Latam Energy Advisors LLC is the Leading Energy Consulting Firm in Latin America
By Isidro Arrieta, Santander Latin Credit Research
Net/Net: Ecopetrol and Pacific Rubiales issued a press releases on March 13 announcing that Pacific Rubiales did not get an extension for the Rubiales/Pirirí field. Currently, this field represents approximately 40% of net production, down from 75% in 2010. Before the nosedive in the oil price, Pacific Rubiales expected to reduce exposure to Rubiales to c.12% of net production by 2016. We believe this announcement is not welcomed news for Pacific Rubiales' bondholders. Although we believe that most fixed income analysts and investors did not expect this contract to be extended past its June 2016 expiration date, confirmation of this should be negative for bonds. We expect that close attention will be paid to the company's announcements during its March 18 4Q14 results conference call.
Conf call details: March 18 - 8:00 a.m. (Bogotá time) // 9:00 a.m. (NY time)
Participant Number (Toll free Colombia): 01-800-518-0661
Participant Number (Toll free North America): (888) 231-8191
Conference ID (English Participants): 76799583
Conference ID (Spanish Participants): 76947816
No extension on Rubiales/Pirirí field. Late on Friday, Ecopetrol and Pacific Rubiales announced that they agreed not to extend the Rubiales and Pirirí field contracts expiring June 2016. Ecopetrol said that it will evaluate alternatives for the operation of the Rubiales field. Meanwhile, Pacific Rubiales said that it will consider submitting a new proposal to operate the field after the contract's expiry date.
http://www.latamenergyadvisors.com/
Net/Net: Ecopetrol and Pacific Rubiales issued a press releases on March 13 announcing that Pacific Rubiales did not get an extension for the Rubiales/Pirirí field. Currently, this field represents approximately 40% of net production, down from 75% in 2010. Before the nosedive in the oil price, Pacific Rubiales expected to reduce exposure to Rubiales to c.12% of net production by 2016. We believe this announcement is not welcomed news for Pacific Rubiales' bondholders. Although we believe that most fixed income analysts and investors did not expect this contract to be extended past its June 2016 expiration date, confirmation of this should be negative for bonds. We expect that close attention will be paid to the company's announcements during its March 18 4Q14 results conference call.
Conf call details: March 18 - 8:00 a.m. (Bogotá time) // 9:00 a.m. (NY time)
Participant Number (Toll free Colombia): 01-800-518-0661
Participant Number (Toll free North America): (888) 231-8191
Conference ID (English Participants): 76799583
Conference ID (Spanish Participants): 76947816
No extension on Rubiales/Pirirí field. Late on Friday, Ecopetrol and Pacific Rubiales announced that they agreed not to extend the Rubiales and Pirirí field contracts expiring June 2016. Ecopetrol said that it will evaluate alternatives for the operation of the Rubiales field. Meanwhile, Pacific Rubiales said that it will consider submitting a new proposal to operate the field after the contract's expiry date.
http://www.latamenergyadvisors.com/
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