News and AnalysIs for

The graph shows what has happened to production from Rubiales field since 2002. Meta Petroleum i.e. Pacific Rubiales (TSX:PRE) took over operations of the field in mid-2006 when it was producing just under 10mbd by our estimates.

The association of propane gas distributors Gasnova reiterated its alarms that Ecopetrol (NYSE:EC) is taking measures to limit the supply of propane gas in Colombia to benefit its financial results, which it says will have a grave impact on the poorest populations in the country.

The Minister of Environment Gabriel Vallejo contests the concept of ‘express’ environmental licenses, arguing that instead the license only now has clear procedures and timeframes, and the new system will be technical and more formal.

The Network for Tax Justice has filed a lawsuit to anull the Ministry of Mines and Energy (MinMinas) resolution that defines the formula used to determine the country´s fuel prices.

A Casanare representative has challenged articles of the royalty reform law while the National Planning Department (DNP) has suspended payments to 106 municipalities who have not reported their royalty use. These and other stories in our routine round up.

The Colombia Chamber of Oil Goods & Services (Campetrol) estimates that as many as 15,000 workers with oil contractors have lost their jobs thus far due to the fall in oil prices, and that the cuts will likely continue.

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.