ACP as a source of information
Hydrocarbons Sector
Source: El Tiempo
Date: August 16
Headline: ‘Colombia depends too much on the external’: Nouriel Roubini
Amid the strong volatilities that global and regional markets are experiencing these days, due to the trade war between the United States and China, along with other factors such as the higher yield of U.S. Treasury bonds and the performance of Europe and China, economist Nouriel Roubini, professor of Economics at New York University, (…) How quickly could the external sales of countries like Colombia be affected by these fears? If global growth continues, then Colombia will be fine. But let’s remember that it is also an exporting country and if there is a war between the United States and China that pushes the price of oil in dollars, that could affect the demand for oil. (…) Colombia depends too much on the external and on oil exports. A national production of other goods can be generated to export them. This could generate other solutions, as well as innovate more digitally and try to diversify the economy and make it less dependent on oil, exports of it.
Source: El Tiempo
Date: August 16
Headline: Households, key in boosting the economy
The growth of the country's economy in the second quarter of the year was positively surprising. With a strong boost from household consumption, the gross domestic product (GDP) expanded by 3 percent, above the 2.9 percent that most analysts expected. (…) Among the figures revealed by Dane, the timid increase in minerals stands out, given that oil has had a relatively high production of 892,338 barrels per day and is the most significant in this sector. However, coal pushed down significantly, decreasing by 4.4 percent, with a significant drop in international prices.
Source: El Tiempo
Date: August 16
Headline: “Growth must have a responsible party in the State”: Andi
Colombian entrepreneurs, grouped in Andi, urged authorities yesterday to make economic growth a public policy. They believe that there is no entity in the State that oversees this variable. (…) According to Andi, if there is something that should be handled with kid gloves, it is the confidence of demand, which if destroyed is very difficult to regenerate. Given these growth needs, Andi stated that the country has unconventional hydrocarbons, extracted through the fracking technique, as a way to generate investment in high-impact sectors in the long term, being this a very important opportunity to use that option to grow.
Source: La República
Date: August 16
Headline: The dollar and the fiscal rule. By. Jorge Iván González
The value of the dollar today is close to $3,400. According to the estimates of the Medium-Term Fiscal Framework, the dollar would reach this value in 2026, so the prediction error is already significant. (…) Some effects are positive, such as the higher income from oil exports, but others are negative, such as the increase in the value in pesos of external debt. The causal sequence of events that triggers the variation of the dollar is absolutely uncertain. Projections do not hold, among other reasons, because the interactions between phenomena are multicausal.
Source: La República
Date: August 16
Headline: The challenges and ideas to improve trust
In the eyes of Miguel Escobar, president of Postobón, the cascade of bills that will be processed in Congress in the upcoming semester, especially those related to labor issues, could end up affecting business operations. (…) Finally, the president of Ecopetrol, Felipe Bayón, explained that the challenge is “to be able to give strong signals. We as entrepreneurs and investors, who are responsible for many of the investments that help the country grow, have many opportunities and things can be done very well with a lot of impact. That is important and helps to rebuild trust.” The president of Andi, Bruce Mac Master, said that a good roadmap to overcome the concerns of entrepreneurs is to include proposals for strengthening consumption, that is, to improve demand, accelerate public spending and the execution of royalties (the already budgeted), to have real development to start mining and hydrocarbon projects, and to generate incentives for exports.
Source: La República
Date: August 16
Headline: The troubles of Omnia Energy with oil companies
The contractual conditions between operating companies and service companies in the oil sector are key aspects when obtaining any type of project, as they can be decisive for the profitability of any of the involved parties. One of the most notorious cases so far, precisely because of the issues it brings in terms of contracting, is that of the operator Omnia Energy Inc. According to information known to LR, this company would have worked with about seven service companies in order to obtain pipes and materials for the exploration of oil wells, although without paying the full agreed fees at the time. (…) The well in which Omnia would be operating today would be Flami 1, located in block Llanos 27, whose location is in the municipality of Maní, in the department of Casanare, and whose capacity reaches 400 barrels per day.
Source: La República
Date: August 16
Headline: Rehabilitation of the Cravo Sur Bridge in Casanare will cost more than $750 million
The National Institute of Roads, Invías, awarded the contract for the rehabilitation of the Cravo Sur Bridge in Casanare, for $770 million allocated for works and oversight. The objective of the project, which received 11 bids, is to guarantee the transit of the road that leads from Yopal to Paz de Ariporo, so the intervention has a length of 100.4 meters. Additionally, the bridge is relevant as it is located on the road that allows the only connection of the department of Arauca with the rest of the country. «The bridge is fundamental for the region and its people, as agricultural, livestock, and oil industry products move through it. Guaranteeing the rehabilitation of this bridge is ensuring productivity, development, and connectivity of the region,» said Juan Esteban Gil, general director of Invías.
Source: Portafolio
Date: August 16
Headline: Brent crude fell 2.1% to US$58.2
The price of Brent oil fell yesterday on the London stock exchange by 2.1% and closed at 58.23 dollars per barrel, pressured by fears of a recession, which has revived the inverted yield curve of public debt in the U.S., and by the threat of retaliation from China in the tariff conflict. Likewise, on the New York Mercantile Exchange, WTI crude fell 1.38%, to 54.47 dollars. The oil market was still impacted by the unexpected increase in national crude reserves reported yesterday by the Energy Information Administration, of 1.6 million barrels per day.
Source: Portafolio
Date: August 16
Headline: The fracking issue needs to be studied in depth
Commemorating the 75th anniversary of the creation of Andi, the Fourth Colombian Business Congress was held yesterday in Medellín. Before more than 2,000 attendees gathered at this business meeting, the president of the Colombian Entrepreneurs Association (Andi), Bruce Mac Master, announced the creation of the Andi Competitiveness Index. This indicator takes into account information from 63 countries and analyzes seven dimensions. (…) Likewise, he called for greater importance to be given to growth within economic policy, understanding that it is the most effective social policy of all. Finally, he requested that the alternative of fracking be studied in depth and with scientific evidence to determine how it can be done sustainably, both socially and environmentally.
Source: Portafolio
Date: August 16
Headline: A number that serves. By: Ricardo Ávila Pinto
It was not one, but two good news items that the economy received yesterday when Dane delivered its report regarding the behavior of the gross domestic product in the second quarter of 2019. The entity indicated that the expansion of the different sectors analyzed reached 3 percent between April and June, compared to the same period last year. (…) No less important is what happens with mining and hydrocarbons. Despite the fact that oil production continues to rise, the drop in coal prices is expressed in the closure of some operations. Gold, in turn, is in question, as while there are projects underway, informality continues to prevail in this area.
Source: El Nuevo Siglo
Date: August 16
Headline: Progress in the Council of State lawsuit against fracking in Colombia
Today, a representative from Ecopetrol and a member of the expert commission will testify. A new hearing will be held today by the Council of State within the framework of the lawsuit presented by civil society against the implementation of the fracking technique in Colombia, which is used in some countries like the United States because it enhances the extraction of oil and gas, but is a topic of international discussion due to its environmental impacts. (…) Therefore, last July, the National Authority of Environmental Licenses -ANLA- notified Ecopetrol that a request submitted by this company in an environmental licensing process for a project involving unconventional deposits was suspended. (…) It is worth noting that the report from the Expert Commission on fracking states that this process must promote citizen participation, so a first condition must be to clearly understand the rights of the populations.
Source: El Nuevo Siglo
Date: August 16
Headline: The trade deficit doubled due to more purchases from the European Union
The country's trade balance doubled in the last 12 months. Between January and June 2019, a negative balance of US$4.421.8 million was recorded, compared to US$2.781.5 million in the same period last year. (…) External purchases in the group of fuels and products from extractive industries, in the period January-June 2019, amounted to US$2.711.2 million and showed an increase of 32.3% compared to the same period in 2018. This behavior was mainly due to the increase in imports of mineral fuels and lubricants and related products (41.5%), which contributed 32.8 percentage points to the total variation of the group.
Source: El Colombiano
Date: August 16
Headline: Competitiveness, an urgent task
The National Association of Entrepreneurs of Colombia (Andi) presented a new competitiveness measurement tool, which compares companies in the country with those from 63 other nations, across seven key dimensions or aspects. (…) Felipe Bayón, president of Ecopetrol, stated that the country has observed signs of reactivation in the last year. “We are on a positive path. One would like to see larger figures, but we are heading in the right direction and there are good expectations. That is why it is important to understand the role of the industrialists who bet on the country, as well as on job creation and investment in technology.”.
Source: Vanguardia Liberal
Date: August 16
Headline: Ecopetrol reported blockades in the Yondó area where it is conducting cleanup
The Colombian Petroleum Company, Ecopetrol, rejected yesterday the blockades that prevent cleanup work in the El Dique village, in the municipality of Yondó. It is worth recalling that on July 30, a resident of the area reported a spill, apparently of crude oil, in a water source. Well, Ecopetrol reported that third parties blocked the access road to the southern spill in the Casabe field. “Ecopetrol rejects the blockade carried out by third parties, preventing the development of the deep cleaning activities that are part of the contingency plan activated on July 30. “Since the moment the environmental event was recorded, for reasons that are under investigation, the company has spared no effort to restore the normal conditions of the impacted area, through the execution of fine cleaning activities and profiling of the spill banks,” the company assured.
Source: El Meridiano de Córdoba
Date: August 16
Headline: Ecopetrol
Ecopetrol's profits at the end of the second quarter of the year showed a slight reduction, falling from $3.5 to 3.4 trillion due to volatility in crude oil prices.
Source: rcnradio.com
Date: August 16
Headline: Reactivation of the hydrocarbons sector, a reality: Minminas
According to Dane, in the second quarter of this year, the extraction of crude oil and natural gas grew by 3.3 percent. This is the highest variation since 2014. In this regard, María Fernanda Suárez, Minister of Mines and Energy, stated that the reactivation of the hydrocarbons sector is a reality in Colombia. (…) Suárez recalled that in the first half of this year, 16 blocks were reactivated thanks to new awards and conversion of contracts for the exploitation and production of hydrocarbons offshore and in continental areas, with investments amounting to 1.5 billion dollars.
Source: ADN Bucaramanga
Date: August 15
Headline: Attack on Ecopetrol pipeline
Bucaramanga. Individuals with bladed weapons made cuts in Ecopetrol wells located in the Magdalena Medio fields, causing serious environmental impact.
Source: Diario del Norte.
Date: August 15
Headline: Representatives from Ecopetrol will arrive in La Guajira to evaluate six offshore wells
On September 12, representatives from Ecopetrol will arrive in La Guajira to evaluate what will be the exploitation of offshore wells in the Department. This was announced by Cardenal Stereo journalist in Riohacha, Enrique Herrera Barros, highlighting the management of the Secretary of Government with functions of acting governor, Jhon Fuente Medina. «I am thinking that we are going to set up in Puerto Brisa with all the equipment with the gas, since the acting governor has just managed to get Ecopetrol to set the date of September 12 to be with us, evaluating and endorsing what will be the exploitation of the offshore wells on the La Guajira side,» he stated.
Source: Hoy Diario del Magdalena
Date: August 15
Headline: The ambition to sell Ecopetrol
Everything seems to indicate that this government is going to squander one of the greatest assets that the Nation has: Ecopetrol. This means, as the popular saying goes, selling the goose that lays the golden eggs. With the placement of 8.5% of the shares, nearly $11 trillion would be achieved from a company that produces about $131 trillion a year. And all this due to the eagerness and appetite shown by the one dubbed the 'Destroyer', the same one who became famous for bankrupting dozens of municipalities with the so-called 'water bonds'. (…) However, today the decision is very complicated for several factors: one is that the company has just reported profits of $6.2 trillion in the first half. Another element is that according to the markets, crude oil prices are rising, which could lead to higher revenues during this year. To these two facts, it should be added that Colombia is about to authorize fracking, and there Ecopetrol has a huge opportunity to increase its production, which is currently close to 760,000 barrels per day.
Source: Diario del Huila
Date: August 15
Headline: Ecopetrol hired 93.71% of local labor.
1,575 people worked in the first half of 2019 on works and projects. In goods and services, local contracting amounts to 1,428.546 million. In the department of Huila, on average, 1,575 people worked during the first half of 2019 on works and projects developed by Ecopetrol through the contractor firms linked to the company. (…) “These important figures show the benefits that the oil industry brings to Huila, where not only is Ecopetrol directly hiring, but also our contractors are committed to generating development in the Region,” emphasized Santos Rueda.
Source: Diario del Sur
Date: August 15
Headline: An accident left fourteen injured.
A total of 14 injured people resulted from the traffic accident registered yesterday on the road connecting the municipalities of Puerto Asís and Orito, Bajo Putumayo. The incident occurred between a pickup truck and a service bus, exactly on the Santana-El Yarumo road. Reports indicate that apparently the driver of the pickup truck had a micro-sleep and invaded the opposite lane, colliding with the bus that was carrying 25 passengers from Tierra Gran Energy. Following the incident, the manager of the Putumayo clinic in Puerto Asís, Ana Milena Jaramillo, stated that of the 14 injured, two underwent surgery despite being stable. She added that the patients were part of the Gran Tierra Energy company and were fully treated at this clinic in Puerto Asís.
Regional News
Source: El Tiempo
Date: August 16
Headline: Advances of Duque. By: Plinio Apuleyo Mendoza.
The government of Iván Duque has organized the house, Paloma Valencia recently wrote. I agree. My appreciation of the Government does not stem from my simple loyalty to the Democratic Center. The facts and figures reported by the press have been sufficient for me. The problem of drug trafficking was inherited from the previous government. It supports the ELN, the dissidents of the FARC, and other guerrilla groups operating in the country. Well then. For the first time in 10 years, coca crops are being curtailed. Let us not forget that these crops rose to more than 200,000 hectares due to a series of negligence by former president Santos. The most serious was prohibiting aerial spraying with glyphosate. (…) It should not be forgotten that violence and insecurity have disrupted the life of the country for more than 70 years. Still, despite the agreements, peace has not arrived. In rural areas, violence is a constant visitor.
Source: Caracol Radio
Date: August 15
Headline: From today, the figure of the territorial training spaces of the FARC disappears.
Source: Blu Radio
Date: August 15
Source: Caracol TV
Date: August 15
Headline: The FARC dissidents are responsible for a terrorist attack on the roads of Cauca.
Source: Cable Noticias.
Date: August 15
Colombian Association of Oil and Gas