Low water levels on the Magdalena River have complicated the potential of the recently opened waterway to be used as a transport corridor, resulting in losses for shipping companies and higher costs for Ecopetrol (NYSE:EC).
As a companion to yesterday’s graph on CAPEX, we look at the trend in Foreign Direct Investment (FDI) based on Central Bank data through 2Q15. Preliminary September 2015 figures say FDI fell 19% year-over-year led by the petroleum and mining sectors falling 54%.
The mining industry suffers from many of the same problems as hydrocarbons, and a group formed to encourage dialogue between different sectors of society on the mining industry presented its first results after working together to reach a consensus. We ask if it makes sense to think about the same for oil and gas.
The hydrocarbons sector and authorities must adapt and consolidate in the current price scenario, which according to the president of the Colombian Petroleum Association (ACP) Francisco Lloreda is not going to change soon, and requires a new approach from that used in the past.
On average, the major Colombian-committed producers gave back the gains achieved in 2Q15 in their performance relative to global indices.
October is our anniversary month. The first daily newsletter was sent on October 23, 2012. Our first Inner Circle Weekly Summary went out on October 28, 2012 although we had been publishing weekly summaries on our WordPress blog and the website (which came up in early October) before that.
Ecopetrol (NYSE:EC) has confirmed that it has fired up its industrial services units at the Cartagena Refinery (Reficar), another step towards a full operational launch of the long-delayed project.
A combination of low oil price and attacks on oil infrastructure around the Tibú Municipality in Norte de Santander has led to accusations of mass closures by Ecopetrol that have affected around 1000 workers.
Yet another question from a subscriber on how Colombian E&P companies have reacted to the decline in oil prices. The answer for CAPEX is ‘fairly dramatically’ except perhaps for the NOC. And as the car-miles/gallon disclaimer says “Results may vary”.
As the Cartagena Refinery (Reficar) shows signs of operational life after a long delayed modernization project and appears ready to launch, the USO has started to voice its “reservations” on the project, its operators and alleged health consequences for workers.
2025, Hydrocarbons Colombia, All Rights Reserved.
