Hocol`s Business model its based on the following systems:

• The business system : Establish the company`s guinelines to define the annual objectives throw a ten year plan. Supporting on indexes and targets for the company, the teams and the associates, with permanent measurement and follow up. .
  
• The technical system contents all the tools of Hocol`s "how to do" its processes such as Asset life cycle as a core process. Information and technology and the 5 models. .
  
• The social system defines the competences and behaviors of our associates and organizational structure.

All this systems have a business frame supporting in 9 policies.

   HOCOL´S strategic statements

• Strategic Intent: Growth and wealth for all, beyond imagination.
  
• Strategic Purpose : Creating partnership for sustainable growth.
  
• Bold Promise: By 2015 HOCOL is the independent Exploration and Production Company of the Americas, having achieved a market value of no less than US$ 2 billion while being true to the Company’s ethical principles, strategic intent and strategic purpose.
  
• Cornerstone Principles:

  Responsibility: We freely assume the causes and consequences of our actions, successes, or failures.
  Trust: We openly decide to believe in others in order to generate relationships of respect, transparency, and certainty.
  Commitment: All of our efforts, decisions, and actions transform our promises into ethical realities.
  Integrity: Each and every one of our actions honor our promises, commitments and principles, which is the only way to do business and to live life well.

Compliance with Law and voluntary codes of behavior

The Company, its employees and contractors carry out all their activities in compliance with the Constitution, the laws, the rules and every other disposition regulating business, including also those determined by its Board of Directors, in those countries where we operate.

This commitment extends also to all other codes of behavior recognized by the international community which HOCOL decided to adopt.

In a respectful manner in relation to social, cultural, economic, political, spiritual and environmental interests, showing a commitment with an open and constructive dialogue that involves every interested party, legally and legitimately established.

Fostering collective action (multipartite system: Company, Government, Community and other entities) to strengthen institutionalism and create and improve public property.

Defining responsible and straightforward interlocutors, setting goals and tracking the outcome of their performance.

When valuating the assets, their complete life cycle is always taken into account. The value of the assets and the portfolio results form the analysis and appraisal of every risk against the expected return, integrating five (5) models:

• Static
• Dynamic
• Evironmental
• Social
• Economic (commercial)
• HSE Evaluation and Contingency Plans
  

Regarding risks, HOCOL acts systematically, consistently and verifiably in all business decisions and when developing any project. Thus, every initiative and/or development should be identified within:

• The analysis of the business environment evolution
• The Five Year Plan (FYP)
• The annual budget
• The Integral Operations Plan
• The program for goods and services acquisition

The employees and contractors develop its activities with the highest HSE standards and with a preventive instead of a corrective approach.

The employees and contractors create individual habits to minimize the exposure risks in those environments where exist threats against their personal integrity.

The organizational structure distributes authority and makes easier to learn, to implement best practices, to create awareness of the desired attitudes, to continuously develop skills and to train employees and leaders whose acts and results are part of an integral and effective team.

All data generated as result of any business activity are corporate assets that should be preserved and used.

The employees and contractors, when developing such business activities:

Use the information , which means: (a) know the data's availability and where to find it; (b) know the way and the procedure to access data; and (c) use the data in the anticipated way, during the action course of the business activities.

Preserve the information, which means: (a) catalogue data according to current and available architectures, so that once stored can be used by other people, at any moment, with not ambiguity; (b) provide the appropriate protection for the data to secure its integrity during time and use; and (c) provide the data the discretion and privacy imposed by its nature.

When contracting, HOCOL:

• Seeks a higher advantage and a major development of local markets, in accordance with win-win transactions.

• Makes sure the commitment by the employees and contractors to abide by HOCOL's standards and to meet those obligations acquired with third parties, included all the policies herein mentioned.

• Is accountable for the results.

In case of getting involved in a conflicting situation, the employees and contractors declare such situation to the appropriate hierarchical authority and voluntarily refrain from taking part in activities and decisions in which they can not freely exert their criteria.

The ultimately goal of control is to maintain the ability to reasonably predict the results of the business activities, within any future environment.

Through control the Company makes sure that employees, teams and contractors:

• Make an appropriate use of the resources, aligned with previously established purposes.

• Reduce to a minimum the non-estimated exposure to losses.

• Are accountable for their acts and decisions according to their assumed authority.