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Regulations & Policy

More royalties for the agricultural sector

The Ministry of Agriculture and Rural Development reported that the government will allocate CoP$107B (US$59M) in royalties to fund projects in science, technology and innovation. These projects are aimed at foods like avocado, cocoa, milk, coffee, sugarcane, and fruits, and matters of farming, bioenergy, fisheries and promising species.

Sunday, November 18th, 2012
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Ministry of Mines and Energy rejects proposal to tax the oil sector

Congress approved the presentation of a project (004, 2012) which intends that the oil and gas sector pay the industry and commerce tax (ICA). The industry is currently exempt from this municipal tax because royalties are presumed to fulfill the same role.

Tuesday, November 13th, 2012
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President Santos encourages capital cities to take their share of royalties

On November 1, 2012, Colombian President Juan Manuel Santos addressed a summit of mayors of the departmental capitals. The president wanted to address the mayors’ main concerns so the whole speech touched on health, security and royalties. Below we translate the portion of the speech dealing with the latter topic. It is important for the hydrocarbons industry that royalties are well spent and give visibility to its contributions. From the President’s website. Extracted, translated and with commentary by Hydrocarbons Colombia.

Sunday, November 4th, 2012
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The largest projects approved under the new royalty system

The Colombian Congress has approved a CoP$17.7T (US$9.2B) royalty budget for the period 2013 – 2014. The Governing Committee (Comisión Rectora) approved this amount to be distributed to the various funds of the royalty system over the next two years. This was announced by MinHacienda, Mauricio Cárdenas, who highlighted the importance of the initiative for creating equity in Colombia. Cárdenas also said two efforts are being unified, the one of government through the Nation’s Budget and the one of regions through royalties, so as many projects can be done as possible, for the progress and prosperity the country seeks.

Thursday, November 1st, 2012
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MinHacienda Cardenas praises new royalty scheme

The current Finance Minister and former Mines and Energy Minister, Mauricio Cardenas gives his evaluation of the new royalty system. The system has been theoretically in place since January but it really only got going in 2Q12. From a MinHacienda press release. Translated and with commentary by Hydrocarbons Colombia.

Friday, October 26th, 2012
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ACP says competitiveness of the oil sector may be affected by Congressional legislative initiatives

The Colombian Petroleum Association (ACP) has published a press release on the negative impacts of a number of laws initiated by Congress – which are not backed by the government – that seek to increase government take and give back to local communities part of what they lost in royalties. Translated and with commentary by Hydrocarbons Colombia.

Wednesday, October 24th, 2012
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Government Panel at ANH conference drops few pearls of wisdom

A panel discussion that was scheduled to feature the Ministers of Finance, Energy and Environment was well attended at a very senior level during the National Hydrocarbons Agency (ANH) conference held yesterday in Cartegena. However attendees came away disappointed. For one thing the MinAmbiente did not show up at all. For another there were a very limited number of new policy statements or clarifications of recent declarations.

Friday, October 19th, 2012
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MinMinas puts focus on exploration and growing reserves

October 11, 2012 From a MinMinas press release. Translated and with commentary by Hydrocarbons Colombia

Friday, October 12th, 2012
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MinMinas assesses first months of new royalty system

October 10, 2012
From a MinMinas press release. Translated and with commentary by Hydrocarbons Colombia

Thursday, October 11th, 2012
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ANH finalizes procedures for 2012 Round offers

October10, 2012
NOTE: This is a high level summary for general interest. Anyone participating in the round should have the official documents translated from the original Spanish. We assume no responsibility for problems which might arise using this article as a basis for decisions or actions by those participating in the auction. The National Hydrocarbons Agency (ANH) has published an agenda for October 17, 2012, the day that participants in the 2012 Round will present their offers in Cartagena. The agenda is:

Thursday, October 11th, 2012
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