Among the proposals sent to the National Planning Department (DNP) as part of the royalty budget discussion by the Colombian Petroleum Association (ACP) is a mechanism to penalize communities whose frequent protests paralyze the oil industry.
Ecopetrol’s (NYSE:EC) 2016 competitive round will sell off around 20 smaller fields to outsider bidders, and a report from Huila unveils some of the local concerns that this plan is causing.
The Ministry of Mines and Energy (MinMinas) gave an update of the funds awarded as part of its “production incentive program” which awards municipalities for meeting production goals. In 2016 the ministry has awarded CoP$90.6B (US$27.4M) to projects. This and other royalty related stories in our periodic summary.
The USO will be one of several unions and political parties that are planning a nationwide action on October 27th to protest the government’s pending tax reform and its alleged consequences.
The Ministry of Environment (MinAmbiente) said that it has formed a special committee in Putumayo which will mitigate the effect of “inadequate practices of hydrocarbons production”. The committee includes 13 mayors and local authorities and institutions.
Further clouding who has authority to allow or restrict extractive activities, the Constitutional Court has ruled municipalities have the right to decide whether extractive activities, mining in this specific case, can take place. National authorities and industry associations have expressed concern.
The USO continues with its preparation in different regions ahead of a planned general strike of its large base of affiliates employed by Ecopetrol (NYSE:EC).
The State Council ordered the halt of a citizen referendum on mining activity planned for Ibagué on October 30th, following an injunction filed by a representative of the Mining and Hydrocarbons Association of Tolima.
The National Hydrocarbons Agency (ANH) launched a new program as part of its Hydrocarbons Territorial Strategy (ETH) called “Transformational Leader” which looks to establish a new model of conflict management and peace building.
As Ecopetrol (NYSE:EC starts up a new drilling campaign in the Rubiales field, it also looks to leave its mark on the nearby community of Puerto Gaitán and has been meeting with residents and authorities to convince them of the benefits for the local economy. This and other Corporate Social Responsibility (CSR) stories in our periodic summary.