We think Ernesto Borda is one of the clearest observers of the social and security challenges in Colombia’s countryside. His firm, Trust Consulting, helps companies in the extractive sector manage the complex political, social and security environment where they operate.
We published this article on operating costs and netback at the beginning of June but it did not seem to get much attention from readers until we published an article comparing operating costs for the regions various NOCs.
The total incident count was back up slightly to 35 although guerrilla-initiated incidents (by our methodology) were down by 2 but the 4-week trend continued up.
Oil operations have been stopped at the international oil firm Occidental (NYSE:OXY) in Arauca. Workers have gone on strike to demand a response from the oil firm after heavy rains have caused a scarcity of potable water in the area and have flooded local homes.
Senator Manuel Enríquez Rosero made a call for congress to address the developing social and economic crisis building in Putumayo in its next ordinary session.
In the last two weeks three executive managers at Ecopetrol (NYSE:EC) have retired as the company’s president Juan Carlos Echeverry adjusts his team.
This week it became clear that companies are engaging the benefits offered by the National Hydrocarbons Agency (ANH), and more are planned. Attacks have taken their toll, especially in Putumayo and we mark the one-year milestone of the fall in oil prices.
Surging costs associated with transportation, refining, social conflicts and licensing have made Ecopetrol’s (NYSE:EC) cost per barrel the second highest among state oil firms in Latina America, says a report from the Colombian Petroleum Association (ACP).
Attacks on Colombia’s pipeline sit squarely in the center of the guerrilla’s strategy, and in 2014 the 136 registered attacks had an estimated impact of CoP$142.14B (US$55.7M) in repair costs alone, according to a study from the Colombian Chamber of Oil Goods and Services (Campetrol).
The Farc has asked President Juan Manuel Santos to make a truce amidst violence and “silence the weapons” while the two sides establish a bilateral cease-fire.
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