This article is not about Interoil despite the title of the graph. Instead, Interoil’s recent May production announcement brought us to this graph which we thought illustrated perfectly a more universal issue.
In 2013 almost none of the assigned royalties from mining and energy production have been executed for regional projects and last year the investment of these funds amounted to only 5% of the total COP9.1TR (US$4.77B).
The General Royalties System (SGR) is calling on Colombia’s academic institutions to help facilitate the proposal process in regions through a “Train the Trainers” program where the universities will play a greater role preparing regional institutions for the SGR proposal process. Parallel to this announcement, the entity also summarized the results of royalty investments in several areas and received new projects as well.
The implementation of the new General Royalty System (SGR) -now in place for a year- has yielded positive results including greater transparency and access to funds for regions, according to Mauricio Santa Maria, director of the National Planning Department (DNP).
Pacific Rubiales’ CEO Ronald Pantin rejected allegations from Colombia’s Comptroller that the company’s extraction practices in the Rubiales field are causing environmental damage.
The oil sector accounted for nearly a third of all foreign direct investment (FDI) in Colombia in 2012, summing US$ 5.377bn of the US$ 15.823bn invested in the country during 2012, making it the 3rd largest destination of foreign funds in the region, according to an annual report on FDI published by the UN’s economic commission on Latin America (ECLAC).
Colombia’s mining vice minister Natalia Gutiérrez said that the government has decided to implement the Extractive Industries Transparency Initiative (EITI), joining Peru as the second nation in South America to do so.
The industry has a public image problem so Alejandro Martínez, executive president of the Colombian Petroleum Association wrote an open letter to outline the selling points to the general public as a sector that brings both social and economic growth and plenty of income for the state though taxes.
The peace process in Colombia awaits a crucial date on Saturday, May 25, when the 9th round of peace talks is scheduled to draw to a close, and according to local paper El Tiempo the issue of land rights should take center stage as a make or break item in the ongoing process. According to the report, a proposed agreement over land rights, and its success or failure, is likely to be revealed this coming Sunday.
Colombia’s financial regulator SuperFin is preparing a set of norms that will regulate the information provided by companies in the hydrocarbon and mining industries for the general public and investors.
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