Four congressional representatives in Colombia’s lower house submitted a tax bill that looks to add industry and commerce taxes to extractive industries, arguing that it would benefit municipal entities outside established royalties.
Ecopetrol’s president Javier Gutiérrez says that the NOC’s refining business is already operating at a lost in some cases and a drop in the final price between CoP$1000-2000 would mean losses for the company around US$1.75B.
The General Royalty System (SGR), through its decision-making body (OCAD) awarded funding to projects on a number of occasions over August. A particular focus was placed on the coffee growing regions, which are at the center of the ongoing national strike. Royalty funds were also addressed by a senator as way to lower fuel prices and offer funds to agricultural sectors as well.
The price of fuel has emerged from the ongoing national strike as a central theme for discord. One proposal is to rehash the formula used to figure fuel prices and reduce taxes. Greater user of pipelines to transport crude also arose as a option.
The National Planning Department proudly boasts CoP8.9T (US$4.57B) in royalties have been approved in 2013, but figures from the General Comptroller show only 14% of awarded cash has been paid in the first five months of 2013.
Last week we published some harsh comments for the oil industry from former Casanare Governor Jorge Prieto, who said the region would be better off without being the home to a bulk of the country’s oil production. We thought we’d share the list of his colleagues, who we believe have done more to stain the department than anyone else.
Ecuador’s NOC Petroecuador has signed an agreement with a handful of Colombia oil producers to transport crude from the Colombia-Ecuador border to the Amazonas station of the OCP Ecuador pipeline.
Between the beginning of July through August 21, average daily oil production has reached 1,037,000bd, which would mean a new record for August, energy deputy minister Orlando Cabrales was quoted as saying.
Energy subsidies included in 2013 are not receiving the same allotment in the 2014 budget, the amount assigned is short CoP$600B (USD312M) , according to estimations from Colombia’s ministry of Mines and Energy (MinMinas).
The Comptroller General says it has uncovered overcharges in acquisitions of equipment in the San Vicente de Arauca Hospital that totals some CoP$29B (USD15M), all coming from royalty payments.
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