Pacific Rubiales Energy
Encyclopedia
Pacific Rubiales Energy is a petroleum
exploration and production company in the business of heavy crude oil and natural gas. Its focus is on Colombia and Peru where it holds numerous properties including 38 blocks in the Llanos, Lower Magdalena
and Cesar Valley
, Rancheria, Upper and Middle Magdalena Valley
, Putumayo, Ucayali
and Maranon
basins. Since October 2010 it also has a working interest in 2 other blocks in the Petén Basin
of Guatemala (shared with lamingo Energy Investment (BVI) Ltd., Chx Guatemala Limitada, and Compañía Petrolera del Atlántico).
It shares joint ownership in many oil fields and exploration projects in Colombia with Ecopetrol
and in Peru with Petrodorado.
Its most valuable assets are the rubiales (largest in Colombia) and piriri oil fields in central Colombia which it operates through meta petroleum, a division of subsidiary Rubiales Holdings Limited (RHL). RHL has been 100% owned by pacific rubiales since 2007 when it purchased the remaining 25% of outstanding shares. Through acquisitions (Pacific Coal S.A.) it plans to enter the coal and asphalite production market. Victories over Marxist rebels
by the government of Colombia have made it easier for companies like Pacific Rubiales and Ecopetrol to expand operations in the country.
The company has experienced a steady rise in production over the last couple years. Average total production in the first quarter of 2011 was 196,272 boe/d 34% more than the year before; after royalties production was up 51% to about 80,000 boe/d, production increases came from the same source as in 2010 (Rubiales, Quifa) in addition to new production from La Creciente (9,700 boe/d). In early 2010 total gross daily production (not including royalties
based on output levels and crude oil prices) was around 130,000 boe
/d compared to about 83,000 boe
/d in 2009. For the 2010 year total net production was 56,974 boe/d, 67% higher than in 2009; Most of the increase came from growth at the rubiales heavy oil field. Although revenue was 173% higher in the first half of 2010 than in the first half of 2009 net income continued to be weighed down by depreciation, ammortization and foreign exchange losses (though the company rebounded from a $65.9 million net loss in the first half of 2009). In 2009 about 8.6 million barrels of oil it produced was exported while 1.6 million barrels of oil was used domestically in Colombia. In the first three months of 2011 the company sold 26% more oil than in the corresponding period in 2009 (7.447 million boe or about 83,000 boe/d). Because it is producing below a certain royalties threshold, nearly all gross production before royalties coming from La Creciente is kept after royalties.
In 2010 it sponsored the Pacific Rubiales Bogotá Open
.
Later in 2008 it acquired Kappa Energy, a Colombian exploration company with licenses to 747000 acres (3,023 km²) of land which included parts of the lower, middle, and upper Magdalena, Catatumbo, and Llanos basins. The transaction was valued at $168 million and increased pacific rubiales' possible reserves by 24.2 million boe. Kappa is now part of division Kappa Energy Holdings. On October 19, 2011 it became engaged in oil drilling activity in northern Guatemala.
In January 2010 the company signed a $190 million deal with Ocensa pipeline
to use their pipeline and oil transport infrastructure to transport up to 160 million barrels of oil for a period of ten years.
Colombia
-properties jointly owned with Ecopetrol
- production is at 122,500 b/d, reserves are at 397.4 million barrels that includes those considered proven-possible. the data is independently verified.
Peru
- Exploration and development projects are jointly owned with Petrodorado
Guatemala
-In the Petén Basin, southeast of major oil fields in southern Mexico. Has the option to raise its share to 55% by investing as much as US $25.875 million in exploration and drilling.
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
exploration and production company in the business of heavy crude oil and natural gas. Its focus is on Colombia and Peru where it holds numerous properties including 38 blocks in the Llanos, Lower Magdalena
Lower Magdalena Province
Lower Magdalena Province is one of the 15 provinces in the Cundinamarca Department, Colombia. Lower Magdalena borders to the west with the Magdalena River, the Departments of Tolima and Caldas to the north with the Antioquia Department, to the east with the Rionegro Province and Gualiva Province,...
and Cesar Valley
Cesar Department
Cesar Department or simply Cesar is a department of Colombia located in the north of the country in the Caribbean region, bordering to the north with the Department of La Guajira, to the west with the Department of Magdalena and Department of Bolivar, to the south with Department of Santander, to...
, Rancheria, Upper and Middle Magdalena Valley
Magdalena River Valley
The Magdalena River Valley is a valley in Colombia located within the Colombian Andes mountain ranges. The valley is specifically located between the Cordillera Central and Cordillera Oriental and crossed by the river of the same name, the Magdalena River....
, Putumayo, Ucayali
Ucayali Province
The Ucayali Province is one of the seven provinces in the Loreto Region of Peru. It was created on October 13, 1900 by president Eduardo López de Romaña...
and Maranon
Marañón Province
The Marañón Province is one of eleven provinces of the Huánuco Region in Peru. The capital of this province is the city of Huacrachuco. The province has a population of 23,000 inhabitants as of 2002.-Boundaries:...
basins. Since October 2010 it also has a working interest in 2 other blocks in the Petén Basin
Petén Basin
The Petén Basin is a geographical subregion of Mesoamerica, located in the northern portion of the modern-day nation of Guatemala, and essentially contained within the department of El Petén...
of Guatemala (shared with lamingo Energy Investment (BVI) Ltd., Chx Guatemala Limitada, and Compañía Petrolera del Atlántico).
It shares joint ownership in many oil fields and exploration projects in Colombia with Ecopetrol
Ecopetrol
Ecopetrol , formerly known as Empresa Colombiana de Petróleos S.A. is the largest and primary petroleum company in Colombia. Because of its size, Ecopetrol is a Fortune Global 500 company ranked 445, it belongs to the group of the 25 largest petroleum companies in the world, and it is one of the...
and in Peru with Petrodorado.
Its most valuable assets are the rubiales (largest in Colombia) and piriri oil fields in central Colombia which it operates through meta petroleum, a division of subsidiary Rubiales Holdings Limited (RHL). RHL has been 100% owned by pacific rubiales since 2007 when it purchased the remaining 25% of outstanding shares. Through acquisitions (Pacific Coal S.A.) it plans to enter the coal and asphalite production market. Victories over Marxist rebels
National Liberation Army (Colombia)
National Liberation Army is a revolutionary, avowed Marxist guerrilla group that has been operating in several regions of Colombia since 1964....
by the government of Colombia have made it easier for companies like Pacific Rubiales and Ecopetrol to expand operations in the country.
The company has experienced a steady rise in production over the last couple years. Average total production in the first quarter of 2011 was 196,272 boe/d 34% more than the year before; after royalties production was up 51% to about 80,000 boe/d, production increases came from the same source as in 2010 (Rubiales, Quifa) in addition to new production from La Creciente (9,700 boe/d). In early 2010 total gross daily production (not including royalties
Royalties
Royalties are usage-based payments made by one party to another for the right to ongoing use of an asset, sometimes an intellectual property...
based on output levels and crude oil prices) was around 130,000 boe
Barrel of oil equivalent
The barrel of oil equivalent is a unit of energy based on the approximate energy released by burning one barrel of crude oil. The US Internal Revenue Service defines it as equal to 5.8 × 106 BTU...
/d compared to about 83,000 boe
Barrel of oil equivalent
The barrel of oil equivalent is a unit of energy based on the approximate energy released by burning one barrel of crude oil. The US Internal Revenue Service defines it as equal to 5.8 × 106 BTU...
/d in 2009. For the 2010 year total net production was 56,974 boe/d, 67% higher than in 2009; Most of the increase came from growth at the rubiales heavy oil field. Although revenue was 173% higher in the first half of 2010 than in the first half of 2009 net income continued to be weighed down by depreciation, ammortization and foreign exchange losses (though the company rebounded from a $65.9 million net loss in the first half of 2009). In 2009 about 8.6 million barrels of oil it produced was exported while 1.6 million barrels of oil was used domestically in Colombia. In the first three months of 2011 the company sold 26% more oil than in the corresponding period in 2009 (7.447 million boe or about 83,000 boe/d). Because it is producing below a certain royalties threshold, nearly all gross production before royalties coming from La Creciente is kept after royalties.
In 2010 it sponsored the Pacific Rubiales Bogotá Open
Pacific Rubiales Bogotá Open
The Pacific Rubiales Bogotá Open presented by Samsung is a golf tournament on the U.S.-based Nationwide Tour. It was first played in 2010 at The Country Club of Bogotá in Bogotá, Colombia...
.
- In early 2010 it was the largest independent oil company operating in South America and in terms of private companies the fastest growing one in Colombia.
- The intangible assets held by the company are Colombian pipeline system usage rights.
History
The parent company's origins go back to 1985 to a tsx venture exchange listed company called Agincourt Explorations, however the oldest part of the current company with operations in Colombia is Petro Rubiales which began its business in 1982. In 1995 Agincourt Explorations became AGX Resources Corp.; a mineral exploration company focussed on Brazil and Canada. After AGX acquired rubiales holdings in 2007 from Petro Rubiales it was known as Petro Rubiales Energy Corp. until 2008 when it merged with Vancouver based Pacific Stratus Energy Ltd. in a $2.5 billion causing a name change to Pacific Rubiales Energy Corp. Less than two weeks after the merger the company delisted from the tsx venture exchange.Later in 2008 it acquired Kappa Energy, a Colombian exploration company with licenses to 747000 acres (3,023 km²) of land which included parts of the lower, middle, and upper Magdalena, Catatumbo, and Llanos basins. The transaction was valued at $168 million and increased pacific rubiales' possible reserves by 24.2 million boe. Kappa is now part of division Kappa Energy Holdings. On October 19, 2011 it became engaged in oil drilling activity in northern Guatemala.
In January 2010 the company signed a $190 million deal with Ocensa pipeline
Ocensa pipeline
The Ocensa pipeline is a crude oil pipeline in Colombia. It starts on the Cusiana and Cupiagua oilfields and runs to Coveñas on Colombia's Caribbean coastline. It is owned by the consortium of Ecopetrol, and BP, Total S.A. and Triton Colombia.-Technical description:The pipeline is long. It has...
to use their pipeline and oil transport infrastructure to transport up to 160 million barrels of oil for a period of ten years.
- In September 2010 the company followed through with its promise to focus more on developing assets already mature or low risk and less on exploration in high risk areas by divesting itself of fields within the Buganviles oil and gas block of Colombia. It sold a 29.5% interest in Visure and 25% in Tuqueque to a subsidiary of Peruvian company Petrodorado. Though the deal gives Petrodorado a near joint interest in the Buganviles block (45-49.5%) Pacific Rubiales remains the controlling operator.
Properties/Production
As of March 31, 2011 the company had reserves of 357.39 million boe (87% of that is net reserves). By September 2011 net proved reserves reached 350 million boe up 15% or 40 million barrels in just the last 6 months. For the 2010 fiscal year, total gross production before royalties 85.6% of production (123,581 bbls/d) came from the Rubiales/Piriri field (up 79.6% on the year), La Creciente was second at 10,055 bbls/d (up 36.2%). Share after royalties averaged over 2010; 74.5% came from Rubiales/Piriri (42.452 bbls/d up 73.9%), 9,920 bbls/d came from La Creciente (up 34.4%).Colombia
-properties jointly owned with Ecopetrol
- Rubiales, Piriri fields - covers 72839 acres (294.8 km²) of land 148 km from Puerto GaitanPuerto GaitánPuerto Gaitán is a town and municipality in the Meta Department, Colombia....
. Oil was first discovered there in 1982 but production didn't begin until 1988 when the rubiales risk participation contract was signed. Operations are conducted through subsidiary Meta Petroleum. The rubiales oil field which has become the largest in Colombia was neglected before being acquired by Pacific Rubiales.
- production is at 122,500 b/d, reserves are at 397.4 million barrels that includes those considered proven-possible. the data is independently verified.
- Llanos basin (reserves estimated to be over 4.5 billion barrels for the whole basin) - quifa field (ownership at 60%)
Peru
- Exploration and development projects are jointly owned with Petrodorado
- Ucayali Basin, Maranon Basin
Guatemala
-In the Petén Basin, southeast of major oil fields in southern Mexico. Has the option to raise its share to 55% by investing as much as US $25.875 million in exploration and drilling.