National newspaper El Tiempo reports that the government’s agenda has been slowed due to prior consultations with ethnic minorities. The lack of clarity in the process has suspended the progress of the rural development law, Mining Code reform, section 3 of the Ruta del Sol highway and the CARs (regional autonomous environmental authorities) reform, among other projects, until minorities approve them.
We showed a version of this graph in our November Inner Circle Monthly report which shows the two most common global benchmars, WTI and Brent and the Average Realized Oil Price in Colombia, as measured by those operators which report pricing. The Unweighted Average lies almost perfectly between average WTI and average Brent. The production-weighted Average is heavily pulled by Ecopetrol and shows more variation. The dotted lines show our estimate of these values for 4Q12 and our (admittedly early-days) projection of the numbers for 1Q12.
Business newspaper Portafolio.co reports that according Luis Pacheco, Pacific Rubiales Planning vice president, the company could reach US$3.9B revenue in 2012; this after royalties and payments to partners. In this way the company would achieve a 14.7% increase over 2011 figures. Pacheco made these statements during the conference Colombia Genera, of the ANDI.
According to national radio station W Radio there is a tense work environment at the National Environmental Licensing Agency (ANLA) due to the pressure exerted by managers on technicians responsible for making environmental licenses studies. The radio station said it has documents that prove that legal and administrative employees of the ANLA modify the technical concepts of biologists, environmental engineers and forestry engineers to help companies obtain licenses more easily. The technicians say that non-technical employees are not authorized or qualified to make such changes. In addition, some technicians said there are managers asking them for 300 environmental concepts for wells in a 15 day period.
The USO is back protesting the creation of Cenit SAS, the Ecopetrol spinout that holds the state-owned oil company’s infrastructure assets. This would seem to be a train that left the station a long time ago but it does give the union a soapbox to preach from. In other news, the USO continues to target Ecopetrol contractors to get their workers back into the union fold.
Incidents were back down this week to 47 but they had settled into the familiar pattern of both location and type of incident. The ELN continues to try and get itself taken seriously through kidnapping. Our 4-week Moving Average up slightly and it now sits at 54 incidents per week, back where it was at the beginning of November last year although still down from a peak of 58 back in October.