“This is an important step in the realization of our strategy to strengthen the company and in our intention to be one of the leading gas companies in northern Colombia. For Hocol, this transaction represents the growth of its offshore operating capacities and the sources of income from a gas production asset. We remain committed to continue generating value for the country and for the environments in which we operate, as well as contributing to the supply of gas for the north of Colombia, ”said Rafael Guzmán, President and CEO of Hocol.

“We received this news with joy and we are aware that we are in the midst of a health emergency that impacts all Colombians. We have been acting with the greatest responsibility, rigorously applying the necessary protocols to safeguard the health of our workers, contractors, and communities in the area of ​​influence, and we ratify our commitment to the development of La Guajira.”

Chevron said in a statement that it will continue evaluating new opportunities for growth in Colombia. The company, through its Texaco unit continues to hold a significant downstream presence in Colombia with over 500 Texaco service stations and a broad line of Chevron, Ursa, Havoline, Delo & Texaco lubricants, fuels and additives in the auto, trucking, aviation, and industrial sectors.

Image courtesy of Hocol

Few blacks have positions of influence. How many blacks are there in the best universities? And in the best positions of the largest companies, how many are there? The lawyers, the doctors, the black engineers, how many are there?

Choco is not known for oil or gas but that did not stop US petroleum supergiant Chevron Texaco (NYSE: CVX) from pitching in to support women and students by backing the “Casa de Mujeres Empoderadas” (House of Empowered Women) and donating 100 bicycles to be used by students with long commutes to school.

In the government operated House of Empowered Women, training, guidance and counseling will be provided to women on issues of entrepreneurship, employability, science and technology, sources of funding, legal advice, psychosocial support, and other attention tailored to the main needs of the population.

Colombia’s Vice President Marta Lucia Ramirez (at podium) speaks at the women’s house inauguration in Quibdó, Chocó on November 29.

“In Colombia there is progress when it comes to opportunities for minorities, but more work can be done. Few blacks have positions of influence. How many blacks are there in the best universities? And in the best positions of the largest companies, how many are there? The lawyers, the doctors, the black engineers, how many are there?” challenged Marc Payne, Chevron’s President and Country Manager for Colombia.

“Soccer and music cannot be the only dreams that black children have—I don’t say this to criticize—it’s a very sensitive time here in Colombia. But, we have a great opportunity to take advantage of the underutilized human resources here in Afro-Colombians and indigenous people to improve Colombia,” added Payne.

Colombia’s Vice President Marta Lucia Ramirez was present and added statements emphasizing the importance of supporting the country’s women and ensuring their access to equal opportunity. “We are at the service of all Chocoanos and Chocoanas, to ensure that women help us quickly seize the opportunities of this department. It is an effort we are making for the girls of Chocó,”she said.

“It is important that we do not have discriminatory attitudes against girls and in favor of boys. We as mothers also have a responsibility to end this machismo (misogyny) that has done us so much harm,” added the vice president.

Chevron Colombia President Marc Payne (Center) with Quibdó Mayor-elect Martín Sanchez Valencia and Chocó Governor-elect Ariel Palacios Calderón

“In Chevron, during more than 40 years of operations in La Guajira, we have worked with the Wayuu indigenous communities and other local communities producing energy, improving the health and education infrastructure, strengthening the capacities of the communities, and working to address the community needs, especially with women and their families,” said Payne. “But during these 40 years, my company has never invested in social projects in Choco. Not because the company wasn’t interested but because we had no awareness. I am black, I am a president of a large multinational company here in Colombia…I am here to support these efforts.”

“My current position is the result of study and dedication and work towards a goal, but it is also the result of the work of many men and women who have struggled to create spaces of inclusion and diversity as we do in Chevron. But we need to do much more. We need to recognize that here in Choco, we have a huge human resource: young people with a lot of talent, with a lot of ambition, with a lot of intellect, but without the opportunity that young people have in other places.”

Also on hand for the inauguration was the governor of Chocó, Johany Carlos Palacios, and the elected governor, Ariel Palacios Calderón. From the mayors office, mayor elect Mary del Carmen Urrutia, and the outgoing mayor of Quibdó, Martín Sánchez Valencia were all in attendance.

Chevron’s Payne had an additional surprise in store for students in Quibdó:  “At this time, in Chevron, more than supporting the women’s house, we are going to do one more small thing. To help young people in Quibdó achieve their academic goals, we have partnered with Colombian soft drink company Postobón and World Bicycle Relief to donate 100 bicycles, as you can see in these pictures. These bicycles will help reduce dropout rates and improve academic performance for beneficiary children. I am very excited to return here again in January to deliver these 100 bicycles for children who need them. Change begins with health that this women’s home can support, and with the education of our youth.”

Colombia’s Vice President Ramirez thanked the outgoing authorities for their commitment and work for the women of the department and called on the new dignitaries to form joint cabinets and take concrete steps to prioritize gender equity issues in their development plans.

With this newest women’s center in Quibdó, there are three Houses inaugurated by the government of President Iván Duque. Pasto (Nariño Department) and Cúcuta (Norte de Santander) are already in operation. Before the end of 2019, two more houses will be inaugurated in Riohacha (La Guajira) and Buga (Valle de Cauca).

“We are committed to continue generating value for the country and in the sectors we operate, such as by contributing to the supply of gas for the north coast of Colombia,” said Hocol president & CEO Rafael Guzmán. Neither company provided pricing information specific to the deal.

Chevron said in a statement that it will continue evaluating new opportunities for growth in Colombia. The company, through its Texaco unit continues to hold a significant downstream presence in Colombia with over 500 Texaco service stations and a broad line of Chevron, Ursa, Havoline, Delo & Texaco lubricants, fuels and additives in the auto, trucking, aviation, and industrial sectors.

Photo credit: Chevron

Operating partner Hess announced last week a strike in the Esox-1 well.

Last week, experts from Chevron & Ecopetrol announced the find by Hess (NYSE: HES) in waters 1,405 meters (4,609 feet) deep. Drilling shows 58 meters of undersea sands bearing light crude. The find is 10 kilometers away from the Hess owned Tubular Bells deepwater project.

“This transactions that we did with a level one partner like Chevron permits us to strengthen our presence in one of the highest potential sources in the world, the US waters of the Gulf [of Mexico] and to continue our strategy of growth in production and reserves,” said Ecopetrol president Felipe Bayón.

“This acquisition formalizes an exploratory operation that we have ben part of since the beginning, and in which Hess, another world class partner, recently reported a high-quality petroleum discovery that we will have in production in a few months.”

In US waters of The Gulf of Mexico, Ecopetrol says that it participates in 51 blocks. Between January & September of 2019, Ecopetrol America production reached 13,200 barrels per day, representing an increase of 14% over the same period a year before.

Above photo: The Ocean Black Rhino drill ship used to drill the well.

The area is also isolated politically, suffering from neglect and a lack of investment by Colombia’s national government in Bogotá. Bordering Venezuela, the picturesque, sparsely populated region is attractive to violent criminals, land thieves, smugglers and fugitives from justice in either Venezuela or Colombia. Many local politicians in the departmental capital of Riohacha are notoriously corrupt, often going from office straight to prison after conviction.

Exacerbating the situation, the area has been suffering a severe drought that started in 2013 and shows no signs of abating. Adding to the climate challenge, the collapse of neighboring Venezuela’s economy has sent thousands of refugees, often penniless (peso-less), fleeing across the border. La Guajira is the first Colombian territory they come to when crossing via the border town and contraband bazaar of Maicao.

The land, in one way or another, is rejecting us and telling us that we haven’t respected it, that we haven’t followed our traditions, that we have deviated, and that it’s necessary to go back to our traditions, to rescue them, and for that there needs to be a certain type of inter-cultural exchange that people are unaware of.

The region and the people that are struggling to support themselves despite national government neglect, local government corruption and theft of what few resources do get through, now are doing their best to share their sparse resources with their neighbors who have fled into the peninsula to escape economic collapse, political oppression, and starvation across the border in Venezuela.

La Guajira is not without resources though. Vast natural gas fields lay under the desert surface, and US based petroleum supergiant Chevron (NYSE: CVX) has been in the area for four decades. In fact, Chevron’s gas wells lie in the heart of Wayúu lands, and most importantly, the company is present with the blessing and the consent of the Wayúu people. Chevron has been a source of employment and revenue for the Wayúu, and now has opened a food bank to help with the economic, climate, and social challenges that confront La Guajira.

First Lady of Colombia Maria Juliana Ruíz de Duque (left) talks with Wayúu leader Monica Patricia Barros López in the regional headquarters of Chevron Texaco in Bogotá during the opening event of the new food bank in La Guajira.

Monica Patricia Barros Lopez, leader of the Epinayúu clan of the Wayúu people was recently in Chevron Texaco’s Bogotá regional headquarters to speak to dignitaries, including Colombia’s First Lady Maria Juliana Ruiz de Duque about sustainability, the challenges residents of La Guajira face, and the new food bank in La Guajira, supported by Chevron Texaco, The Diocese of Riohacha, The Sustainability Project For The Wayúu Community, and many corporate and distribution partners donating food and finances to support the joint effort.

Finance Colombia executive editor Loren Moss was able to speak with Ms. Barros after her talk and panel discussion to better understand the situation in La Guajira, but also to understand the keys to the successful relationship between Chevron and the Wayúu community, and to learn if there are lessons that other multinational companies can apply in Colombia and around the globe.

Finance Colombia: The Wayúu is an indigenous community here in Colombia. Could you tell me a little about the history of the Wayúu?

Monica Barros: Our history goes back thousands of years. We have survived through time thanks to the deep-rooted philosophy that we have; a harmony between the land where we live, that we have inherited. That’s what compels us to be a certain way, The territory itself where we are [compels us], a territory that has survived in spite of the inclement weather, of the changes that we been through regarding industrialization. But first of all, we want to keep our traditions, we want to keep being what we are.

Finance Colombia: The Wayúu people have always been self-sufficient, you’ve always lived of the land, you harvest your own crops and whatever you need to live on. When did the difficulties with the harvests and the water start? What are the origins of the challenges you’ve been facing in the La Guajira Penninsula in recent years?

Monica Barros: This is because in one way or another, some traditions have been lost. In general, when we built our houses, we asked the trees that were there for permission. We told the tree that sadly we had to cut them that day or ask them for permission because we wanted to build our house there. So, we always asked for permission so that our existence was harmonious with the environment. Nowadays, the young people, the new generation, the new industrial projects don’t do this harmonization.

The land, in one way or another, is rejecting us and telling us that we haven’t respected it, that we haven’t followed our traditions, that we have deviated, and that it’s necessary to go back to our traditions, to rescue them, and for that there needs to be a certain type of inter-cultural exchange that people are unaware of. If I don’t let you know, you will never know that to build, to develop a territory you need to ask permission from the spirits that are around.

Finance Colombia: I know that Chevron has been a neighbor of yours for many years and this new food bank, this initiative that they’re doing there, what’s the importance of it for the Wayúu people there in La Guajira?

Monica Barros: There’s a very important thing to highlight about Chevron. Chevron is a North American company that, despite its administrative policies, adapted itself to our cultural traditions, and that before starting a process of negotiation said that they had to start an inter-cultural process, to get to know our traditions, and that’s the reason why today we have a good relationship, because developing our relationship [between Chevron & the Wayúu] wasn’t traumatic. since they first learned from us what could be done and what couldn’t be done, the limits of what is respectful and what isn’t.

Nowadays we can say that Chevron is an ally that has been absorbed into our family as a friend and as a relative, with whom we have made new alliances, new strategies, new knowledge, and basically the example of a good relationship.

Finance Colombia: What is the key? We have readers that are foreign investors, that constantly are investing more and more in Colombia. What is the key for these companies, especially the big ones, the international ones: How can they be profitable, but to make those profits in harmony with the land, and also with the local communities, with the local people? What is the key? What message would you send to these multinational companies? If they want to do business, how can do it correctly, how can they do it fairly? How can do it right and bring benefits for everyone: for the land, for the communities, for the governments, and also for the investors?

Monica Barros: The most important thing, like I’ve always said, is investing in the relationship, the inter-cultural exchange, developing administrative policies and practices of coexistence. When these spaces are created and there are investors and people that want to support us, they should always ask how they can come in, how do we think that the interaction has to be, what the navigation route that we as the Wayúu community, as entrepreneurs suggest they follow, since they come with a different background, a different vision. The primordial thing is the communication, the inter-cultural aspect, and to keep a good relationship.

Nowadays we can say that Chevron is an ally that has been absorbed into our family as a friend and as a relative, with whom we have made new alliances, new strategies, new knowledge, and basically the example of a good relationship.

Finance Colombia: What role does education and employment play in this?

Monica Barros: In general, those things should always go together. There always has to be exchanges regarding education, regarding organizational structure, regarding survival, inter-cultural exchanges, because the most important thing here is to exchange your vision for my mission, and we then sit down to talk about how we’re going to proceed. Like I tell you, we’re deeply-rooted, we’re very traditionalist, generally we don’t change a lot of what we have as traditions, but we’re open for dialogue, the primordial thing here is the dialogue, to be able to reason and so there can be productive processes between the companies and the community.

Finance Colombia: What is your role in the community?

Monica Barros: I have a Wayúu-Epinayuu foundation, we’re trying to get organized to best channel and direct the aid coming in, and so within this inter-cultural exchange we can have channels of communication that don’t go through the government as an intermediary, but more direct between the company and the community, between the person and the community, without intermediaries.

Finance Colombia: Excellent. Thank you and much success to your efforts. You’ve been very generous with your time.

The Wayúu is a Native American ethnic group that has inhabited the La Guajira peninsula since precolombian times. Though their culture is intact and they have successfully retained their homeland, the region has been hard hit by droughts and food shortages, exacerbated by the influx of refugees from neighboring Venezuela. The region also suffers from organized crime and local government corruption, due in part to its location on Colombia’s border with Venezuela.

“To the extent that we can take care of everybody that needs help, that’s what we’re trying to do.” 

Chevron operates gas fields in the region and has a strong, collaborative relationship with the Wayúu community. Finance Colombia executive editor Loren Moss was able to speak with Chevron’s President for Colombia Marc Payne (above) about the new Food Bank and Chevron’s relationship with the Wayúu People.

Finance Colombia: The “Banco de Alimentos de la Guajira,” how long has it been in existence?

Marc Payne: It’s new. We just recently launched it. It took time to align all of our supply partners, all of our distribution partners and all of our constituents, so it is very new, and in fact next Friday we will be going to La Guajira to have our official launch. So, it’s going to be improving and improving and improving, and we’re very proud of what it’s accomplished so far.

Finance Colombia: How big of a population is it designed to serve?

Marc Payne: It depends. It’s scalable, and the more partners we can bring in, the more distributors that we can bring in, the larger it can be. So we will start relatively small, but it is the biggest food bank in La Guajira and we recognize that there is a big need for development, and we also recognize that there is a lot of migration from other places that are coming in.

Finance Colombia: That’s interesting because obviously we have people here from the Wayúu community and that’s a situation that we’ve known about, but then that situation is exacerbated, right? Because of its proximity to neighboring countries.

Marc Payne: Yes.

Finance Colombia: And that situation, I imagine there is more of a need, and that it has to be taxing the already streched local resources there.

Marc Payne: It does, but the situation in Venezuela is very difficult, and the people are really suffering. So to the extent that we can take care of everybody that needs help, that’s what we’re trying to do. So yes it’s a strain on the resources but people need help and we’re going to try to provide it to them.

Finance Colombia: Chevron has taken a leadership role in this; you’re doing this in collaboration with the Diocesis of Riohacha in La Guajira, right?

Marc Payne: Yes. We have many, many partners. So the Diocesis  of Riohacha is one of our key partners; we’ve partnered with before on the construction of local schools. We’ve worked for a long time with certain organizations in La Guajira, that’s our general strategy, to build long term partnerships that we can then build scale and make a bigger impact in the department.

Finance Colombia: It’s interesting, because in Colombia a lot of areas get a lot of attention, and that’s one area that has not gotten a lot of attention. Chevron I know, has a presence in the area and I’ve seen the need, and you have taken a step up. How have you been received by the local community in the Guajira area?

Marc Payne: Chevron has been present in La Guajira for forty years. And one of the global directives that we have is that we always look at local communities and we always identify the needs of local communities. It’s almost always directed towards education, healthcare, culture and economic development.

That’s exactly what we’ve done in La Guajira and our gas facilities actually sit right in the middle of Wayuu lands. We have outstanding relationships with the local community, and in fact they assist us with our security situation. For example, when we work with the Colombian navy and the national police, they tell us that their best source of information to protect us is actually the Wayuu people.

Finance Colombia: Wow, that’s impressive, that’s impressive, great to know.