How can the perspectives of the oil and gas business improve with the steps taken in the local electric vehicle sector?
SYLVIA ESCOVAR One of the things that is changing are the needs of people facing new fuel options and new digital services “on the move." Terpel is always there to see how we can better serve these options in terms of fuel, payment, tools, service strategies, and more. Some new transportation schemes are changing the fuel they use today, choosing more renewable energies like electricity from wind or solar sources. That is why Terpel is strengthening its portfolio to use and offer electric chargers for these new consumers. Now and in the future, Terpel will be there to provide whatever source of energy people need. In addition to the source of energy, we are also looking into the future to provide any other service that people could need while transporting goods or travelling. Many companies in our sector may be concerned; this is not our case. We do not look at the risks but the opportunities to serve people in many different ways.
How will the new oil discovery open up new operations in the country?
MARCELA VACA TORRES We are still testing, so we cannot anticipate anything beyond the limits of our block. As with any new discovery, we aim to get as much information as we can. Guaco may or may not open new areas of exploration within the Llanos 34 block, though we will certainly provide new information regarding how our structure works. That is a day-to-day operation. We will probably drill the last well 20 years from now and will still be obtaining information. The industry is interested in increasing exploration activities in the new blocks awarded by the National Hydrocarbons Agency (ANH), and, accordingly, GeoPark expects to lead new discoveries in the Llanos basin.
How have you seen good practices in the industry improve over the years?
SE Reducing the levels of CO2 is an important concern in Terpel and part of our sustainability objectives. We start by checking our own operational processes in order to achieve the higher standards in the industry concerning this matter. Moreover, we are major actors in the carbon bond strategy put in place by the last government (carbon tax or forest project financing in the country). We also have solar power initiatives in farms and service stations as part of our goal to minimize nonrenewable energy consumption. Additionally, our board is heavily focused on our transition to greener energy. Finally, we are proud to have been found deserving of the Dow Jones Sustainability Index.
MVT We still have a great deal to do. After the 2015 crisis, companies learned a great deal. We learned to manage our costs and be cautious with our investments. Because of the nature of our business, companies such as ours have a long-term view. We have all learned that the world is changing, and the industry needs to focus more on ESG practices. If we want to be sustainable and think of future generations, the industry can be a great contributor to that purpose. The industry has learned and is willing to contribute more.
What are your goals for 2020 and the upcoming years?
SE 2020 will be one of the most iconic years in terms of the transformations that we will experience. In 2019 and 2018, we were developing projects that will boom in 2020. Initiatives in both service stations and lubricants regarding innovations for our consumers is something that we will see, especially in terms of more convenience all over the country. Finally, as announced in late December 2019, we will finalize our network of electric chargers throughout major roads in Colombia.
To what do you attribute your recent growth?
MVT In 3Q2019, our consolidated oil and gas production grew by 6% to 39,619bpd. We are getting closer to our goal of increasing production in Colombia by around 15%. We have improved our revenue and increased our production on the back of our drilling program, which includes 25 wells. We have increased production with our workover program and with our new discovery and development wells.