Pacific Rubiales (TSX:PRE) announced their 2015 outlook, which looks to slash costs, facilitate cash flow and brace for a lower oil price. The main target is Mexico, where the company also announced a joint venture with Mexican investment group ALFA to develop projects in that market.
A constitutional reform stalls in the Senate, while the number of critics of the royalty system in Colombia’s congress grows, with a number of lawmakers taking a harsher tone against the national government. These and other royalty related stories in our periodic summary.
The Labor Ministry (MinTrabajo) has published a resolution that defines the list of municipalities where special requirements for local hiring will be implemented through a decree published in October.
After being pressed to comment on a proposed tax reform, the Minister of Mines and Energy Tomás González said the timing of the oil price drop coinciding with the tax reform discussions is “unfortunate”.
Downstream Demand and PricingThe steep drop in crude oil prices is finally having a measurable impact on pump prices in Colombia as the government’s smoothing formula finally catches up.
The count decreased again to 33 this week, below recent and long-term averages. However guerrilla-incidents show an unfortunate trend and there were a number of direct attacks on the industry.
Finding skilled laborers with advanced studies in areas that benefit the mining and energy sector remains a challenge, despite improvements at the university level in specialized degree programs, says a press report.
The Magdalena River port project being built by logistics firm Impala in Barranquilla is moving forward after ending a strike in November, and is still on track to start preliminary operations in January 2015, says Impala Colombia general manager Alejandro Costa.
Ecopetrol’s (NYSE:EC) dragging of its feet on the modernization of the Barrancabermeja Refinery has put not just the city’s economy on hold, but stunted development in the region, says the thesis of a Spanish researcher.
The USO said that they made visits to the Rubiales and Caño Sur fields and have found “possible” evidence of a “crude cartel” that the uinon claims is selling contraband crude that goes unreported to authorities.
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