The royalty budget planned for 2015-16 will not be manageable with oil at its current level, and needs to be cut by at least 30.8%, warns the General Controller. Meanwhile press reports on which regional entity is the worst in terms of royalty management abound. These and other stories in our periodic roundup.
Colombia’s crude production is represented largely by Castilla and Vasconia crude, which have suffered even greater falls in value than the Brent or WTI benchmarks, meaning that with those latter prices hovering above US$30/barrel, production is barely profitable.
While the decrees and studies on how to lower the costs of natural gas in the Caribbean region continue, other regions are now clamoring for a discount in their gas prices as well.
The high prices of sugar and the devaluation of the peso against the dollar have led ethanol producers to losses, said the biofuels industry association Fedebiocombustibles.
It was already burning, and you should not blame the firefighters, said Ecopetrol president Juan Carlos Echeverry in response to questions regarding the role of current ministers and government officials in the overruns of the Cartagena Refinery. This and other stories in our update on this matter.
As the pre-negotiations with the ELN stumble on certain items (like the location of the talks), the guerrilla have stepped up the violence to try to weaken the government’s resolve.
The capital of the Atlantico Department, Barranquilla is looking to position itself as the logistics hub for offshore hydrocarbons activity in Colombia’s Caribbean waters.
With “intelligent austerity” governments around the world are looking for the best way to adjust to the oil price levels.
Editor’s Note: Warren Levy is familiar to just about everyone in the Colombian, and indeed Latin American, industry which he has been around for over 20 years.
This week’s graph shows rather dramatically why gas is attracting great interest in Colombia: since 4Q14, gas netbacks have been higher than oil netbacks.
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