Colombia state owned electrical transmission company Interconexcion Electrica (ISA) is looking to acquire 5% participation of the Pacific Pipeline as part of a new business venture.
The board of directors of Gas transport firm TGI agreed to pay out 100% of the company’s profits from last year to shareholders, spreading the profits from financial consolidation as the company harnesses the growing gas market.
Investments to meet emissions standards set by the Ministry of Environment and Sustainable development have amounted to a CoP52B (US$26.4M) investment into Ecopetrol’s refinery business, only considering the Barrancabermeja Refinery.
As Ecopetrol (NYSE:EC) shareholders go into today’s Annual Meeting they will probably be concerned about the dividend. They may be calmer than they might have been about the share price since it is up nearly US$5 from late February although still below where it closed at the end of 2013. They might complain about the refinery business. We think they should ask questions about growth.
Parex has held a press conference with local media outlets and looks to convince the local community that its plan to drill exploration wells in the Tinije Lagoon will be more environmentally safe than Spain’s Cepcolsa, who abandoned the project after community pressure.
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.
Citing shifting, exaggerated demands and requirements from the local community near its Llanos 30 block E&P operations, Parex has decided to close the operation and cancel contracts with local suppliers.
Pacific Rubiales Energy (TSX:PRE), says that it plans to leave its flagship field, Rubiales, as a success of the past, saying that it now represents only 11% of its proven reserves and that by the end of 2016 it will have been replaced. This process continues to define the company’s message to the market.
The growing demand for diesel and Colombia’s environmental requirements for the fuel, paired with a limited internal capacity of Ecopetrol (NYSE:EC) to produce this fuel could mean an increase of imports of the fuel by 7.4% in 2014.
Lately Ecopetrol has received much criticism for the slowness of refinery upgrades in Cartagena and Barrancabermeja. The harder question may be why it is investing at all in this business.
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