Once governor of the Casanare Department, Jorge Prieto says that the cons outweigh the pros when it comes to allowing oil extraction in Colombia’s regions. The direct benefits, such as royalties, have not reversed problems in producer regions and the industry in the end leaves them more vulnerable. We beg to differ.
Another round of talks started in Cuba this week , and the Farc turned heads by admitting that they too have been responsible for cruelty and created victims due to the group’s actions. In Colombia, national strikes took center stage.
Energy subsidies included in 2013 are not receiving the same allotment in the 2014 budget, the amount assigned is short CoP$600B (USD312M) , according to estimations from Colombia’s ministry of Mines and Energy (MinMinas).
The Comptroller General says it has uncovered overcharges in acquisitions of equipment in the San Vicente de Arauca Hospital that totals some CoP$29B (USD15M), all coming from royalty payments.
After an prolonged debate the Colombian government issued a resolution that aims to lower gas prices using either bilateral agreements or public auctions, depending on the balance of supply and demand.
Ecopetrol’s president Javier Gutiérrez said this week that the NOC continues to evaluate fundamentals to decide if it will extend or not the concession of the Rubiales field with Canada’s Pacific Rubiales Energy past its current expiration date in 2016.
A feature article in national newspaper accuses Ecopetrol of contributing to environmental contamination in Meta while the central government continues to approve projects in regions without fully understanding their consequences.
Oil producer Equion says that a strike of workers expanding its Early Production Facilities (EPF) at its Floreña well could mean losing 3,000 barrels of oil a day from daily production next year if not resolved.
A national strike led primarily by agro-workers has left around 16 highways with blockades and closed to traffic. Other sectors, such as truckers and health workers, joined the strike, which is set to continue indefinitely.
The average royalty rate in Colombia is 16% but the graph shows considerable variation between the leading producers.
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