The Business Year

Daniel Ferreiro

COLOMBIA - Energy & Mining

Daniel Ferreiro

President & Country Manager, Parex Colombia

Bio

Daniel Ferreiro is a petroleum engineer from Instituto Tecnológico de Buenos Aires, with more than 20 years of experience in the oil and gas industry with Chavuco Resources Argentina, Pioneer Natural Resources Argentina, and Petroandina. In 2010, he started working in Colombia, leading the operations team of Parex Resources, where he is currently its President & Country Manager.

Colombia’s largest independent oil and gas producer, Parex Colombia owes its success to its social approach and strong technical expertise.

Can you give us an overview of Parex Resources and its impact on Colombia?

We are the second-largest producer of petroleum in Colombia, at more than 50,000 barrels of oil a day. We have a track record of investing heavily in development, appraisal and exploration year after year. For example, in 2022 we will be investing more than USD500 million, which will represent our record capital spending program.

How is Parex representative of business confidence in the country, and why is the company betting so heavily in Colombia?

There are many things in Colombia that support our investment rationale for the short-and long-term. We have been in the country for 12 years now, and we are proud of our achievement of more than 50,000bpd in that period. Colombia offers a unique combination of advantages. Regulation is quite clear, and E&P contracts with the National Hydrocarbons Agency (ANH) are straightforward, which we appreciate them. Colombian institutions are strong and relationships with ministries and public authorities are transparent. There has been strong support for the industry over the past 20 years. Meanwhile, there is also a technical component to our business in Colombia, which boasts rich reserves of natural resources with many opportunities still to be identified and developed. The country has many productive basins. We mainly have a presence in the Oriental Plains Basin, and the basins along the Magdalena River. The strongest asset that we have—other than the blocks—is the persistence and talent of our people. We have been able to develop projects in areas that are not easy to operate in thanks to our social approach and technical expertise. The commitment to the country is also evident by Parex applying for and being granted 18 new contracts during the 2021 bid round.

What projects of community interest does the company lead?

Colombia has high precipitation rates and yet access to fresh water is a challenge, especially in many areas where we operate. One of our commitments is to improve the quality of living for people surrounding us—people close to our operation. Parex, through its ESG program, has improved access to quality water for more than 60,000 people (through Social Voluntary Investment and Work for Taxes programs). What we have done—and are proud to say—is that in some projects, we have provided a barrel of fresh water before we even produced a barrel of oil. We do that as part of our access strategy for people to get to know us, not just because we are going to do seismic study or drill a well, but because we can have a positive impact in the areas we operate. On top of that, local manpower and goods and services are ultimately what allows us to continue operating in different areas. All our projects have a high social component. We firmly believe that the growth of the company can also represent progress for the regions where we operate.

What is the company’s approach to energy efficiency and environmental sustainability?

We are committed to providing energy to the world as cleanly as possible by setting clear emissions goals and including renewable sources in our energy matrix. Evidence of that, is that the company reduced its emissions intensity by 14% in 2021 vs. 2020. During 2021, we also made public our commitments to reduce our flares and emissions. Parex’ emission reduction strategy, focuses on optimizing carbon footprint, displacing carbon intensive power sources, and increasing power generation from renewable sources. We were the first in the country and Latin America to kick-off a geothermal power generation pilot project during 2021. In this project, we take advantage of the heat in the water that we produce naturally with the oil and we use it to produce energy. In 2022, we also started our first solar farm of close to 4MW 
capacity. 

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