Colombia Watch: How energy companies are responding to COVID-19

CANACOL

Canacol is continuing production as normal at its Colombian natural gas fields amid the Coronavirus pandemic. 

In a regulatory filing, the Canadian firm said its operations fall in line with a government decree that allows the continuation of essential activities during the national lockdown.

The company said it has adopted a prevention plan to guarantee the safety and health of workers "as well as the trust of clients and investors".

Canacol, Colombia's largest independent gas producer, last month maintained its US$114mn 2020 capital guidance, to be fully funded from existing cash and 2020 cash flow.

CELSIA

Medellín-based power company Celsia unveiled a business continuity plan to ensure the safe execution of "critical operations and processes".

It said a steering committee has been charged with protecting employees, supporting clients, continuing operations and guaranteeing financial flexibility, among other tasks. 

"By remaining operational on all fronts, billing has not been significantly affected by the effects of the COVID-19 and therefore allows it to adequately cover the company's commitments," Celsia said in a statement.

"The non-payment risk has been managed with the measures established by the government to give support to regulated users, including different payment periods for consumption in April and May," it added.

Celsia, a unit of Grupo Argos, said the plan also applied to its subsidiaries Epsa and Cetsa, which provide power services in the southwestern Colombian department of Valle del Cauca. 

ISA

Interconexión Colombia (ISA) said it established crisis committees in Colombia, Peru, Chile, Brazil and Bolivia to manage the COVID-19 crisis. 

In a statement, ISA said the committees are holding daily meetings to discuss operational, labor, legal, regulatory, financial and communication matters, in addition to attending to supplier needs.

Worker health and safety, continuity of operations, infrastructure maintenance and project execution were highlighted as the company's chief focus. 

"The main risk in this regard is related to the availability of contractors to attend to infrastructure maintenance and project execution; added to the logistical difficulties in obtaining supplies and transport," ISA said, adding that "critical facilities" are being prioritized. 

TRANSELCA

ISA subsidiary Transelca said it also activated a task force to attend to the emergency. 

"This committee meets daily to analyze the progress of the situation, consolidate the information and take the corresponding measures to guarantee the resources and conditions to carry out work at home and the health and safety of the personnel at [our] headquarters," said Transelca in a statement.

New labor laws that allow public utility employees to work from home have helped Transelca to maintain the continuity of its electricity transmission services, it added. 

The company said its Q1 financial results were not affected by the health crisis, adding that "we are permanently monitoring the state of emergency to identify and quantify possible future impacts, which will be duly communicated."

GEOPARK

Colombia-focused oilfield operator GeoPark said it adopted protocols, preventive measures and crisis response plans across six countries.

Measures include a reduction of field workers to a minimum with back-up teams and contingencies in place, teleworking for office staff and support for local communities with safety, medical and food supplies. 

GeoPark said 90% of its oil and gas production is cash flow positive at Brent prices of US$20-30/b.

It reduced its 2020 work program by 60-65% to US$70-80mn and said it is now targeting production of 43,000-44,000boe/d. 

Total capital and cost reductions since the coronavirus outbreak began total almost US$200mn, GeoPark added. 

PROMIGAS

Gas transporter Promigas outlined a business continuity plan that addresses human resources, operations, finances, administration and legal matters. 

In a filing, the company said that the initiative would ensure the well-being of workers and guarantee uninterrupted supply of gas and electricity to clients. 

TERPEL

Colombian fuel retailer Terpel said its principal activities - considered essential services - have not been affected by the lockdown.

It said strict health and safety protocols are being followed to prevent the spread of COVID-19 in "operational centers where the presence of staff is indispensable."

Terpel added that it has yet to calculate the financial impact of falling demand for its fuels. 

It said the knock-on effects of the pandemic are being mitigated by a cost-cutting plan, lower capital spending and a reconfiguration of its business model to prioritize the production of essential items, among other measures.