The USO continued to cash in on the general strike which has congested Colombian transit since August 19. Union members from across the country joined the strike last Wednesday, August 28.
The national strike is into its third week and there are several signs of progress at the negotiating table. However, roads still remain blocked and the first official confirmations that oil production has taken a hit reached the newswire.
Incidents near areas of interest to the oil and gas industry were down this week to 27 below recent long-term averages. This was a significantly average week for non-armed forces reported/guerrilla-initiated incidents. Unsurprisingly our 4-week Moving Average incident count dropped to 19.8 and the 52 week average dropped as well to 36.9 incidents per week. But none of this the most important story.
The interview with Meta Governor Alan Jara in this month’s issue makes clear the challenges of royalty reform for producer communities.
Although there is a transition, the impact on local finances has been devastating.
The head of the National Environmental Licensing Agency (ANLA), Luz Helena Sarmiento, has a self-deprecating sense of humor. She once opened a presentation to the oil and gas industry saying “I know I am your worst nightmare”.
Alan Jara is the governor of the department of Meta which produces 50% of Colombia’s oil. He is a well-respected administrator on his third tour as governor.
After a meeting between the members of the Finance, Mines and Energy and Transport ministries with the Colombian Truckers Association (ACC) the government has recognized the trucker’s national strike and found its demands to be valid.
As of August 26th, it’s been a year now since the Farc and Colombian government reached the agreement that would make way to Havana, and both delegations were back at the roundtable to mark the day following a short 3 day pause announced by the guerrilla, and the talk turned to illegal drugs.
The National Planning Department proudly boasts CoP8.9T (US$4.57B) in royalties have been approved in 2013, but figures from the General Comptroller show only 14% of awarded cash has been paid in the first five months of 2013.
The National Planning Department (DNP) published a thorough document which seeks to reduce bottlenecks in the permitting process for roadway, mining and energy projects by centralizing requirements and establishing a priority list for strategic projects.