Page 7 - LatAmOil Week 39 2021
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LatAmOil                               COLOMBIA/NICARAGUA                                          LatAmOil

                                                                 Maritime border as set by ICJ in 2012 (Image: ICJ)

                         Officials in Managua argued that Bogota had   of nearly 2bn barrels of oil. In recent years the
                         accepted the ruling regarding a cluster of   Colombian government has been trying to boost
                         islands but not a larger demarcation of maritime   the country’s stagnant oil sector by modifying
                         boundaries between the two nations. Last week,   contractual terms and reducing bureaucracy.
                         Colombia said its ships were sometimes to be   To this end, it awarded 31 contracts to oil
                         found in the disputed area, in line with interna-  and gas companies in 2019, before the advent of
                         tional law, and that they were necessary for envi-  the coronavirus (COVID-19) pandemic. These
                         ronmental preservation and other international   contracts are expected to bring in around $2.7bn
                         affairs. Both sides will be able to respond to each   in investment to the industry over the coming
                         other’s arguments during hearings scheduled to   years. Frontera Energy and GeoPark, both of
                         take place before October 1.         Canada, along with the national oil company
                           Colombia is the fourth-largest crude pro-  (NOC) Ecopetrol, have been among the winners
                         ducer in Latin America, with proven reserves   of Colombian auctions in recent years. ™

                                                     VENEZUEL A
       Interest in Venezuela’s defaulted bonds

       picks up following refinery stake swap

                         INTEREST in Venezuela’s defaulted bonds is   Most of the transactions are being arranged
                         reportedly rising as traders bet that the decision   by European funds ready to assume high risks,
                         of the government of President Nicolas Maduro   the news agency added.
                         to swap a stake in the Refidomsa refinery in the   The price of bonds from state-owned oil pro-
                         Dominican Republic is a sign of more deals to   ducer Petroleos de Venezuela (PDVSA) have
                         come.                                jumped by 17% in the last month, Bloomberg
                           The volume of bonds being traded is still   noted. Even so, it said, these securities are still
                         small, as the sanctions regime imposed by for-  going for well below market level, for around
                         mer President Donald Trump limits US inves-  $0.0525 on the dollar.
                         tors’ ability to buy the notes. Even so, whenever   Meanwhile, it said, Venezuela’s sovereign
                         these securities go on the market they are usu-  bonds are commanding a price that is around
                         ally bought up quickly, according to a Bloomb-  20% higher, at $0.11 on the dollar, the report
                         erg report.                          said, citing brokers and term sheets.

       Week 39   30•September•2021              www. NEWSBASE .com                                              P7
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