The government has “concrete solutions” underway to stimulate investment in oil exploration and production as a countermeasure to the curtailed spending due to the fall in oil prices.
The Farc made a public announcement that they have been urged by peace advocates to continue with their unilateral cease fire, and pressed the government to make it a bilateral agreement.
Ecopetrol (NYSE:EC) has been hit hard by guerrilla attacks, a poor discovery record and now the fall in oil prices. But it is a similar fate for other Latin American NOCs, if not worse. Petrobras (NYSE:PBR) has been rocked by corruption scandals and Pemex’s ability to function in a privatized market is questionable as the oil price slide cuts into its budget. Let us not even mention PDVSA.
January production provided better than expected results as the number of attacks on infrastructure dropped, while the Colombian Petroleum Association (ACP) sent out a warning on natural gas policies and their long term consequences.
The Colombian Petroleum Association (ACP) took up the issue of natural gas, warning that there will be a deficit on the order of 190mmcf as soon as 2018, and that changing the regulations due to political controversy will only deter investment in exploration.
Ecopetrol (NYSE:EC) outgoing president Javier Gutiérrez says that the NOC saw the price slide coming, and that the company is in good standing to endure even worse conditions.
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