Benefits of Locality Management in the Context of Hydrocarbon Development: A Journey Towards Sustainable Development in the Gulf of Paria, Venezuela

Abstract

Abstract ConocoPhillips has partnered with Corporacion Venezolana de Petroleo (CVP), Eni Venezuela B.V and OPIC Karimun Corporation to develop hydrocarbon reserves in the Gulf of Paria West (GOPW), in northeastern Venezuela. First oil is expected in 2006 with an estimated initial production of 55,000 barrels of oil per day. Located at the convergence of the Caribbean Sea and Orinoco River system, the Gulf of Paria (GOP) is a socio-economically complex, ecologically sensitive, and internationally significant region. ConocoPhillips has developed an innovative Locality Management Strategy (LMS) to minimize the risks of development and maximize potential benefits of hydrocarbon development. The LMS integrates environmental, social, and economic programs with input obtained from a continuing dialogue with local, national and international stakeholders. This paper will highlight the benefits of implementing a sustainable development strategy throughout all phases of hydrocarbon development in sensitive environments. To date the LMS has enabled ConocoPhillips to anticipate project sensitivities and proactively work with stakeholders while also meeting Company business. Partners have been identified to leverage socioeconomic, environmental and operational programs in the region. Since 2000 and in partnership with non-government organizations, more than 6,000 man-hours have been invested in building human capacity in communities closest to the projects. In collaboration with international and national organizations, a local biodiversity conservation plan is being developed, and-through skill development, training and employment opportunities-the company is encouraging the creation of a community organization that will maximize benefits from certain aspects of operations. Based on continuous stakeholder consultation, the LMS continues to evolve and provide opportunities to leverage project benefits to the local, national and international project stakeholders.