While the country’s main producing departments, Meta and Casanare had an RRR below 1.0, lower-producing departments had even worse performance, some important ones even were negative.
Community members from Íquira, Huila have called for the environmental license of Telpico to be revoked launching a number of accusations against the process. The local environmental management agency, CAM, is investigating and said that the local ordinance laws (POT) are appropriate for local leaders to control extractive projects.
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).