News and AnalysIs for

The Minister of Mines and Energy Tomás González attended an investment promotion event greeted attendees with a message the Colombia has clear rules and vast potential for unconventional and offshore projects.

A recent study from the Ministry of Mines and Energy (MinMinas) think tank UPME says that annual royalties could drop by as much as CoP$5.3T (US$2.18B) by 2024.

President Juan Manuel Santos facilitated a meeting between the heads of the Farc and ELN, Rodrigo Londoño Echeverry and Nicolás Rodríguez Bautista in Havana that has caused an outcry in congress.

Pacific Rubiales Energy (TSX:PRE) said that it has posted record production in the first quarter of 2015 despite a 17% yearly decline from its flagship Rubiales field, but ended up in the red for the second consecutive quarter.

The former Minister of Mines and Energy Hernán Martínez has been fingered by the Controller General for his role in contract adjustments that allegedly cost the government CoP$60B (US$27M), along with the former director of mining contractor Ingeominas, Mario Ballesteros, and mining firm Prodeco. A word of warning for those in the oil and gas industry hoping to see E&P contracts adjusted because of the current crisis.

Ecopetrol (NYSE:EC) saw its revenues hit by the fall in oil prices, but managed to reverse losses felt in the final quarter of 2014, posting a consolidated net income of CoP$160B (US$67.32M) as production holds and margins in its transportation and refining businesses improve.

Ecopetrol contributed to education and infrastructure in La Huila while supporting cultural identity projects and environmental preservation in La Guajira. These and other stories on Corporate Social Responsibility (CSR) in our periodic summary.

Despite a slight increase in the price of oil and a series of incentives offered by the government to support the oil industry, more support is needed to keep production from falling in the near future, says the Colombian Petroleum Association (ACP).

In a visit that included the Casanare governor Marco Tulio Ruíz, the royalty investment coordinator of the National Planning Department Camilo Lloreda made a visit to different projects that have been funded by royalties, and said he was left with “a very good impression”.

A study that included 105 companies in the Barrancabermeja and surrounding region found that there has been an increase in local hiring in general, with residents filling 76% of the positions in various industries.