For the next Colombia Round, the Colombian Society of Geology says the National Hydrocarbons Agency (ANH) should auction blocks with pre-approved environmental licenses, in order to lessen the potential impact of a process that has become one of the greater obstacles towards exploration and production in the country.
The Ministry of Mines and Energy announced a small increase in fuel prices for the month of September, while more pressure mounts from political sectors to drop prices.
The impact of attacks on oil infrastructure and community conflict has left daily oil production below the government’s targets, and financial entities, including the Finance Ministry (MinHacienda) and the Central Bank are warning on a new fiscal scenario as oil brings less to the State budget.
Puerto Gaitán becomes an unlikely supporter of the General Royalty System (SGR) while Casanare holds an OCAD to approve new royalty projects.
Tepid interest in Colombia Round 2014, which fell short of already modest government goals, was due to investor interest in the first Mexico Round, says an economic analyst with the BBVA Bank.
Strong growth has made the oil industry a target of “political and economic appetites”, who have managed to install a transactional relationship with the industry that affects its viability, but the post-conflict scenario will only prove more challenging, says the former head of the Colombian Petroleum Association (ACP) Alejandro Martinez.
The Finance Ministry (MinHacienda) still holds an optimistic outlook for production over the next 10 years, with average production expected at 1.063mmbd in its Midterm Fiscal Framework (MFMP).
The Colombian Petroleum Association’s new president Francisco José Lloreda called on the government to improve its ability to protect the nation’s pipelines, regardless of any peace advances with the guerrilla.