News and AnalysIs for

Ecopetrol’s president Javier Gutiérrez said this week that the NOC continues to evaluate fundamentals to decide if it will extend or not the concession of the Rubiales field with Canada’s Pacific Rubiales Energy past its current expiration date in 2016.

Oil producer Equion says that a strike of workers expanding its Early Production Facilities (EPF) at its Floreña well could mean losing 3,000 barrels of oil a day from daily production next year if not resolved.

The average royalty rate in Colombia is 16% but the graph shows considerable variation between the leading producers.

In order to reduce transportation costs Pacific Rubiales is mulling the purchase of a light oil producer in Colombia, as it could mix the lighter crude with its heavier product making it apt for pipeline transport and lower costs.

Canadian oil producer Parex, posted strong gains in daily production and reserves in the 2Q13, while revenues and profits fell. The company is confident its position and growth in Colombia will continue.

Looking back a year, production for Pacific Rubiales grew 38% to reach 127,555boed, sequentially flat compared to the 127,889boed produced in the 1Q13. Profits in the quarter were US$57.6M, a 74.3% drop compared to last year and a 52.7% drop compared to 1Q13.

We picked up a story a few weeks ago that dead chigüiros had been found in an open tank at a Casanare installation belonging to Parex. A chigüiro is a rodent about the size of a dog or a small pig, indigenous to Colombia’s Llanos. We spoke to Parex to get their side of the story.

Gran Tierra Energy raised its daily production estimates on increased yields from the Costayaco field in Colombia and sustained production from its Moqueta well where it discovered a new oil column earlier this year. Colombia continues to provide the majority of its daily production.

Pacfic Rubiales says it is fully behind the work of the Tracking Committee of Royalty Investment (CSIR) as it works to audit and identify the use of royalties generated by oil producers.

Two US based investment firms last week announced the purchase of Vetra, a Colombian oil for an unreleased sum and a local newspaper claims it has the story behind the sale for the 8,243 bd oil and gas producer.