Finally ruling on one of the more controversial and uncertain scenarios facing the Colombian oil industry, Ecoeptrol (NYSE:EC) has said it would not renew its association contract with Pacific Rubiales (TSX:PRE) for Colombia’s largest producing field, Rubiales.
The Minister of Mines and Energy Tomás González says that the government’s objective is keep production at a million barrels a day despite the fall in international oil prices, and that there is interest among international companies to invest in Colombia.
The central government is considering more relief measures for the hydrocarbons industry to create incentives for more investment in exploration through a rehash of its energy policies.
The low price of oil is putting Colombia’s biofuels industry and future investments for it at risk says the National Federation of Biofuels (Fedebiocombustibles), although Ecopetrol’s (NYSE:EC) biofuel unit Bioenergy says it will move forward will an expansion of sugar cane crops for fuels and a long delayed plant.
A report of the Agustín Codazzi Geographical Institute (IGAC), which oversees political and land borders says there are 84 “questionable borders”, many of them falling in producing regions. Of these 20 will be prioritized in 2015 for clarification.
The Central Workers Union (CUT) has entered the labor dispute generated as companies cut costs due to the fall in oil prices, and is promoting a strike of oil workers. Meanwhile the USO oil workers union has the member vote to strike, and promises that they will take action very soon.
An announcement from Ecopetrol (NYSE:EC) that it would restrict its public wholesale offer of propane could have an alarming impact on low income communities along with health and environmental implications says the Union of Colombian Propane Companies (Gasnova).
Ecoperol cannot live of off “excessive prices” on fuel at the expense of Colombians, says the outspoken Meta Senator Maritza Martínez.
The Minister of Mines and Energy (MinMinas) Tomás Gonzalez addressed a seminar and said that through the government’s National Development Plan it will introduce modifications to contract conditions signed with the National Hydrocarbons Association (ANH) and make royalties more flexibile, two of the measures the industry has asked for.
Political pressure to nix a regulatory change to let the market set prices for the natural gas market has prompted the government to promise that rates on the Caribbean coast will only go up by a maximum of 4%, compared to the 25% rate increase planned under the new system.
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