More on New Colombian Minister20 Jul 2018 11:42
The link provides more information about the new Energy Minister and Duque's positive attitude to oil - all great stuff for Amer - also includes a statement about " pledged additional investment at state-run Ecopetrol’s refineries to allow exports of more higher-value derivatives."
In the same was my previous post highlights the positive moves in Ecuador these vibes coming from Colombia must be a god send for operators in the sector and investors alike, great infrastructure should mean higher profits. More money/options for their product, transport security, investment security on lucrative terms, supportive government in a country that desperately needs their presence and expansion, all those thing follow from the proposals if enacted.
"Reuters reported.
“With her, we will promote greater diversification of national energy, efficiency and competitiveness in the sector, provide energy security for Colombia, and social and environmental responsibility in all energy mining production sectors,” Duque said.
At current rates of production, Colombia has less than six years of oil reserves – roughly 1.8 billion barrels – the energy ministry says, and urgent investment in exploration is needed to replace reserves, Kallanish Energy learns.
Duque’s solution to dwindling oil reserves is to encourage investment in exploration, which he says could provide years more oil production, and give tax relief to the sector.
He has also pledged additional investment at state-run Ecopetrol’s refineries to allow exports of more higher-value derivatives."
If that's not great sector news I don't know what is, 7bn/year investment required.
Here's a thought: I feel a sense that the US are in some way involved here, they are moving (have moved) to restrict Venezuela and Iranian oil and I recall someone posted that they gobbled up all Ecuador's oil exports for the first time recently. It is a misconception that the US is sorted in respect to oil needs, they apparently need heavy oil for their refineries, shale oil is the wrong type. They as well as the Indians, Chinese and others will want to secure sources if some markets are closed. So perhaps, Ecuador and Colombia are being signed up for the purpose and the US is getting in first as they invariably do. Obviously just my thoughts with no concrete evidence, but all sensible governments do have plans to secure energy needs, the idea is not outlandish.
The next few months will be interesting, as the Chinese and Indian national oil companies have a presence in the region, with ONGC indicating a clear interest in expanding throughout S. America, Sinopec are very secretive but I'd be amazed if they are not looking at possibilities; whereas Western oil majors are almost invisible in the region and have been scaling down for years. Perhaps things are about to change, 7bn/year is a peanut to them
http://www.kallanishenergy.com/2018/07/20/colombias-president-elect-names-suarez-energy-minister/
Sign In
Follow the stocks
