Rumors that Pacific Rubiales Energy (TSX:PRE) could be working with the investment bank of Bank of America to review the company’s strategic options in Colombia reached the market over the weekend, while the company insists it is not for sale.
Incidents near areas of interest to the oil and gas industry were down to 33, below recent but still above long-term averages. Non-Armed-Forces-reported incidents were above average both in percentage and absolute terms. This is our indicator of increased guerrilla-initiated activity. Correspondingly, our 4-week Moving Average incident count was down at 40.5 and the 52 week average was down slightly at 31.0 incidents per week.
Industry associations from mining, infrastructure and energy met and declared that they are “worried about the effects” of public referendums and social conflicts surrounding industry projects.
The surrounding region of Paz de Ariporo is suffering a severe drought that has led to widespread deaths of native species and livestock, and the local press is speculating that the boom of the mining-energy sector is to blame.
Another week without an agreement or much to say that would change the course of dwindling expectations for the peace process. With an election season in full swing, the hope for an early conclusion to the peace process is drawing less and less enthusiasm.
Ecopetrol (NYSE:EC) invested CoP$1.3T (US$645M) in environmental projects during 2013, which it says is the highest amount dedicated to these ends in the last eight years.
Citiing a UN agreement to protect 17% of the country’s land mass, authorities are looking to add eight more parks in La Guajira, Arauca, Meta, and Serranía de San Lucas, thus prohibiting any sort of extractive activities in the area.
A number of communities in the Aguazul and Maní municipalities have issued a joint statement to local press alleging that oil operator Perenco Colombia is not complying with legal requirements on environmental, social responsibility and soclaization matters. Is this the latest community to engage in hardball negotiations with oil producers or are the accusations founded?
Ecopetrol has a number of programs including bridge improvements and educational programs, while Raven says its ready to invest in social programs and Llanopetrol is backing students for petrochemical studies. These and other Corporate Social Responsibility programs to make local press lately.
Local hiring and the ongoing debate between the economic benefits to the local economy achieved through using tankers to transport crude stood out as the top items in this week’s road review.
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