News and AnalysIs for

Ecopetrol continues its publicity campaign about local employment and procurement. This time it is the turn of employment, highlighting how many jobs the company creates and how many are filled with local people. With local hiring being a developing community issue, this Ecopetrol press release is timely. Translated and with commentary by Hydrocarbons Colombia.

Business magazine Dinero reports that the government and thirteen mining companies in the country (among them Cerromatoso, Paz del Río, Anglo Gold Colombia, Drummond, Carbones del Cerrejón, Anglo Gold Ashanti, Grancolombia Gold and Prodeco) signed an agreement to fight against poverty in their areas of influence. The companies pledged to work with 3,521 families from the Red Unidos in 30 municipalities.

Ecopetrol has invested in the Ventures contest which encourages entrepreneurship and innovation. The contest spans a wide range of economic activities but Ecopetrol has chosen to invest in the Education and Culture component for the past two years. The connection with the oil and gas is secondary but the cause is worthy. From an Ecopetrol press release, translated and with commentary by Hydrocarbons Colombia.

This Ecopetrol press release details the company’s local procurement activities by region. Local procurement has become an issue because the communities in which oil and gas companies operate have lost line of sight to the benefits having hydrocarbons activity in the vicinity. The costs – like roads clogged with tanker trucks – are readily apparent but since the reform of the royalties distribution system, only local procurement is a sure route to jobs. Translated and with commentary by Hydrocarbons Colombia.

The USO news this week is heavy on discontent at refineries with Cartagena refinery determining a strike date and Apiay refinery workers worried about losing their jobs. Ecopetrol plans to close the Apiay facility because of low productivity but workers accuse management of the problems. More workers in Meta face an uncertain future after Incoequipos, an oil services subcontractor closed its doors.

Caracol Radio reported that, according to Bruce Mac Master, director of the Social Prosperity Department, the number of poor people in areas that develop large scale mining projects has increased. Mac Master said that there are over 2.5M people living in poverty in departments as Antioquia, Chocó, Norte de Santander and Boyaca, in which the country’s major mining companies have influence.

The USO says that demonstrations continue in the region of Arauca. We reported on this news item last week. At that time the mayor of Arauca reported that the siege of Caño Limón had been lifted. This news item suggests the USO have taken the demonstrations on the road to other local towns. Gasoline distributor Terpel, which recently announced it was going for a bond issue, receives the usual USO castigation for the sin of outsourcing and Ecopetrol decides to give more jobs to local people in Barrancabermeja.

Business newspaper Portafolio reported that President Juan Manuel Santos said the government appointed six delegates of the National Planning Department (DNP) to decentralize this entity and establish direct contact with governors and mayors. The goal is to accelerate implementation of royalty-financed projects. The governors and mayors may think this is not enough.

National weekly news magazine Semana published an article with the collaboration of Juan Carlos Sierra on the need for prior consultations with indigenous people in the Tayrona National Natural Park, and how this may influence the approval of other projects in other regions of the country.

In an interview with RCN Radio, the mayor of Arauca, Luis Emilio Tovar, said that after a week of protests, the situation at the Caño Limon Coveñas complex was partially normalized: “The entrance to the Caño Limón complex was restored; we are already entering with a military convoy. The rest of the department is blocked but today the public transportation is available and people are coming and going to Arauca “.