News and AnalysIs for

Diego Pereira, J.P. Morgan Chase’s Chief Economist for the Southern Cone and Peru, provided a perspective on critical issues facing Colombia.

The Colombian government has formally requested the Constitutional Court to mitigate the consequences of a previous ruling that overturned the prohibition on deducting royalties from the income tax of extractive companies.

The National Environmental Licensing Agency (ANLA) initiated three environmental penalty proceedings against Perenco Colombia Limited for environmental mismanagement in Casanare.

President Gustavo Petro, amidst his participation in the World Economic Forum in Davos, Switzerland, reiterated his steadfast proposal to break free from the shackles of gas and oil exploration as the foundation of economies.

In a statement during the World Economic Forum in Davos, Switzerland, President Gustavo Petro reiterated the government’s decision to not issue new oil, gas, and coal exploration contracts.

The prospect of President Gustavo Petro implementing adjustments to the tax reform approved in 2022, aiming to reduce corporate income tax rates while increasing taxes on higher-income individuals, sparked a mixed reaction among business leaders, academics, economists, and former directors of the National Directorate of Taxes and Customs (DIAN).

Whatever Gustavo Petro’s strengths as a politician might be (and we will leave that for another day), I would not hire him as a marketer. Who came up with “Empresa Integral de Energía de Colombia” as the new name for Ecopetrol? And what will it mean for the Colombian industry?

The Colombian oil industry has long stood as a significant contributor to the country’s economy, accounting for 1.3% of the Gross Domestic Product (GDP) and fostering around 200,000 direct jobs throughout the entire value chain, as estimated by Campetrol.

Colombian President Gustavo Petro’s recent announcements regarding the likelihood of the Colombian state-owned oil company, Ecopetrol, collaborating with PDVSA to explore and exploit hydrocarbons in Venezuela, raised concerns. Lately, additional specifics have emerged.

Before the holidays, MinHacienda Ricardo Bonilla, MinEnergia Andrés Camacho and Ecopetrol CEO Ricardo Roa went to Congress to explain to the Fifth Commission of the Lower House the deal between Ecopetrol and Venezuela’s PDVSA. The NOC leadership estimates a gas shortfall in 2024 of at least 10% meaning importing would be inevitable anyway.