News and AnalysIs for

The government policy topic of the quarter for oil producing countries is economic diversification. The IEA says they cannot count on oil revenues and so need to find new sources relatively quickly. Colombia is not an ‘oil country’ but the same debate runs here.

The development of unconventional deposits is one of the main strategies to increase reserves and production of oil and gas in Colombia. Ecopetrol (NYSE: EC) initiated a legal process to develop these projects in the country.

Official studies show that the Amazon occupies 42.3% of the Colombian territory. Implementing popular consultations in the area is far from easy.

Ivan Duque, President of Colombia, spoke about the advances in issues related to royalties’ resources since his administration began in an event about the Collegiate Body of Administration and Decision (OCAD). He announced a project to change the General System of Royalties (SGR).

Through a ruling, the Constitutional Court said that popular consultations can no longer forbid or decide on the future of industry activities in the regions. Where do communities stand now?

Colombia is a member of the Extractive Industry Transparency Initiative (EITI) and the Ministry of Mines and Energy (MinMinas) participated in Board # 41 of this organization. The country introduced its representative for the EITI.

CEO Felipe Bayón spoke about the NOC’s plans in the Middle Magdalena (Santander); an area with great potential.

Several years ago, the people of Tauramena (Casanare) voted to prohibit oil activities in their region through a popular referendum. Ecopetrol (NYSE: EC) began a ‘judicial battle’ to reverse this decision and Colombian authorities have just made a decision on the case.

Better prices should translate into better royalties’ resources for producing regions, but there are other sectors pushing for the money. These and other stories in our periodic Royalties summary.

Colombia’s Central Bank (Banrep) released 2Q18 Foreign Direct Investment (FDI) figures for the country. This decreased in the sector compared to same period last year but increased compared to 1Q18. Total FDI grew in Colombia.