NexTV Africa & Middle East

Complete News World

Blockades and protests will force a rethink of Ecopetrol's 2021 business plan

Blockades and protests will force a rethink of Ecopetrol’s 2021 business plan

The group’s production so far in May is 651,000 barrels per day (bpd). The most significant impacts were recorded in gas and white products (LPG and NGL), mainly in the Cusiana and Floreña fields, and to a lesser extent in crude oil production in Putumayo, Meta, Arauca and Boyacá.

The public order situation the country is going through, where social protests have shut down its main roads and isolated incidents against Ecopetrol’s infrastructure may lead to a rethink of the 2021 business plan.

In a statement, the Colombian Oil Company warned of the negative impact the protests have had on operating the production, transportation, refining and marketing sectors.

For more information on this topic: Fuel problems during the national strike

The Colombian company asserts, “Ecopetrol appreciates that these adverse events should not have material implications that affect the achievement of our business plan goals for 2021”. But he admits that he “cannot predict the duration of the protests, and whether they will continue to negatively affect the operations.”

Remember, the impacts on the exploration and production sector are significant. The group’s production so far in May is 651,000 barrels per day (bpd). The report stated that the most important impacts were recorded in gas and white products (liquefied petroleum gas and natural gas liquids), especially in the Cosiana and Florina fields, and to a lesser extent on crude oil production in Putumayo, Meta, Arauca and Boyaca.

This result in production is also explained by the continuing restrictions on water management in the Castilla field, says the oil company.

READ  Encourages construction in industry; It grew 2.5% in February - El Financiero

Due to transportation problems, high levels of inventory have accumulated at the wholesale factories and the pipeline network. Cenit had to stop, intermittently, pumping into some of its systems. This resulted in a volume of refined products being transported in May amounted to 224,000 barrels per day. For its part, the volume of crude oil transported in the month reached 716 thousand barrels per day.

You may also be interested in: The ghost of imperfection begins to come true

In terms of refining activity, the Barrancabermega refinery reported a load of 207,000 b / d for the month of May, given the limited availability of domestic crude and reduced withdrawals of fuel, petrochemicals and industrial products. The report says that the Cartagena refinery operation was not affected.

On the other hand, commercial demand for diesel (-33%), gasoline (-15%) and aircraft (-1%) decreased compared to the expected levels in May.

Likewise, the demand for Ecopetrol gas decreased by about 16% in the thermal and industrial sectors, and LPG by about 41% during the month.

The provinces worst affected in terms of fuel supply were Valle del Cauca, Nariño, Cauca, Huila and Caqueta.

The report highlights that despite these conditions, the Ecopetrol Group is implementing adjustments to its operations and logistics to mitigate the negative impacts on fuel delivery to various regions of Colombia.