ACP as a source of information
Source: El Tiempo – National
Date: May 05
Headline: Oil sector, disappointed with ‘reliefs’ in pipeline rates
Following the announcement by the company Cenit and its subsidiaries, controlled by Ecopetrol, to finance the transportation rates of pipelines, the oil sector, through the Colombian Petroleum Association (ACP), stated that this solution does not help mitigate the impact on the industry due to low oil prices. According to the ACP, the financing proposal (for two months) with interest charged on this percentage “does not meet the economic requirements of the shippers regarding the current value of the rates, which are excessively high. This would only increase transportation costs, as after the two months the same rate would have to be paid with interest (1.5 percent effective annual). And it added that this financing does not take into account the reality of the price crisis that the sector is experiencing, the duration of which is unclear. It replied in:eltiempo.com (May 04).
Source: conflictosmineros.net – National
Date: May 05
Headline: Oil and mining companies finance the Public Force and the Prosecutor's Office
Routes of Conflict and the League Against Silence* Today on Press Freedom Day, we present the investigation carried out by Routes of Conflict and the League Against Silence, for which the intelligence of the National Army began monitoring against its authors and included them in the «Secret Files» (…) In September 2018, in Castilla la Nueva, Meta, environmental leader Gustavo Carrión was apprehended by the Police and accused of multiple crimes, including terrorism. Carrión had protested along with his community against the alleged water contamination in the area caused by Ecopetrol. Fifteen days later he was released because, according to a judge, the evidence presented by the Prosecutor's Office was insufficient. (…) The hydrocarbons sector also views the agreements positively. In 2013, Alejandro Martínez, from the Colombian Petroleum Association, stated that “the oil sector looked with great satisfaction at these agreements because better public order and security conditions are being reached for the industry, which today the country has to accelerate its economic development.”.
Source: paisminero.com – National
Date: May 04
Headline: Oil below zero
The global quarantine caused by the coronavirus and geopolitical tensions have pushed crude oil prices to their lowest levels in history. Is it a structural or cyclical issue? How does it affect us (…) According to the ACP, some administrative costs have decreased substantially. But there are operational factors such as dilution and transportation that significantly increase the final cost. In the case of heavy crudes, the costs of diluent can represent about 30% of operating costs and 45% of transportation. That is, transportation rates through pipelines are too high compared to the cost of producing crude oil. Therefore, companies asked the Ministry of Mines and Energy to review the rates. (…) In recent hours, Cenit announced a relief in its rates of 50% and two months of grace. This discount will apply to Oleoducto Central S.A. (OCENSA), Oleoducto de Colombia S.A. (ODC), and Oleoducto de los Llanos Orientales, S.A. (ODL), subsidiaries of Cenit.
Source: 360radio.com.co – Regional
Date: May 04
Headline: Fuel demand in Colombia fell 60%
The national emergency due to Covid-19 has put many sectors in the country in crisis, one of them being retail distribution at service stations (EDS) in the country. In the six weeks that the mandatory preventive isolation has lasted, the demand for gasoline and diesel in Colombia has exceeded 30%. According to records from the Ministry of Mines and Energy, as of April 29, 2020, the average daily fuel demand decreased by 41% for regular motor gasoline and 30% for diesel. (…) The Colombian Petroleum Association also noted that the decrease in liquid fuel consumption reached an average reduction in sales of 60%, and in the aviation segment, the drop is 95%.
Source: llaneraradio.com – Regional
Date: May 04
Headline: Parex solidarity campaign delivers aid in areas of influence
The company Parex, as a social effort, reported that it joined the efforts of various sectors of the country and local and regional administrations to collectively contribute to the well-being of the most vulnerable communities during the COVID-19 emergency. In April, the company, under its Parex Solidaria campaign, delivered 3,129 food packages composed of basic household products, distributed in the areas of direct influence of its operation. (…) In addition to the various contributions mentioned and in coordination with the Government of Casanare, the Colombian Petroleum Association, and different companies in the hydrocarbons sector, Parex supported the strengthening of the health system of the Department by providing protective equipment for medical personnel attending to the COVID-19 pandemic, with a contribution of 80 million pesos.
GREMIO
Source: El Tiempo
Date: May 05
Headline: Alliance to make suits for doctors
In a strategic alliance to confront COVID-19 in Colombia, Ecopetrol (through its subsidiary Esenttia), Bio Bolsa, and the Arturo Calle Business Group will deliver 147,000 medical clothing kits for the protection of health personnel attending to the emergency in the coming days. The supplies consist of gowns and caps and will be delivered to the Red Cross, as well as to local authorities to ensure their distribution to hospitals and health service providers in various cities across the country. The materials for the medical supplies, as well as the production costs, were donated by Esenttia, a petrochemical company of Ecopetrol.
Source: La República
Date: May 05
Headline: Grupo Energía Bogotá stock, the only one in Colcap that rose during April
At the close of April, Grupo Energía de Bogotá (GEB) stock recorded a variation of 0.90%, while other stocks in the Colcap of the Colombian Stock Exchange (BVC) showed declines in the first four months of the year. «These good results are thanks to the implementation of an important Corporate Strategic Plan and the superior performance of each of the Group's collaborators, which has allowed us to generate greater value for our shareholders and investors,» said Astrid Álvarez, president of GEB. (…) Stock variation. Ecopetrol – 36.95%.
Source: La República
Date: May 05
Headline: There must be a bond issuance
Last week, the International Monetary Fund announced the renewal of the flexible credit line that the International Monetary Fund has with Colombia for US$10.000 million. This support, for former minister José Antonio Ocampo, is an opportunity for the government to issue a bond in the international market, just as Ecopetrol has already done.
Source: La República
Date: May 05
Headline: Repsol steps up during oil crisis with a discovery in Mexico
Repsol announced that it has made two significant oil discoveries in deep waters off Mexico in the wells named Polok-1 and Chinwol-1, located in Block 29 of the Salina Basin, in the southeastern area of the Gulf of Mexico and off the coasts of the states of Veracruz and Tabasco. The Spanish oil company thus confronts the crisis facing the international hydrocarbon market, where prices have plummeted to levels not seen in over a decade. (…) In addition to Mexico, it has made discoveries in the United States and Colombia.
Source: El Colombiano
Date: May 05
Headline: Protection for healthcare personnel
In a strategic alliance to tackle covid19 in Colombia, Ecopetrol (through its subsidiary Esenttia), Bio Bolsa, and the Arturo Calle Business Group will deliver 147,000 medical clothing kits in the coming days for the protection of healthcare personnel attending to the emergency. The supplies consist of gowns and caps, and will be delivered to the Red Cross, as well as to local authorities to ensure their distribution to hospitals and health service providers in various cities across the country. The materials for the medical supplies, as well as the production costs, were donated by Esenttia, Ecopetrol's petrochemical company.
Source: Vanguardia Liberal
Date: May 05
Headline: Two villages in San Vicente request humanitarian aid
A new day of protests took place yesterday in the region, this time in the rural area of San Vicente de Chucurí, right at the entrance to Campo Lizama, where dozens of people blocked vehicle access, in rejection of the neglect in which, according to them, they find themselves regarding humanitarian aid during the quarantine. (…) “We have decided to protest today Monday so that Ecopetrol and the contracting companies fulfill the humanitarian aid, which has reached many municipalities, but to us in the village of Los Acacios nothing. That is why we are staging a sit-in for them to respond, both Ecopetrol and the San Vicente Mayor's Office. We will continue with this until we receive aid,” said one of the protest leaders from the very site of the events.
Source: Vanguardia Liberal
Date: May 05
Headline: The Magdalena River keeps the national economy afloat
The most recent visit by authorities to the dredging works of the Magdalena River served to confirm once again that the 1,528 kilometers of this waterway is one of the engines that keeps the national economy afloat amid the crisis generated by the new coronavirus pandemic. (…) Today we witnessed alongside the Mayor of Barrancabermeja how the successful treatment of these works with all biosecurity protocols has not only prevented COVID-19 infections but has also increased cargo and competitiveness and a better operational condition for Ecopetrol at this critical moment,” highlighted the Director of Cormagdalena. Jurado added that “it is important to tell Colombians that the country must continue moving forward and the dredging of the Magdalena River is no exception.”.
Source: laopcion.com.co
Date: May 05
Headline: An attack against the Caño Limón pipeline occurred in the village of El Consuelo in the municipality of Saravena.
Over the weekend, news broke of an attack on the infrastructure of the Caño Limón Pipeline; it is important to remember that this action comes after the ELN announced the end of the unilateral ceasefire during the month of April. As a result, Cenit, a subsidiary of the Ecopetrol Group, reported that it activated the contingency plan for the Caño Limón Coveñas Pipeline to address the emergency caused by the new attack. The incident resulted in an oil spill that was contained in the crater created by the explosion. (…) As part of the contingency plan, the Municipal Council for Risk and Disaster Management of Saravena, the Public Health Coordinator of Saravena, the Autonomous Regional Corporation of the Orinoquía, and the Community Action Board of the El Consuelo village were notified, in order to warn the community about the incident and facilitate access for personnel to address the contingency.
Topics
Source: El Tiempo
Date: May 05
Headline: From Germany and the Netherlands. By: Mauricio Pombo
Coronaregels (taken from German): 1. In principle, you should stay at home. But if you want to go out, you can do so. 2. Masks are useless; however, you must wear one, as they can save lives. (…) The Netherlands is advancing in the post-pandemic scenario and proposes an economic model based on degrowth: 1. Shift from a GDP growth-focused economy to differentiating between sectors that can grow and require investment (critical public sectors, clean energy, education, health) and sectors that must radically decline (oil, gas, mining, advertising, etc.).
Source: La República
Date: May 05
Headline: Fiscal Rule Advisory Committee reevaluates deficit target for 2020 due to the crisis
The Fiscal Rule Advisory Committee met yesterday afternoon to reevaluate the country's economic situation and prospects, and to review the decision made 17 days ago to set this year's deficit target at 4.91% of GDP. (…) “The determination of that deficit level is explained by counter-cyclical spending (1.71% of GDP) and by four additional components: (1) Economic cycle of -1.31% of GDP; (2) Oil cycle of 0.1% of GDP; (3) The temporary effect of Venezuelan migration (0.41% of GDP); and (4) The structural deficit estimated at 1.51% of GDP,” stated the Ministry of Finance in the statement issued on April 16.
Source: La República
Date: May 05
Headline: Gasoline and rents would prevent an increase in April's inflation
In the fourth month of the year, inflation could have been around 3.71% due to strong downward pressures from two main factors: the price of gasoline and rental rates. (…) And according to Andrés Langebaek, executive director of economic studies at Grupo Bolívar, although the decision to reduce the reference price of gasoline by 1,200 was made on March 16, that decrease was not seen widely in practice, “as gas stations are authorized not to adjust their prices until they finish the stock they had, and since consumption is much lower than usual, it is most likely that this stock lasted until April. This situation, then, would be a downward pressure on inflation,” he explained.
Source: Periódico del Meta
Date: May 04
Headline: Forced changes
The pandemic will change us. The more optimistic say we must prepare for a total transformation at all levels of society, rethink our habits, and reevaluate our trades. The more pessimistic warn of an increase in extreme poverty and famines in various places. What would be stubborn is to insist on continuing to do the same things as before the pandemic and, as some say on social media, «longing for everything to return to normal.» No, if there is anything realistic in all this, it is that few things will return to being «normal.» (…) However, we believe it will be difficult for that to happen, at least in the immediate future, as today the world's economies are trying by all means to kickstart mass production and, with it, for example, reduce oil reserves that are at their peak to recover their price levels.
Source: Periódico del Meta
Date: May 04
Headline: Impact of covid on Meta. By. Nelson Augusto López
Meta was coming off two periods of crisis that are now aggravated by the blow from the coronavirus. Its economy had been growing at rates above 20% between 2008 and 2011 due to oil revenues. It was, then, the fourth largest economy in the country; until the fall in hydrocarbon prices since 2012 brought it back to reality: poorly rich and vulnerable for depending on a product with volatile prices. (…) It is likely that the economy of Meta, which had been declining, will enter recession. Fiscal revenues, including those from oil, have decreased in public entities and companies. And another curve rises: that of unemployment and poverty.
Institutional
Source: Periódico del Meta
Date: May 04
Headline: Flooded with oil: What awaits us now?
The executive of the Colombian Association of Petroleum Engineers makes this analysis on the current situation of hydrocarbons in the world, with an impact on the region. We received with a somewhat relieved attitude the decision of OPEC + to reduce crude oil production by 9.7 million barrels per day (mbd) starting this first of May 2020, to generate a stimulus to prices, which have fallen 32% in the last month. However, the cut will not be enough to mitigate the impact of low demand and excess supply flooding the market. (…) We should also not overlook the search for crude oil and gas reserves that the country needs to add to the portfolio, to distance the ghost of importation in the medium term. The National Hydrocarbons Agency must be very creative in generating formulas and scenarios that encourage exploratory activity.
Source: Caracol Radio
Date: May 04
Source: RCN Radio.
Date: May 04
Source: Javeriana Estéreo
Date: May 04
Colombian Association of Oil and Gas