News and AnalysIs for

There was a 50’s game show called ‘Truth or consequences’ and I was reminded of it while reading this week’s announcement on reserves.

Colombia is not an oil country, but the resources generated by the sector are vital for the nation’s economy and public finances. The Government had to tighten the belt in recent years, due to low oil prices, but their recovery is generating relief for Colombian authorities.

The Collegiate Bodies for Administration and Decision (OCAD) spoke about projects that were approved in departments like Casanare and Bolívar, but authorities are still concerned about irregularities in the execution of royalty projects throughout the country. These and other stories in our periodic Royalties summary.

The Colombian Mining Association (ACM) spoke about the sector’s main challenges in Colombia, and asked for a reform to the General Royalty System (SGR).

The development of unconventional projects is the main strategy to increase oil reserves in the short, medium and long term. However, this alternative is resisted or even rejected by many local communities. The business paper La Republica held a forum to talk about this situation.

The Colombian Association of Petroleum Engineers (ACIPET) has been one of the most active groups to defend the sector of anti-oil referendums. The association sent a letter to the Constitutional Court about this issue.

The Center for Economic Studies of the National Association of Financial Institutions (ANIF) spoke about the industry’s situation in 2017, and its forecasts for 2018.

The government has been working on a bill to regulate prior consultations in the country. German Arce, Minister of Mines and Energy (MinMinas) spoke about the progress in this important project for the industry and the country.

Government and industry representatives attended the “100 years of oil in Colombia” forum, organized by La República newspaper. They gave their perspective on what the year looks like for the industry.

The intention to carry out anti-oil referendums continues to grow in different regions of the country, affecting the investors’ confidence and the industry development in Colombia. Communities will conduct a new consultation in the department of Huila.