The president of the Colombian Senate Jose Name says that natural gas shipments to Venezuela should be cut off and the gas should instead be used to supply the Caribbean coast at a lower cost.
The Oil Council’s Latin American Assembly was held again in Bogotá this year. The conference brings investors, E&P and services companies and top legal firms to talk about investment drivers in the region. So called ‘Chatham House’ rules prevent us from publishing quotes with attribution but here is what we got from the two days.
The falling price of oil might be what hurled the oil industry into a crisis that looks to bring layoffs in the sector, but there are a number of issues that have been in the works for some time, along with the recent tax reform, that have also weakened the sector, according to the heads of two oil industry associations.
The Minister of Mines and Energy (MinMinas) Tomás González called for the industry to keep production above a million barrels a day, which he says will help avoid mass lay-offs in the oil sector.
The devaluation of the Colombian peso against the dollar has helped lessen the impact of falling oil prices on company balance sheets as their costs in Colombia drop, but for the government it could have a multi prong effect that will leave its revenues short and increase its debt.
The National Planning Department (DNP) has warned that projects that look for royalty funding will have to be prioritized considering the drop of oil prices and the consequences on royalty payments received by the government. This and other royalty related stories in our periodic wrap.
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