Petrobras Awarded with World Best Oil Company Accolade

Posted on Tuesday 03 Apr 2007

The world's best oil company in sustainability, social responsibility (CSR), corporate governance, ethics and transparency, according to the 4th annual oil/gas ranking by the sustainability research and rating firm Management & Excellence (M&E), Madrid. The annual M&E ranking measures oil/gas companies' compliance with 386 relevant international standards such as those of SEC, Sarbanes-Oxley, national laws, Dow Jones Sustainability Index, OECD, industry benchmarks, GRI, ILO, ISO, IUCN, reserves accounting, Global Compact, Millennium Goals, and others. Most Sustainable Oil Companies 2007 (compliance scores) 1. Shell 90.16% 2. Petrobras 89.64% 3. Total 86.01% 4. BP 81.35% 5. Repsol 74.35% 6. ENI 71.24% 7. ConocoPhilips 67.36% 8. OMV 65.54% 9. Pemex 56.99% 10. Lukoil 51.55% As new pipelines (e.g. Brazil-Bolivia of Petrobras) and higher volumes need to be refined and transported, companies are increasing social investments (e.g. Shell up over 20% annually) as one way of producing goodwill and thus hedging increased risks in the case of incidents. Employee training and HSE standards drove accidents and fatalities down. Corruption dropped at Shell, for example, which fired numerous employees over a bribery affair in Nigeria. Total improves most over 2006 (+10%), followed by ENI and Petrobras while Shell only inches up (+1.15%). Shell operates in 76 countries, making it harder to broadly improve. Companies such as Petrobras, with refining operations in few countries, can concentrate their community and sustainability efforts and thus excel more easily. BP falls to 4th place mainly due to its Texas City refinery accident and the Baker Report. The M&E study is marketed together with the Oil&Gas Journal Online Research Center: www.management-rating.com and info@management-rating.com