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).

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.

In December 2021, CAO completed a compliance appraisal process and concluded that an investigation was not warranted. Based on interviews with relevant parties and a review of relevant documents, the CAO appraisal found preliminary indications of harm to the complainants. It also found initial indications of IFC’s non-compliance with its environmental and social policies. However, CAO did not find a plausible link between the likely impact of harm and potential non-compliance—which is a requirement under the CAO policy for initiating a compliance investigation. Hence, this case has been closed.