The administration of the Minister of Mines and Energy Germán Arce has opted for a different approach to figuring monthly fuel prices to keep the changes to the minimum, and is now studying how to change the pricing formula to remain as stable as possible.
Time is ticking on the peace agreements. President Juan Manuel Santos has extended the bilateral cease fire to December 31st and is accepting commentary and suggestions, but the path to a political consensus to accept the agreements is not yet clear.
The graph shows the history of contracts signed by the National Hydrocarbons Agency (ANH). The post-2014 record is not inspiring.
The government is planning to include a “tax return certificate” as part of its offer to the oil and mining industry in its pending tax reform, in an effort to improve company cash flow.
Promigas’ 2016 natural gas sector report found that Colombia has gas reserves for 14.5 years, but by adding imported gas from Venezuela and the country’s first regasification plant, the reserves will last five additional years and reach 19.5 years.
Plans for a Meta refinery under a state firm, Llanopetrol, have been marred by controversy and scandal which have once again surfaced in national and local press.
The Ministry of Environment (MinAmbiente) said that it has formed a special committee in Putumayo which will mitigate the effect of “inadequate practices of hydrocarbons production”. The committee includes 13 mayors and local authorities and institutions.
Further clouding who has authority to allow or restrict extractive activities, the Constitutional Court has ruled municipalities have the right to decide whether extractive activities, mining in this specific case, can take place. National authorities and industry associations have expressed concern.
Despite rumors that the acting National Hydrocarbons President Orlando Velandia has been named the formal president, the ANH website still lists him as interim. This lack of authority is reportedly causing problems especially over legal matters which have fallen to middle management to decide.
There is great uncertainty on many levels about the near and midterm future for the industry but the government still has three lifelines that it could offer to the industry to foster activity and investment.
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