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National business paper Portafolio reports that Ecopetrol is preparing an analysis of the delivery date and costs of the Cartagena Refinery (Reficar) enlargement. Initially the company approved a US$4.9B budget; however, costs could exceed th US$5B. Ecopetrol expects to complete four of the fourteen units that make up the enlargement this year, which will become operational only when the entire set is ready, as the units are part of a complete refinement cycle.

The chart shows stock prices for the largest publicly traded oil and gas companies that whose activities are largely if not exclusively based in Colombia. All five have over 90% of current production in Colombia (although all are exploring elsewhere).

The graph shows netback and cost broken down into three major categories: royalties, transport and production. The values are averaged over the seven publicly traded companies whose majority business is in Colombia and who provide enough data to do this graph.

Colombia finally achieved its goal of producing 1 million bpd. This new production level positions Colombia on the map of the middle leagues in world production. This is similar to Oman, a traditional Arab Emirate oil producer and the country ranks high in world production.

Multiple sources in the Colombian news media report that workers at the Cerrejon coal mine have voted to go on strike the first week of February. Given this possibility, mine managers invited employees affiliated to the National Coal Industry Union (Sintracarbón) to negotiate their demands. There has not been a strike in the mine for more than 22 years.

In recent statements, President Santos has been optimistic about the peace process with Farc. He said that “if there is will, this country will find that much desired peace.” He recalled that ever since he took office, he considered the peace process a possibility: “And so from day one, with great humility, but with much -and this is what I learned from Winston Churchill- perseverance, I began to weave the possibility of approaching the enemy, approaching FARC, to see if they wanted to find a negotiated solution and end this conflict.”

Paula Acosta, deputy director of the National Planning Department (DNP), spoke to Portafolio.co about the strengths and weaknesses of the royalty system. Acosta said: “The system is running. The leaders already know how it works. It probably does not yet have the desired regional effect, but that is a consequence of a new process. The goal that the eight departments come together to make a great project still has not arrived. It’s something we have to build. Another gain is that there are many projects ready to present in 2013 and 2014. In general, the fundamental change is that everyone is moving based on projects and spending quality.”

Website ConfidencialColombia.com reports that Pacific Rubiales will invest US$30M in social projects this year, 5% more than in 2012. Alejandro Jimenez, corporate social responsibility manager of the company, stated: “2013 investments will benefit indigenous and ethnic communities, and other minorities. The good relationship with communities was evident in the harmonious atmosphere that maintained an uneventful operation; there were no blocks or public order disturbances during 2012 or so far this year.”

Canacol’s production reports always generate work in the HCC offices because their business is never simple. Through the first half of 2012, most of their revenue-generating production was so-called “Tariff” which was essentially was a services contract where they pumped oil for another company at a set fee per barrel. This was a low-netback business that the company has been deemphasizing, expecting it to be only about 11% of its business in 2013. As the graph shows, they also report figures before royalties, a not uncommon practice but one we do not agree with and normally try to adjust for.

Business newspaper La Republica reports that Pacific Rubiales awarded suppliers and contractors with the best performance in 2012. To this end they organized the third meeting of suppliers and contractors. Federico Restrepo, the company’s vice president of corporate affairs and sustainability said these incentives allow service companies “continue to accompany us on this journey towards higher levels of activity, efficiency and competitiveness.”