News and AnalysIs for

President Juan Manuel Santos clearly got an earful last week at the annual meeting of the country’s mayors. This is the second major change to the now not-so-new royalty process within days. From a DNP press release, translated and with commentary by Hydrocarbons Colombia

Considering that the US is perhaps the most pro-unconventional hydrocarbons country and Colombia needs to start making decisions about how to manage the environmental issues, we can only hope this agreement is good news. From a MinAmbiente press release, translated and with commentary by Hydrocarbons Colombia.

Gran Tierra recently published a 1Q13 production update and we thought it illustrative of what many mid-sized companies have been saying, providing an upbeat message to compensate for other down signals.

VETRA is a private oil and gas company that generally keeps a pretty low public profile although well known within the industry. Much of its exploration base is in the Putumayo where the security and community situation is, as the Colombian expression goes, complicated. Educating journalists is one part of their current strategy. From a VETRA press release, translated and with commentary by Hydrocarbons Colombia.

The new royalties distribution system was designed to increase the chances that they were spent on projects that increased economic infrastructure and decrease the chances that they ended up in the pockets of a few well-connected crooks. The plan also intended to allow all regions to compete for funds, not just producer regions. But the process is slow and took too long to get going. Well-run municipalities suffered along with corrupt ones. Now the government is backing down and will look at more direct payments. From a President’s Office press release, translated and with commentary by Hydrocarbons Colombia.

EnvironmentA congressman from Boyacá wants hydrocarbons E&P contracts in the Boyacá province of Sugamuxi to be revoked and he has requested a debate in the lower house to achieve it.