Headlines July 12th – 19th
What to expect when investing in oil and gas in Colombia
ALFA DROPS PRE BID, ECP DROPS FROM MEXICO ROUND 1
Mexican investment group Alfa and Harbour Energy have terminated an agreement to purchase all of the remaining shares of Pacific Rubiales Energy (TSX:PRE), setting off a flurry of speculation and a deep dive in the share price of Colombia’s largest private oil operator. The company did not address why, and there was speculation on whether the actions of O´Hara Investment, the Venezuelan run group with nearly a 20% share, had influenced this…
FARC DELCARES NEW CEASE FIRE AFTER A VIOLENT JUNE
The Farc announced that it would put in place a new unilateral cease fire for one month, starting on July 20, after an escalation in violence in the weeks following the termination of its prior unilateral cease fire on May 22…
REVENUES AND 2015 PRODUTION
The National Hydrocarbons Agency (ANH) released its detailed crude oil production results for April 2015 and we continue to look for the reasons behind the country’s gravity-defying achievements.
The preliminary production number was 1,025mbd but the final result for April was nearly 1,028mbd. The 4Q14 number was 1,005mbd. As crude oil prices slid off a cliff there were pundits saying Colombia would struggle to make 1mmbd. Assuming June comes in above 1mmbd despite increased guerrilla attacks on pipelines and tanker-truck convoys, then it would take a disastrous second half NOT to make 1mmbd.
But despite these gains in production, the picture for revenues is not as pretty, in fact according to our calculations the industry as a whole will produce only at levels similar to six years ago, in 2009…