At one time in late May, there was a hope that oil prices were rebounding, that somewhat like 2008/2009 there would be a rapid so-called ‘V-shaped’ recovery.
Pacific Rubiales (TSX:PRE) is worth only 11% of its value at its peak, and according to an analyst report must take quick decisive action to persevere into the future. But even with prompt action, looming obstacles remain.
Designed to boost the government’s fiscal income, the November 2014 tax reform and resulting increase in the CREE surcharge has created a strong disincentive for investment that will end up causing much more harm to state finances, says the Colombian Chamber of Oil Goods and Services (Campetrol).
The Ministry of Environment (MinAmbiente) led by its Minister Gabriel Vallejo López and Colombian President Juan Manuel Santos held a review of its performance over the last five years and laid out goals for the next three, but had nothing to say on the issue of environmental licenses.
President Santos ordered a suspension of air raids against Farc camps in order to de-escalate the armed conflict and in response to the guerrilla’s unilateral ceasefire.
Since suspending its unilateral truce on May 22, 2015 until the new truce on July 20, the Farc held 372 armed actions, which the Peace & Reconciliation Foundation (Pares) says shows the importance of maintaining a cease fire for Colombians.
While it might not receive the attention as dramatic explosive attacks on pipelines, cable robberies are enough for Ecopetrol (NYSE:EC) to lose nearly 25,000 barrels of oil in 2015 alone. The number of incidents doubled in the last year.
Another account has emerged of an oil services company that has had to file for bankruptcy reorganization, a trend which continues to flog the local industry.
The National Infrastructure Agency (ANI) signed a port concession that will kick off the construction of Colombia’s first regasification plant, addressing a potential deficit of natural gas supply starting in 2016.
Some US$1.4M has been allocated to the Putumayo Department for social projects, meanwhile the Tauramena municipality received a positive rating in its audit report of its use of royalties. These and other stories in our periodic roundup.
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