Pacific Rubiales (TSX:PRE) announced their 2015 outlook, which looks to slash costs, facilitate cash flow and brace for a lower oil price. The main target is Mexico, where the company also announced a joint venture with Mexican investment group ALFA to develop projects in that market.
A constitutional reform stalls in the Senate, while the number of critics of the royalty system in Colombia’s congress grows, with a number of lawmakers taking a harsher tone against the national government. These and other royalty related stories in our periodic summary.
The Labor Ministry (MinTrabajo) has published a resolution that defines the list of municipalities where special requirements for local hiring will be implemented through a decree published in October.
After being pressed to comment on a proposed tax reform, the Minister of Mines and Energy Tomás González said the timing of the oil price drop coinciding with the tax reform discussions is “unfortunate”.
Downstream Demand and PricingThe steep drop in crude oil prices is finally having a measurable impact on pump prices in Colombia as the government’s smoothing formula finally catches up.
The count decreased again to 33 this week, below recent and long-term averages. However guerrilla-incidents show an unfortunate trend and there were a number of direct attacks on the industry.