted in the started and now all are able to speak out.
district of Concón and the purpose of this was based on
having identified the need of many families, particularly of
low income, with no access to cultural and social activities.
Among Open House beneficiaries are people who do not
have financial means to access workshops, films, art and
music. There are also many elderly, disabled and heads of
household, or students, who have learned, for example, to use
a computer at the Infocentro. I think we have contributed to
many people’s quality of life and we want to continue doing
so, even increasing quotas in future courses.

Dance workshop at ENAP Open House.

COMMUNITIES

Labor Scholarship Program Sports Club’s 30th Olympics

In Enap Aconcagua, the Labor Scholarship Program is one
of the most important initiatives to relate to community. In
2012 the refinery spent more than 70 million pesos, funded
through SENCE tax exemption. The purpose is to develop
job skills and to improve employability of 135 neighbors
in the communities of Concón, Puchuncaví and Quintero.
The target group was expanded to leaders and neighborhood
leaders, due to the important role they play in their
communities.
One of Aconcagua Refinery’s Corporate Social Responsibility
most valued initiatives by the community is the Sports Club
Olympics.
The thirtieth version, held in 2012, included 500 students,
about 10 to 12 years old, from 11 municipal schools of the
neighboring communes. The students competed in football,
ladies baby football, ladies basketball, athletics, aerobics
and tennis. There were also paintings and folk samples. The
Irma Salas School of Concón won the first place.

Among the workshops there are the following

• Courses on negotiation skills for leaders and community

leaders and heavy machinery operation with class D
driving license in Concón.

• Food Hygiene and Handling Courses and a development

program for community leaders consisting of 3 areas:
Leadership and Effective Communication, Social Dialogue
and Negotiation Techniques in Quintero.

• Elderly Care and First Aid courses and a development

program for community leaders that includes topics on
Leadership and Effective Communication, Social Dialogue
and Negotiation Techniques in Puchuncaví.

School Leveling Program for Contractors

One of the most valued activities by ENAP’s internal
community is the school leveling program for Contractors,
a plan that started five years ago, driven by an alliance of
ENAP, Aconcagua Refinery Workers Union and Escuela San
Luis of Valparaiso. Since its inception, this plan has already
helped 100 workers to complete High School. Thanks to
this special program, in 2012 26 students obtained their
high school diploma, among them, contractors’ workers
and their families.

Bío Bío Refinery.

 ENAP 2012 | SUSTAINABILITY REPORT 117

BÍO BÍO REFINERY COMMUNITY PROGRAMS

SO 1

Training Plan Arauco and Discussion Tables of Hualpén, considering the

end users interests and the utility thereof.
Bío Bío Refinery continued in 2012 its Training Plan with
SENCE tax exemption, aimed at improving labor skills in
the communities of Hualpén, Talcahuano and several coves
of the San Vicente Bay. During the year, it developed 31
courses, benefiting 670 persons.

Seventy-seven thousand hours of training were completed

-for a total amount of 355 million pesos- in trades such
as arc welding, fork lift and backhoe operators, Metalcon
construction, intermediate shellfish diving and business
management, among others.

For the second consecutive year, the refinery joined the

program developed by Prodemu, delivering trainings on
topics such as warehouse management, maids, master
chef, and cashier.

ENAP also provided support in training to former employees

from Quillón and nearby of the Arauco company, who lost
their labor source due to a huge fire that affected the Nueva
Aldea plant in early 2012.

The courses were previously defined by the involved entities:

Oficinas de Intermediación Laboral (OMIL, Labor Mediation
Paola Velásquez (center) Human Resources Manager of Enap Refinerías
Office) from Talcahuano and Hualpén, Prodemu, Paneles received the CSR award granted by SENCE to Bío Bío Refinery.

SUSANA MELO ZOÑEZ

(BENEFICIARY OF SENSE COURSE
AND INSTRUCTOR OF THE SPORTS
PROGRAMS FOR CHILDREN)

Susana Melo is 36 years old and lives with her three children
in Población Patricio Aylwin in Hualpén. She has participated
in two training courses of ENAP, funded with SENCE tax
exemption, and is also an instructor of the sports programs.

“I attended to the courses on senior care and driving, which

I found very interesting and useful. The first helped me
because my parents are old and my mother is disabled,
and everything I learned has been very useful to take care
of them. I participate as an instructor for the last four years, it is very positive. My three children have participated in the
and I think it’s great that the refinery provides this space, as programs, but the oldest doesn’t. My children, Francisca and
the children we bring have no support and this helps them Ignacio, accompanied me every week and we are very close.”
to to share with same aged children and from other places;
COMMUNITIES

Sports Programs
As part of social programs agreed in the Tripartite Table, Bio
Bio Refinery developed two recreational sports programs,
targeting children and elderly of Hualpén between March
and December 2012,.
The first benefited 200 children at risk, aged between 7 and
12 years, who participated in sports workshops of football,
volleyball and aerobics that took place on Saturdays at
ENAP Bio Bio Sport Club.
Enap Petrox’ Chile Athletics Masters Championship: Track,
Field and Cross Country, held in March 2012.
Over two hundred pre-master and master athletes, aged 30 to
90 years old, belonging to clubs affiliated to the Federación
de Atletismo Master de Chile, (Masters Athletics Federation
of Chile), from Curicó to Punta Arenas, participated in the
championship, which was developed mainly at the Municipal
Stadium of Concepción.

The second sports program was addressed to seniors, in

which contents were developed associated to psychomotor
activity, joint mobility, breathing and dancing to increase
cardiac capacity. The program aims to improve self-esteem
and motivate sports practices in this age group.
Chile Athletics Masters Southern Zone
Championship
Enap Bio Bio Sports Club Branch of Athletics, with support
of public and private entities, including Bio Bio Refinery and
the Workers’ Union, organized the twenty-eighth version of
Enap Bío Bío Refinery Marathon
About 500 people, including athletes and spectators gathered
on May 1, at the Fourteenth ENAP Bio Bio Refinery Workers’
Marathon 2012, which took place in Talcahuano, organized
by ENAP Sports Club, along ENAP-Petrox Workers Union.
The competition covered an area of 13 kilometers in which
competed five age categories for both, ladies and men,
and that began and ended at the entrance of the refinery
in Talcahuano.

ÁGEDA ROMERO DÍAZ, 65 YEARS OLD

(ATTENDS BIO BIO REFINERY SPORTS
WORKSHOPS FOR SENIORS)

She is a secretary of the group of older Sister Teresa of the

Andes and lives in Población Perla del Biobío in the district
of Hualpén. She and her husband, Carlos Mardones, have
attended for the last six years to the weekly gym workshops
conducted by Bío Bio Refinery at the company’s Sports Club.

“I think it’s fantastic that this kind of activities -that helps us

a lot- take place, because we get out of the house one day
of the week to do something new, something nice for senior
adults. It is rare that a company has programs intended for
us, which is why many people are amazed when we tell
them that ENAP gives us a benefit to practice gymnastics
and cares for the elderly.”
 ENAP 2012 | SUSTAINABILITY REPORT 119

FRANCISCA MUÑOZ MELO,

(BENEFICIARY OF BÍO BÍO REFINERY
SPORTS PROGRAMS)

Francisca is 12 years old, attends sixth grade at Colegio

Alonkura of Hualpén and lives in Población Patricio Aylwin.
She attends every Saturday the sports programs, especially
because there are her best friends and her younger brother
attends with her mother, who is an instructor.

“I find it very fun to come here, because we are distracted, I like

meeting my friends, play volleyball, rhythmic gymnastics and
the boys play football, but I prefer volleyball. The atmosphere
is fun, I like it very much. I share some time with my mom
and my brother.

I think it is very good to have the Refinery’s support. After

we finish the game, they give us a yogurt, milk, or an apple,
or something nutritious to recover our energy.

ENAP Bío Bío Marathon.

COMMUNITIES
CÉSAR MATAMALA QUIERO
(DIRECTOR OF ESCUELA
REPÚBLICA DEL PERÚ)
For the last five years, César Matamala Quiero has been Director
of Escuela Básica República del Perú, an establishment that
has nearly 400 students of Población El Triángulo of Hualpén,
a few steps from the Bio Bio Refinery.
“My management has always been improving the educational
process quality, and I have been lucky to have the support of
two companies which are linked to us; one of them is Enap
Bio Bio Refinery.
I believe that the company over time, through different people
and divisions, has been serving the demands of the school
in different areas. We are grateful for these attentions that,
are great opportunities for the children. Our students are
involved in sports clubs and use the company’s gym, and
they tell us what the refinery does for them. Anything they
do for my children is something that should be thanked and
is , in my opinion, somehow social responsibility”.
PATRICIA RIQUELME CAYUÁN
(INSTRUCTOR OF BÍO BÍO REFINERY
SPORTS PROGRAMS)
The story of Patricia Riquelme is surprising. She lived in a
precarious home, without drinking water nor light, but this
was not an obstacle to progress. She studied accounting
and today, being 46 years old, having a daughter and a
granddaughter, she is about to obtain a university degree
in law, which has not prevented her from completing her
tenth year as instructor of the sports programs, funded
by the refinery.
“I live in the Población Osvaldo Muñoz Carrasco, where I
have been a social leader for many years, and I know the
reality. The children, who are poor children at social risk,
need recreational activities to teach them ways of conduct
and behavior. For many of them it is difficult to integrate
themselves; with these programs they feel more free and
learn how to socialize with children of other areas, which
helps them in their individual development. In fact, we can
say that children from here have become professionals,
and as instructors we are very proud of it.”
 ENAP 2012 | SUSTAINABILITY REPORT 121

ENAP MAGALLANES COMMUNITY PROGRAMS

SO 1

Training in Magallanes

Enap Magallanes trained and certified 101 people from Puerto

Natales and Punta Arenas - 15 of them are members of the
Agrupación de Amigos de los Ciegos, (AGACI, Group of
Friends of the Blind) of Punta Arenas - after passing courses
of OS-10 Security Guards; IMO, required by the International
Maritime Organization and a course on Massage Techniques.

The program involved 500 hours of training and a contribution

of approximately 33 million pesos.

Educational Area

ENAP develops a plan to visit its operations in Magallanes

designed for university, institute and college students from
different parts of the region and the country.

The program’s goal is to visit company’s premises in order LUIS TRIÑANES, BLIND
to get to know and understand the work and activities
BENEFITED WITH A COURSE
that ENAP carries out in the area. The great interest of
communities in the hydrocarbon industry allows to share
ON MASSAGE TECHNIQUES,
technical and historical information with teachers, academics THROUGH TRAINING
and students.

“This is an important incentive that, thanks to companies

like ENAP, allows reaching out with flexibility to sectors and
social niches as specific to those who have visual disabilities.
This opens up new and better opportunities in the labor field
and I have seen how my teammates have been motivated
and encouraged to exercise this trade actively”.

‘This training has been unprecedented and we have felt

very motivated to work and integrate the workforce in this
area. Now we are planning to participate in a second stage,
where we can learn marketing issues and reach potential
users. With regard to technical issues, it was conducted
by a professional in the speciality and also disabled, who
was very close to us and adapted teaching to whom have
visual disabilities. He provided us materials, knowledge and
relevant practice.”

“I appreciate this opportunity from a personal point of view,

and on behalf of all those who may work professionally in
massage techniques.”
COMMUNITIES

been very significant for them. It was very helpful to us, the
ARTURO GODOY, DIRECTOR OF LICEO attention was very good, activities were very well planned.
POLITÉCNICO LUIS CRUZ MARTÍNEZ The teachers and I thank you for the dedication to us.”
OF PUERTO NATALES VISITED WITH
Camilo Catalan, student of 12th Grade “A”
30 STUDENTS AND TEACHERS OF METAL
“The visit to ENAP Magallanes’ facilities was very motivating.
STRUCTURES, THE FACILITIES OF LAREDO
I am grateful to all for this experience to classmates in our
COMPLEX. last year and to the students of our school.”

“As director, I am very grateful for the opportunity that ENAP For the student of 11th Grade “A”, Luisa Guerrero, this activity
provides through these activities. The visit has been very was a very rewarding experience “I never thought I would
successful, very profitable. It is a very interesting experience come here, it’s interesting because you learn more.”
for young people to learn new technologies and to know
ENAP. Of course they will then draw their own conclusions
and once we arrive and evaluate the visit, I hope it would have

Students from Magallanes at the Laredo Complex, Punta Arenas.

 ENAP 2012 | SUSTAINABILITY REPORT 123

ENAP SIPEC ECUADOR COMMUNITY PROGRAMS

SO 1

Community Relations in Ecuador are intended to build and Educational Area

strengthen friendship, mutual respect and cooperation with
the inhabitants in direct influence areas, through participation
in sustainable community development processes.
A systematic work has been developed with fishermen,
and 3D seismic projects have been conducted in the
INTRACAMPOS area.
Enap Ecuador supports schools and communities through
infrastructure improvements, training, equipment, furniture
and materials.
Program of Scholarships, University Degree Thesis and
Internship

ENAP Ecuador has developed a Community Plan that PERIOD MDC PBH TOTAL
includes social programs focused on Health, Education
Previous Scholarship Holders Period
and Community Development , with an investment of US$ 9 7 16
2011 - 2012.
821,582 for 2012 as detailed below.
New Scholarship Holders Period
4 3 7
2012-2013.
MEASURES FOR New Scholarship Holders With Hearing
AXIS US$ 1 0 1
PBH AND MDC FIELDS Disabilities of 48% period 2011-2012.
Dental Professional Service and Logistics, and
Health supplies, Medicines, Infrastructure, Logistics, 168,600 Enap SIPEC contributed to infrastructure improvement
Special Courses. of 24 poor schools in the eastern area of Ecuador. One of
them is the Escuela República de Chile, located in Cantón
Infrastructure, Training, school buses,
Education Equipment / Furniture, Textbooks, 256,250 La Joya de los Sachas, in Orellana province. The company
Scholarships. enabled the closing of the establishment perimeter, through
construction of a concrete and wire fence; the work engaged
Agroforestry project, Cocoa project marketing parents and teachers.
Community
and maintenance, Cattle Tracking, Monitoring
Development
of production projects, various support to the 396,732
and In compensation for the MDC 3 Expansion Project and
community, community easements on PBH
Strengthening
Field. its Power Transmission Line at Independencia, economic
TOTAL 821,582
resources were given to the Huamayacu 2 and Nueva
Esmeraldas schools, obtaining a delivery receipt record of
works, as a means of verification.
Health, Community Medicine

In the Health axis, Enap SIPEC delivers primary medical care

and medicines to the community, with emphasis on child
population, such as support to decrease morbidity indexes.

Training and health promoters training programs have been

implemented. Thanks to an agreement with the Operación
Sonrisa (Smile Operation) program, children with cleft lip
problems get access to surgery.

N° OF MEDICAL N° OF DENTAL
FIELDS ATTENTIONS TO ATTENTIONS TO
THE COMMUNITY THE COMMUNITY
PBH 334 218
MDC 548 344
Intracampos 2,906 1,650
TOTAL 3,788 2,212

Community Medicine at ENAP SIPEC.

COMMUNITIES

ENAP SIPEC ECUADOR

COMMUNITY /DISTRICT WORKS Sacha Inchi is n agroindustrial pilot project which encourages
communities to grow peanuts, typical fruit of the Amazon
Construction of a school classroom, sanitary with excellent nutritional properties. The crop is grown in a
Huamayacu 2
battery, water well with elevated tank.
hectare, for a period of two years, and is implemented jointly
Construction of a school classroom on the with the Yanacuqu Community Administration.
premises of the public school "Ciudad de
Nueva Esmeralda
Esmeraldas", inaugurated with the presence of
the Governor of Orellana, Ms. Rosario Cortés.
Community Training
Construction of a fence for the Computing Center,
Virgen del Carmen
delivery of ceramics for the community house.
A Community Training Center, located at the MDC Block Oil
Facilities Center Nursery, was created In 2012. Its attendees
Santa Rosa Delivery of 25 STHIL Brushcutters,
are families, teachers and students , who observe the waste
Construction of a drilled water well, electric management, composting and propagation of forest species
“10 de Agosto”
submersible pump, and repair of elevated processes. There are also gardening and fish farming, courses
concrete tank. A system administered by the and a breeding center for endangered species.
Water Council. Delivery of STHIL Brushcutters.

La Independencia Construction of a school classroom on the

(Proyecto LTE) premises of the public school "Atenas del Ecuador".
Pilot school kitchen garden at School
La Parker
Construction of the perimeter fence of School “Luis Urdaneta”
“República de Chile”.

ENAP supported the implementation of a pilot kitchen

Escuela “Luis Urdaneta” Arrangement of planters.
garden at “Luis Urdaneta” School, which was declared by
the Ministries of Education, Health and Environment, as a
Among important activities in the educational area, it is Healthy School and selected among the top eight schools
worth noting school backpacks delivery containing basic in the province of Orellana.
materials such as colored paint, markers, notebooks, books,
pencils, which helps for the school start, benefitting 1,231
children. Toothpaste and toothbrushes were also provided
to strengthen dental care in childhood.

Training in Performing Arts on the topic “Cuidemos nuestro

Planeta” (Let us care for our planet), through puppet shows,
were conducted at MDC Block schools. 269 children were
targeted.

Training in food processing and

agriculture
In the agricultural area, ENAP SIPEC supports communities
with development and community strengthening projects
and programs, based on training and with emphasis on
management before public and private institutions. The action
plan includes demonstration farm development projects, to
promote better agricultural practices and improve land use.

Enap SIPEC. School Kitchen Garden Pilot project.

 ENAP 2012 | SUSTAINABILITY REPORT 125

VOLUNTEERING

There are several voluntary organizations in ENAP founded Nº OF

ORGANIZATION ACTIVITIES CONDUCTED
and built by the workers themselves, covering various areas VOLUNTEERS
of activity, such as sports, culture and art, as well as social ENAP BÍO BÍO REFINERY
work and philanthropy.
Bío Refinery A campaign to collect clothing and food
Emergency for the 138 students of the school
Organized volunteer groups respond to service concerns Response Brigade 48 Callaqui in vulnerable conditions.
raised by its own members and develop their activities with with the support Delivered meals prepared by the workers
of other workers. with food collected at the school.
the company’s support and recognition.
Delivery of materials for the construction
Enap Petrox
3 of a gate for the community council of
Workers Union
Nº OF Población Patricio Aylwin.
ORGANIZATION ACTIVITIES CONDUCTED
VOLUNTEERS
Delivery of Christmas gifts (backpacks) to
Workers of Bío Bío
HEAD OFFICE 500 250 children of the neighborhoods close
Refinery
to Hualpén.
Founded on April 3, 1998. They belong
to the mixed vocal ensemble of workers Enap Magallanes
and former workers of ENAP, making the
following presentations: Concert at the Folk group formed by workers and their
Enap Magallanes
Parish Nuestra Señora de la Esperanza; 33 families, performing in Punta Arenas,
Folkloric Groups
Casa Pablo Neruda in Isla Negra; Cerro Sombrero, and Ancud.
Encounter "Los Coros le Cantan al Amor" A choir ormed by workers and friends of
ENAP Santiago
10 (The choirs sing to Love); and at the ENAP, who made presentations at the
Choir
Inauguration of the Country House at the following locations Regional Hospital of
Cultural Center Vicente Bianchi; Encounter Enap Magallanes Punta Arenas, Hogar del Niño Miraflores,
at the Casa del Escritor (Writer's House) in 18
Chamber Choir evening at Instituto Sagrada familia, Choir
Tribute to Pablo Neruda; Christmas Carols Encounter in Río Gallegos (Argentina),
at Fundación Las Rosas; Parish Nuestra Colegio Patagonia and Anniversary
Señora del Carmen, Lo Calvo School and evening of December 29th.
Parish Jesús Nazareno.
Consists of workers ENAP Magallanes,
ENAP ACONCAGUA REFINERY who supported families affected by a
It is formed by female workers of the flood in Punta Arenas; logistical support
Refinery, who conduct social and Women's Center 45 energy efficiency campaign, young
Women's Center 60 disabled; Christmas toy giveaway to
recreational activities for Fundación
Nuestros Hijos. kindergartens, fire company and shelter
for vulnerable children.
Sports activities in different disciplines,
with the participation of workers of the
Refinery and their families.
The School Olympics were organized for
students of the following educational
Sports Club 600
establishments:
María Goretti, Irma Salas, Oro Negro,
Puente Colmo, Tabolango, La Chacota,
Lidia, Irachet, Mantagua, República de
Francia and Maitencillo.
Folkloric Group formed by workers of
the Refinery, their families and friends,
participating in the Festival del Huaso de
Olmué (Olmué Huaso Festival), Teatro
Conjunto
55 Municipal de Valparaiso, Viña del Mar
Folklórico Maucó
Municipal Theatre, Students' Activities
Hall of Universidad Técnica Federico
Santa María (UTFSM), Municipality of
Concon, Municipality of Puchuncavì.

Maucó Folkloric Dance Group, Festival del Huaso.

 9 REPORT
PARAMETERS
AND GRI CONTENT
INDEX

Linares DAO Plant.

REPORT PARAMETERS AND GRI CONTENT INDEX

REPORT PARAMETERS
GRI 3.1 - 3.2 - 3.3

The current Sustainability Report covers ENAP’s economic, Nevertheless, financial results reported by ENAP include
environmental and social performance corresponding to the income provided by such companies and associates.
calendar year 2012, and it is the eighth consecutive report
the company publishes annually.

GRI 3.4
This document may be found in the company’s corporate
web site www.enap.cl. The seven previous sustainability
reports are also available at the website.
ENAP’s contact data, in order to request further information
or to make comments on the current Sustainability Report,
are as follows:
Gerencia de Seguridad, Salud, Medio Ambiente y Comunidades
Avenida Vitacura 2736, Piso 10
Las Condes/ Santiago de Chile
reportedesustentabilidad@enap.cl
Report’s Scope and Boundary
GRI 3.5
The process to define the report’s contents started at the
end of 2012 and considered the following instances:
• Internal survey to ENAP employees
• Recommendations from the external assurance provider
in the 2010 Sustainability Report
• Enquiry to ENAP corporate officers
• Acción RSE Report
• Analysis of written media coverage in 2012
Methodology
GRI 3.9
The methodology used to prepare the report is the GRI
Sustainability Reporting Guidelines Version 3.1, approved
in 2011.
The report takes into account supplementary indicators
for the hydrocarbon sector, included in the GRI Oil and Gas
Sector Supplement -O&GSS.
The report also includes, for the seventh consecutive year,
the United Nations Global Compact’s Communication on
Progress, related to progress made in implementing the
principles, to which ENAP adhered in 2006. The “Making
the Connection” tool, which is an orientation on GRI and
Global Compact joint reporting, was used for such purpose.
GRI 3.10
The current report does not restate information contained in
previous reports, except in those particular cases expressly
indicated.
GRI 3.11
The scope, coverage and assessment methods used in this
report do not show significant changes as compared to
previous terms reports.

GRI 3.6 ASSURANCE

ENAP’s Sustainability Report 2012 covers all business lines, GRI 3.13
subsidiaries and units of the holding in Chile and other
markets. Particularly, the report covers activities and the
For the fourth consecutive year, the information disclosed
performance of its Headquarters in Santiago, the Refining &
in this report has been subject to an external assurance
Commercialization, and Exploration & Production business
process carried out by PwC Chile.
lines in Chile, Argentina, Ecuador and Egypt.
The Annexes section includes the results of the assurance
Criteria taken into account to define boundary, were ENAP’s
process, which, according to the GRI 3.1 Guidelines and the
control and influence on the different entities, particularly
Sector Supplement for Oil and Natural Gas (OG) confirms
those in which the Company has direct control and influence
the Application Level A+ to the report.
on strategy, management and supervision.

GRI 3.7 - 3.8

Coverage on performance of companies and associates in
which ENAP has an interest, but does not act as operator
or controlling partner, was excluded.
 ENAP 2012 | SUSTAINABILITY REPORT 129

Interest as Identified by Stakeholders

GRI 4.17

SOURCE TOPICS IDENTIFIED ENAP'S RESPONSE

HEAD OFFICE
These expectations are considered in the process
Improve contents (31%) of identifying material issues in the editing
Reduce extension (30%) and design of the report. Content on safety is
Improve design (21%) broadened and included information on social
volunteering.
These expectations are considered in the process
of identifying material issues in the editing
Labor topics of interest.
and design of the report. Content on safety is
- Description of HR policies (staffing and salaries)
expanded and included information on social
- Quality of life and productivity
volunteering.
- labor climate in shifts
Approach in Human Resources management
- Investment in training.
is extended and include new subjects such as
ENAP Workers/ - Workers with disabilities
labor inclusion of the disabled in Ecuador and
Elctronic Survey investment amounts in training.
(241 answers)
General Information ENAP
- Feasibility of the company
It includes detailed data on financial strategy,
- International Quality Certifications
business sustainability and evaluation of
- Evaluation of suppliers
suppliers.
- Strengthening SMEs
- ENAP’s Strategic Value

It includes testimonies from representatives

Information to Communities
of the community, information about workers’
- Social Volunteer Work
social volunteering activities, and addresses
- Relationship with local authorities and conflict resolution
background on sensitive issues and local social
- Sensitive issues with communities spread in the media.
and environmental conflicts.

2011 Pending Challenges GRI indicators coverage

- 4.7 / 4.10 - training, experience and evaluations to Board of Directors in environmental,
social and economic performance
It includes information on investment in
- EC1 - breakdown of investment in communities
programs to communities.
- EN16/EN17 - direct and indirect GHG emissions
- EN20 - Other significant air emissions
- LA7 - More information on occupational diseases
PwC – External
Assurance CEO’s mandate to corporate managements to
Make the Report a permanent tool of management, as well as being a vehicle for external
identify KPIs related to GRI indicators, monitor
communication, strengthening internal capacity development.
performance and report to the Board of Directors.

Improve coverage of Oil Gas Sector Supplement Indicators For OG7 indicator, provides information on
- OG6 - Aconcagua Refinery vented hydrocarbons. Argentina and Ecuador.
- OG7 - Drilling Waste of Sipetrol Argentina and Ecuador. Coverage of OG10 and OG11 indicators is
- OG13 - Number of operational incidents: indicator information not reported improved.

It is suggested that the commitments include elements that relate to the Community ENAP committed to implement a system of
Relations. Corporate Community Relationship Management.
Acción RSE
Feedback 2012
Strengthen information regarding contractors, a topic largely developed in extraction It includes partial information about contract
Sustainability
companies in the industry. workers.
Report Award

Enhance Glossary and Acronyms. It extends Glossary and Acronyms description.

REPORT PARAMETERS AND GRI CONTENT INDEX

GRI CONTENT INDEX

GRI 3.12

GRI CONTENT INDEX AND GLOBAL COMPACT COMMUNICATION OF PROGRESS

GLOBAL GLOBAL
GRI CODE INDICATOR DESCRIPTION COMPACT PAGE GRI CODE INDICATOR DESCRIPTION COMPACT PAGE
PRINCIPLE PRINCIPLE

STRATEGY AND ANALYSIS Processes in place for the highest governance body to ensure
4.6 33
conflicts of interest are avoided
1.1 Statement from the CEO 4, 5
Qualifications and expertise required to the members of
1.2 ENAP's Sustainability Strategy 6 - 11 the highest governance body and its committees to be able
4.7 32
to conduct the company's strategy in social, environmental
COMPANY PROFILE
and economic aspects
2.1 Company name Cover, 14
4.8 Statements of mission or values, codes of conduct, and principles 40
2.2 Products and services 56
Procedures of the highest governance body for overseeing the
Operational structure of the organization, including main organization’s identification and management of economic,
14, 15, 22, 4.9 environmental, and social performance, including relevant 33
2.3 divisions, operating companies, subsidiaries, and joint ventures.
24, 25, 35 risks and opportunities, and adherence or compliance with
Organization chart of the company
internationally agreed standards, codes of conduct, and principles
2.4 Location of organization’s headquarters 14, 15
Processes for evaluating the highest governance body’s
2.5 Countries where the company operates 14, 15, 22 4.10 own performance, particularly with respect to economic, 32
environmental, and social performance
2.6 Nature of ownership and legal form. 14
Aspect Commitments to External Initiatives
2.7 Markets served 52, 53
Explanation of whether and how the precautionary approach
2.8 Scale of the reporting organization 14 4.11 44
or principle is addressed by the organization
Significant changes during the reporting period regarding Externally developed economic, environmental, and social
2.9 28
size, structure, or ownership 4.12 charters, principles, or other initiatives to which the organization 44, 45
subscribes or endorses
2.10 Awards received in the reporting period 48
4.13 Memberships in associations 46
REPORT PARAMETERS
Aspect Stakeholder Engagement
Aspect Report Profile
4.14 List of stakeholder groups engaged by the organization 47
3.1 Reporting Period 128
Basis for identification and selection of stakeholders with
3.2 Date of most recent previous report 128 4.15 47
whom to engage
3.3 Reporting cycle 128
4.16 Approaches to stakeholder engagement 47, 55, 63
3.4 Contact point for questions regarding the report or its contents 128
Key topics and concerns that have been raised through
Aspect Report Scope and Boundary stakeholder engagement, and how the organization has
4.17 129
responded to those key topics and concerns, including
3.5 Process for defining report content 128 through its reporting

3.6 Boundary of the report 128 ECONOMIC PERFORMANCE

3.7 Limitations on the scope and boundary of the report 128 Aspect Economic Performance

3.8 Basis for reporting on joint ventures 128 EC1 Direct economic value generated and distributed 65

3.9 Data measurement techniques and the bases of calculations 128 Financial implications and other risks and opportunities for
EC2 7 7
the organization’s activities due to climate change
Explanation of the effect of any re-statements of information
3.10 128
EC3 Coverage of the organization’s defined benefit plan obligations 67
provided in earlier reports

Significant changes from previous reporting periods in the EC4 Significant financial assistance received from government 67
3.11 128
scope, boundary, or measurement methods applied in the report
Aspect Market Presence
Aspect GRI Content Index
Range of ratios of standard entry level wage compared to
EC5 1 67
3.12 GRI content index and its relation with the Global Compact. 130 - 132 local minimum wage

Aspect Assurance EC6 Policy and practices related to locally-based suppliers 68

3.13 External Assurance 128 EC7 Procedures for local hiring 6 68

GOVERNANCE, COMMITMENTS, AND ENGAGEMENT Aspect Indirect Economic Impacts

Aspect Governance Infrastructure investments and services provided primarily

EC8 69
for public benefit
4.1 Governance structure of the organization 32, 110
EC9 Significant indirect economic impacts and their extent 69
Indicate whether the Chair of the highest governance body
4.2 32
Aspect Reserves
is also an executive officer

4.3 Independent and/or non-executive members of the Board 32 OG1 Volume and type of estimated proved reserves and production 20

Mechanisms for employees to provide recommendations or ENVIRONMENTAL PERFORMANCE

4.4 32
direction to the highest governance body
Aspect Materials
Linkage between compensation for members of the highest
4.5 governance body, senior managers, and executives, and the 38 EN1 Materials used by weight or volume 8 91
organization’s performance
 ENAP 2012 | SUSTAINABILITY REPORT 131

TABLA INDICADORES GRI Y COMUNICACIÓN DE PROGRESO DEL PACTO GLOBAL

GLOBAL GLOBAL
GRI CODE INDICATOR DESCRIPTION COMPACT PAGE GRI CODE INDICATOR DESCRIPTION COMPACT PAGE
PRINCIPLE PRINCIPLE

EN2 Percentage of materials used that are recycled input materials 8y9 91 Aspect Products and Services

Aspect Energy Initiatives to mitigate environmental impacts of products and

EN26 7, 8 y 9 58
services, and extent of impact mitigation
EN3 Direct energy consumption by primary energy source 8 92
OG8 Benzene, lead and sulfur content in fuels 58
OG2 Total amount invested in renewable energy 94
Percentage of products sold and their packaging materials
OG3 Total amount of renewable energy generated by source 94 EN27 8y9 57, 59
that are reclaimed by category
EN4 Indirect energy consumption by primary source 8 93 Aspect Compliance
EN5 Energy saved due to conservation and efficiency improvements 8y9 94 Monetary value of significant fines and total number of non-
EN28 monetary sanctions for noncompliance with environmental 8 106
Initiatives to provide energy-efficient or renewable energy based
laws and regulations
EN6 products and services, and reductions in energy requirements 8y9 21, 24
as a result of these initiatives Aspect Transport
Initiatives to reduce indirect energy consumption and Significant environmental impacts of transporting products and
EN7 8y9 94
reductions achieved EN29 other goods and materials used for the organization’s operations, 8 108
and transporting members of the workforce
Aspect Water
Aspect Overall
EN8 Total water withdrawal by source 8 95
Total environmental protection expenditures and investments
EN9 Water sources significantly affected by withdrawal of water 8 95 EN30 7, 8 y 9 109
by type
EN10 Percentage and total volume of water recycled and reused 8y9 95
LABOR PRACTICES AND DECENT WORK
Aspect Biodiversity
Aspect Employment
Location and size of land owned, leased, managed in, or
Total workforce by employment type, employment contract,
EN11 adjacent to, protected areas and areas of high biodiversity 8 97 LA1 72
and region
value outside protected areas
Total number and rate of new employee hires and employee
Description of significant impacts of activities, products, and LA2 6 73
EN12 8 96 turnover by age group, gender, and region.
services on biodiversity
LA3 Benefits provided to full-time employees 73
EN13 Habitats protected or restored 8 98
LA15 Return to work and retention rates after parental leave, by gender 73
Strategies, current actions, and future plans for managing
EN14 8 96
impacts on biodiversity Aspect Labor/Management Relations
Number and percentage of significant operating sites in which Percentage of employees covered by collective bargaining
OG4 95 LA4 1y3 74
biodiversity risk has been assessed and monitored agreements
Number of IUCN Red List species and national conservation LA5 Minimum notice period(s) regarding operational changes 3 75
EN15 list species with habitats in areas affected by operations, by 8 96
level of extinction risk Aspect Occupational Health and Safety

Aspect Emissions, Effluents, and Waste Percentage of total workforce represented in formal joint
LA6 1 88
management–worker health and safety committees
EN16 Total direct and indirect greenhouse gas emissions by weight 8 100
Rates of injury, occupational diseases, lost days, and absenteeism,
EN17 Other relevant indirect greenhouse gas emissions by weight 8 100 LA7 1 85
and total number of work-related fatalities
Initiatives to reduce greenhouse gas emissions and reductions Education, training, counseling, prevention, and risk-control
EN18 7, 8 y 9 24, 100 LA8 1 88
achieved programs in place
EN19 Emissions of ozone-depleting substances by weight 8 100 Health and safety topics covered in formal agreements with
LA9 1 75
trade unions.
EN20 NO, SO, and other significant air emissions by type and weight 8 100
Aspect Training and Education
OG5 Volume and disposal of formation or produced water 96
LA10 Average hours of training per year per employee 76
EN21 Total water discharge by quality and destination. 8 102
LA11 Programs for skills management and continuous learning. 77
EN22 Total weight of waste by type and disposal method 8 104
Percentage of employees receiving regular performance and
EN23 Total number and volume of significant spills 8 102 LA12 77
career development reviews
OG6 Volume of flared and vented hydrocarbon 100, 101
Aspect Diversity and Equal Opportunity
Amount of drilling waste (drill mud and cuttings) and strategies
OG7 105 Composition of governance bodies and breakdown of employees
for treatment and disposal
LA13 per employee category according to gender, age group, minority 1y6 78
Weight of transported, imported, exported, or treated group membership, and other indicators of diversity
EN24 waste deemed hazardous under the terms of the Basel 8 104
Aspect Equal Remuneration for Men and Women
Convention
Ratio of basic salary and remuneration of women to men by
Identity, size, protected status, and biodiversity value of LA14 1y6 78
employee category
EN25 water bodies and related habitats significantly affected by 8 102
the reporting organization’s discharges of water and runoff
REPORT PARAMETERS AND GRI CONTENT INDEX

TABLA INDICADORES GRI Y COMUNICACIÓN DE PROGRESO DEL PACTO GLOBAL

GLOBAL GLOBAL
GRI CODE INDICATOR DESCRIPTION COMPACT PAGE GRI CODE INDICATOR DESCRIPTION COMPACT PAGE
PRINCIPLE PRINCIPLE

HUMAN RIGHTS Number of sites that have been decommissioned and sites 29, 112,
OG11
that are in the process of being decommissioned 113
Aspect Investment and Procurement Practices
Aspect Corruption
Percentage and total number of significant investment
agreements and contracts that include clauses incorporating 1, 2, 3, 4, Percentage and total number of business units analyzed for
HR1 41 SO2 10 41
human rights concerns, or that have undergone human 5y6 risks related to corruption
rights screening
Percentage of employees trained in organization’s anti-
SO3 10 41
Percentage of significant suppliers, contractors, and other corruption policies and procedures
1, 2, 3, 4,
HR2 business partners that have undergone human rights screening, 41, 68
5y6 SO4 Actions taken in response to incidents of corruption 10 41
and actions taken

Total hours of employee training on policies and procedures 1, 2, 3, 4, Aspect Public Policy
HR3 77
concerning aspects of human rights that are relevant to operations 5y6
Public policy positions and participation in public policy
SO5 10 46
Aspect Non-Discrimination development and lobbying

Total number of incidents of discrimination and corrective Total value of financial and in-kind contributions to political
HR4 1, 2 y 6 41 SO6 10 46
actions taken parties, politicians, and related institutions

Aspect Freedom of Association and Collective Bargaining Aspect Anti-Competitive Behavior

Operations and significant suppliers identified in which the right Total number of legal actions for anticompetitive behavior,
SO7 55
HR5 to exercise freedom of association and collective bargaining 1, 2 y 3 75 anti-trust, and monopoly practices and their outcomes
may be violated or at significant risk
Aspect Compliance
Aspect Child Labor
Monetary value of significant fines and total number of non-
SO8 80, 81
Operations and significant suppliers identified as having monetary sanctions for noncompliance with laws and regulations
HR6 significant risk for incidents of child labor, and measures 1, 2 y 5 80
Aspect Involuntary Resettlement
taken to contribute to the effective abolition of child labor
OG12 Operations where involuntary resettlement took place 112
Aspect Forced and Compulsory Labor
Aspect Asset Integrity and Process Safety
Operations and significant suppliers identified as having
significant risk for incidents of forced or compulsory labor, OG13 Number of process safety events 86
HR7 1, 2 y 4 80
and measures to contribute to the elimination of all forms of
forced or compulsory labor PRODUCT RESPONSIBILITY

Aspect Security Practices Aspect Customer Health and Safety

Percentage of security personnel trained in the organization’s Life cycle stages in which health and safety impacts of products
PR1 1 57
HR8 policies or procedures concerning aspects of human rights 1y2 77 and services are assessed
that are relevant to operations
Total number of incidents of non-compliance with regulations
Aspect Indigenous Rights PR2 and voluntary codes concerning health and safety impacts of 1 59
products and services during their life cycle
Total number of incidents of violations involving rights of
HR9 1y2 112
indigenous people and actions taken Aspect Product and Service Labeling

Operations where indigenous communities are present PR3 Type of product and service information required by procedures 8 59
OG9 or affected by activities and where specific engagement 112
strategies are in place Total number of incidents of non-compliance with regulations
PR4 and voluntary codes concerning product and service information 8 55
Aspect Assessment and labeling

Percentage and total number of operations that have been PR5 Practices related to customer satisfaction 55
HR10 41
subject to human rights reviews and/or impact assessments
Aspect Marketing Communications
Aspect Remediation
PR6 Marketing communications 55
Number of grievances related to human rights filed, addressed
HR11 41 Total number of incidents of non-compliance with regulations
and resolved through formal grievance mechanisms PR7 55
and voluntary codes concerning marketing communications
SOCIETY
Aspect Customer Privacy
Aspect Local Communities
Total number of substantiated complaints regarding breaches
110, 112,
PR8 1 55
of customer privacy
Percentage of operations with implemented local community 113, 114,
SO1
engagement, impact assessments, and development programs 117, 121, Aspect Compliance
123
Monetary value of significant fines for noncompliance with
Operations with significant potential or actual negative impacts PR9 laws and regulations concerning the provision and use of 59
SO9 112
on local communities. products and services
Prevention and mitigation measures implemented in operations Aspect Fossil Fuel Substitutes
SO10 with significant potential or actual negative impacts on local 112
communities Volume of biofuels produced, purchased and sold meeting
OG14 56
sustainability criteria
Number and description of significant disputes with local
OG10 113
communities and indigenous peoples
 ANNEXES

Enap Magallanes drilling rig.

ACRONYMS

ACRONYMS

ALARP As Low As Reasonably Practicable.

APL Acuerdo de Producción Limpia (Clean Production Agreement).

Asociación Regional de Empresas del Sector Petróleo, Gas

y Biocombustibles en Latinoamérica y el Caribe. (Regional
ARPEL
Association of Oil, Gas And Biofuels Sector Companies In Latin
America And The Caribbean)

CCC Central de Ciclo Combinado.

Contratos Especiales de Operaciones Petroleras (Special

CEOP
Contracts Petroleum Operations)
Comité de Inversiones en Empresas Relacionadas de ENAP.
CIER
(Committee on Investments in ENAP Related Companies)

COREMA Comisión Regional del Medio Ambiente.

CORFO Corporación de Fomento de la Producción.

Dirección de Almacenamiento y Oleoducto (Department of

DAO
Storage and Pipelines)

EIS Environmental Impact Statement.

E&P Exploration and Production.

ERA Enap Refinerías Aconcagua.

NCRE Non-Conventional Renewable Energy.

Federación Nacional de Trabajadores del Petróleo y Afines de

FENATRAPECH
Chile.

GHG Greenhouse Gases.

HSEC Health, Safety, Environment and Communities.

LPG Liquefied Petroleum Gas.

MDC Mauro Dávalos Cordero.

OECD Organization for Economic Cooperation and Development.

PM Particulate Matter.

PDH Paraíso-Biguno-Huachito.

PC Planta Cogeneradora.

Resolución de Calificación Ambiental (Environmental

RCA
Qualification Resolution)

RIL Residuo Industrial Líquido (Liquid Industrial Waste)

Servicio de Evaluación Ambiental (Environmental Assessment

SEA
Service)
Sistema de Evaluación de Impacto Ambiental (System of
SEIA
Environmental Impact Assessment)
Servicio Nacional de Capacitación y Empleo (National Training
SENCE
and Employment Service)

SONAMI Sociedad Nacional de Minería (National Mining Association)

SOFOFA Sociedad de Fomento Fabril.

VOC Volatile Organic Compounds. Wildlife of Chilean Patagonia.


GLOSSARY
Formation water:
Also called production water. It is associated with existing
oil fields and rises to the surface along with the gas and oil.
Fuel Oil (FO):
Fuel derived from the crude oil. It is used in refinery, in furnaces
and boilers, according to an economic and environmental
balance. Typically it is the first one that enters the system
due to its lower price, but assuring not to exceed the limits
of SOx emission, Lower Heating Value (LHV): 37 MMBtu/ton.
Gas lift (methane):
Gas injected to producing wells to enable oil extraction.
Liquefied Petroleum Gas (LPG):
Fuel used in refining as a supplement to refinery fuel gas.
In the absence of NG, is typically the first product that
enters the system due to its lower sulfur content, but more
expensive than NG or fuel oil. Lower Heating Value (LHV)
104 MBtu/m3.
Natural Gas:
Gaseous hydrocarbon that has 95% methane, with very
good combustion properties for furnaces and boilers. This
fuel is homogenized with refinery fuel gas and liquefied
petroleum gas supplement, before being distributed and
consumed in process furnaces and boilers. Lower Heating
Value (LHV): 33,000 Btu/m3.
Tierra del Fuego, Twelfth Region.
ENAP 2012 | SUSTAINABILITY REPORT 135
Raw Product:
Condensate in the production of gas used to obtain propane,
butane and natural gasoline.
Drilling waste:
Drilling waste are specific to the oil industry, and are generated
and handled in large quantities. They are composed of mud
and rock debris. Muds consisting mainly of water and a clay
called bentonite.
Block sale:
Corresponds to the results obtained by selling a certain oil
operations, which in the income statement are classified
under the “Profit (loss) from discontinued operations”.
Economic value retained:
Corresponds to the net economic value generated (earnings)
less the economic value distributed, corresponding to operating
costs, employee expenses, community, environment and
selling of block, plus tax, given that in both years there is a
positive effect due to accumulated losses from previous years.
VERIFICATION REPORT

(A free translation from the original prepared in Spanish.)

Santiago, July 19, 2013

Messrs. Shareholders and Directors

Empresa Nacional del Petróleo (ENAP)

Independent Professionals Report

We have reviewed the 2012 Sustainability Report of ENAP, for the year finalized on December 31,
2012. ENAP management is responsible for the 2012 Sustainability Report.

Our review was performed in accordance with the attestation work standards established by the
Chilean Accountants School. A review is substantially less in scope than an exam, the objective of
which is the expression of an opinion regarding the 2012 Sustainability Report. Accordingly, we
do not express such an opinion.

Within the scope of our review work previously described, we performed the following
procedures, among others, on a sample testing basis:
 Update our understanding of internal controls,
 Interviews with different officials responsible for the information in the 2012 Sustainability
Report,
 Verification, based on testing, that the data included in the 2012 Sustainability Report is
consistent with the documentary evidence reviewed and/or comes from verifiable supporting
information sources,
 Verification that the financial information included in the 2012 Sustainability Report is
derived from audited financial statements as of December 31, 2012.

Based on our review we are not aware that the 2012 Sustainability Report of ENAP, for the year
finalized on December 31, 2012, is not presented in all its material aspects in accordance with the
sustainability reporting guidelines G3.1 of the Global Reporting Initiative (GRI G3.1), the oil and
gas sector supplement and the application level A+ requirements of the mentioned guidelines.

Mathieu Vallart

PricewaterhouseCoopers, Av. Andrés Bello 2711 – Pisos 2, 3, 4 y 5, Las Condes – Santiago, Chile
RUT: 81.513.400-1 – Teléfono: (56) (2) 940 0000 – www.pwc.cl
DOMICILE
Avenida Vitacura 2736, Piso 10
Las Condes, Santiago de Chile

TELEPHONE
(56-2) 2280 3000

P.O. BOX
3556 Santiago de Chile

ZIP CODE
7550597

WEB SITE
www.enap.cl

TAX ID. No.

92.604.000-6

MAIN SUBSIDIARIES

Enap Refinerías S.A.

Tax Id. No.: 87.756.500-9

Enap Sipetrol S.A.

Tax Id. No.: 96.579.730-0

www.enap.cl