Canacol’s production reports always generate work in the HCC offices because their business is never simple. Through the first half of 2012, most of their revenue-generating production was so-called “Tariff” which was essentially was a services contract where they pumped oil for another company at a set fee per barrel. This was a low-netback business that the company has been deemphasizing, expecting it to be only about 11% of its business in 2013. As the graph shows, they also report figures before royalties, a not uncommon practice but one we do not agree with and normally try to adjust for.
Business newspaper La Republica reports that Pacific Rubiales awarded suppliers and contractors with the best performance in 2012. To this end they organized the third meeting of suppliers and contractors. Federico Restrepo, the company’s vice president of corporate affairs and sustainability said these incentives allow service companies “continue to accompany us on this journey towards higher levels of activity, efficiency and competitiveness.”
Portafolio.co reports that, according to a study by Central Bank, despite the last 20 years’ worth of investment, exploration and successful drilling, it has not been possible to find oil fields with reserves as large as those of the Cupiagua (Casanare), Cusiana (Llanos) or Caño Limón (Arauca).
El Espectador reports that governor of La Guajira, Juan Francisco Gomez Cerchar, requested that PDVSA be in charge of importing and distributing fuel in this department. To this, the Ayatawacoop indigenous cooperative, which distributes fuels in La Guajira, expressed its opposition and questioned the understanding of the governor and his staff on the issue, as this is not feasible under the law 681 of 2001.
Portafolio.co reports that, according to a study by Central Bank, despite the last 20 years’ worth of investment, exploration and successful drilling, it has not been possible to find oil fields with reserves as large as those of the Cupiagua (Casanare), Cusiana (Llanos) or Caño Limón (Arauca).
National newspaper El Tiempo reports that the royalty system reform recently passed by Congress was endorsed for a second time by the Constitutional Court. According to the court, Legislative Act 5 of 2011 amending Articles 360 and 361 of the Constitution, which determine the conditions for the royalties’ distribution, does not overstep the law nor go against regional autonomy.
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