Low crude prices threaten private oil producers in Colombia

Oil companies in Colombia will reduce manufacturing. Reduce exploration and some ought to close all collectively if crude fees stay at modern stages and manufacturing as well as fees continue to be high. The top of the personal manufacturers affiliation said.

The andean u . s . has worked to lure non-public buyers. Closing year awarding a number of exploration blocks to non-public groups. In a as well as bid to increase its dwindling power reserves. That are properly underneath worldwide averages.

Colombia has around six years as well as of oil reserves. But the government hopes to growth them to 10 years.

We will see many personal region initiatives and some non-public businesses remaining in colombia. If fees remain beneath $30 a barrel,” francisco lloreda, head of the colombian petroleum association (acp), instructed reuters.  From private agencies’ every day output if fees fall under $25 a barrel, lloreda said.

even though country-run energy organisation ecopetrol produces the lion’s share of oil in Colombia. Personal groups produced 342,seven-hundred bpd in january. In keeping with the ACP.

Global Benchmark

Global benchmark brent crude futures closed 6.five% decrease at $27.sixty nine a barrel on wednesday.

Oil prices dropped sharply in early march on a combination of decrease demand amid the spread of coronavirus and a surge in deliver. After a failed deal among the enterprise of the petroleum exporting international locations (opec) and its allies, called opec+.

Even though opec+ has agreed to reduce output through nine.7 million bpd for might also and june, lloreda said in order to no longer be sufficient to restore charges.

“it’s now not just a question of deliver. Non-public oil agencies face higher production costs, especially for transportation.

Frontera has cut its production steerage variety for 2020 to 55,000 to 60,000 barrels of oil equal in keeping with day (boepd). From a preceding outlook of 60,000 to 65,000 boepd. it has stated wells that aren’t fee-powerful to operate could be closed. Similarly, parex has said it’ll lessen output from the second one sector.

 

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