News and AnalysIs for

Infrastructure investments in projects such as highways or added port facilities are required in order for Colombia to continue growing from mining and hydrocarbon production, according to Colombia’s Petroleum Association (ACP).

The Bicentenary Pipeline says it has not only delivered on obligations to improve and maintain roads used for the project’s construction, it went on to improve rural roads of communities affected by the pipeline’s installation that were not required by law.

Javier Gutierrez, president of Ecopetrol, made a visit along with company directors to inspect the progress of the Bicentenario Pipeline in the departments of Casanare and Arauca, saying it’s “weeks” from being operational.

National business newspaper Portafolio says Ronald Pantin, Pacific Rubiales CEO, announced that the company created a subsidiary to manage the infrastructure and transportation of hydrocarbons. According to Pantin, this measure will give visibility to US$2B that currently are not valued by the market and are invested in the Llanos Pipeline, the Bicentennial Pipeline, shares of the Petroeléctrica de los Llanos Company, the Cartagena Pipeline and the Puerto Bahia project.

As reported by El Tiempo, about a thousand plants among anthurium, cacti, ferns, orchids and bromeliads that were at risk because Bicentennial (OBC) pipeline construction, were transferred to the ecological reserve La Marteja (Casanare) and the natural park Los Libertadores (Arauca). The plants were collected along 230 km thanks to the initiative of the “Fotosíntesis” organization, the Sicim Colombia Company and OBC.

In an interview with Portafolio, Fernando Gutierrez, Bicentennial pipeline manager, said that after two years of construction, the pipeline will be operational in July this year and will be filled with 1.2M oil barrels; according to Gutierrez: “This is more than the production of a day. It is the largest pipe that has been made in the country.”

It was widely reported in the Colombian press that Colombia and Ecuador signed an agreement for Colombian oil transportation by the Heavy Crude Pipeline (OCP) located in Ecuadorian territory. The purpose is to provide an alternative to the frequently interrupted TransAndino Pipeline.

In an interview with El Espectador, MinMinas Federico Renjifo spoke about oil and environmental licenses, among other topics. Regarding oil production, Renjifo said: “This year we reached 1.014M barrels. This month we reached 1.027M barrels and we can reach 1.033M barrels. It has been a good indicator and the challenge is to maintain that production. We have increased reserves. Colombia requires a reserves increase.” He added that it is necessary to increase exploration, since there has not been a great discovery and current reserves are extracted from small wells.

As reported by Dinero, the company Cenit, a subsidiary of Ecopetrol, began operations last week. Cenit, specialized in oil transportation and storage, starts as the second largest company in the country, with US$7.7B in assets. “Cenit is the missing piece in the industry to strategically meet increasing hydrocarbon production in the country. We are the link the sector needed to solve the bottleneck in crude transport and for operational excellence in the service” said Camilo Marulanda, president of Cenit.

The second day of a two-day conference can be light on content, but a session on infrastructure at the CWC Oil and Gas Summit and Exhibition in Cartagena provided useful updates on Puerto Bahia, the Bicentennial Pipeline, the proposed Pacific Pipeline and other projects. Since most commentators put infrastructure high in the list of current challenges for the Colombian industry, the session was timely.