Controversy surrounds the confirmation of Rodrigo Suarez as President of the National Environmental Licensing Agency (ANLA). Fernando Iregui is still in the chair and some even say he will stay there.
With a 5% contribution to Colombia’s GDP, a 25% share of Foreign Direct Investment and 40% of Colombia’s exports, there is little room for discussion of what the industry has contributed in the past. But what does the future hold?
The National Planning Department (DNP) sounded the alarms on 144 royalty funded projects which are in a “critical” state and need immediate intervention to avoid further problems, worth a total of CoP$1.2T (US$400M).
Canacol Energy (TSX:CNE) says that the firm has natural gas, it has clients that want to buy it, but it lacks the transport capacity to deliver it adequately, especially for new discoveries, and instead suffers from a “private monopoly”.
The government must take drastic measures to encourage investment in E&P, which is half of what it needs to be to keep current production levels. Otherwise the country will soon lose its oil self-sufficiency and the economic benefits, supply chain benefits and tax contribution that entails.
Colombia’s Central Bank released Foreign Direct Investment (FDI) and related figures for 2015 and the 1Q2016, showing a drop in both investment received and the profits obtained locally due to these investments, although some other sectors show signs of recovery.
Senator Fernando Araújo pointed out the benefits that the modernized Cartagena Refinery (Reficar) has contributed and will bring to the local community, and called for specific investments to mitigate faulty infrastructure in the nearby communities.
The National Hydrocarbons Agency (ANH) said it will work more closely with local leaders in identifying and preventing community conflicts with the hydrocarbons industry, as the second phase of its Hydrocarbons Territorial Strategy (ETH).
The Chamber of Oil Goods and Services (Campetrol) said that the current complications, court decisions and low prices facing oil production will contribute to a 11.9% year-over-year for 2016’s average daily production, to render 885,000bd of crude output for the year.
Even one of Colombia’s main business publications has questioned statements from the Minister of Mines and Energy Germán Arce, who argued that the technique should be applied in Colombia. What can be expected from the popular press?
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