News and AnalysIs for

I doubt many of our readers were off from Christmas to today – although it appears most Colombian political decision makers were (as usual). But you were probably off for at least some of the period so an overview should be helpful.

Higher oil prices gave E&P stocks a boost and Colombian-committed companies were no exception.

Óscar Sánchez, president of USO Bucaramanga said that appointing Luis Guillermo Vélez Atehourtua as head of Ecopetrol’s health administration motivated them to start the year with a peaceful takeover Bucaramanga’s CAL (medical center).

The Colombian Petroleum Association (ACP) hopes to see a rebound in the sector in 2017 after concluding a negative year in 2016 which saw a steep fall in prices, lower production, investment and exploration.

After the report presented by the Office of the General Comptroller on CBI and Reficar’s contracts, there are “more questions than answers.” According to the Colombian press there would be a loss to the nation of CoP$8.5T, but the presumed cost overruns should be examined in detail.

Pacific Energy (TSX:PEN) is closing 2016 in much better shape than it started, and following its nearly yearlong process of crisis and restructuring, is valued at just over US$2B based on current market figures. But investors are still wary of the firm’s shares.

The legal process to start the peace transition continues with an amnesty bill passing its first debate in congress, but the general public is skeptical on the agreement and its potential to bring peace.

Another tidbit from the ongoing discussion surrounding new taxes levied as part of Colombia’s tax reform: a proposed carbon emissions tax will be levied on the producers of fossil fuels, oil derivatives and importers, not on the consumers which use them.

The Minister of Environment (MinAmbiente) Luis Gilberto Murillo explained that green taxes, like a levy on carbon emissions, are important for Colombia’ sustainable development and for meeting the country’s environmental goals.

Hocol’s permit to develop the Toldado field was suspended by Cortolima due to environmental requirements and Ecopetrol (NYSE:EC) had to take action on alleged leaks detected in Santander. These and other environmental stories in our periodic summary.