Colombia oil production down in September
Colombia crude output averaged 993,000 b/d in September, down by 0.6pc from 999,000 b/d in August, and down by 0.7pc from 1mn b/d in the same period last year, according to government data.
"During September there were technical and operational restrictions that had an impact on production and to a lesser extent there were impacts from security issues," the energy ministry said today.
The January-September average was 982,700 b/d, well short of the country's goal of 1mn b/d in 2014.
Natural gas output averaged 1.119bn ft3/d (31.3mn m3/d) in September, up by 3.3pc from 1.083bn ft3/d in August and down by 5.7pc from 1.187bn ft3/d September 2013.
The ACP, Colombia's oil chamber, blames the production decline this year on environmental permitting delays, community blockades and rebel attacks.
"There is around 145,000 b/d of tied up production that could be incorporated in a matter of months if environmental permitting is speeded up, road blockades are lifted, and attacks on oil transportation infrastructure are halted," the ACP says.
Environmental permitting agency ANLA has pledged to accelerate the permitting process to around 3.5 months, compared with an average of 13.5 months in 2013.
The government is close to reforming a decree that regulates permitting in response to industry concerns over exploration and development delays.
Rebel groups in Colombia regularly target oil infrastructure, including pipelines, roads, tanker trucks and wells. Colombia's defense ministry recorded 111 pipeline attacks in January-August of this year, down by 34pc from 169 during the same period last year. But the impact this year was greater because of associated blockades and security-related delays in making repairs.
Ecopetrol told Argus that two rebel attacks were directed at the 220,000 b/d Caño Limón-Coveñas pipeline earlier this week in eastern Colombia, but they did not affect oil flow.
One attack occurred in Toledo municipality in Norte de Santander province, and the second took place in Arauquita municipality in Arauca province.
The Caño Limón-Coveñas pipeline runs 770km (478mi) line from US Occidental's Caño Limón field in eastern Arauca province to Coveñas port on Colombia's Caribbean coast, from where around 95pc of the country's crude is exported.
Lower output and a slide in international oil prices, combined with increased spending on mediating social conflicts during the administration of President Juan Manuel Santos, will contribute to a fiscal gap of around $6.42bn (Ps13tn) or about 1.7pc of GDP in 2015, Bogotá-based think tank ANIF tells Argus.
In response to the expected deficit, Colombia's finance ministry proposed a tax reform last week that would raise taxes for oil and gas companies.
The ACP panned the proposed tax hike, asserting that it could "deter exploration at a time when (Colombia) is urging the industry to increase reserves in oil and gas."
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