Surging costs associated with transportation, refining, social conflicts and licensing have made Ecopetrol’s (NYSE:EC) cost per barrel the second highest among state oil firms in Latina America, says a report from the Colombian Petroleum Association (ACP).
Attacks on Colombia’s pipeline sit squarely in the center of the guerrilla’s strategy, and in 2014 the 136 registered attacks had an estimated impact of CoP$142.14B (US$55.7M) in repair costs alone, according to a study from the Colombian Chamber of Oil Goods and Services (Campetrol).
The Farc has asked President Juan Manuel Santos to make a truce amidst violence and “silence the weapons” while the two sides establish a bilateral cease-fire.
While the official analysis for gasoline demand in Colombia expects overall fuel consumption for mobility to grow 67% in 2030 compared to current levels, the use of alternative transport means and fuels could actually contract the market by up to 25% in 2050.
The new regional vice president for the Orinoquia region of Ecopetrol (NYSE:EC) Jose Cotello has already drawn a stir in local media after hosting a press trip in the Cupiagua gas plant, where he outlined changes under his watch and objectives for production.
Preliminary figures show a sharp drop in net foreign investment of 33.9% to US$7.146B from January to May 2015, led by a decrease in investment in the oil and mining sector, Colombia’s Central Bank has revealed.
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