RCN Radio reports that in Meta department the resources from 2011 royalties were wasted. This was stated by the Comptroller General, who reported that in Puerto Gaitán US$13M was invested in aqueducts that currently do not work. In the report, the Comptroller said, “the fiscal findings are related to the uselessness, neglect, deterioration and lack of functioning of priority works for the community, that after their construction are not fulfilling the function for which they were planned” .
A couple of weeks ago we published a variation of this graph based on the production guidance that Canacol published at that time. Canacol being Canacol the picture was not crystal clear and so we made some assumptions to fill in the blanks. Now with 4Q12 results, the picture is not perfect but it is clearer. The principal assumption that we made was that Ecuador would have what the company calls Non-Tariff production i.e. not Tariff which is their word for what amounts to an oil services contract to operate a well for a set fee per barrel. It is now clear that that is not the case and Ecuador will be only an oil services contract which the company says is higher margin than their Colombian contract.
Direct infrastructure attacks numbers eight and nine took place in southwest Putumayo. One was directly on the TransAndino pipeline and the other on the feeder pipeline that brings oil up from San Miguel/La Hormiga.
With the peace talks underway and the Farc trying to get a bi-lateral truce, the question has been how firm is President Santos in continuing to pursue military options. The Farc certainly have launched some very high profile attacks – twice against the TransAndino pipeline since January 20th. Would the desire for peace trump the need to maintain pressure on the guerrilla? Here is a Presidential press release from a speech to the troops on the line. Translated and with commentary by Hydrocarbons Colombia.
This is an article about coal and loading coal on ocean-going vessels by barge, neither of which are particularly relevant to the hydrocarbons industry. But we tweeted this when it happened (“Colombia environmental agency shows its teeth: shuts down second largest coal producer for accidentally dumping cargo in the sea.”) because it showed the economic consequences of violating the National Environmental Licensing Agency (ANLA) rules. Drummond is losing millions of dollars because of the shutdown and because the country’s largest coal mine, Cerrejon is on strike, the country is losing significant royalty and tax revenues. It now seems that the ANLA’s actions were justified, the shut down might have been avoided and all companies should learn from the lesson. From an ANLA press release, translated and with commentary by Hydrocarbons Colombia
This chart is pretty simple but then Talisman has never really reported much data on its Colombian operations, relegating it to an “includes Colombia” comment under its international operations. But this has changed over the past five or six months since Hal Kvisle was appointed CEO. The country went from being one of the company’s assets with a “For Sale” sign around its neck to being not exactly core but certainly off the auction block and meriting its own chapter in Talisman’s recently published 4Q12 results.