Movers and shakers in the Colombian oil industry

On Monday, Canadian oil company Pacific Exploration announced that it had purchased the CPE-6 oil filed, one of the most promising oil fields in Colombia. The acquisition immediately boosts Pacific’s oil production by 100%. Previously, the field had been jointly held by Pacific and Talisman energy company. El Espectador described the decision as a fairly safe bet by Pacific, and a necessary one now that Ecopetrol has signaled its intent to operate the Rubiales oil field on its own. Previously, Pacific had operated that field.

In other news regarding the leading players in Colombia’s oil industry, Colombian business journal Portafolio detailed the stunning decline of Ecopetrol, the Colombian state oil company. In just three years, Ecopetrol has lost 90% of its value, with its market valuation falling by $122 billion. Much of that collapse has occurred in just the last year alone.

Portafolio noted that, although the last three years have not been kind to oil companies in general, Ecopetrol has suffered more than most. According to the article, the biggest difference between Ecopetrol and its competitors as that Ecopetrol has been extremely unsuccessful in discovering new oil.

Lastly, the Latin American-focused oil and gas explorer GeoPark Ltd. reached a $100 million prepayment agreement with Trafigura to sell part of its oil production. GeoPark views the agreement as the start of a long-term strategic partnership with Trafigura, which gives GeoPark greater liquidity and more protection against risks.