Canadian Neocolonialism in Colombia. Oil, Mining and the Military
In May, the board of Pacific Rubiales, a Canadian firm and the biggest private oil producer in Colombia, announced its support for a takeover bid by the Mexican conglomerate Alfa and U.S.-based Harbour Energy. Pacific Rubiales operates Colombia’s biggest oil field, in the province of Meta, and during the past seven years the company has become synonymous with a doubling of oil exports, from half a million to a million barrels a day. Oil came to account for half of Colombia’s exports and 20% of official revenue, making Pacific Rubiales the most valuable company on the Colombian stock market.
However, by January, the sharp drop in oil prices, and the firm’s trouble developing new oil fields, had cut share prices by 90% from their 2011 high. It was unclear whether Pacific Rubiales shareholders would accept the takeover offer when the Monitor when to print, but Alfa chairman Armando Garza Sada was optimistic: “We maintain our positive view regarding Pacific Rubiales’ excellent track record and on the strength of their people. Thus, by incorporating ALFA and Harbour Energy as new equity holders, we foresee Pacific Rubiales successfully developing investment projects in Colombia.”
The emphasis in the above statement is added, because outside the business pages of daily newspapers, there is nothing excellent about the company’s track record. Pacific Rubiales is just as synonymous with human rights and labour rights violations as with oil export success, and if new production is to occur, there’s slim evidence it will benefit anyone outside the corporate boardroom. Still, the problem in Colombia is much bigger than one company. And the case of Pacific Rubiales, regardless of whether it remains a Canadian firm, holds important lessons on the evolution of Canadian neocolonialism going back 20 years.
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