An Argentinian Justice ratified the foreclosure of US$19B against Chevron for causing environmental damage in Ecuador’s Amazon. The plaintiffs’ lawyer, Pablo Fajardo, said that Chevron “has to pay or deposit (in a bank account in favor of the plaintiffs), each month, 40% of all its revenues in Argentina”. The plaintiffs claim to have been victims of contamination caused by Texaco, later acquired by Chevron, between 1964 and 1990.
The Ecuadorian state-owned oil company is in Bogotá looking for partners to develop three blocks in that country from the Southeast Round. Canacol is one Colombian-focused oil and gas company that has property in the country. Now Petroamazonas wants more. From a Ecuadorian government news agency report, translated and with commentary by Hydrocarbons Colombia.
It was a slow news week for the Colombian petroleum workers union (USO). The only item was this one about the USO taking up the environmental cause against Ecopetrol. Forgive our cynicism but we doubt if the USO has suddenly to the cause of clean water. More likely they are looking for leverage on some other issue or it is part of a broader strategy to disconnect the industry from the community. The irony of course is that MinMinas Federico Renjifo went to the same area within the past few weeks and praised Ecopetrol’s environmental management.
Incidents were back down this week to 50 but a number of high-profile kidnappings got the country’s attention. Our 4-week Moving Average up another 15% and it now sits at 51 incidents per week, back where it was at the beginning of November last year although still down from a peak of 58 back in October.
By Andrés Julián Reina Herrera
The department of Meta in Colombia’s Llanos basin is the most important oil producer in the country with just under half of total production – an average 454mbd through September, 2012.
Our Monthly Report for January 2013 is now available for download (see below). It includes commentary on Colombia’s goals for 2013 by contributor Manuel Maiguashca Olano, an report on tanker trucks in Meta and a fascinating study of local political power relationships in Caquetá by Signum Consulting.
National business newspaper Portafolio reports that the State Council (a superior court that decides on government-related cases) ruled in favor of Ecopetrol in a lawsuit in which 56 individuals sued the company for US$239M claiming ownership of the Cuisiana and Cupiagua fields subsoil. Ecopetrol provisioned the money in the mid-nineties while resolving the lawsuit, so now, after the ruling, it will be returned to the company and will be used on investments.
The government and the Central Bank agreed to take measures in order to curb the appreciation of the peso, which was revalued by over 10% in 2012 and in 2013 has depreciated by 0.62%. MinHacienda Mauricio Cardenas announced that besides a 0.25 basis points cut in the interest rate, the government will implement three measures for raising the exchange rate value by 8%.
National business paper Portafolio reports that Ecopetrol is preparing an analysis of the delivery date and costs of the Cartagena Refinery (Reficar) enlargement. Initially the company approved a US$4.9B budget; however, costs could exceed th US$5B. Ecopetrol expects to complete four of the fourteen units that make up the enlargement this year, which will become operational only when the entire set is ready, as the units are part of a complete refinement cycle.
The chart shows stock prices for the largest publicly traded oil and gas companies that whose activities are largely if not exclusively based in Colombia. All five have over 90% of current production in Colombia (although all are exploring elsewhere).
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