An executive with Colombia’s palm oil association FedePalma says that uncertainty and the lack of solid decisions and policies from the government is letting an economic opportunity to increase the use of biofuels pass the country by.
Industry leaders grumbled in the corridors about ministerial keynotes at the kickoff of the most important conference of the year but we really could not have expected anything different. In fact, some reading between the lines shows that they have got some of the messages but want the industry to listen some of theirs.
The 2014 Round of auctions is over and the Colombian government is all smiles (at least in public) with 26 of 95 blocks assigned. Unlike the previous round, all the onshore winners are companies already doing business in Colombia.
The uncertainty surrounding the future of Colombia’s largest producing field, Rubiales, and the association contract between Ecopetrol (NYSE:EC) and Pacific Rubiales (TSX:PRE), has workers currently assigned in the UTEN union with the later firm demanding more clarity about their future.
The Colombian Petroleum Association (ACP) will be led by a new president, Francisco José Lloreda Mesa, starting in August. Lloreda repaces Alejandro Martínez, who has stepped down after working for the association for the last 20 years.
The National Hydrocarbons Agency (ANH) says that hydrocarbons companies must be prepared for the El Nño weather phenomenon, calling on firms to treat water resources with special care.
A recent change to the norms which dictate how projects needing royalty funds are approved hopes to allow greater flexibility in the entities benefiting from the project and the sources of financing by allowing changes to the project once it has been submitted. Is this a routine dotting of the “i” left out or a sign that greater reform to the new system could be on its way?
The National Hydrocarbons Agency (ANH) will exclude parámos, or high-mountain tundra- from blocks being offered in the upcoming Colombia Round 2014.
While acknowledging that there are long delays in the implementation of royalty projects, which do not always go to the greatest needs, the new system has ended the “super scandals” associated with royalty abuse and corruption.
Sometimes goals are set that would be nice to attain, but some are not realistic considering the situation on the ground, said the Minister of Mines and Energy Amylkar Acosta when doing a balance of his management of the hydrocarbons sector 10 months after taking the helm.
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