Colombia’s model for managing the hydrocarbons industry might have brought positive results over the last 10 years, but it is losing force in today’s scenario, with the sector losing its competitive edge due to license delays, security problems and social conflicts, says the director of the Interamerican Development Bank (IDB) oil & gas strategic studies program, Ramón Espinasa.
With the global price of oil falling to below US$90 a barrel, the government has a new problem on its hand beyond the usual triad of licensing, social conflict and security. Just based on the price difference, the national budget could be CoP$12.5T (US$6T) short of the Ministry of Finance (MinHacienda) projections
A number of villages in Yopal have rejected Parex Resources (TSX:PXT) Crytpo-1 project on grounds it would affect the water supply, while the company says the community will not hear their side of the story and assures the water would be safe.
Government promises to reroute crude from the south through pipelines to Ecuador have gone unfulfilled, while Casanare is abuzz with both cooperative work between authorities and the industry, but also criticism. These and other stories in our routine review of road and transportation related stories.
The count dropped again this week to 37, just above long-term averages but below the recent average. However, non-Armed-Forces-reported pipeline incidents surged.
A senator from the human rights commission wants to see more positive impact from hydrocarbons on the local community, a Meta representative says the department is getting cut short on royalties. These and other stories in our regular wrap of royalty coverage.
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