Argentina: Pan American Energy-01

Date Filed
22 Sep 2020
Status
Open
Phase
Compliance
Country
Argentina

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Compliance
Appraisal
Status as of September 03, 2021
CURRENT Status
Appraisal (COMPLIANCE)
Status as of September 03, 2021

Complaint Overview

Complainant

A former worker of one of PAE’s former contractors, on behalf of himself and other former workers.

Concerns

Unfair dismissal, lack of compensation and inability to work.

Cross-Cutting Issues
Labor

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
Pan American Energy (PAE) 36146; 42169
Company
Pan American Energy (PAE)
Sector
Mining, Oil, Gas and Chemicals
Department
Other
Category
B
Commitment

$400 million (#36146); $400 million (#42169)

Synopsis

Project Overview

In 2015, IFC made an investment of USD 100 million for its account and mobilized up to USD 300 million in B Loan and Parallel Loans to partially fund PAE’s 2015/2016 capital expenditure program. The investment was made to further develop PAE’s oil and gas assets in the Cerro Dragón block in the Golfo San Jorge Basin, in the Lindero Atravesado block, and in the Neuquén Basin. The engagement encompassed activities related to drilling, secondary recovery, facility expansions, improvements, and parts of the 2015/2016 investment program to support increased oil and gas production (IFC Project #36146).

In 2019, IFC made an additional investment in PAE comprising of an A Loan of up to USD 100 million and a B Loan of USD 300 million to complete PAE’s ongoing multi-year refinery upgrade program of the Campana Refinery, specifically to continue increasing the production of refined products,  producing additional higher value and cleaner burning fuels, and reducing Refinery air emissions (IFC Project #42169).

Complaint

The complaint was submitted to CAO on September 22, 2020, by a former worker of one of PAE’s former contractors, on behalf of himself and other former workers. The complaint raises concerns related to labor issues such as unfair dismissal, lack of compensation, and inability to work in the region. The concerns are raised in connection with PAE’s upstream activities in Cerro Dragón, Comodoro Rivadavia, in the Province of Chubut, Argentina.

CAO Action

CAO found the complaint eligible for further assessment in December 2020. The assessment was completed in September 2021. As the parties did not reach a consensus regarding participating in a dispute resolution process, the case has been referred to Compliance.

Status

The assessment of the case has been completed. The case has now been referred to Compliance.

 

Status as of November 4, 2021

Dispute Resolution

  • ASSESSMENT

    Complaint
    Letter of Complaint - Argentina PAE
    Sep 21, 2020
    English
    Letter of Complaint - Argentina PAE
    CAO Assessment Reports
    Assessment Report - Argentina Pan American Energy (PAE)
    Jul 20, 2021
    English
    Assessment Report - Argentina Pan American Energy (PAE)
    Informe de evaluación - Argentina Pan American Energy (PAE)
    Jul 20, 2021
    español
    Informe de evaluación - Argentina Pan American Energy (PAE)
    IFC Response
    IFC's Response to CAO Assessment Report - Argentina Pan American Energy (PAE)
    Aug 05, 2021
    English
    IFC's Response to CAO Assessment Report - Argentina Pan American Energy (PAE)