Finally ruling on one of the more controversial and uncertain scenarios facing the Colombian oil industry, Ecoeptrol (NYSE:EC) has said it would not renew its association contract with Pacific Rubiales (TSX:PRE) for Colombia’s largest producing field, Rubiales.
The Minister of Mines and Energy Tomás González says that the government’s objective is keep production at a million barrels a day despite the fall in international oil prices, and that there is interest among international companies to invest in Colombia.
GasMinMinas reported that gas production rose in February due to “demand behavior for the Riohacha, Cupiagua, Cusiana and Pauto fields”. The graph shows that while February numbers rose, the trend is not so postitive.
President Juan Manuel Santos has ordered Colombian armed forces to cease bombings of Farc camps for one month, a milestone decision after over two years of peace negotiations. The government and Farc also announced an agreement to start de-mining operations in conflict areas.
The central government is considering more relief measures for the hydrocarbons industry to create incentives for more investment in exploration through a rehash of its energy policies.
The low price of oil is putting Colombia’s biofuels industry and future investments for it at risk says the National Federation of Biofuels (Fedebiocombustibles), although Ecopetrol’s (NYSE:EC) biofuel unit Bioenergy says it will move forward will an expansion of sugar cane crops for fuels and a long delayed plant.
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