The largest state-owned oil company in Colombia, Pacific
Rubiales, announced
that it has signed a three-year memorandum of understanding with Petróleos
Mexicanos (Pemex), to cooperate on “exploration, deep-water projects,
revitalization of mature fields, heavy and extra-heavy oil onshore and offshore
fields, high water production fields and other upstream activities.”
Mexico
recently opened up its oil industry to foreign investment, and given the
dwindling oil reserves in Colombia, it’s important that Pacific Rubiales start
looking abroad for other investment opportunities.
José Salazar emphasized
the dire straits facing the Colombian oil industry, warning that if Colombia is
unable to find new reserves in the country, the consequences to the country
could be catastrophic. Petroleum products represent more than 65% of Colombia’s
exports, and if the country were to go from oil exporter to oil importer, that
source of revenue would need to be replaced.
Unfortunately, the investment in exploration to discover new
reserves in Colombia isn’t occurring at the necessary pace. Fracking
will likely be a part of the solution, but investors remain wary about the impact
that the ongoing armed conflict in Colombia has on the country’s
infrastructure. Just this weekend, there was an attack
on the Transandino pipeline in the Putumayo department, causing an oil spill of
300,000 barrels. The peace negotiations with the FARC in Havana are just part
of the solution.
Investors and oil
services companies would be wise to invest in strengthening their relationships
with local communities in these rural parts of Colombia, and in improving their
communication strategy. There aren’t enough soldiers to guard the whole length
of the pipeline in Colombia – an outside-the-box approach is need, an approach
that Grupo Leo can provide.
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