Cepsa’s activity has seen sustained growth in recent years in Latin America and will continue to grow as it continues to develop its strategy to become a globally integrated energy company.
A key component of the company’s presence in the continent, which ranges from considerable E&P activity to chemistry areas, lubricant sales, and marine fuel supplies, is Colombia.
Colombia at the lead
This country has been crucial for Cepsa and entails an average daily production of 19,000 barrels per day.
Over the past ten years, Cepsa has been granted 17 new E&P contracts in the country, including 4,900 km2 of oil exploration areas with a key asset in Caracara, operated by Cepsa and local partner Ecopetrol, and another one in Casanare.
These wells are operated under the highest safety and quality standards and with special sensitivity to sustainability and the environment. This includes, as part of Cepsa’s progress in terms of digital transformation, from the incorporation of innovative technology to improve energy efficiency in wells, to the implementation of a solid waste and water management system.
Focused on sustainable development
Additionally, Cepsa went beyond in its interest to minimize the impact of its activity with its programs to reforest 160 hectares, contributing to reduce its activity’s carbon footprint.
Cepsa’s rigorous environmental respect joins its corporate responsibility labor, which it exercises through specific projects that have a positive impact on the communities in the areas where it operates.
In this sense, Cepsa has launched activities in Colombia focused on supporting fair trade for local producers, health and security programs that have benefitted thousands of people, as well as educational activities, focused on the risk of social exclusion.
Moreover, it has specific initiatives to support local suppliers of its Caracara field, which raises productivity in the local community.
The Cepsa Foundation manages these activities on a global scale and specifically in Colombia, where it also offers economic support for projects and solidary initiatives through its annual Social Value Award.
Activity in Latin America
But for Cepsa Latin America is much more than its activity in Colombia, given that it expands to neighbor Peru, where it has oil production sites.
Similarly, the energy company was awarded crude exploration licenses last year in the Tampico-Misantla basin in the Gulf of Mexico, where it has a 20% share with state-owned Pemex and Deutsche Erdoel. This is one of the largest production sites in Mexico and its shallow waters hold great potential.
Its presence in Mexico has been a huge milestone for Cepsa, as it consolidates its presence in the continent and facilitates the search for opportunities in other business areas. Brazil and Surinam are other nations where the company is developing its exploration and production activity.
Cepsa has also ventured into the Bunker business, with operations in Panama, where it has supplied marine fuel to vessels on both sides of the canal in the Balboa and Cristobal ports since 1998; as well as in lubricant sales, distributed in 11 countries in the continent.
Leadership in the chemical industry
The chemical area plays a highly important role in Cepsa’s integrated business model and is key in its internationalization process. The company operates the recently renovated Detén plant in Salvador de Bahia, which produces 260,000 tons of linear alkylbenzene a year and 120,000 tons of LABSA a year.
Cepsa owns a 72% share of this plant with Brazil’s state-owned oil company Petrobras, which owns the remaining 28%.
LAB is the raw material used to manufacture biodegradable detergent. Cepsa, a global leader in LAB manufacture that controls a 15% share of the market, makes this product in Canada, Brazil, and Spain. In fact, the company’s plant in Bécancour (Canada) was the first in the world to use Detal technology to produce LAB in 1995.
This innovation was developed by Cepsa in collaboration with UOP (Universal Oil Products) and that has been recently upgraded (Detal-Plus). This technology considerably reduces the consumption of raw materials and energy, contributing to improving the product’s sustainability.
According to the Cepsa Energy Outlook 2030 report, where the company provides its strategic vision for the future of the energy sector, consumption of chemical products is set to double in 2015-2030.
This, paired with the fact that Cepsa supplies 55% of the LAB consumed in Latin America and 30% of the LAB consumed in North America will help Cepsa’s plants in the continent consolidate as a core asset for the company.
For more information, check Energía16