SPE-199429-MS

Road to the Blue Certificate for a Production Activity in the Peruvian

Amazon. Committed to Responsible Water Management.

Carlos Ahumada Morales, Fernando Gutierrez Mesías, and Ruth Celina Zorrilla Salazar, Repsol Exploración Perú

Copyright 2020, Society of Petroleum Engineers

This paper was prepared for presentation at the SPE International Conference and Exhibition on Health, Safety, Environment, and Sustainability originally scheduled
to be held in Bogota, Colombia, 17 – 19 March 2020. Due to COVID-19 the physical event was postponed until 27 – 31 July 2020 and was changed to a virtual event.
The official proceedings were published online on 20 July 2020.

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Abstract
Repsol Exploración Perú (Repsol E&P), in accordance with its environmental strategic lines for E&P, has
been developing a plan to become certified as a responsible water user in its operations in Block 57. The
certification is a recognition granted by the State (National Water Authority - ANA) through a seal or mark
called "Blue Certificate".
To obtain the certificate it is necessary to comply with 3 steps:

• Assessment of the Water Footprint

• Reduction of Water Footprint.

• Development of a shared value project.

By obtaining the Blue Certificate contributes to the sustainability of the business, relationships with key
stakeholders such as the State and the communities in the area of influence are maintained and improved.
It also manages to optimize the processes that demand water resources in the operations; at the same time,
the company is positioned within the sustainable business on water issues in the country.

Introduction
As part of the actions to obtain the Blue Certificate, Repsol E&P defined as their main objective to analyze
the water footprint of the annual production of natural gas in Block 57; for this purpose we have prepared
the Water Footprint report, which is done as a company effort to know the impacts and water consumption
associated with the annual production of natural gas in the Block.
Based on the results (water consumption and impacts), Repsol E&P intends to: i) implement actions
within the unit to reduce its water footprint and; ii) develop water value-sharing projects to compensate and
mitigate their water impacts.
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These results are very important for the Senior Executives, because they can be used in decision making.
This tool for the efficient management of the water resource will be used by the collaborators for the
implementation of actions to reduce the impacts generated in the operations in the Block 57.

Study Area
The study area is located in the Urubamba river basin, in the forests of the low jungle of southern Peru.
Politically, it is located in the district of Megantoni, province of La Convención, department of Cusco.
The block 57 is located in an area of high biodiversity and overlaps the buffer zone of the Machiguenga
Communal Reserve.
Block 57 includes the following projects:
– Development Project of the South Area of the Kinteroni Field:
Transport of multiphase flow (gas / liquid) from the production platform of the Kinteroni field, through
a flow line of 14.5 km with a diameter of 16″, to the facilities of the New World Location (Section I)
– Sagari Field Development Project
The integral scheme of the process consists in the conduction of multiphase fluid from the production
facilities in Sagari BX (Unit 120), by means of an (01) flow line (Unit 220) of 8′ with 8 km in length, up to
production facilities in Sagari AX (Unit 110); and from the production facilities in Sagari AX (Unit 110),
through a (01) 14′ flow line (Unit 210) with a length of 10.7 km, to the existing facilities in the Kinteroni
Location (Unit 100).
From the Kinteroni Location (Unit 100), the joint production is sent first to Nuevo Mundo and then to
the Malvinas Plant (operated by Pluspetrol) for final processing.
For the purposes of the study, the following locations have been considered:
– Sagari BX
– Sagari AX
– Kinteroni
– CV 6 + 800
– Nuevo Mundo Operating Base Camp

Methods
To obtain the certificate it is necessary to comply with 3 steps:
1. Assessment of the Water Footprint: Measurement of the footprint applying the, ISO 14046:2014
–Water Footprint – Principles, Requeriments and Guidelines, methodology in order to obtain
scientifically and technically valid results, guarantee the transparency and consistency of the results.
In 2019, work has been done on the measurement of the water footprint of the operations of
Block 57. The methodology used in the analysis of the water footprint was carried out in accordance
with the provisions of ISO 14046:2014 water footprint, it involves water accounting in production
processes (analysis of the water footprint inventory), the evaluation of the challenges caused by the
water footprint and the interpretation of the results. Its methodological approach is based on the life
cycle analysis (LCA) applied to water use, calculating its consumption and quality alteration in the
value chain of a product or service, process or organization, in addition to the potential challenges in
the human health and the quality of ecosystems.
The results will be subsequently verified by an external review entity accredited by the ANA.
SPE-199429-MS 3

This report also represents a baseline that serves as a reference for the water footprint assessment
in Block 57 in subsequent years and compare the results of the reduction of the water footprint
(improvement opportunities, improvement record, etc.).
2. Reduction Plan of Water Footprint: The reduction plan includes actions that are expressed with
verifiable indicators and are based on the reduction of direct and indirect use of water.
We are currently in the evaluation of alternatives among which are:
– Flow meters installation.
– Wastewater Treatment Plant installation in Kinteroni.
3. Development of a water value sharing project: The purpose of the shared value program is to
implement actions to improve the management of water resources in a basin in the area of influence
of operations. They are expected to generate a positive impact in the communities near the operations:
improve the availability, accessibility and quality of water resources, rural sanitation, watershed
protection and / or ecosystem conservation, among others.
For the shared value program, the Protection / Restoration of Water Ecosystems is considered: Ecological
and Participatory Restoration of Exploratory Platforms.
That project is accepted because water production is sustained by the vegetation cover of the basin,
therefore a cover with forests or grasslands produces an adequate hydrological response in terms of quality
and quantity of water because it reduces the erosive processes generated by rainfall and increasing retention
time of water in the soil, which favors the infiltration and recharge of the basin.

Limitations.
The results presented are limited to the objectives and scope. Some of the limitations in the results presented
are:
– In the analysis of indirect consumption, the degree of uncertainty of the selected processes is medium,
because the production process used as a reference (Ecoinvent / Quantis Dataset) is not unique to
Peru. Regionalization factors have been used to adapt them.
– For the selection of inputs in the supply chain, the "allocation by importance of percentage in costs"
has been carried out, which considers the quantity of products by unit cost, only those that exceed
2% of importance are considered in the calculation matrix.
– The main limitations in the data quality of the study are related to the high degree of uncertainty in the
geographical representativeness of the database processes. For example, diesel is obtained in Peru,
the process of the database used as a reference for estimating water consumption by diesel is from
Europe, that is, the conditions of diesel production in Europe are not the same as those of the origin.
– The study of water footprint is not enough to describe global environmental impacts (for example,
carbon footprint impacts).

Results
The results obtained of the assessment water footprint were:
– Consumed Water. The water footprint analysis has determined that for the annual production of
60,872.33 MMscf (Millions of standard cubic feet) in Block 57 during 2018, 40,935.07 m3 of water
are consumed.
○ 42.80% of the water consumed comes from direct use. The most important consumptions in this
category are related to the consumption of water by road irrigation (85%), water used in fire
protection system (5%) and water used in Sagari AX (4%).
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○ 2.20% of water consumption comes from the use of raw material in the supply chain. The most
important consumption in this category is mainly represented by the consumption of Becorín
(96%).
○ 54.99% of water consumption comes from indirect use of energy and fuel. The most important
consumptions in this category are related to the consumption of natural gas (71%), Turbo A1
(10%) and Diesel B5 (10%).
– AWARE footprint (Available Water Remaining). AWARE is used as a water use midpoint indicator
representing the relative Available WAter REmaining per area in a watershed, after the demand of
humans and aquatic ecosystems has been met. It assesses the potential of water deprivation, to either
humans or ecosystems, building on the assumption that the less water remaining available per area,
the more likely another user will be deprived (Boulay et al., 2016, submitted).
It is first calculated as the water Availability Minus the Demand (AMD) of humans and aquatic
ecosystems and is relative to the area (m3 m-2 month-1). In a second step, the value is normalized
with the world average result (AMD = 0.0136m3m-2 month-1) and inverted, and hence represents
the relative value in comparison with the average m3 consumed in the world (the world average
is calculated as a consumption-weighted average). Once inverted, 1/AMD can be interpreted as a
surface-time equivalent to generate unused water in this region. The indicator is limited to a range
from 0.1 to 100, with a value of 1 corresponding to the world average, and a value of 10, for example,
representing a region where there is 10 times less available water remaining per area than the world
average.
The water footprint assessment has determined that Block 57 operated by Repsol E&P, located in
the department of Cuzco, has an AWARE indicator of 0.3 and in 2018 the AWARE scarcity footprint
was 12,280.52 m3 equivalent.
○ 42.80% of the impact is associated with direct use, the direct consumption of 17,521.13 m3 is
equivalent to consuming 5,256.34 m3 in the world.
○ 2.20% of the impact is associated with the supply chain, supply chain consumption of 901.77
m3 is equivalent to consuming 270.53 m3 of water in the world.
○ 54.99% of the impact is associated with energy and fuel. The energy and fuel consumption of
22,512.17 m3 is equivalent to consuming 6,753.65 m3 of water in the world
– Potential impact on Human Health. The water footprint analysis has determined that the production
of natural gas in Block 57 during 2018 has a potential impact on human health of 3.82 DALY.
49% of the impact generated is associated with potential impacts on malnutrition due to reduced
water availability and 51% is associated with potential health impacts due to toxicity.
In terms of origin, the highest incidence corresponds to indirect energy and fuel consumption with
76.10%, direct use represents 21.12% and the supply chain represents 2.78% of the potential impact
on human health.
– Potential impact on the Ecosystems quality. The water footprint analysis has determined that the
production of natural gas in lot 57 during 2018 has a potential impact on ecosystems of 134,628.24
PDF-m2-y. 96% is associated with impacts due to quality alteration and 4% of the impact is related
to reduced water availability. In relation to the origin, 1.67% of the potential impact on the ecosystem
is produced by direct use of water, 2.00% is produced by indirect consumption in the supply chain
and 96.33% by indirect consumption in energy and fuel
SPE-199429-MS 5

Figure 1—Water footprint - Water consumption per annual operation in Block 57

Figure 2—Water Scarcity Indicator - AWARE

Conclusion & Discusion

The Repsol E&P water footprint assessment was performed in accordance to ISO 14046:2014. The study
represents a baseline for Repsol E&P; it has allowed the calculation of total water consumption, the impact
of water scarcity and potential impacts on human health and ecosystems.
The results of the assessment show that the higher consumption and impacts on water are mainly related
to direct use in roads irrigation and to the use of energy and fuel.
Based on these results, the company has proposed to execute a water efficiency project in its facilities and
a shared value water program in the communities of Mapi and Mashira. Both initiatives allowed the company
to apply for the Blue Certificate, recognition granted by The National Water Authority to companies that
efficiently manage water in their operations and manage shared value projects with their stakeholders.
In Perú, Repsol E&P is the first company in the hidrocarbures sector to apply this recognition.
The benefits of Blue Certificate contribute to the sustainability of the business; relationships with key
stakeholders -such as the State and the communities in the area of influence- are maintained and improved.
The Blue Certificate also manages to optimize the processes that demand water resources in the operations.
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Acknowledgments
Through the training on the Blue Certificate and the water footprint, and the involvement of the different
operational and support areas during the process of preparing the file, the importance of responsible water
management was reinforced; In addition to obtaining valuable contributions to arrive at the calculation of
the water footprint. In addition, for the recovery of the ecological integrity of the forest (restoration of the
Mapi and Mashira platforms) work is done involving the knowledge of the local communities, making them
direct participants of the project, which generates the strengthening of capacities and generation of local
employment.

References
ISO 14040:2006. Environmental management – Life Cycle Assessment – Principles and Framework. 2006.
ISO 14044:2006. Environmental management – Life Cycle Assessment – Requirements and Guidelines. 2006.
ISO 14046:2014. Environmental management - Water footprint — Principles, requirements and guidelines. 2014
WWAP (United Nations World Water Assessment Programme). The United Nations World Water Development Report
2014: Water and Energy. Paris, UNESCO. 2014
http://certificadoazul.ana.gob.pe/