Crude Oil Trade: Colombia targeting production growth of 4% in 2020
Colombia's state-controlled Ecopetrol plans to expand its production of crude oil in 2020, with a target to increase production by around 4% year-on-year, as CEO Felipe Bayon announced recently. He also noted a significant increase in the company's capex for this year, which is estimated to reach USD five billion, 25% up than earlier anticipated. This is primarily due to additional costs of joint ventures announced recently with Occidental Petroleum in the Permian Basin and with Shell in Brazil's offshore Pre-Salt field. These projects could add more than 100,000 b/d to output in the coming years.
In terms of current production, output stood at 585.4 thousand b/d in the third quarter, having marginally declined from 594.6 thousand b/d in 2018 Q3 and 584.9 thousand b/d in the last quarter. For this recent decline, the company has blamed "external events" including 27 pipeline bombing attacks by suspected rebels over the last quarter.
Seaborne exports have been around 400,000 b/d during the last few months, with a noticeable increase in the market share of VLCC and Aframaxes. China, USA and other Asian importers continue absorbing most of the country's shipments.
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