Tuesday, October 6, 2015

Colombia's Ecopetrol continues divestment strategy of non-core assets

On Tuesday, Bloomberg reported that Colombian state-owned oil company Ecopetrol SA took the first steps towards selling its plastics division. Unnamed well-placed sources explained that this move is in keeping with Ecopetrol’s strategy, announced in May, of divesting itself from “non-core assets” to focus on its oil and natural gas production.

Ecopetrol has been left reeling from the collapse in global oil prices and the paltry investment in oil exploration in Colombia, leadings its share price to plummet by 54% over the last year. New company president Juan Carlos Echeverry is working hard to implement his new strategy and try to turn the company around.

In other news, the National Mining Agency (ANM) named Javier García Granados as its new President earlier this week. Granados was promoted internally from his previous position as vice president for Mining Security, Monitoring, and Control. Granadas replaces Natalia Gutierrez, who supposedly resigned because of frequent clashes with high-ranking ministers.


Amidst the turmoil at the ANM, neo-paramilitary group “Los Urabeños” assassinated a mining leader in Segovia, Antioquia, effectively shutting down Gran Colombia Gold’s mines in the region. In a WhatsApp message, the Urabeños threatened to kill anyone who went back to work. Reports estimated that between 500 and 800 of the threatened miners in the region did not report to work at the El Silencio, El Castillo, and Providencia mines.

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