Corpac Group Acquires Pipe Exchange From Merfish Pipe Holdings

Posted on June 9, 2016 by Grace Montealegre

Pipe and Steel Solutions Provider to Integrate Premier API Line Pipe Brand Into Its Global Business Collaboration

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Evo espera más inversión y YPFB da un giro radical

Posted on May 1, 2016 by Marketing

Gobierno empuja inversión en energía y YPFB da un giro

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Sector Minería e Hidrocarburos creció 16.22% en marzo y Pesca cayó 18.96%

Posted on May 1, 2016 by Marketing

El Índice de Producción del Sector Construcción que comprende el consumo interno de cemento y el avance físico de obras públicas subió 3.45% en marzo. Solo el avance físico de obras públicas aumentó 24.1% pero el consumo interno de cemento cayó 1.1%, reportó el INEI .

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Interest swells for Mexico deepwater auction

Posted on April 28, 2016 by Marketing

Twenty-nine firms have now expressed an interest in Mexico's deepwater auction, to be held December 15, while 22 have requested access to the national hydrocarbon commission's (CNH) data room and 17 have been granted access.

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Ecopetrol Announces its Results for the Third Quarter of 2015

Posted on November 19, 2015 by Grace Montealegre

Ecopetrol S.A. announced yesterday its financial results for the third quarter of 2015 and for the nine first months of the year. Ecopetrol Corporate Group’s results for the third quarter of 2015 registered an EBITDA of COP$4.7 trillion pesos and earnings of COP$654 billion pesos. Ecopetrol S.A. achieved COP$1.6 trillion pesos in savings against the 2015 reference of COP$1.4 trillion. The Corporate Group’s production during the first nine months of the year reached 761 mboed, an increase of 9 mboed versus the same period of 2014.

The industry operated in a complex environment given low crude prices and the consequent adjustments in investments, costs and expenses observed in oil and gas companies. Ecopetrol, additionally, has responded to the challenges posed by attacks on oil infrastructure, El Niño Phenomenon, the closing of the border with Venezuela and the devaluation of the exchange rate.

In order to face these new challenges, the company has been working recently on a transformation program vis-à-vis its 2015-2020 strategy. The transformation plan includes a comprehensive program for improving oil recovery that seeks to maximize the potential of existing fields and aims to strengthen Ecopetrol’s position in the Americas as a reference for this type of activity. Up to September this year, Ecopetrol achieved budgetary savings of COP$1.6 trillion pesos, exceeding the initial goal of COP$1.4 trillion pesos set for 2015. The company has performed relying on financial discipline, operating efficiencies and investment management in order to ensure profitable growth based on the guidelines of its new strategy.

La Nota Economica - Media Partner

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The Earth is not running out of oil and gas, BP says

Posted on November 4, 2015 by Grace Montealegre

The world is no longer at risk of running out of oil or gas, with existing technology capable of unlocking so much that global reserves would almost double by 2050 despite booming consumption, BP has said.

When taking into account all accessible forms of energy, including nuclear, wind and solar, there are enough resources to meet 20 times what the world will need over that period, David Eyton, BP Group head of technology said. "Energy resources are plentiful. Concerns over running out of oil and gas have disappeared," Mr Eyton said at the launch of BP's inaugural Technology Outlook.

Oil and gas companies have invested heavily in squeezing the maximum from existing reservoirs by using chemicals, super computers and robotics. The halving of oil prices since last June has further dampened their appetite to explore for new resources, with more than $200bn-worth of projects scrapped in recent months.

By applying these technologies, the global proved fossil fuel resources could increase from 2.9 trillion barrels of oil equivalent (boe) to 4.8 trillion boe by 2050, nearly double the projected 2.5 trillion boe required to meet global demand until 2050, BP said. With new exploration and technology, the resources could leap to a staggering 7.5 trillion boe, Mr Eyton said.

La Nota Economica - Media Partner

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Brazil's Subsalt will break even

Posted on October 21, 2015 by Grace Montealegre

Brazil's subsalt polygon, an offshore area that was once forecasted to yield undiscovered petroleum and gas to supply the world's current oil needs for more than five years, will only break even this year with oil worth $55 a barrel or more, Oswaldo Pedrosa, chief executive of state-owned oil-asset management company Pre-Sal Petroleo SA (PPSA) said this week.

Pedrosa said the break-even estimate also applies to Libra, the 8 billion to 12 billion barrel prospect being developed by Petrobras, Royal Dutch Shell, Total, China's state-owned CNOOC and China National Petroleum Co. If costs in the subsalt are that high, Petrobras, the world's most-indebted major oil company, faces serious strains on its already stretched finances. Some of its most important and highest producing fields may be operating at a loss.

Pedrosa, who will manage the government's share of output from Libra and other new developments in the subsalt, is putting his hopes in a recovery in oil prices by the end of the decade, when Libra is expected to start producing. The subsalt is an offshore region where oil and gas are trapped far beneath the seabed by a layer of mineral salts. The subsalt polygon, a region where Pedrosa's company has authority over new development, contains at least 176 billion barrels of undiscovered recoverable resources, according to Rio de Janeiro State University.

La Nota Economica - Media Partner

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Venezuela says eight non-OPEC Nations invited to Vienna Meeting

Posted on October 15, 2015 by Grace Montealegre

Venezuelan Oil Minister Eulogio del Pino said this Tuesday that eight non-OPEC countries have been invited to an oil meeting to take place next Wednesday the 21st: Azerbaijan, Brazil, Colombia, Kazakhstan, Norway, Mexico, Oman and Russia.

The technical meeting of oil experts from the Organization of Petroleum Exporting Countries and non-OPEC countries will be held in Vienna. "The confirmations are coming in gradually and I'm personally calling ministers to ensure that the delegation is of the adequate level of authority," del Pino said.

Venezuela, an OPEC member, will unveil a bold new strategy this month, taking a page from the organization's history books with a proposed price band to build an automatic floor for prices at $70 a barrel. The proposal would reapply the old mechanism of progressive production cuts to control prices, with a "first floor" of $70 per barrel and a later target of $100 per barrel.

Venezuela has been pushing to stem a tumble in oil prices, but faces an uphill battle to convince its richer Gulf counterparts and non-OPEC nations. The meeting's date was already known but the location and full list of invitees was not revealed until Tuesday. Venezuela's proposal will be discussed at the meeting this month.

An oil price recovery would be positive for recession-hit Venezuela, where roughly 96% of hard currency income derives from oil. However, the International Energy Agency says a global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key OPEC members maintain near-record output.

La Nota Economica - Media Partner

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Shell's Arctic oil search ends

Posted on October 1, 2015 by Grace Montealegre

By mid-August, the US Bureau of Safety and Environmental Enforcement awarded Royal Dutch Shell PLC a permit to drill into rocks in the Chukchi Sea off the north-west coast of Alaska. The license allowed the Anglo-Dutch oil giant to begin drilling 8,000 feet below the ice-cold, foggy depths of the seabed where black gold is thought to be hiding in vast quantities.

After drilling just one well, with disappointing results, Royal Dutch Shell is quitting its $7 billion Arctic campaign and today becomes the latest big oil company to abandon the riches under the northern seas in the face of stubbornly low crude prices. Shell had viewed the Arctic—one of the few remaining unexplored oil frontiers—as a prize too great to walk away from, despite the recent plunge in oil prices and an unsuccessful effort in the region three years ago that ended with one of its rigs running aground.

The Anglo-Dutch oil giant said that it expects charges for the decision and would update the market later on the financial implications of the move, with the company carrying a US$3 billion exposure on its balance sheet for the assets and a further US$1.1 billion in contractual commitments.

"Shell continues to see important exploration potential in the basin, and the area is likely to ultimately be of strategic importance to Alaska and the US. However, this is a clearly disappointing exploration outcome for this part of the basin,” said Marvin Odum, director of Shell Upstream Americas.

La Nota Economica - Media Partner

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Kuwait Says Oil Market Will Balance Itself

Posted on September 17, 2015 by Grace Montealegre

Kuwait's OPEC governor, Nawal al-Fuzaia, said this Thursday that the oil market will balance itself but "we need to be patient", indicating support for the producer group's policy of defending market share despite falling prices. Speaking at the Gulf Intelligence Energy Markets Forum in the UAE emirate of Fujairah, Fuzaia said the current imbalance in the market stemmed from several factors and not just an economic slowdown in China.

"The weakening demand in China is a short-term issue. I don't think that it will have an effect on OPEC market share," she said. OPEC shifted policy in November 2014 by deciding not to support prices by cutting output, in order to defend market share against U.S. shale oil and other higher-cost supply sources.

The shift, led by Saudi Arabia and its Gulf allies, has proved controversial within OPEC as oil prices have more than halved from above US$100 in June 2014, hurting the economies of less wealthy members such as Venezuela.

Still, Fuzaia said the Organization of the Petroleum Exporting Countries needed more transparency in data from China to gauge demand. "I am not saying we can't trust Chinese numbers but our concern is that it is not the actual demand, it is the calculated demand. It could be the same as actual demand or not," she said. Fuzaia added that OPEC was looking for stable, sustainable growth in China's economy and demand, but that should Chinese demand decline, Kuwaiti crude would go to other markets.

La Nota Economica - Media Partner

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CNR cut Aberdeen and Calgary Staff’s Salaries

Posted on September 10, 2015 by Grace Montealegre

Canadian Natural Resources Ltd, the country's largest independent oil producer, is cutting salaries by up to 10 percent for all its staff in Calgary, Alberta, and Aberdeen, Scotland, the company said on Wednesday.

CNRL spokeswoman Julie Woo said the salary reduction is a response to low global oil prices, and would be steeper for higher-salaried individuals. "The challenges facing our industry are significant," Woo said. "In this environment, Canadian Natural is taking additional actions to further reduce costs and to protect the robustness of the company by implementing a salary reduction of up to 10 percent for all Calgary and Aberdeen staff."

In the first quarter, CNRL's board of directors and senior executives took a 10 percent salary cut, while vice presidents took a 5 percent decrease. The senior executive and vice presidents were included in the additional cuts announced on Wednesday. The salary cut is the latest step taken by Canadian oil and gas producers to rein in costs and weather a prolonged period of low global oil prices, which have tumbled nearly 60 percent since June 2014.

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Mexico opens up offshore areas for new seismic surveys

Posted on August 26, 2015 by Grace Montealegre

For the first time in more than 75 years, Mexico’s National Hydrocarbons Commission (CNH) opened its waters to allow international seismic companies to shoot and sell acquired data, ahead of prospective new bidding rounds. The event is the first in a series of petroleum auctions that opened the energy industry, which is expected to bring in an estimated $62.5 billion by 2018 and increasing annual output by 500,000 b/d.

The invitation to bid commenced in December 2014 followed by the opening of the tender process in the first quarter of 2015. In late March, CNH provided data room access to approved parties, which opened the door to decade’s worth of seismic data for operators to assess before Round 1 commenced.

“We disclosed all the seismic information that has been kept confidential for decades,” Juan Carlos Zepeda Molina, president of CNH, stated at a Houston conference in March. Zepeda added that access to all available seismic data was expected to be made public this summer.

Mexican regulators offered permits after the application of nine major companies were submitted for new seismic testing, allowing seismic companies to sell the information for a specified number of years to potential investors with the understanding that it will eventually be made public.

La Nota Economica - Media Partner

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Drop in oil prices pushes a cash-strapped Venezuela for OPEC meeting

Posted on August 13, 2015 by Grace Montealegre

It is no secret that food shortages in Venezuela, along with an economy in severe recession, are a probable cause for political and social upset in the country. Add the fall in oil prices and the equation becomes a call to reduce oil supply in order to boost prices. That is why President Maduro announced yesterday, during his televised "In Contact with Maduro" show, an emergency OPEC meeting to stem a tumble in oil prices.

"We're evaluating the possibility that a very high ranking OPEC meeting be called, and that in coordination with the Russian Federation, President Vladimir Putin, we can advance in taking a series of actions to defend the oil market in the face of this latest fall," added President Maduro.

But in spite of concerns from many countries by the drop of prices, OPEC oil exporters, particularly Gulf members, have no plans for an emergency meeting to discuss the drop in oil prices before a next scheduled gathering in December, two delegates from the Organization of the Petroleum Exporting Countries said on Monday.

Maduro also said conditions for Venezuela were “hard and complex” but that the country will continue to receive resources from ally countries in Latin America and from Eastern allies such as China.

La Nota Economica - Media Partner

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Ecopetrol’s strategy: increase oil production in spite of prices

Posted on August 6, 2015 by Grace Montealegre

During recent years Colombia has become the fourth biggest oil producer in Latin America, behind Mexico, Venezuela, and Brazil. However, the objective of Colombia's state-owned oil company Ecopetrol, is to ramp up production by concentrating on key fields.

The strategy of the $55-billion and 88% government-owned company is to be very selective on investments to keep cash flow, and although Ecopetrol cut its 2015 investment plan by 26%, to $7.86 billion, it will focus on the company’s key fields, on Colombia’s coast and on the Gulf of Mexico.

Juan Carlos Echeverry, the company's new president, said the company will focus on about 20 oil fields that produce 80% of its onshore crude and have output costs of between $7 and $17/bbl, leaving wells with higher extraction expenses to other companies.

Ecopetrol will continue to partner with companies like Anadarko, Petrobras, Repsol and Statoil in order to boost production and in spite of how oil prices behave, since, as stated by Echeverry, “we would be happier with higher prices but we won’t do anything to change them. If they go up, that’s great news for us but we are planning our future ahead with low prices.”

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Saudi Arabia’s crude exports fall to five month low

Posted on July 27, 2015 by Grace Montealegre

The crude exportations of Saudi Arabia fell to the lowest level of the past five months due to an increase in the country’s internal demand and to maintenance processes going on at several plants throughout the country.

During May, the kingdom of Saudi Arabia, the main crude oil exporter in the world, shipped 6.94 million barrels per day, a value significantly lower than the 7.74 million barrels per day registered in April. The country’s exports exhibited the worst performance since December 2014.

Meanwhile, Chinese refineries have kept inactive their production capability of at least one million barrels per day due to the worsening of the country’s internal demand. This situation has also contributed to the contraction of Saudi Arabia’s exports since China is an important market for Saudi crude.

The Saudi refineries consumed 2.4 million barrels of crude per day during May, an increase from the 2.2 million registered in April, which in turn accounted for the lowest level since January of 2002. The markets expect the county’s internal demand to further rise during the hottest part of the summer as a result of an increase in air conditioning use, contributing to a continued downward pressure on exports.

La Nota Economica - Media Partner

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Iran reaches historic agreement with world powers

Posted on July 15, 2015 by Grace Montealegre

After several months of dialog, the world’s main powers reached an agreement with the Iranian government to curve Tehran’s nuclear program. With the pact, the economic sanctions imposed on Iran will be raised.

The agreement signed in Vienna by the United States, Russia, China, United Kingdom, France, Germany and Iran, not only ends a confrontation that put a halt to the Iranian oil industry for about three years, but finishes decades of tension between Ayatollah's regime and Washington.

The sanctions imposed on Iran, which meant shrinking of its oil exportations by approximately two million barrels per day, will be removed, once international organisms have verified the nuclear program’s detention. Then, the country’s industry will be able to get back on track. According to international analysts, Vienna’s agreement is a geopolitical milestone that will change international relations and revive Iran as a development pole in its region.

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OPEC reaches three-year record oil production

Posted on July 1, 2015 by Grace Montealegre

Despite problems related with the contraction of oil prices, the Organization of Petroleum Exporting Countries (OPEC) has kept firm with the decision of maintaining their production levels unaltered, not giving away their market share. As a result, in June, OPEC reached its highest level of production of the past three years.

According to a poll carried out by Reuters, in the sixth month of the year, the bloc produced 31.6 million barrels per day (bpd) of crude oil, which is 1.3 million more than the 31.3 registered in May. The information collected by the agency shows that the increase in the pace of oil production is primarily due to the activity in Iraq and Saudi Arabia, which is near record levels. Nevertheless, this positive dynamic could have a counter-productive effect by applying downward pressure on the barrel’s quotation levels.

Meanwhile, Iran’s return to the market, which depends on the removal of the sanctions imposed by Western powers, has been postponed. The deadline to reach an agreement about the end of Teheran’s nuclear program was extended to July 7th.

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EIA foresees the return of international oil companies to Iran

Posted on June 24, 2015 by Grace Montealegre

According to the latest report released by the Energy Information Administration (EIA) of the United States on the Iranian energy sector, the country “is planning to change its contract model to increase the participation of the international oil companies at every phase of the fields operations”.

The organization says that the negotiations that pursuit the curbing of Teheran’s nuclear program should reach an agreement before the next June 30th. If this comes true, the international companies’ appetite to be a part of the oil business in Iran should largely increase.

Estimations suggest that Iran has the fourth largest oil reserves and the second largest natural gas deposits in the world. Nevertheless, since the beginning of the sanctions imposed by the United States and some European countries, its hydrocarbon exportations dropped sharply. While in 2011 Iran sold 2.6 million oil equivalent barrels per day (bpd), in 2013 it only sold 1.3 million bpd.

But the country’s production potential is even bigger. In 2011, Iran produced almost 3.6 million oil bpd, a number that has fallen down to 2.7 million bpd, and which is still a long way away from the 6 million bpd the country used to generate in the 70’s. Meeting such a level would strongly punish international oil prices, but according to the EIA, this scenario should not be expected anytime soon.

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China decelerates its oil consumption

Posted on June 11, 2015 by Grace Montealegre

Despite OPEC members declarations arguing that the oil global demand is rising whereas the production is shrinking, Chinese crude importations reported a drop of 11% in May against the same period of the last year. The oil barrel purchasing from the Asiatic giant, has been a main support for the prices recovery, so this new dynamic could change again the trend of the international market value of the commodity.

The OPEC decision of maintain the crude output over 30 million barrels per day, could suffer some pressure because of the decrease in Chinese buying. Nevertheless, few experts have already back the organization’s strategy, which despite the prices drop registered at the beginning of 2015 the quote is now stabilized around US$60.

At the same time, recent announcements about the advances in the agreement for the ending of the Iranian nuclear program, suggest that earlier than the market is expecting, this country will return with at least 500.000 new oil barrels per day, which means even more pressure over the price.

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OPEC says there will not be changes in the oil production policy after this Friday meeting

Posted on June 3, 2015 by Grace Montealegre

According to Abdullah al-Badri, General Secretary of the OPEC, the meeting that the organization is attending the next Friday will be “brief” because “everything is already clear” around the decision of maintaining the oil production pace unchanged in the member countries.

The announcement anticipates a radical transformation in the discussion held during the last gathering in November 2014, in which few countries as Venezuela pretended to change the policy of not go back with the production, a position leaded by Saudi Arabia and other Gulf nations with the argument of keep their market share despite the low prices.

However, the Arab kingdom’s strategy seems to bring results and as its speakers predicted at the beginning of the year, for this new meeting the oil barrel prices is recovered with a value surrounding US$65, so much more than the US$45 of January.

OPEC delegates stated in previous meetings this week that the decision of cutting the output in the next months will depends on the will to do the same at a matching time of other countries as Russia that do not belongs to the organization.

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