As we recently reported, this year the diesel fuel may have only 50ppm sulfur, however according to national business paper Portafolio, Tomás González, Deputy Minister of Energy says this measure cost Ecopetrol more than a CoP$1T that went into expanding the production capacity of the Barrancabermeja refinery and associated transport logistics. Gonzalez added that it is important to improve engine performance and reduce exhaust emissions, as required by the Air Quality Law.
Ecopetrol – the state-owned oil company and the only company with significant R&D investment, receives five new patents. From an Ecopetrol press release, translated and with commentary by Hydrocarbons Colombia.
As a result of heavy rains, part of a pipeline near the village of Dosquebradas, collapsed, broke open causing a fire that killed several people and injured more. On about the one-year anniversary, Ecopetrol has issued a press release. Translated and with commentary by Hydrocarbons Colombia.
According to a press release reported by national business newspaper Portafolio, Hidrospill is a Colombian company specialized in preventing oil accidents and related contingency actions. To enter the Central American and U.S.market it created a partnership with the American company IMO. In recent years Hidrospill has grown steadily at almost 130% annually and operates in Ecuador and Peru.
On the same day that the company announced buying 75% of Alvopetro S.A., a company with operations and tight oil opportunities in Brazil, Petrominerales made a wide ranging announcement of operations, finance and exploration plans for 2013.
Ecopetrol had its last board meeting of the year on Sunday December 16th which approved the capital expenditure (CAPEX) budget for 2013. The company will invest over US$9.5B or about the equivalent of a quarter’s worth of revenue across all its varied businesses. The ‘mother ship’ will get about 70% of all CAPEX although this varies considerably across the various business units. We found it surprising that investments outside Colombia will get 11% of total Exploration and Production investment (US$654M) even though today, these represent only about 1% of current production.
Gran Tierra announced its capital expenditures (CAPEX) Budget for 2013 will be US$363M of which US$295M will be spent on drilling and seismic activities. Colombia will receive US$224M or 62% of the total. The company will spend US$67M on Brazil but may spend more if initial onshore exploration results prove positive. Its production guidance for 2013 is 20,000bd net of working interest and royalties, which would be about 33% more than 3Q12.
Pacific Rubiales published an operational report full of interesting information but the real jaw-dropper was the growth in the venerable Rubiales field since receiving National Environmental Licensing Agency (ANLA) permission on August 8th to increase water injection. The field had produced (gross before royalties and working interest) 169mbd in July and that was the third month in a row that production had dropped. Production was only slightly better in August at 170mbd. But since then Rubiales’ field production has grown at 4% per month and the company says it is currently “in excess of 200 mbd” – 30mbpd higher than in July.
With so much doom and gloom around the Colombian hydrocarbons industry it’s nice to celebrate some good news. The graph shows MinMinas reported gross production (before royalties and working interest) the Las Maracas field and Petroamerica’s recently reported November figure. Production is up over 500% since July.
National radio station W radio announced that Omega Energy Colombia has bought the assets of Russian oil giant Lukoil. The assets consist of the Condor association contract in the Llanos basin, foothills area. Lukoil had 70% of the contract in partnership with Ecopetrol. The estimated reserves are 6.09M boe but nothing has been produced since 2007 (3,700 boe for the year).