ACP as a source of information
Source: El Tiempo – National
Date: April 23
Headline: Barrels at risk
A roller coaster. This has been the behavior of oil prices in recent weeks. Last Monday, the price of the WTI benchmark barrel fell for the first time in history into negative territory. The storage deficit in the United States, caused by the oversupply of crude, is at such a level that producers were willing to pay buyers to take the barrels away. (…) This destructive situation in the global oil sector is already triggering harmful effects in Colombia. The Colombian Petroleum Association (ACP) recently published a report with concerning warnings about this sector of the economy, crucial for the country's public finances. (…) This puts at risk the extractive activity, jobs, royalties, taxes, and a value chain crucial for the national economy. In fact, Ecopetrol has already announced a reduction in its investments this year by about 1.2 billion dollars. It was reported in: eltiempo.com (April 22).
Source: El Tiempo – National
Date: April 23
Headline: With oil at US$35, the fiscal impact is $12 billion: oil companies
Although the fall of WTI oil this Monday, when it reached negative territory for the first time in history, and the reflection that occurred in the Brent benchmark barrel (which closed this Wednesday at 20.37 dollars and rose 5.4 percent), is not yet strongly felt in the country, in the medium and long term its effects will be very important if quick measures are not adopted. (…) Under this scenario, the president of the Colombian Petroleum Association (ACP), Francisco José Lloreda, revealed that the new estimates from the guild indicate that exploratory investment this year will drop from 640 million dollars to only 270 million, a decrease of 60 percent. (…) According to Lloreda, in the case of Ocensa, the country's main pipeline, this rate should drop from 7 to 3 dollars, which in his opinion is a profitable level for pipelines and allows companies to manage the situation. This pipeline, controlled by Cenit, a subsidiary of Ecopetrol, has a rate of 1.02 dollars per kilometer, while the Trans-Ecuadorian pipeline has a rate of 0.50 dollars per barrel. A decision in this regard falls to the Ministry of Mines and Energy. It was reported in: eltiempo.com (April 22), buenaventuraenlinea.com (April 22).
Source: La República – National
Date: April 23
Headline: Oil crisis could lead to the closure of up to 30 fields
Amid the crisis of international oil prices, which has been exacerbated by the decline in global demand, economic uncertainty, and weak OPEC agreements, the Colombian Petroleum Association (ACP) warned about how this phenomenon and the advance of Covid-19 will impact the national industry in the short and medium term. The guild revealed that if Brent remains below US$25 per barrel in 2020, at least between 25 and 30 fields would close, as well as 390 wells. The president of the ACP, Francisco Lloreda, stated that the double crisis facing the industry will affect investment in exploration and production this year. In fact, he confirmed that on the exploration side there will be a reduction of 60% compared to the initial amount for 2020, while in production the budget levels will drop by 55%. (…) These figures, explained the guild leader, correspond only to private companies, as Ecopetrol, for example, announced that its cut would be of at least US$1.2 billion. It was reported in: larepublica.co (April 23), noticiaspasto.co (April 23), realidad-armenia.co (April 23), noticias-tunja.co (April 23).
Source: Portafolio – National
Date: April 23
Headline: The crisis of oil companies worsens
The oil companies operating in the national territory are practically in check. The production of crude at a loss, with a declining barrel price and facing high operating costs, would leave them no choice but to consider closing fields. (…) “If this price remains for the rest of the year and with the risk in the mentioned volume of crude that would stop being produced, it would result in the closure of at least between 25 and 30 fields and 390 wells in the oil areas of the Eastern Plains, Middle Valley of the Magdalena, and Putumayo,” said Francisco José Lloreda, president of the ACP. (…) Finally, one of the variables that demonstrates the bad moment the country's oil sector is going through are the refineries, a segment of the operation under the leadership of Ecopetrol that are working below their capacity. It was reported in: portafolio.co (April 22), buenaventuraenlinea.com (April 23).
Source: El Nuevo Siglo – National
Date: April 23
Headline: Due to the collapse in crude prices, royalties would drop $12 billion this year
A concerning situation for the country's royalties would arise this year if the price of Brent crude falls below US$25 per barrel and remains at these levels for the rest of 2020. The Colombian Petroleum Association (ACP) indicates that under these conditions, the country's production would not only decrease by 100,000 barrels per day (bpd), but the collection of royalties from this activity would reduce from $16.1 billion in 2019 to $4 billion this year. (…) The union leader also explained that, “transportation by pipelines is the only link in the sector's chain whose cost has remained practically the same in recent years, representing about half of production costs, it is not manageable by the companies because it is regulated by the Ministry of Mines and Energy; however, various studies show that it is excessive; therefore, it is essential that the rates be reviewed not only due to the current price crisis and the sustainability of the industry in the short term, but that the current methodology must be structurally reformulated for the future.”.
Source: El Nuevo Siglo – National
Date: April 23
Headline: Regions will have to tighten their belts
Both departments and municipalities will have to bear the effect of the double economic shock, fewer resources to invest and provide subsidies to the most vulnerable population due to the effects of Covid-19. The departments and municipalities of the country will have to start tightening their belts from now on, as they will have to face two shocks in their economies (…) But how did we get to this situation with royalties? Yesterday, the Colombian Petroleum Association said that if the price of Brent crude falls below US$25 per barrel, as has already happened, and remains at these levels for the rest of 2020, the country's production would not only decrease by 100,000 barrels per day (bpd), but the collection of royalties from this activity would drop from $16.1 trillion in 2019 to $4 trillion this year. It was reported in: elnuevosiglo.com.co (April 22).
Source: La Opinión – Regional
Date: April 23
Headline: Historic oil collapse tightens the finances of Latin America
A historic collapse of oil, with prices that fell into unprecedented negative territory this week, clouds the outlook for Latin American countries with finances dependent on hydrocarbons, just when the COVID-19 pandemic demands extraordinary public investments to mitigate the economic paralysis. (…) For Francisco José Lloreda, president of the Colombian Petroleum Association, the country needs «a Brent between 40 and 45 dollars» for the business to be profitable and not to decline investment in exploration and production. It was reported in: infobae.com (April 23).
Source: Vanguardia Liberal – Regional
Date: April 23
Headline: They will reduce
In a virtual press conference, the president of the Colombian Petroleum Association (ACP), Francisco José Lloreda, stated that due to the economic crisis caused by COVID-19, investments in exploration will be reduced by up to 60%, from 640 million dollars to 270 million.
Source: Caracol Radio – National
Date: April 23
Source: Caracol Radio – National
Date: April 23
Source: El Nuevo Día – Regional
Date: April 23
Headline: The State would lose up to $12 billion due to falling oil prices: ACP
In a virtual press conference, the president of the Colombian Petroleum Association (ACP), Francisco José Lloreda, stated that due to the economic crisis caused by Covid19, investments in exploration will be reduced by up to 60%, dropping from 640 million dollars to 270 million. Regarding the month of March, Lloreda stated that the exploratory start of one of the two offshore wells planned for this work was scheduled, but public health conditions have so far prevented the fulfillment of that mission. (…) In order to alleviate the burdens amid the contingency facing the sector, Lloreda proposed a temporary extension of contractual commitment deadlines with the National Hydrocarbons Agency (ANH). He reiterated in:eluniversal.com.co (April 22), hoydiariodelmagdalena.com.co (April 22),
Source: casanarenoticias.com – Regional
Date: April 23
Headline: ACP calls for intervention in pipeline tariffs to mitigate oil crisis
In light of the unprecedented crisis facing the hydrocarbon industry, the Colombian Petroleum Association (ACP) called on the National Government to issue, as soon as possible, the regulation that allows for the reduction of crude oil transportation tariffs by pipeline, which accounts for around 45% of the cost of the barrel, thus contributing to mitigate the impacts of the dramatic drop in international oil prices in Colombia. According to the latest economic report from the ACP “Double crisis Covid-19 and oil price war: impact for Colombia and the hydrocarbon sector,” with the current price crisis it will be difficult to sustain the investments and oil production budgeted for 2020, and a daily drop of 35,000 barrels is expected, which could reach 100,000 if the Brent reference remains below 25 dollars per barrel for the rest of the year.
GREMIO
Source: El Tiempo
Date: April 23
Headline: An economic program for the crisis
Last week, two important documents from the International Monetary Fund (IMF) were released. The global economic outlook for 2020 (World Economic Outlook, WEO) and the Report on Colombia 2020 (Article IV Consultation). Both are of great interest at the current moment, marked by the profound international health and economic crisis. (…) In the coming year, tax revenues will be lower than those of the present, as a consequence of the current recession, and the Government will not receive dividends from Ecopetrol or profits from the Bank of the Republic. (…) What if the banks' portfolios deteriorate more severely than expected and there is a need to support them with abundant resources? What if inflation spirals out of control? And what are we going to do to replace the external revenues generated by oil, whose price continues to plummet in the international market?
Source: La República
Date: April 23
Headline: Repsol and Cepsa will redo their strategic plans
Madrid. The collapse of oil prices has blown up the strategic pillars of Repsol and Cepsa, the two major Spanish oil companies. Both companies are already working at full speed to reshape their respective business plans. All this, amid absolute uncertainty and without a medium-term market stabilization perspective.
Source: El Nuevo Siglo
Date: April 23
Headline: The phrases that have gone viral due to the pandemic
The different situations related to the coronavirus pandemic, but especially with the effects of the mandatory isolation decreed to confront it, as well as the changes that both will bring to society, particularly to economic life, have generated comments and expressions in various fields. EL NUEVO SIGLO compiled some of these, most of which were spread through social media, expressions from some leaders that in many cases reflect collective thoughts. (…) “All regions” But if it’s about protests, the mayor of Barranquilla, Jaime Pumarejo, drew attention when he demanded that the resources that Ecopetrol will provide to support actions during the pandemic do not remain in Bogotá.
Source: El Colombiano
Date: April 23
Headline: This is the Ecopetrol that Bayón dreams of because of the pandemic
Felipe Bayón, president of Ecopetrol, is not at ease. He is not at ease because not knowing how long the emergency may last makes him think, repeatedly, about his workers (direct and indirect), about the resources that the Nation could stop receiving, and the difficulties that would arise with a gradual reactivation of certain sectors of the economy. But Bayón himself calls for calm. Yesterday, in an intervention before the Fifth Commission of the House of Representatives, he acknowledged that we are facing the most complicated economic crisis in the country, but that in difficult scenarios effective plans and a financial cushion are needed to make things more bearable: Ecopetrol has them, understanding, of course, that “in some way we will all be affected.”.
Source: El Universal
Date: April 23
Headline: Ecopetrol
Between April 16 and 20, experts from the National Institute of Health visited the Cartagena Refinery to assess the company's protocols. The fact of sending 600 people to remote work and allowing entry to the plant only for the personnel required for the operation and production of fuels was highlighted.
Source: El Frente
Date: April 23
Headline: Covid-19 contagion ruled out for Ecopetrol workers
In recent hours, it was confirmed that the COVID-19 tests conducted on Ecopetrol workers who were in contact with the first deceased from the virus in this department were negative, and therefore the contagion of these individuals is ruled out. The tests were conducted under the strictest safety parameters and, with that, to provide some peace of mind to the people of Barrancabermeja and Santander. Additionally, experts from the National Institute of Health and the Health Secretariat of Barrancabermeja expanded the epidemiological cordon in this area of the department.
Topics
Source: La República
Date: April 23
Headline: ‘We took refuge in oil and lost between 10 and 15 years’
This week, the rating agency Fitch Ratings published a report in which it forecasts that Colombia's fiscal deficit will rise from 4.51% as initially expected to 5.1% for this year. The analysis is based on an unexpected increase in public debt and spending due to the resources needed to address the COVID-19 crisis. Former Finance Minister and economist Rudolf Hommes stated that behind this is also an imbalance in the Nation's accounts due to dependence on oil and not having changed that for years. How should the country react to the oil crisis? First, the economy must be diversified. We cannot continue to depend on oil because there is the result; we took refuge in crude oil and lost 10 or 15 years.
Source: El Colombiano
Date: April 23
Headline: WTI oil saw a recovery of 19% in one day
With a closing price of $13.78 per barrel, the WTI oil benchmark, which had recently gone negative, rose 19 %. According to EFE Agency, “so far this year, WTI prices have plummeted nearly 70 % and are far from the $60 per barrel of January.”.
Institutional
Source: prensalibrecasanare.com
Date: April 23
Headline: Government launches lifeline to the oil industry in light of the consequences of the Covid-19 pandemic
The oil industry, affected by low demand due to the pandemic and the prolonged price war between Russia and Saudi Arabia, has turned to the Government seeking help to weather this crisis, which this week was compounded by the historic collapse of WTI crude. The lifeline launched by the National Government, through the Ministry of Mines and Energy, allows the board of the National Hydrocarbons Agency (ANH) to adopt five measures to ensure the country's energy security and reduce the impact of the crisis on the State's finances. One of the decisions relates to a temporary relief on the payment of economic rights. In this regard, the ANH board considers deferring the payment of contractual economic rights owed by operating companies to ensure the viability of continued production. The ANH clarifies that these rights are different from royalties, which will continue to be collected.
Colombian Association of Oil and Gas