PetroEcuador, Ecuador’s state oil company, said protests in Orellana province spread, idling more oil wells. Production was cut by 34,400 barrels as protesters blocked access to oil facilities, demanding better roads and health and education centers. PetroEcuador had been producing about 200,000 barrels of oil a day before the protest, which began last weekend.
Category: Regions
Posted inDaily Brief
Ecopetrol’s Net Rises
Colombia’s state-run oil company Empresa Colombiana de Petroleos (Ecopetrol) posted a net profit of $373 million for the first quarter, up 39 percent year-on-year. Revenues grew 16 percent to $1.74 billion. Ecopetrol is aiming to boost oil exploration in Colombia and has promised to award new concessions in order to increase output. Most of the company’s oil fields are located in Magdalena province in northern Colombia.
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Francisco Gil Diaz, Mexican Minister of Finance and Public Credit, confirmed to speak at LatinFinance’s Inaugural
Francisco Gil Diaz, Mexican Minister of Finance and Public Credit, is confirmed to speak at LatinFinance’s Inaugural “Cumbre Financiera Mexicana” on July 13-14 in Mexico City. The meeting is a high-level and spirited debate and discussion on the ever-changing face of Mexico’s dynamic financial markets. The invitation-only event will provide a unique forum for investors, financiers, government and corporate leaders to network, analyze shared challenges, and identify new opportunities. To apply for an invitation click here.
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Colombia Issues Bonds
Colombia issued $355 million in bonds maturing in 2013 and will use some of the proceeds to buy back $160 million in debt set to mature in 2009. The move is part of the finance ministry’s strategy of prepaying expensive debt and replacing it with lower-cost debt. Last month Colombia prepaid $1.25 billion owed to the Inter-American Development Bank.
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ICA Issues Debt
Mexican builder Ingenieros Civiles Asociados (ICA) announced plans to issue bonds worth $150 million to finance the building of Corredor Sur highway in Panama. The bonds will mature in 2025 and will yield 6.95 percent. The bonds will be issued in Panama.
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Mexico: Growth Forecasts Cut
JPMorgan, Bear Stearns and Credit Suisse First Boston cut their forecasts for Mexico’s 2005 economic growth Wednesday, a day after the government said first quarter gross domestic product grew 2.4 percent, the slowest pace in a year. JPMorgan reduced its growth outlook to 3.2 percent from 4 percent, Bear Stearns cut its forecast to 3.4 percent from 4 percent and Credit Suisse lowered its estimate to 3.7 percent from 4.4 percent. Mexico’s Finance Ministry forecasts 3.8 percent economic growth this year.
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Telmex Sells MCI Stake
Telefonos de Mexico (Telmex) sold its 13.4 pct stake in US communications company MCI to Verizon Communication for some $1.1 billion. Under the sales contract Telmex is entitled to further cash payments if Verizon’s share price exceeds $35.52. Telmex owner Carlos Slim reached an agreement with Verizon last month to support it in its battle with US firm Qwest Communications International for the MCI stake.
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Bolivia Enacts Hydrocarbons Law
Bolivia’s Congress enacted legislation that increases royalties on oil and gas production, requiring companies to renegotiate existing contracts. The law will add a 32 percent tax to existing 18 percent royalties. Foreign companies say the law will reduce investment and Britain’s BG Group threatened to take legal action if its contract is rescinded. Bolivian protestors are pressing for full nationalization of oil and gas deposits and others want a 50 percent royalty and the imposition of state-controlled prices.
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Mexico Issues Debt
Mexico raised SFr 250 million ($204 million) with its first bond sale in Switzerland in 17 years. The seven-year bonds were sold to yield 3 percent annually at a spread of 97 basis points over the seven-year swap rate in Swiss francs. Mexico turned to Switzerland’s bond market as part of an effort to diversify its financing sources. CSFB managed the sale.
Posted inDaily Brief
Mexico: Growth Slows
Mexico’s economy grew 2.4 percent year-on-year in the first quarter, down from 4.9 percent in the previous quarter as demand in the US for Mexican exports declined. The US took 83 percent of Mexico’s $47 billion in exports in the quarter. Most Mexican sales in the US are manufactured goods, which faced weakened demand in March as US factory production fell for the first time in six months.