Speaking before an industry audience in Cartagena the Minister of Mines and Energy (MinMinas) Amylkar Acosta offered a thorough defense of the industry, its practices and its role in regional economies.
Excluding the ‘Additional Participation’ aka ‘Factor X’, average royalty rates in Colombia declined from 16.3% in 4Q12 to 15.5% in 4Q13, reflecting the slow shift in production from Traditional contracts to production from E&P Contracts, and from mature fields to newer fields with lower rates. But the graph shows there is considerable variation around the average.
This week President Juan Manuel Santos, who is up for the first re-election round in two months, said that none of the other candidates in the pool have the minimum experience required to handle the peace process.
The government has expressed great hopes for the 2014 Round and with normal Colombian political processes the auction in Caribbean will be the current MinMinas, Almykar Acosta, swansong with the industry. He no doubt wants it to go well.
President Juan Manuel Santos told local press that an agreement with the Ecuadorian government to transport crude from Putumayo to the Ecuadorian Pacific coast is ready, an option to help alleviate congested transportation routes in the area but not without security problems due to guerrilla attacks.
With an eye on the nearly US$10.6B that Ecopetrol has to invest over 2014 in different aspects of its business, the Colombian Chamber of Infrastructure (CCI) has formed an alliance with the NOC to ensure the hydrocarbons investment plan brings benefits for the sector and oil producer alike.
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