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Could Colombia use unconventional blocks to attract new investment, despite the low price of oil? As unlikely as it seems, there is already one successful example.

The Colombian Association of Oil Engineers (ACIPET) issued a statement regarding the reversal of Hupecol’s environmental license in La Macarena, and warned of a growing stigmatism of the oil industry and its activities. The result is heightened legal uncertainty and a lack of respect for the industry’s professionals.

The Ministry of Mines and Energy (MinMinas) has the unfortunate claim of being the ministry with the largest share of controversy in this current government, but the Ministry of Environment (MinAmbiente) is not far behind.

While there have been advances in mapping the potential and developing regulations to accommodate unconventional production in Colombia, critical parts of the regulatory framework are still missing and high costs / low oil prices do not help.

The recent decision to reverse an environmental license issued to Hupecol for exploration in the Serranía block due a public outcry has the Colombian Petroleum Association (ACP) concerned for the lack of coherence in applying its policies, which risks lost investment and legal stability.

After having its environmental license revoked days after it was approved by the National Environmental Licensing Agency (ANLA), Hupecol said that it is looking at either a lawsuit against the state or an arbitration to resolve the issue and be compensated.

The State Council ruled against Ecopetrol (NYSE:EC) and said that an administrative ruling that stemmed from a public referendum against oil activities in Tauramena was not its business, and rather it should be decided by a different court. Local press have labeled it as a win for the residents opposed to exploration and production activities.

The government is mulling changes in the organization of the entities which approve royalty projects, the OCADS, to encourage large scale, high-impact initiatives instead of small scale, local pet projects, and to address a trend of stagnated advances. This is “contrary to the philosophy” of the royalty reforms, officials say. This and other royalty related stories in our periodic round-up.

After nearly a month and a half after the exit of Tomás González, President Juan Manuel Santos has named Germán Arce as the new Minister of Mines and Energy (MinMinas).

It took only a matter of days before public backlash surrounding the awarding of an environmental license near La Macarena, Meta had boiled to the point where public officials, even the President, were offering explanations and suspending licences. But the revelations and consequences continue to file in.