News and AnalysIs for

A sharp decline in Ecopetrol’s (NYSE: EC) contributions to the Colombian government is anticipated over the next few years, according to projections outlined in the recently published Medium-Term Fiscal Framework (MFMP).

Colombia’s National Planning Department (DNP) unveiled a comprehensive strategy to improve oversight and transparency in the use of royalties; public funds derived from the extraction of non-renewable resources like oil and minerals.

Fedesarrollo warned of growing fiscal pressure amid rising import costs and shrinking domestic reserves.

Colombian President Gustavo Petro has instructed the Board of Directors of Ecopetrol (NYSE: EC) to begin reviewing and implementing changes to the company’s bylaws that would allow current Minister of Mines and Energy (MinEnergia), Edwin Palma, to take over as CEO of the state oil company, replacing Ricardo Roa.

Gas supply continues to fall while gas demand rises. The obvious consequence is that imports rise and thus the average cost of gas. The Petro government has even stopped saying that everything is under control or threatening to fine E&Ps that “waste” gas. Where did it go?

As Colombia’s fossil fuel production declines amid lower global prices and a national policy shift away from extractive industries, critical questions emerge about the future of royalties, the backbone of regional development in many parts of the country.