Pacific Rubiales Energy Corp., the operator of Colombia’s largest oil field, dropped to the lowest in three years on concern permit delays may hamper its ability to increase output.
The shares declined 1.2 percent to 33,100 pesos at 11:55 a.m. in Bogota. A close at that level would be the lowest since March 2010. The benchmark Colcap index fell 0.6 percent.
Pacific Rubiales, whose namesake oil field accounts for 60 percent of its production and is Colombia’s biggest, is still awaiting environmental permits for work in an adjacent area that the company has identified as a potential source of future output. The company’s current contract for the Rubiales field expires in 2016.
“You need to find production beyond Rubiales because time is running out,” Ian Macqueen, an equity analyst at CIBC World Markets in Calgary, said in a telephone interview. “The longer you leave it and don’t have production to backfill, the worse it looks.”
Environmental regulators, in response to concerns from rancher families, are requiring that the Bogota-based oil company limit the number of roads it builds and restrict its use of water in the area.