Daily news report October 21, 2019
ACP as a source of information
Source: El País
Author: Francisco José Lloreda Mera
Date: October 20
Headline: Less anger
The National Government has made mistakes, like everyone else, that get it right and wrong. It makes no sense to deny it or to cover the sun with one's hands. But from there to hold it responsible for all evils, divine and human, is also not right. Such behaviors, where pointing fingers prevails, where one always seeks to blame others without much self-criticism, and where anger rules over reason, detracts from the essence of a society. The Financing Law fell for various reasons. Regardless of the Court's foundation, which is even debatable, the only responsible party is not the Executive: they are the Congress and the political sectors that obstructed the project, suffocating its process. It was replicated in: elpais.com.co (October 20).
Hydrocarbons Sector
Source: La República
Date: October 21
Headline: Chinese companies have quadrupled since 2015
Diplomatic relations between China and Colombia will celebrate 40 years in 2020, which has allowed for sustained growth in foreign direct investment coming from the Asian country to Colombia, in addition to strengthening the bilateral trade relations that have been developing between the two countries. (…) Other companies that stand out for their investment include Huawei, which has 26% of the mobile phone market and has a strong investment in technology renewal contracts, and Sinopec, a state-owned company exclusively invested by the Chinese State, which operates more than 14 fields in Colombia; most in a joint venture with Ongc Videsh.
Source: Portafolio
Date: October 21
Headline: Adjustments to the Financing Law. By: Mauricio Cabrera
The Court's ruling that “struck down” the Financing Law did so with a deferred effect until December 31, thus giving time for a new law to be processed in which the previous version can be improved, particularly regarding avoiding a decrease in fiscal revenue in 2020. (…) On the other hand, refunding VAT on capital goods is a tax measure that is highly regressive as it disproportionately benefits companies with greater wealth and investment capacity, such as oil, mining, and financial companies, which also make their investment decisions based on factors very different from these tax incentives.
Source: Portafolio
Date: October 21
Headline: IMF, defender of finances or main economic villain?
While the International Monetary Fund (IMF) held its annual meeting in Washington last week, protests were erupting in some of its borrowing countries. (…) But the cost has been high and the benefits have been shared unevenly. Egypt had to devalue the pound and reduce subsidies, which has increased poverty. Business owners complain privately that army-backed companies are nullifying competition, which challenges the IMF's support for a recovery led by the private sector. And long-term foreign investment outside the oil and gas industry has yet to recover. (…) The Arab Gulf monarchies struggling to cope with lower oil prices have followed the IMF's advice by introducing value-added taxes.
Source: Portafolio
Date: October 21
Headline: Through asset management, the State would gain $7 trillion
In a month, the National Government will present details on how it will improve the State's asset management, which would save about $7.2 trillion. (…) “The State currently has an investment of around $78 trillion in 105 companies, and 75% corresponds to the two crown jewels, ISA and Ecopetrol (…). The Ministry has proposed that in the asset optimization program, four scenarios are considered, one being to create a financial holding in which there is a direct participation of the Government in 12 companies and indirect in seven,” detailed Senator Juan Felipe Lemos.
Source: Portafolio
Date: October 21
Headline: Lawsuits would overturn the mining-energy package of the PND
The Congress of the Republic took longer to approve the National Development Plan (PND) last May, and the Constitutional Court took longer to accept this text approved by the legislature for its respective control, than the cascade of lawsuits against the norm reaching the high court. The reason is that to date, nearly fifty lawsuits (filed by individuals and legal entities) have been submitted to the General Secretariat of the corporation seeking to overturn several articles of the PND, (…) However, what stands out the most from the registration list is that nine lawsuits seek to completely overturn the block of articles related to the mining-energy sector contained in the PND, whose text is currently under review by the nine magistrates of the constitutional court. (…) Recently, the associations representing the country's electric energy sector, in a letter sent to the Minister of Mines and Energy, María Fernanda Suárez, warned of the inconvenience of the mandatory purchase of energy from non-conventional renewable sources for users of the electricity market.
Source: Semana
Date: October 21
Headline: Light for La Guajira
A modern energy transmission line being built in this department, which received support from 154 communities and ethnic groups, will guarantee a reliable electric service for this territory. If one of the two electric lines operating in La Guajira fails today, cities like Riohacha or Maicao would be left in the dark. (…) THE MOTHER PIPE. The firm Morelco also participates, directly or indirectly, in some of the main infrastructure works in the country. In addition to the electric sector, the Valle del Cauca-based company works in the hydrocarbons sector with Ecopetrol, Cenit, and Ocensa in the engineering processes for oil and multipurpose pipelines. «When a multipurpose pipeline is built, or when maintenance and proper functioning are worked on, the same concept applies in social and environmental management. The environment must be respected and relationships with communities must be handled correctly,» emphasizes Antonio Rodríguez, general manager of the company.
Source: El Heraldo
Date: October 21
Headline: 14 police officers captured for allegedly favoring gasoline smuggling
In the Second Mobile Criminal Court with guarantee control functions in Valledupar, the legalization of the capture of 14 active police officers linked to the Police command in Cesar, accused of favoring fuel smuggling in the south of this department, on the road that connects to Norte de Santander, was carried out. (…) This raid also took place in Norte de Santander where several officers were captured as they allegedly received money to allow stolen fuel from the Caño Limón-Coveñas pipeline, which crosses through Tibú (Norte de Santander), and also for the passage of smuggled fuel from Venezuela, for which they demanded bribes from micro-trafficking distributors.
Regional News
Source: llanera.com
Date: October 20
Headline: The first Solar Park of Ecopetrol in Meta has come into operation.
During the commissioning of this plant, President Iván Duque highlighted that the company mostly hired local labor, and said that 30% of the workforce for this project consists of women, many of whom are heads of households, “women who today feel proud to be protagonists of Colombia's energy transition.” Ecopetrol and AES Colombia put into operation the largest solar self-generation energy park that has been built in the country, located in the municipality of Castilla La Nueva, in the department of Meta. (…) Regarding the Castilla Solar Park of Ecopetrol, President Duque emphasized that “in terms of CO2 emission capture, it is equivalent to more than 15,000 trees; there are more than 150,000 installed panels, which show that there can be great productive harmony in our country.”.
Source: prensalibrecasanare.com
Date: October 19
The Council of State denied a legal action with which the residents of Tauramena sought to halt oil exploitation in their municipality. Since 2013, more than 4,000 people voted “No” in a popular consultation that asked if they agreed to carry out “oil exploration or exploitation activities.” The vote was endorsed by a resolution from the Municipal Council, which Ecopetrol challenged. Since then, the judiciary has sided with the state oil company. Both in the first and second instance, and in one of the last resources available to the locals, the legal action, the legitimacy of the vote was rejected.
Source: La W Radio
Date: October 18
Source: La Voz del Cinaruco
Date: October 18
Source: elespectador.com
Date: October 18
Headline: Tauramena (Casanare) voted against oil exploitation and the judiciary annulled its decision.
Ecopetrol sued the agreement with which the Municipal Council materialized the result of a popular consultation in which the inhabitants of the municipality opposed the exploitation of hydrocarbons. In the first and second instance and, more recently, in a tutela, the judiciary has ruled in favor of the company. The Council of State denied a tutela with which the inhabitants of Tauramena, in Casanare, sought to stop oil exploitation in their municipality. Since 2013, more than 4,000 people voted “No” in a popular consultation that asked if they agreed with “activities of oil exploration or exploitation.” The vote was ratified by a resolution from the Municipal Council, which Ecopetrol sued. Since then, the judiciary has ruled in favor of the state oil company.
Source: lavozdelcinaruco.com
Date: October 18
Headline: List of dialogue table between government, Oxy, and neighboring communities to the Caño Limón oil complex
In Arauca, a meeting led by the Ministry of the Interior took place between the neighboring communities of the Caño Limón and Caricare complex and Occidental de Colombia, to agree on the principles with which the working tables between the Company and the communities in the direct area of influence of its industrial activities will begin to operate, on issues related to social investment, labor management, and the environmental performance of oil operations. (…) For her part, Nelcy Blanco, Vice President of HES and Social Responsibility of Occidental expressed, among other things, the following: “Dialogue, as we have jointly proposed with our communities around our projects, must be the way we relate, it must be the way we operate. The invitation is to make the necessary effort, so that this systematic dialogue that we are starting today can be maintained over time.”.
Colombian Association of Oil and Gas