The largest foreign oil company in Colombia, Pacific Rubiales, has ended the first quarter of 2014 with record levels of oil production amid weaker world oil prices, the company announced on Thursday.
A total of 324,000 barrels per day and a fall of 6% in profits was reported in the Canadian company’s consolidated financial results for the quarter, which ended March 31.
The total field production of barrels per day represents an increase of 6% compared to the same period in 2013, according to the report.
Ronald Pantin, Chief Executive Officer of the company, commented that “net production [of 149,000 barrels of oil equivalent per day] was a record for the Company and within our production guidance range for the year, representing an increase of 16% from the same period last year.”
Pantin mentioned the ongoing drought in Colombia and said that, “production at the Rubiales Field was lower this quarter due to the temporary restrictions on water disposal as a result of the climate conditions, but production is returning to normal levels in the second quarter as the dry season is now over.”
Cash flow, or funds flow from operations, for the quarter was $474 million, compared to $477 million in the fourth quarter of and $506 million in the first quarter of 2013.
According to Julio Cesar Vera, a consultant in hydrocarbons, Pacific Rubiales’ results show that the company is meeting its objectives and is creating a good outlook for the industry, especially in the development of heavy oil, reported El Espectador.
He also emphasized that the fall in earnings was due to the purchase of assets and although it barely offset production, expansion and growth will be significant in the long run.
Colombia’s oil reserves are the fifth largest in South America after major oil producing countries such as Brazil and Venezuela. Despite this, the country the country is expected to run out of the fossil fuel within seven years if no other reserves are confirmed.
MORE: Colombia’s oil will run out by 2020 with no solution in sight
Sources
- Pacific Rubiales announces first quarter 2014 results: Reports record revenue, EBITDA, net production and sales volumes (Pacific Rubiales Press Release)
- Pacific, con producción récord de 324 mil barriles día (El Espectador)
