ACP as a source of information
Source: Portafolio – National
Date: May 14
Headline: ‘Ocensa will not lower its rate 60 %’
In order to mitigate the impact of the crisis resulting from the drop in crude oil prices and the COVID-19 pandemic, Oleoducto Central S.A. (Ocensa) is one of the companies that will finance up to 50% of the crude oil transportation tariff by pipelines during May and June 2020 with a grace period of two months. In dialogue with Portafolio, its president Alexánder Cadena also explained the reasons why the proposal from the Colombian Petroleum Association (ACP) to reduce the crude oil transportation tariff by 60% is not viable, and the investments of US$42 million to optimize operations aimed at achieving the goal of channeling heavy crudes. (…) The issue of tariffs is regulated. It is set by the Ministry of Mines and Energy based on a methodology that has two components: operating costs (transport companies have been implementing efficiencies seeking to reduce those same costs), (…) The total investments to be executed will be US$42.8 million, and the amount will be distributed among the different stations and the Coveñas terminal. It was reported in: portafolio.co (May 13).
Source: diariolalibertad.com – Regional
Date: May 14
Worldwide, oil production in Colombia in 2019 was 886 thousand barrels per day, according to Senator María del Rosario Guerra in a political control debate on the impact that Ecopetrol has due to the drop in oil prices and the effect of Covid-19. (…) The Colombian Petroleum Association reported in March a 2% drop in direct jobs and 48% in indirect jobs. According to the congresswoman, if the situation continues, the figures by December could be 8% and 72%, respectively. (…) On the other hand, Francisco Lloreda, president of the Colombian Petroleum Association, pointed out that 60% of the international crude demand is for transportation (air, land, river, and maritime). “The International Energy Agency in its April report indicates that the drop in oil demand was around 30% and estimates that it will gradually recover in the months of May, June, and July,” he added.
GREMIO
Source: Portafolio
Date: May 14
Headline: Companies are taking on debt issuance amid the crisis
The crisis caused by the expansion of COVID-19 is generating an unprecedented drop in economic activity worldwide, and markets have not escaped it; however, amid the situation, there are companies that are managing to attract capital through debt bond issuances, local and international credits, and even investments from foreign capital funds. (…) The list of companies compiled by Portafolio includes Ecopetrol, the largest companies in the country, as well as other representative firms from various economic sectors, but there are also other small, relatively new, and even a microenterprise that with innovative businesses have caught the attention of investors from all over to boost it with capital contributions.
Source: El Heraldo
Date: May 14
Headline: Hocol will drill new exploratory wells in the Atlantic
Hocol, a subsidiary of the Ecopetrol Group, announced that it plans to drill new exploratory wells in the Atlantic in 2021 in order to verify the presence of hydrocarbons in the subsurface of the department. The company, which has a presence in 3 blocks in the Atlantic (SSJN1, Perdices, and RC7 in transfer from Ecopetrol), recently announced the discovery of gas in the Bullerengue 3 well, which operates in partnership with Lewis Energy, located in an area very close to the Bullerengue 1 discovery, in the town of Sabanalarga located 30 kilometers from Barranquilla. (…) “We have expectations of being able to carry out other exploratory drillings in the department starting in 2021. We are designing seismic acquisition programs that will allow us to verify what additional potential exists in the area, and in parallel, the drilling of some exploratory wells is being planned to verify the presence of hydrocarbons in the subsurface,” the company indicated.
Source: Dinero
Date: May 14
Headline: The iguana's quarter
The sharp drop of 95.21% in Ecopetrol's profits - due to the fall in international oil prices and global demand due to the expansion of the coronavirus - is very bad news. In its quarterly report, the company also indicated that its total revenues fell by 81% and its Ebitda contracted by 28.51%. The good news amid these negative results is the increase in production to 735,000 barrels per day, after taking over the operation of the Pauto and Floreña fields in Casanare.
Source: Dinero
Date: May 14
Headline:New priorities
The Deputy Minister of Finance spoke with Dinero about the Government's strategy in the current phase of the crisis. Protection of formal employment is one of the main goals. The technical Deputy Minister of Finance, Juan Pablo Zárate, who is one of those managing the threads within the Government's economic team, explained where the Government's efforts will be focused during the pandemic. (…) The drop in oil prices and the depreciation of the peso caused by this movement have a moderate effect on the central government's finances for 2020, equivalent to 0.31% of the Gross Domestic Product (GDP). This effect is moderate in relation to the price drop, and it is due to the fact that a good part of the income received this year was generated in 2019, just like Ecopetrol's profits.
Source: Dinero
Date: May 14
Headline: Debacle or opportunity?
After collapsing, the stock markets have recovered. For some, it is time to buy, while others believe it is premature. Some stocks recommended by experts. (…) Suárez, for his part, considers that the stocks of ISA, GEB, Canacol, Celsia, and Nutresa are recommended for investors with low-risk or conservative profiles, while for those who are a bit more aggressive, he suggests stocks from banks, as well as those of Ecopetrol and Grupo Sura.
Source: El Colombiano
Date: May 14
Headline: Irreparable effects left by attacks on oil pipelines
In the first five days of May, there were seven attacks against the infrastructure. This week, the residents of the Kilómetro 90 village in El Tarra, Norte de Santander, received a warning that the water they consumed from the river was contaminated due to an oil spill that, according to Cenit, a subsidiary of Ecopetrol, occurred due to the installation of an illegal valve in the pipeline for the theft of hydrocarbons. The spill reached the La Pérdida creek, which flows into the Tarra River, prompting Cenit to install seven containment barriers along the waterway, equivalent to 260 meters, to prevent further contamination. Until yesterday, this was the latest episode in a story that records attacks and attempts to steal oil along the 250 kilometers of the Caño Limón-Coveñas pipeline that crosses Arauca, Boyacá, Norte de Santander, and César, and which, according to Ecopetrol, has suffered 17 attacks and 14 valve installations this year, resulting in the loss of 162,810 barrels of crude oil between January and April.
Source: Vanguardia Liberal
Date: May 14
Headline: ‘Hospitalito’, one step away from opening its doors
After the delivery of 50 refrigeration units by Ecopetrol, the way is clear for the Health Center El Danubio, popularly known in Barrancabermeja as ‘El Hospitalito’, to be operational in a matter of days. These accessories, which will be installed soon, complement the remodeled structure that will provide services for childbirth, emergencies, general medicine, procedure rooms, observation, and promotion and prevention.
Source: El Nuevo Día
Date: May 14
Headline: Ecopetrol's investment plan was reduced to US$3000 million during this year.
A four-front action plan is Ecopetrol's new strategy to face the price crisis and the advance of the pandemic. This is a strategy focused on savings and efficiencies, with planned investments for this year ranging between 2500 million and 3000 million dollars. The new figure, revealed by the company's president, Felipe Bayón, is a response to low Brent prices and high operational costs faced by the oil company. Although an initial budget of up to 5.500 million dollars was set for this year, this situation led the firm to adjust the amounts, as well as to implement an austerity program.
Source: El Frente
Date: May 14
Headline: Progress is being made on the adaptations of the health post El Danubio.
For the District Mayor's Office, the life and health of all Barranqueños is a priority. That is why it managed a contribution of $400 million in air conditioners from Ecopetrol for the Health Post El Danubio, where a total remodeling project is about to be completed. The mayor, Alfonso Eljach, received 50 refrigeration units from Ecopetrol to complement the remodeled structure, which will provide services for childbirth, emergencies, dentistry, general medicine, procedure rooms, observation, and promotion and prevention. (…) “We hope to have it fully operational by the beginning of June. Although at this moment we are evaluating, together with the Government of Santander, with Ecopetrol itself and other allies, the possibility of making a reinvestment that allows us to have operating rooms and other aspects that were not initially contemplated,” added the district's top authority.
Source: La Guajira
Date: May 14
Headline: $12.184 million in Works for Taxes will be invested in Guajira Azul projects in Riohacha and Maicao.
In Riohacha, thanks to the contribution of $7.044 million made by Ecopetrol, the expansion of the aqueduct networks will take place. As a result, nearly 36,000 inhabitants of Riohacha and Maicao will benefit from works that are part of the «Guajira Azul» program, thanks to $12.184 million contributed by Ecopetrol and Enel. Through the «Works for Taxes» mechanism, these companies advanced the payment of their income tax by financing and directly executing these public investment projects that will transform the quality of life for families in the region.
Topics
Source: La República
Date: May 14
Headline: Oil and happiness. By: Carlos Alberto Leal Niño.
According to the report from the Professional Council of Petroleum Engineering, from October 2019, there are 11,437 petroleum engineers registered in the country, of which 42 % were unemployed, 49 % worked in the industry, and the remaining 8% in other sectors. These figures correspond to a year in which the industry was recovering, with crude oil prices around USD 60 per barrel, and yet unemployment remained high. The crisis will pass and industries will recover, but the workforce is the most affected and it could be even worse given the dual condition of falling prices and the pandemic. Industry unions estimate that human resources could be affected by layoffs of up to 72 % across the entire value chain of this industry, with a slowed reduction of this rate if energy demand conditions and oil prices do not recover soon.
Source: Portafolio
Date: May 14
Headline: OPEC sees balance for oil.
In the face of an unprecedented annual decline in global crude oil demand, estimated at 9.11% for 2020, OPEC expects an even greater reduction in supply, of 14.1%, to lead to a rebalancing of the oil market in the second half of the year.
Source: Dinero
Date: May 14
Headline:The belt-tightening
An austerity decree on spending and the new economic emergency are consolidated as the first phase of the Government's fiscal adjustment. The fiscal adjustment process that the Government will have to finalize by July, when it must present the Medium-Term Fiscal Framework, will begin in the coming weeks with a tough belt-tightening. Just like in times of lean cows, when oil prices fall, the public administration will tighten its public spending policy to such an extent that personnel budgets will rarely be increased and overtime will be rationalized. (…) In the case of crude oil, estimates dropped from US$60.5 to US$36.3 per barrel, and public debt could rise to up to 60.1% of GDP in the most optimistic scenario.
Institutional
Source: Vanguardia Liberal
Date: May 14
Headline: Four fracking pilots would be carried out in the country
After the National Authority of Environmental Licenses, Anla, grants the environmental license within its competencies, companies would have nine months to start the pilots. According to the draft technical regulation which establishes technical guidelines for the development of Comprehensive Research Pilot Projects (PPII) in Unconventional Reservoirs (YNC), from the Ministry of Mines and Energy; Colombia will be able to have a maximum of four research and development fracking pilots with two wells each. These wells may be executed in a maximum of two locations in each area. They will be carried out in the Valle del Medio Magdalena and Cesar – Ranchería.
Colombian Association of Oil and Gas