Daily news report November 28, 2019
ACP as a source of information
Source: La Opinión – Regional
Date: November 28
Headline: Royalties are not being utilized as they should be
The populations with hydrocarbon or mining production areas in Colombia have seen for years how large companies take advantage of their resources and do not notice the investment in social works for their benefit. Although oil and mining companies must pay royalties to the State for exploiting deposits, these resources are not materialized in many territories. (…) To understand how this money should be utilized, the Department of Mines and the National Hydrocarbons Agency (ANH) developed yesterday the panel ‘Importance of the Hydrocarbon Sector in the Colombian Economy’. Francisco Lloreda, president of the Colombian Petroleum Association (ACP), recalled that years ago, when the country experienced the oil boom, the resources were enough to distribute not only in oil regions but in all departments. Responded in:laopinion.com.co (November 28).
Source: RCN Radio – National
Date: November 27
Source: rcnradio.com – National
Date: November 27
Headline: Dollar skyrocketed: reached $3.524 for the first time in Colombia's history
Analysts assure that the escalation of the US currency is related to the national strike. Around noon on this Wednesday, the price of the dollar reached for the first time in Colombia's history 3,524 pesos, which represents an increase of 55 pesos compared to the Representative Market Rate (TRM), established by the Financial Superintendency of Colombia at 3,469 pesos. (…) The president of the Colombian Petroleum Association (ACP), Francisco Lloreda, pointed out that the strong rise of the US currency leads to a «poorer» country. “There are those who do not see this devaluation with concern, but the truth is that as a country, when this happens, we are becoming poorer compared to the rest of the world. It is beneficial for some economic activities, but the ideal is to have an exchange rate that is at a price a little lower than what we are seeing,” said the union leader. Responded in: lafm.com.co (November 27).
Hydrocarbons Sector
Source: El Espectador
Date: November 28
Headline: Green strike. By: Brigitte Baptiste
The anguish over global environmental change and the proper management of national or local degradation drivers are becoming visible components of the marches and protests these days, along with a dozen other issues that constitute a blend of complex grievances to unravel, with mixed levels of information, relatively shared values, and uncertain perspectives on solutions. In many cases, as observed in the proposals of some collectives, the demands focus on complex issues related to generic sustainability ideas in globalized discourses, such as resistance to fracking, the use and trade of wildlife, deforestation, control of illegal mining, and the need to enter the era of renewable energies, for which there are orientations and international agreements, but little implementation.
Source: La República
Date: November 28
Headline: Minminas highlights advances in fuel quality
At an event organized by Ecopetrol and the Mayor's Office of Medellín, the Minister of Mines and Energy, María Fernanda Suárez, highlighted Colombia's progress in meeting the fuel quality improvement target set for 2025. According to the official, under this Government, diesel has decreased from 25 to between 1 and 12 parts per million of sulfur, and gasoline has decreased from 150 to less than 100 parts per million of sulfur. However, work continues, as the target is 10 parts per million of sulfur in diesel and 50 parts per million of sulfur in gasoline.
Source: La República
Date: November 28
Headline: «For fracking, there are US$140 million»
Ecopetrol will invest up to US$140 million for the evaluation and development of research pilots for Unconventional Reservoirs (YNC) in the country. After revealing its investment plan this week, which includes between US$4,500 million and US$5,500 million for 2020, the oil company continues to work on the baseline lines, even though they are still awaiting the protocols defined by the Ministry of Mines and Energy. (…) Not only with professionals in the country but also with collaborators who are gaining experience and knowledge in the Permian (United States), the world's most prolific unconventional basin, where they are already working with Occidental Petroleum Corp. (…) While the Government advances these preparations, it is noteworthy that there are currently nine contracts in limbo due to suspensions by the National Hydrocarbons Agency and restrictions from the Council of State. These are projects located in Cesar, Santander, Antioquia, and La Guajira, which belong to Ecopetrol, Drummond, Parex, and ConocoPhillips.
Source: Portafolio
Date: November 28
Headline: The gas business of Ecopetrol is now in the hands of Hocol
With the offer for eight blocks to the ANH, the purchase of offshore assets from Chevron, and the fields it already operates, it takes the lead in the gas sector. The development of Ecopetrol's natural gas business now practically has a caretaker, which is its subsidiary Hocol, that will now dedicate most of its work to this task both offshore and onshore. (…) In the recent ANH Ppaa auction, Hocol presented the best offers for four blocks: two as a direct operator (of which one, the SN-26 will compete with its oil counterpart UT La Luna – Captiva) and two others in a consortium each with GeoPark (but the LLA-124 will be contested with the Canadian multinational Parex). In the LLA-100 block, located in the municipality of Puerto Gaitán (Meta), Hocol will be its operator with a 100% participation; while in the LLA-123 and LLA-124 areas, it will have a 50% participation and where the partner will be the operator.
Source: Portafolio
Date: November 28
Headline: Crude pumping sets a new record
(Bloomberg) U.S. oil production set a new record at 12.9 million barrels per day, a good performance that contrasts with producers' comments in recent earnings reports that indicated a slowdown in pumping in that country.
Source: Dinero
Date: November 28
Headline: Confidences. Good hour
The figures for revenue, profits, and cash of Ecopetrol this year have been fundamental not only for public finances but also for the development of the company. But some of its operations also reflect the dynamism of key sectors for the economy, such as infrastructure. In this sense, asphalt production has grown throughout the year by nearly 30%. Only between January and October did they produce more than 340,000 tons. These figures show the dynamics that civil works development has had, which according to Dañe grew 13% in the third quarter of this year. Additionally, they have also exported asphalt to the United States, Puerto Rico, and Bolivia.
Source: Dinero
Date: November 28
Headline: The Ecopetrol plan
For 2020, the Colombian oil company will make the highest investments in recent years: between US$4.500 million and US$5.500 million, which represent an increase of between 25% and 53% compared to the estimated figure for organic investments for 2019. The company built its plan with an expectation of Brent crude oil prices in a range of US$50 to US$60 per barrel. Additionally, it anticipates efficiencies of $1.6 billion, which will add to the more than $11 billion achieved in the last 5 years. The plan contemplates that a breakeven price of around US$30 per barrel would generate positive net income in 2020. It will allocate 80% of the total investments to the exploration and production segment, which will allow organic production to reach between 750,000 and 760,000 barrels of oil equivalent per day (oil and gas) and incorporate new proven reserves equivalent to at least 100% of annual production. 78% of these investments will go to projects in Colombia and will invest the remainder in positioning the Group's operations in the United States, Mexico, and Brazil.
Source: El Heraldo
Date: November 28
Headline: The ANH received 17 offers for 15 blocks in the oil auction
In the second oil auction held by the National Hydrocarbons Agency (ANH), 17 proposals were received for 15 of the 59 blocks offered. On December 3, the agency will present the official list with the best proposals for each of the areas. The companies that made offers in the auction are Amerisur Exploración Colombia Lted.; Canacol Energy (CNE Oil & Gas); Ecopetrol S.A.; Frontera Energy Colombia Corp.; Gran Tierra Energy Colombia LLC; Hocol S.A.; Parex Resources Colombia Ltd.; Unión temporal (UT) Ecopetrol-Parex; UT Hocol- Geopark and UT La Luna-Captiva. Luis Miguel Morelli, president of the ANH, said that with the auction processes, a historic success rate was recorded with a placement of 37% (26) over the 70 areas offered in 2019.
Source: Vanguardia Liberal
Date: November 28
Headline: Dollar broke record, reached $3.500
This month, the devaluation of the Colombian peso has exceeded 4%; in the region, it is led by the Brazilian real, pressured by its political situation, and the Chilean peso, with rates above 6%. The day of new marches in Colombia drives the currency up, which reached a record average negotiation of $3.502,97, with an increase of $33,96 against the Representative Market Rate, TRM. (…) Oil prices are operating lower. The reference barrel WTI falls 0.18% to US$58.11 and Brent decreases 0.86% to US$63.72.
Source: El Meridiano de Sucre
Date: November 28
Headline: Positive success rate
Highlighting that the minimum investments in the oil sector will total USD$500 million, the ANH announced that 2019 shows a success allocation rate of 37 %.
Source: El Universal
Date: November 27
Headline: Refinery will increase its capacity
Ecopetrol's Investment Plan for 2020, estimated between 4.5 and 5.5 billion dollars, will include the interconnection project of the original Crude Unit of the Cartagena Refinery with the new one built in the expansion. The project will allow the Refinery to increase its loading capacity from 150 thousand barrels per day of crude to an average of 200 thousand barrels per day, which means it will increase the production of clean fuels such as gasoline, ultra-low sulfur diesel, and jet fuel (aviation gasoline). This was revealed by the General Manager of the Cartagena Refinery, Walter Canova, who added that with the initiative “the national demand will be met, contributing to energy security and reducing fuel imports.”.
Source: El Nuevo Día
Date: November 27
Headline: Ecopetrol will produce up to 760 thousand barrels per day.
Increasing exploration and production, advancing in the energy transition, and ensuring the operation of the Barrancabermeja and Cartagena refineries will be three of the main investment axes that Ecopetrol will have in 2020. The oil company, which plans to invest up to 5.5 billion dollars next year, seeks to continue consolidating the good management of its finances while aiming for a production of up to 760,000 barrels of oil per day. (…) “This investment plan shows that the company is interested in sustainable growth, facing the production and exploration challenges it currently faces,” concluded Carlos Leal, president of the board of directors of Acipet.
Regional News
Source: prensalibrecasanare.com
Date: November 28
Headline: 400 women benefited from Equión's community meeting point.
As part of the fair called “PEC We Are All,” the community of the corregimiento El Morro presented the results of its training and community integration processes resulting from the alliance between Equión, the Amanecer Foundation, and SENA. “The PEC became our school; for five years we trained, learned different activities, courses, and workshops that have allowed us to enhance our personal growth and at the same time discover new capabilities, the use of free time, and the generation of new economic income for our homes; thank you very much for the countless experiences, sharing, and getting to know each other as a community,” highlighted Paola Pérez, a beneficiary of this social investment program.
Source: prensalibrecasanare.com
Date: November 28
Headline: Transporters at the Cusiana turn point in Tauramena denounce favoritism towards the multinational Impala.
Crude and gasoline transporters reported alleged favoritism by S.O.S contingency towards the vehicles of the company Impala Colombia SAS, a subsidiary of the multinational group Trafigura, at the Cusiana turn point in Tauramena. According to the complaint, an Impala truck with breakdowns and mechanical defects was allowed to load, creating risks of all kinds. Through a video, the transporters pointed out that the tractor-trailer, a tanker with license plate TSX549 linked to “Trasfigura Impala,” remained stranded for three days; however, S.O.S contingencies allowed it to change the head, bypassing the protocols imposed on other companies.
Source: Violeta Estéreo.
Date: November 27
Source: lavozdelcinaruco.com
Date: November 26
Headline: Army recovers a minor and captures two guerrillas from the Eln.
The commander of the Quirón Task Force, Colonel Arnulfo Traslaviña Sáchica, confirmed the recovery in recent hours of a minor and the capture of two members of the Eln by the Military Forces. During 2019, 20 children have been disassociated who have surrendered to the Family Welfare Institute in this region of the country for the restoration of their rights. (…) The work carried out for more than two months by the troops of the Eighteenth Brigade yielded conclusive information for the infiltration maneuvers carried out by National Army and Colombian Air Force aircraft, resulting in the capture in the San Miguel village of the municipality of Arauquita of two members of the Camilo Cienfuegos Commission of the Eln, responsible for leading, planning, and executing attacks against pipelines and police stations in Fortul, Arauquita, and Saravena, as well as for extorting ranchers and merchants.
Source: prensalibrecasanare.com
Date: November 27
Headline: The training process in entrepreneurship for teachers in Casanare has concluded.
The classroom project “School for Entrepreneurship BBVA” aimed to train teachers along with their students from 40 Educational Institutions in financial and entrepreneurial skills through business ideas. During the last session of the training process, held in the Uniminuto auditorium, teachers shared the entrepreneurial skills strategies that accompany the training of eighth-grade students, so that children and young people can project themselves towards financial entrepreneurship and life projects.
Source: laschivasdelllano.com
Date: November 27
Headline: The government recovered 20 kilometers of roads in Yopal.
With machinery dedicated to Disaster Risk Management, the Casanare government maintained 20 km of the road that connects these three villages in the municipality of Yopal. The work included material supply, compaction, and ditching. Daily, farming families, especially dedicated to livestock and medium-scale agriculture, travel this road. «We thank Governor Alirio Barrera for improving our road. God bless him for such excellent work,» with messages like this, farmers from the sector expressed their gratitude to the Governor for the works carried out with the machinery team.
Colombian Association of Oil and Gas