News and AnalysIs for

In an interview with Cali newspaper El Pais, the economist Salomon Kalmanovitz spoke about, among other things, the recent tax reform, mining and oil. According Kalmanovitz the reform was not made in depth. He said: “It was mostly tax cuts and the increase was a congressional initiative and not of the government: a one point in the income tax rate from 33 to 34%”.

Last Friday, January 18, 2013 MinMinas Federico Renjifo toured Meta speaking with local inhabitants, mayors and visiting Ecopetrol projects. We thought it interesting very relevant for its comments on environmental and community management. From a MinMinas press release, translated and with commentary by Hydrocarbons Colombia.

It was never an absolute cease fire. Colombia’s ombudsman (“Defensor del Pueblo”) reported 57 separate violations (see for example this RCN TV report) and the MinDefensa never stopped saying that the Farc continued to operate, sometimes through third-parties like criminal gangs or the country’s other major guerrilla group, the ELN. This latter qualification gave President Juan Manuel Santos leave to say the Farc had complied which perhaps was good diplomacy but we doubt even he believes that.

The truce ended as it started: blowing up the TransAndino pipeline.

According Leónidas Narváez Morales, Invías CEO, as told to W Radio, US$40.5M will be allocated for the tertiary road network of the Antioquia, Norte de Santander, Cundinamarca and Santander departments. The disbursement needs permission of the National Planning Department (DNP).

The USO is back from vacation as well and so things heated up. Perhaps the biggest news is of labor strife at the country’s largest coal mine Cerrejon, news which also made the national media. It is news (and relevant for us to report although not strictly about oil and gas) because Cerrejon has always been an exemplary company with a strong Corporate Social Responsibility program and so having labor strife is a surprise.

Incidents were up 47% this week to 50, a level not seen since late November. This sent our 4-week Moving Average up 20% and it now sits at 33 incidents per week although still down from a peak of 58 back in October.