ACP as a source of information
Source: paisminero.com
Date: May 11
Headline: Prices and pandemic would take oil reserves away from the nation
The volatility in crude oil barrel prices in international markets and the global pandemic due to covid-19 would take a toll on the country's oil reserves, following the sector's operation in 2020. The reason is that the volume level of Colombia's hydrocarbon remnants, less than eight months before the end of the current year, could be nearing 1.9 billion barrels of oil. (…) Calculations from the National Hydrocarbons Agency (ANH) indicate that, depending on the severity of the crisis, the country would stop producing about 130,000 barrels of oil per day. (…) A recent economic report from the Colombian Petroleum Association (ACP) highlights that if the price of Brent crude remains below US$40, crude production would decrease by between 30,000 and 35,000 barrels per day, which would also cut the country's crude reserves.
GREMIO
Source: El Tiempo
Date: May 12
Headline: Ecopetrol sells more and earns less
Ecopetrol's profits recorded a 59.2 percent annual decline to 1.1 trillion pesos in the first quarter of 2020, mainly due to the drop in the price of Brent crude, which fell from 64 to 51 dollars during this period, and a strong weakening of the basket of crudes and products. However, Felipe Bayón, president of the oil company, explained that, considering the current uncertainty in the sector and the economy in general, a future accounting loss was brought to present value, resulting in a net profit attributable to shareholders of 133 billion pesos in that first quarter of the year. (…) In that same vein, Bayón said that Ecopetrol has more than 11.7 trillion pesos in cash to meet production and operational needs.
Source: La República
Date: May 12
Headline: AFP reduces its purchases on the Stock Exchange
Following the historic drop recorded by the stock markets in March due to the spread of covid-19 and the measures implemented to contain it, the stock markets in April showed a positive dynamic. This is attributed to higher expectations regarding the gradual reopening of economies, as well as the fiscal and monetary plans of governments and central banks. (…) On the other hand, in the ranking of the most traded stocks in April, the preferred share of Bancolombia ranked first with $542.405 million; followed by Ecopetrol's with $478.369 million; Bancolombia's with $136.903 million, and Grupo Aval's preferred share with $131.106 million.
Source: La República
Date: May 12
Headline: Ecopetrol's profit fell due to covid-19 and low prices
The crisis of international oil prices and the advance of covid-19 took a toll on Ecopetrol in the first quarter of the year. The company reported that its net profits as of March totaled $133.000 million, which translated into a 95.2% drop compared to the $2.7 trillion reached in the same period last year. (…) “The results and the impact are not foreign to what has generally been seen in the industry. These financial indicators were heavily impacted, especially because since the beginning of March we have seen a significant decrease in consumption,” explained Carlos Leal, president of the board of directors of Acipet. And given the entire situation, the president confirmed that the plan with Oxy in the United States was adjusted. Bayón assured that a change in that program was agreed upon, which will focus on prioritizing the preservation and protection of cash. “This new plan will translate into an average production in 2020 between 4,000 and 5,000 barrels per day for Ecopetrol, with a total of between 21-23 operated wells producing by the end of the year,” he confirmed.
Source: La República
Date: May 12
Headline: Colombia imposed tariffs of 13% on ethanol from the United States
It was about to be two years since the Federation of Biofuels of Colombia (Fedebiocombustibles) filed a complaint and request to the Ministry of Commerce, which sought to impose compensatory measures on ethanol arriving in the country from the United States. (…) After such a long wait, Mincomercio made a statement, and it did so through a decree which established that from now on and for two years, there will be compensatory duties on imports of the also known fuel alcohol, of US$0.66446 for each kilogram of net weight. (…) And indeed, one of the first victims of this trade dispute was Ecopetrol. At the beginning of March, its subsidiary Bioenergy had to enter a reorganization process in the Superintendence of Companies. Precisely, in the order published by the control entity, Bioenergy indicated that the revenues obtained did not cover the operational flow as the sum of costs, expenses, and investments in assets.
Source: Portafolio
Date: May 12
Headline: Without major changes in the national stock market
The shares of Ecopetrol and Bancolombia preferred traded on the Colombian Stock Exchange remained the most liquid, including transaction frequency per month, number of operations, and transaction volume per operation.
Source: Portafolio
Date: May 12
Headline: Ecopetrol's profit fell 95.2% in the first quarter
The drop in international oil prices and the COVID-19 pandemic ultimately caused Ecopetrol's profits to plummet more than 90% in the first quarter of this year. (…) It is noteworthy that although Ecopetrol's average crude production reached 735,000 barrels per day in the first three months of the year, just 7,000 barrels more compared to the first quarter of 2019, the earnings managed to cover operational costs and allowed for a slight profit. But undoubtedly, the task that was yielding positive results (fracking in the U.S. with Oxy) had no choice but to adjust operations with a cut in investment and pumping, going from 7,000 to 9,000 bpd to between 4,000 and 5,000 bpd. “We are making solid progress with additional cost reductions to help withstand the low commodity price environment and other macroeconomic pressures affecting the industry and global economy,” said Oxy's president and CEO, Vicki Hollub.
Source: La Opinión
Date: May 12
Headline: Oil spill causes ecological damage
A new attack on the Caño Limón-Coveñas pipeline was detected by Cenit, a subsidiary of the Ecopetrol Group that manages this crude oil transport network. Once the facts were known, a contingency plan was activated to neutralize the oil spill as a result of the installation of an illegal valve for the theft of hydrocarbons in the rural area of El Tarra. The illegal valve caused an oil spill in the Quebrada La Perdida that flows into the Tarra River, which is why the permanent control point of La Gabarra and the alternate control point of San José were activated through the installation of seven containment barrier lines, equivalent to 260 meters over the tributary.
Topics
Source: La República
Date: May 12
Headline: Dollar appreciates against the peso due to fears of a second wave of COVID-19
At the close of the day, the dollar reached an average price of $3.901,40, which represented an increase of $19,13 against the Representative Market Rate (TRM), which was at $3.882,27 on Monday. The currency opened the day at a price of $3.920 and closed at $3.898. The minimum price recorded on the Set-Fx platform was $3.893,20, while the maximum was $3.920. The amount traded during the day was US$516,21 million in 783 transactions. (…) According to the closing prices reported by Reuters, the Brent barrel, the benchmark for Colombia, lost 4.4%, or US$1,37, falling to US$29,60. As for the WTI barrel, it decreased by 2.4%, or US$0,60, closing at US$24,14.
Source: Portafolio
Date: May 12
Headline: Crude oil declines despite new cuts
Despite Saudi Arabia saying it will take 1 million barrels more off the market starting in June, oil prices continued to fall. Brent lost 4.04% during the day to US$29.67 per unit, while WTI dropped 2.4% to end the day at US$24.14.
Institutional
Source: Portafolio
Date: May 12
Headline: The economic agenda of the Congress of the Republic is not advancing.
More than fifty key economic projects, which last March were waiting for discussion and approval in the Congress of the Republic, remain stalled, or have barely received approval in the third or fourth commissions. (…) Likewise, the project that would pave the way for mining and oil in the municipalities is pending. This is the law that regulates the coordination and concurrence procedure, which allows not only the Nation to access the production of underground resources but also dispels the ghost of popular mining consultations, which would be presented by the National Government to the Congress of the Republic. (…) The National Government is pending to submit a bill to strengthen the fight against the illegal exploitation of minerals. The initiative is driven by the ministries of Mines and Energy, and Defense.
Source: diariolalibertad.com
Date: May 11
The Senate will begin to exercise the political control that corresponds to it over the norms issued by the National Government based on Article 215 of the Political Constitution, to address the causes of the Covid-19 epidemic and prevent the extension of its effects. (…) Wednesday, May 13 (…) Also at 9:00 a.m., the Third Commission summoned the Minister of Mines and Energy, María Fernanda Suarez, to discuss the impact on company finances due to the drop in oil prices, the behavior of crude oil in the market, the effects of Covid-19, and the measures adopted. The president of Ecopetrol, Felipe Bayón, was invited to the virtual meeting.
Colombian Association of Oil and Gas