ACP as a source of information
Source: La República – National
Date: March 13
Headline: In the previous drop, operating rigs fell to 20
The drop in oil prices in 2015-2016 led to one of the strongest crises in the oil industry in Colombia, and several service companies entered reorganization or liquidation. This is because, for example, of the more than 200 rigs that existed, only 20 were operating. With the current drop being so unexpected for companies, Campetrol and ACP are still calculating how much investments would decrease and thus the rigs in operation.
Source: La República – National
Date: March 13
Headline: Crisis will reduce foreign investment and affect extraction projects
The national industry is cautious regarding the current situation of oil prices and the impact of Covid-19 on the execution of investments. The sector's guilds, although they still do not have an estimate of the real impact this situation would have, do add that the two oil auctions this year could be postponed, as well as the execution of new resources for exploration and production in 2020. (…) The Colombian Petroleum Association (ACP), for its part, continues to analyze the situation, as it is currently developing a comprehensive analysis of the landscape. However, this week its president, Francisco Lloreda, explained in LR that today “the companies in the sector learned the lesson from five years ago when they were caught off guard by the price crisis for reasons even similar to the current ones.” According to the executive, the firms operating in the country are better prepared than they were five years ago. For now, the execution of the investments agreed upon in 2019 (US$2.700 million) is still being analyzed, as well as the possible international ‘road show’ that ANH plans to hold in the second half of the year. Responded in: larepublica.co (March 13).
Source: Portafolio – National
Date: March 13
Headline: With the Cert, the Government would seek to maintain oil investment
A tax tool would be the letter with which the National Government seeks to maintain the country's oil investment in light of the current crisis resulting from the drop in the international price of the barrel. (…) “The Cert allows the country's oil sector to continue its operation, because investment decisions, for which this certificate was created, are not made with the current value price, but with future price projections,” said the Minister of Mines and Energy, María Fernanda Suárez. (…) For his part, Francisco José Lloreda, president of the Colombian Petroleum Association (ACP), has pointed out that the Cert, as a mechanism for works through taxes, can have significant impacts on the development of the country's oil operation in crises like the drop in prices, as it provides incentives for investments. Responded in: portafolio.co (March 12), buenaventuraenlinea.com (March 13), noticiasdecolombia.info (March 13).
Source: Diario del Huila – Regional
Date: March 12
Headline: Expectation for the Council of State's decision on fracking
Commercial production from unconventional deposits, such as shale gas and coal bed methane, could be authorized if the Council of State decides in favor. A ruling from the Council of State on the exploration of unconventional hydrocarbon deposits could end a long dispute between energy-producing companies and activists opposing fracking in the next four months. (…) ”It has not been easy for the companies since some of them have contracts signed for 10 years and have had to wait a long time," said the president of the Colombian Petroleum Association, Francisco José Lloreda. The ACP stated that four potential pilot projects in the departments of Cesar and Santander could generate an investment of 5 billion dollars and eventually increase oil production by 450,000 barrels per day.Responded in: diariodelhuila.com (March 12)
GREMIO
Source: El Tiempo
Date: March 13
Headline: The three causes that led Bioenergy to insolvency
There were three main factors that forced Bioenergy, the biofuel production subsidiary of Ecopetrol, to file for economic insolvency, whose entry for its business reorganization was authorized last Tuesday by the Superintendence of Companies, according to the two files covering the firm Bioenergy S.A.S., operator of the production plant located in Puerto López (Meta), and the company Bioenergy Zona Franca S.A.S. The two companies, which are subsidiaries of the Ecopetrol Group and had requested to enter insolvency law on January 31, were facing an imminent inability to pay for 2020, from an operational and financial perspective, as the revenues obtained did not cover operational flow, that is, the sum of costs, expenses, investments in assets (capex), income tax, and projected working capital accounts for the year, which was evidenced by a negative operating flow starting from January and March, respectively.
Source: El Tiempo
Date: March 13
Headline: We evaluated, with Ecopetrol, all possible alternatives
By stating that the Ecopetrol Group, as the controlling shareholder, has always supported its development, Bioenergy indicated that since it began operations in 2017, it has produced 154 million liters of ethanol and currently has commercial agreements with six wholesalers. But it acknowledged that its current reality, which has been impacted by lower agricultural productivity than expected and variations in market conditions due to the import of subsidized corn ethanol, makes it unsustainable to pay financial obligations. (…) Regarding the impact of project delays, which did not allow for more developed crops to have more raw material, Bioenergy explained that the procurement of sugarcane is determined by factors such as varieties, pest control, and climatic conditions.
Source: El Espectador
Date: March 13
Headline: Fiscal imbalances in Colombia due to Coronavirus
Just due to the dollar at 4,000, debt payments could increase by 2.7 trillion, and the drops in oil to US33 would imply 4.9 trillion less in oil revenue, according to the Fiscal Framework. (…) And this Thursday, the markets plunged again after President Trump suspended flights from Europe to the United States to try to contain the spread of the coronavirus. Yesterday morning, the S&P index fell more than 7%, which led the New York Stock Exchange to suspend operations for a few minutes, and Brent oil fell more than 6%, to US36 per barrel. In Colombia, the effect of this widespread drop was felt again through the exchange rate, which broke its third historical record in a single week and exceeded 4,000 (and the euro surpassed 4,500). The Colombian Stock Exchange had to suspend operations for the second time in the week.
Source: La República
Date: March 13
Headline: Bancolombia and Ecopetrol, the ones that have decreased the most in capitalization
Much has been said about the significant drops recorded by the Colombian Stock Exchange (BVC) in recent days, due to fears of a greater spread of Covid-19 and the disagreement between OPEC and Russia. These crashes were reflected in the Colcap closing with a decline of 9.351% yesterday, which was suspended around 11:24 a.m. due to the heavy losses recorded. (…) LR analyzed which companies have felt the greatest impact of this global scenario in terms of their stock market capitalization. Observing the firms with the highest capitalization on the BVC, it is clear that Ecopetrol and Bancolombia are the most affected, as they lost 4.01% and 3.61%, respectively, (…) In addition to Avianca, Grupo Argos, and Cemex Latam Holdings, other stocks that were also affected by the current situation were Cemargos with a drop of 16.47%, Grupo Sura with a decrease of 13.29%, Ecopetrol with a decline of 1.31%, the preferred shares of Grupo Aval closed in negative territory with -12.81%, and Canacol Energy with a drop of 12.78%.
Source: La República
Date: March 13
Headline: Every year, an average of 65,000 shareholders leave the Stock Exchange
In 2011, the stock market had the highest number of shareholders on record to date: 1.01 million. However, since then there has been a trend of investor withdrawals. On average, in the last nine years, approximately 65,634 shareholders left the stock market every 12 months. According to analyst Andrés Moreno, who prepared a report on investors in the financial sector on the Stock Exchange based on figures reported to the Financial Superintendency, from 2011 until September of last year, the stock market lost 474,329 shareholders. (…) Image. The issuers that have left: 2014. Petrominerales; 2016. Pacific Rubiales.
Source: Portafolio
Date: March 13
Headline: AES increases investment for Colombia and Chile by US$1.5 billion
The multinational AES increased its commitment to strengthen its operations in Colombia. The reason, in recent hours it announced an investment of US$1.8 billion for the development of solar and wind energy projects both in the country and in Chile. (…) Likewise, in October, the largest self-generation solar park in the country was inaugurated and put into operation, which supplies energy to Ecopetrol's Castilla field. This park will deliver energy for 15 years to Ecopetrol's operations in that field. “For the company, it is a source of pride to be part of the energy development of a great company like Ecopetrol. We hope this is not only the first but one of many large projects we have planned for the country.
Source: Portafolio
Date: March 13
Headline: Bioenergy S.A.S, ethanol producer, goes into insolvency law
The Ecopetrol subsidiary that would become the largest agro-industrial complex in the country for ethanol production has gone into insolvency law, which in the country is Law 1116. After being promoted as the company that would produce 100 million liters between 2021 and 2022, the ‘El Alcaraván’ complex could not meet the premises, and instead, the debt grew more than expected. So yesterday, through Autos No 2020-01-101986 and 2020-01-101988, the Superintendency of Companies, through the Delegation of Insolvency Procedures, admitted the companies Bionergy S.A.S. and Bionergy Zona Franca S.A.S. to the reorganization process regulated by Law 1116 of 2006.
Source: El Frente
Date: March 13
Headline: C Emprende an iconic space for Santander
With the aim of continuing to strengthen the entrepreneurship and innovation ecosystem in Santander, the Bucaramanga Chamber of Commerce, CCB, along with the Colombian Petroleum Institute, joined the C Emprende program of INNpulsa Colombia, which will bring the most important business support center in eastern Colombia to the region. This space, which aims to benefit around 1,500 entrepreneurs during the first year, will be possible thanks to the coordination of efforts between entities such as: the CCB, the Santander Government, the Bucaramanga Mayor's Office, the National Learning Service SENA, ProColombia, the Barrancabermeja Chamber of Commerce, Imebú, and Ecopetrol, which, through the Colombian Petroleum Institute, offered a physical location with more than 3,600 square meters to develop this project. In the photograph, the participants of the iconic business launch event.
Source: El Frente
Date: March 13
Headline: El Centro district is preparing for major changes
The District Mayor's Office of Barrancabermeja Santander agreed with the Family, Culture, Sports, and Recreation Table of El Centro; and the La Cira – Infantas project, to work on promoting the Oil Museum, creating schools for artistic and cultural training; and supporting the realization of the sweet festival, fairs and parties, and the 98th Anniversary of the oil district. (…) “The reactivation of the Oil Museum is very important. A few days ago, an agreement was signed in which Ecopetrol provided the logistics, so that it could operate permanently with free entry. We are going to get involved by promoting it, taking children from public schools, so they can know and experience a great experience,” said La Chiqui Santiago, head of the department.
Source: laschivasdelllano.com
Date: March 13
Headline: Ecopetrol launched an informative process for labor and goods and services contracts
Through the website www.oportunidadlocal.com, opportunities for contracting goods and services and labor from Ecopetrol's contractors are disseminated. With the aim of strengthening transparency in the labor and goods and services contracting processes generated by Ecopetrol's contracting companies in Casanare, this year a mechanism was launched for the dissemination of local opportunities in the municipalities of Yopal, Aguazul, and Tauramena. (…) In this way, Ecopetrol complies with labor regulations and disseminates job opportunities and offers of goods and services to as many people as possible.
Topics
Source: La República
Date: March 13
Headline: Oil will not rise above US$45 this year
The price crisis due to the failed agreement between the Middle East and Russia has already put the global oil industry in check. With the drop of $24.3 in the price of the Brent reference this Monday, and in light of the advance of Covid-19 in just over 100 countries, analysts and international agencies already foresee the worst crisis in 29 years, as they say it will be more severe than what happened in 1991 with the Gulf War. The volatility of crude oil this week, amid the geopolitical conflicts of the two nations, has brought Brent down to $32, and WTI to $31 per barrel. Although it is expected that this downward trend will extend to perhaps lows of $20, the truth is that there will be a recovery, which will occur this year although it will not rise above $45. (…) According to the analyst, Rystad Energy, this year global oil demand will decrease by 0.61 million barrels per day (bpd), year over year.
Source: La República
Date: March 13
Headline: Extractive industries would affect exports
One of the most serious concerns this year for the national economy is the trade deficit, as exports, which depend 60% on extractive industries, would fall significantly, further widening the gap in this economic indicator. Furthermore, it would not only be dragged down by lower exports of oil barrels with prices at half of what was expected, but also by declines in prices of other commodities such as copper and coal, which recorded drops of 8.51% and 8.81%, respectively, in their prices.
Source: La República
Date: March 13
Headline: Coronavirus, oil, and economy. By: Roberto Junguito
The combination of the impact of the coronavirus, which has already been classified as a Pandemic by the World Health Organization (WHO), and the steep drop in international oil prices and their joint impact on the Colombian economy is undoubtedly the central topic of discussion in the week that ends. Starting with the coronavirus, it is worth noting that the number of infected people worldwide has already surpassed 120,000 (nine cases reported in Colombia) and the total number of deaths is 4,300 people. (…) This circumstance of the spread of the coronavirus leading to a slowdown in the global economy, combined with the drop in oil prices, which is our main export product, has naturally led to the analysis of what its joint impact will be on the Colombian economy and a debate on the economic policy responses that the country must adopt.
Source: La República
Date: March 13
Headline: National accounts affected by the dollar
During Thursday's session, the dollar surpassed $4,000 for the first time. This new historical maximum is the result of the crisis generated by the drop in oil prices along with the expansion of Covid-19. These events have led some experts to label this crisis as the perfect storm, as they drove up the exchange rate of the US currency, which gained momentum with President Donald Trump's decision to cancel all travel between his country and Europe, except for the United Kingdom. The increase in the exchange rate to $4,033.29, which was the average price at which the dollar was quoted on Thursday, poses challenges for the country regarding the fiscal accounts managed in dollars, as their value increases.
Source: La República
Date: March 13
Headline: The winners and losers of this crude price crisis
Disruptions in oil prices always divide economies into winners and losers, sometimes producing a lasting geopolitical shift, and this time is unlikely to be different. But to misquote Tolstoy, every oil crisis distributes happiness and unhappiness in its own way. (…) But much has changed since 1980, and this time it is less clear. The United States was the world's largest oil producer in 2019, surpassing Saudi Arabia thanks to a shale fracking boom. With highly leveraged shale producers, a sustained drop would lead some companies to destroy investment, creating an obstacle for job creation and growth. (…) By the end of last year, Canada's economy was already in a difficult situation, and some economists say that the oil crisis could lead it to a recession. Canada exported just over US$ 59 billion of crude in 2018, when benchmark oil prices averaged US$57 per barrel.
Source: Portafolio
Date: March 13
Headline: General mess. By. Rodolfo Segovia
Saudi Arabia and Russia have declared war on each other after the recent breakdown of negotiations over an additional supply cut of 1,500,000 barrels per day (b/d). It is a bet to see who is tougher in producing oil, and the consequence has been the collapse of crude prices, which were already struggling with the demand contraction due to coronavirus. Other OPEC members have taken sides in displays of virility. In that foreign fight, Colombia, a country with high production costs, is being crushed. (…) At such low prices, half of the US oil industry would have to abandon barrels due to costs. Advances in the efficiency of the fracking economy have been astonishing. Producing costs much less than it did 5 years ago, but not by much. Only a few producers in Texas and New Mexico could survive. With the added complication that the easy money bankers, who financed the boom, now want to see returns more than barrels and cash flow.
Source: Portafolio
Institutional
Source: El Tiempo
Date: March 13
Headline: Armando Zamora returned to the presidency of the ANH
Nine years later, after having presided over the National Hydrocarbons Agency between 2003 and 2011, mechanical engineer Armando Zamora took office as the new head of the entity. There is concern in the sector about whether Zamora should declare himself impeded for decisions on fracking, as he chaired the expert commission on that topic.
Source: La República
Date: March 13
Headline: Zamora arrived at the ANH in place of Morelli
The Minister of Mines and Energy, María Fernanda Suárez, appointed Armando Zamora as president of the National Hydrocarbons Agency in place of Luis Miguel Morelli, who left the entity amid several accusations. The official is a mechanical engineer and a specialist in high government from Los Andes; moreover, he was the first general director of the ANH between 2003 and 2011.
Source: La República
Date: March 13
Headline: Gasoline prices will decrease, but slowly and progressively.
The most recent drop in gasoline and Acpm occurred last Tuesday at $107 and $104 per gallon, when the Ministry of Mines and Energy set the reference price at $9.159 and $8.952. However, due to the abrupt decrease in oil by more than 30%, the question from consumers and businesses is whether fuel prices will continue to drop and if they will do so at the same percentage. (…) Now, Jorge Bendeck, president of Fedebiocombustibles, explained about the drop “that there are some formulas, so when it drops, for example, 5% the price of oil, gasoline drops a maximum of 3%, and the same in the other direction. If, for example, oil rises 10%, fuel only increases a maximum of 3%. This is a way to moderate the prices of the products.” (…) Finally, regarding the State's finances, analysts pointed out that this is the moment when the Price Stabilization Fund should start acting so that Ecopetrol remains healthy.
Source: El Heraldo
Date: March 13
Headline: National Hydrocarbons Agency, with a new president.
Engineer Armando Zambrano was sworn in yesterday as the new president of the entity. He was the general director of the agency between 2003 and 2011.
Source: El Universal
Date: March 13
Headline: Returns to the ANH.
Armando Zamora Reyes, mechanical engineer and specialist in high government, was sworn in as president of the National Hydrocarbons Agency (ANH), a position he had previously held between 2003 and 2011, being its first director. Zamora was sworn in before the Minister of Mines and Energy, María Fernanda Suárez. In the past, he was linked to the IDB, World Bank, and Carbocol, among other companies.
Colombian Association of Oil and Gas