Ecuador’s state-owned oil producer Petroecuador will buy 1.2 metric tons of gas to cover domestic demand for the next two years due to the lack of national production. An agreement with London-based Trafigura to provide natural gas runs out at the end of this year and 50 companies have so far submitted bids for the new contract.
Category: Regions
Posted inDaily Brief
Colombia To Outline Sale of Telecoms Licenses
Colombia is expected to outline plans imminently for the sale of fixed wireless broadband licenses. Although only current fixed-line operators can bid for the national licenses, other operators will be able to apply for departmental ones. Bidders for the departmental licenses will be guaranteed to win if there are no other applications submitted within 30 days, otherwise normal competition rules will apply.
Posted inDaily Brief
Colombia: Surprise Lending Rate Cut
In a surprise move on Friday, Colombia cut its overnight lending rate from 6.5% to 6%, the first reduction since December last year. The cut is aimed at slowing the rise of the peso to protect local exporters. The Colombian currency has strengthened 10% against the dollar over the past 12 months.
Posted inDaily Brief
Peru and Bolivia Renew Gas Agreement
Peru and Bolivia have renewed an agreement to transport gas from Tarija in southern Bolivia to a Peruvian port on the Pacific Ocean and then onwards to Mexico and the US. Peru confirmed that the participation of Bolivia is vital in the project to build a gas pipeline network from the south of Peru. Meanwhile, President Alejandro Toledo of Peru said that Peru’s own gas reserves in the southern region of Camisea are much higher than first thought. Toledo says he is keen to promote energy integration in Latin America to protect the region against the international price fluctuations of crude oil.
Posted inDaily Brief
Colombia Sells $500 million in Bonds
Colombia yesterday began selling $500 million dollar-denominated bonds maturing in 2024, reopening its January 2004 issue. Goldman Sachs and Merrill Lynch are managing the sale. This follows an announcement last week that Colombia will buy back $700 million in euro- and dollar-denominated bonds due 2006 and 2033.
Posted inDaily Brief
Peru GDP Growth Falls Below 6%
However, Peru’s GDP growth rate in July again slowed to 4.92%, less than the government 6.5% forecast and market expectation of 5.9%. This follows growth of only 4.6% recorded in June, the lowest level since last October. Since then, growth rates have been consistently above 6%.
Posted inDaily Brief
Mexican Presidential Favourite Cancels US Visit
Andrés Manuel López Obrador, ex mayor of Mexico City and the favorite to win Mexico’s 2006 presidential elections has been forced to cancel a visit to Los Angeles after officials told him it is illegal to campaign outside the country. In June, Congress voted to allow Mexicans abroad to vote in next years’ presidential elections.
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Fujimori Gets New Peruvian Passport
Former president of Peru, Alberto Fujimori, who has been in Japan since resigning in 2000, has received a new Peruvian passport in Tokyo. Fujimori, who faces human rights and corruption charges in Peru, has claimed Japanese citizenship since leaving Peru but has said that he plans to return to the country to stand for presidential elections in April 2006. Peru has unsuccessfully sought his extradition from Japan and has banned him from running for office until 2010.
Posted inDaily Brief
AngloGold Leaves Peru
AngloGold Ashanti of South Africa, the world’s second-largest gold producer, has said it will stop exploration in Peru after disappointing finds. The company has spent six years and around $20 million prospecting in Ecuador. It does, however maintain agreements with several mining companies and says it will return in the future if major finds are made. Neighboring Peru is the world’s sixth-largest gold producer and has Latin America’s largest goldmine.
Posted inDaily Brief
China and Mexico Agree to Fight Contraband
President Hu Jintao of China told Mexico’s President Vicente Fox that he would take action prevent exports of pirated goods and contraband leaving its borders. Mexican companies complain Chinese products are unfairly undermining their businesses. Mexico ran a $14 billion trade deficit with China last year.