The Hydrocarbons International Forum ‘Perspectives and value of companies in the sector’, organized by the School of Advanced Management Studies (Cesa) with support from the University of Alberta’s School of Business, will be held in Bogota on February 20. The forum will discuss investment opportunities in the mining and energy sector, access to capital markets for companies in Colombia and the valuation of oil companies in the global arena.
Business newspaper Portafolio reported that Paula Acosta, deputy director of National Planning Department (DNP), said the National Royalties Fund has 1,000 pending projects amounting to US$727B, even though after the royalties reform Legislative Act was issued, the government decided to liquidate it next December. (This is the fund for the old distribution scheme.)
Colombia lacks transport infrastructure of all kinds from roads to railways to ports. Railways are long-term projects so roads will have to carry the freight for several years. The country ranks last in the region for having four-lane highways so there is a desperate need for many investments. It looks like the next phase may actually be getting off the ground, at least in terms of tendering. From a MinTransporte press release, translated and with commentary by Hydrocarbons Colombia.
We are interested in infrastructure – especially high capacity infrastructure like rail – because, for all of the country’s positive attributes, Colombian transport infrastructure can only be described in words that are inappropriate for a public forum like this website. This particular railway – the Carare railroad – will start central Boyacá, go to Barrancabermeja and then follow the Magdalena River valley to the coast. That makes it important for transport to Bogotá and important for the hydrocarbons industry if unconventional extraction ever gets off the ground. From a MinMinas press release, translated and with commentary by Hydrocarbons Colombia.
Business magazine Dinero reports that Ecopetrol agreed to finance in pesos US$1B of its US$2B investment budget for this year, after the government recently requested the company to finance its operations in local currency instead of dollars (as we reported). The announcement was made by Minminas Mauricio Cardenas, who said that the projects will be funded: “The vast majority, over 50%, hopefully more than 60%, will be in local currency.”
Multiple sources in the Colombian news media reported that Ecopetrol awarded business group Empresas Públicas de Medellín (EPM) a contract to build, maintain and operate two power lines that will transport electricity to the Barrancabermeja refinery. In the coming days, EPM will begin environmental procedures for the construction project, which will have a 230,000-volt substation and 250-MW-capacity lines 10-kilometers long .