... half-cycle costs for most Latin American integrated oil and gas companies have generally remained below market prices and those of independent players are at or above current prices. The gap between prices and costs has almost vanished with WTI prices of $30 per barrel (bbl) and the average implied half-cycle cost (cash costs plus interest) for companies in the region at approximately $24 per barrel of oil equivalent (boe) during 2015. Fitch sees productions costs for players as average when compared with global peers. Current Prices Pressuring Independents: Cost cutting opportunities are limited in 2016, and current price levels of around $30/bbl are significantly pressuring all players. This is especially the case for Pacific Exploration and Production Corporation (Pacific) and GeoPark Latin America Limited Agencia en Chile (GeoPark), whose half-cycle costs are approximately $32/boe and $19/boe, respectively. Pacific's half-cycle costs are...
