According to press reports, despite lifting the blockades in the department of Arauca, petroleum operations are still restricted. The protestors understand that holding petroleum operations hostage is the best way to ensure the government actually comes to the negotiating table.
Within this past week, first Suroco (TSX-V: SRN.V) and then Amerisur (LSE: AMER.L) announced that ongoing disturbances in Putumayo had caused the Suroriente block and the Platanillo blocks respectively to be shut in. The graph shows our estimates of companies with crude oil production in the troubled department, using our exclusive database.
The national strike is into its third week and there are several signs of progress at the negotiating table. However, roads still remain blocked and the first official confirmations that oil production has taken a hit reached the newswire.
Incidents near areas of interest to the oil and gas industry were down this week to 27 below recent long-term averages. This was a significantly average week for non-armed forces reported/guerrilla-initiated incidents. Unsurprisingly our 4-week Moving Average incident count dropped to 19.8 and the 52 week average dropped as well to 36.9 incidents per week. But none of this the most important story.
As of August 26th, it’s been a year now since the Farc and Colombian government reached the agreement that would make way to Havana, and both delegations were back at the roundtable to mark the day following a short 3 day pause announced by the guerrilla, and the talk turned to illegal drugs.
Colombia’s military intelligence says it has uncovered evidence that the Farc have been repopulating deserted rural area in Meta and Caquetá by placing indigenous groups in the area, a practice that goes back two years.
Last week we published some harsh comments for the oil industry from former Casanare Governor Jorge Prieto, who said the region would be better off without being the home to a bulk of the country’s oil production. We thought we’d share the list of his colleagues, who we believe have done more to stain the department than anyone else.
The primary problem is that at the main routes out of the Llanos and the Upper Magdalena Valley basin to Barrancabermeja and the Atlantic coast via Bogotá remain blocked. See the complete list of relevant blockages.
Incidents near areas of interest to the oil and gas industry were up again this week to 27 but that is slightly above recent but below long-term averages. This was a below average week for non-armed forces reported/guerrilla-initiated incidents. Despite this week’s rise our 4-week Moving Average incident count dropped to 22.5 and the 52 week average dropped as well to 37.3 incidents per week.
The national strike, led by coffee and agricultural workers, is now into its second week and as many as 33 national highways remain blocked due to protests throughout the country.
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