News and AnalysIs for

Interoil reported its October 2012 production results for Colombia without commentary. Colombia’s oil production rose in September and October but Interoil’s share dropped. In fact, except for a brief blip in July, production has dropped continuously since March.

The USO is the Colombian petroleum workers union. Unrepentantly radically left, it often seems trapped in some Marxist-Leninist twilight zone from before the fall of the Berlin Wall or perhaps before the Second World War. Still its capacity for mischief is unmistakable and so we believe it is important for oil and gas industry stakeholders to keep track of what they up to. We will summarize major news items from their webpage or other sources and publish the summary every Monday. We will reproduce the tone of their items while not agreeing with their messages.

Incidents declined again for a fourth straight week but the decline was slight so maybe we have found a new equilibrium.

Colombia or at least its investor-class has been shocked by the collapse of the country’s largest broker, Interbolsa. There is a remote and probably irrelevant connection with PetroNorte, but the surprise has been Mansarovar.

A few weeks ago Baker Hughes pinned part of the blame on Colombia for a slowdown in Latin American rig activity. Today Tuscany Drilling gave its 3Q12 results and the story was consistent although more nuanced and ended on a more positive note.

MinMinas announces a Global Warming related initiative directed at the hydrocarbons industry. On November 19, 2012, the ministry will hold a workshop. The program is voluntary but …Translated from a MinMinas press release with commentary by Hydrocarbons Colombia.

French oil and gas company, Maurel and Prom, has a small amount of production in Colombia (498 bpd net of royalties in 3Q12). It is in an exploration agreement with Pacific Rubiales in a 49.99:51.01 deal whereby Pacific picks up the exploration expenses. The company’s description of its production in the country is unusually specific so we thought it interesting to publish. In this case the challenge is not environmental approval but approvals from the ANH to put a confirmed well into production.

CEO Ronald Pantin was giving almost real time production measurements during the 3Q12 conference call to show that the company’s quarterly results were not only sustained in the fourth quarter but getting stronger. Production, revenue, EBITDA and cash flow were all up in 3Q12 year-over-year, showing Pacific Rubiales strong operating performance. In particular, oil and gas production was up over 5% sequentially in Colombia while production for the industry as a whole was down 1%.

As reported by La República, Ecopetrol estimates that by the end of 2012 it will have invested CoP$951,000M at its refinery in Barrancabermeja (Santander). The investment has been earmarked for equipment replacement, maintenance and inspections. Thus Ecopetrol has ensured the operation of turbo generators, power lines, substations, boilers and other major operating systems within the refinery.

Equion – a joint venture between Ecopetrol and Talisman – reports the presence of dry gas in the Mapale-1 well. From an Ecopetrol Press Release in English with commentary by Hydrocarbons Colombia.