News and AnalysIs for

Amid Ecopetrol’s (NYSE: EC) strategy to develop the gas potential of the offshore Caribbean, the company announced its offshore plans for 2024.

President Gustavo Petro’s meeting with Venezuelan President Nicolás Maduro at Miraflores Palace sparked extensive discussions regarding Colombia’s economy and energy transition.

Terpel released its operational results for the third quarter of the year.

While much of Colombia was watching the national soccer team beat Brazil’s side for the first time ever in a World Cup elimination round, the Constitutional Court gave an important victory to the extractive industries by deciding that royalties are a deductible expense after all. The Petro government had tried to make them non-deductible in last December’s tax reform but the measure was almost immediately challenged in court.

Just as we were about to write about the impact of taxes on Ecopetrol’s 3Q23 results, the Colombian Constitutional Court decides to undo the royalty no-deductibility rule from last December’s tax reform. Instead, we will briefly discuss the tax impact and then focus on ECP’s results, which got the press’s negative attention. Very happy to have to reorient this article in return for what we estimated as US$2B of less tax.

Ecopetrol (NYSE: EC) initiated operations for the drilling of the Orca Norte 1 exploratory well, marking a strategic move to prioritize gas projects within the company’s portfolio.