Pacific Rubiales Energy recently changed its name to Pacific Exploration and Production to emphasize its expansion throughout Latin American and interest in pursuing activities in Mexico, all as it moves away from Colombia's rich Rubiales oil field.
Headquartered in Canada, the company needed a new brand as “it has a large portfolio of exploration and production block areas” in several countries mostly in Latin America, according to information sent by email to Latin Business Daily by company official Catalina Martinez.
Martinez elaborated on a press release issued earlier in August that also said that the new name was to stress “the company's broader focus in Latin America as the production base continues to be diversified away from the Rubiales Field."
Earlier this year, Colombian state oil company Ecopetrol announced it was not going to renew a contract with Pacific Rubiales for the operation of the Rubiales field after the expiration of the contract in 2016.
The renaming also follows a failed transaction where the company was going to be acquired by Mexican and U.S. investors, according to information also previously reported by the company.
The company said in July that a previously announced sale agreement with Mexico´s Alfa group and U.S.-based investor group Harbour Energy was not going to be completed. Created in 2008 after the merger between Pacific Stratus Energy and Petro Rubiales, the firm wanted to emphasize its new Latin American exploration areas with the name change.
“Countries of Latin America like Colombia, Brazil and Peru have provided opportunities not just because of their rich subsoil but also because of legislation,” Martinez said.
Pacific Exploration and Production has been in Guatemala since 2010 with two exploration blocks. By 2012, it had secured stakes in two exploration blocks in Peru. In September 2012, it also obtained a 35 percent stake in an offshore exploration area in Brazil. The company also can be found in Guyana and Belize.
“The opening of the energy sector in Mexico to foreign investment represents a great opportunity aligned with the main expertise and the history of exploration and development of light and heavy crude oil,” Martinez added.
Asked about current weak oil prices and its impact, Martinez said the company is now focused on “implementing a new financial strategy,” which involves keeping operation costs low, reducing investments so they are in line with new cash flows and assigning capital to projects with the highest profitability.
For the second quarter of 2015, the company had $703 million in revenue.