ACP highlights the approval of the royalties reform

The Colombian Petroleum Association (ACP) highlights the approval by the Congress of the Republic of the Legislative Act that reforms the General System of Royalties (SGR), allowing hydrocarbon-producing regions to have greater resources.

“It is great news for the country, as it will not only allow producing regions to receive greater resources, but it will also benefit the most vulnerable municipalities, effectively focusing resources. From the ACP, we express our recognition to local authorities, to the national Government for its leadership in the processing of the project, and to the Congress of the Republic for understanding the importance of this change,” said Francisco José Lloreda Mera, president of the ACP.

• Hydrocarbon-producing regions go from receiving around 11% to 25% in royalty resources.
• The ACP praises the commitment of the national Government and the Congress of the Republic in processing the Legislative Act for the benefit of the regions.
• The association invites continued coordinated work for the regulation of the Legislative Act and to promote oversight that ensures the optimal investment of resources.

With the reform approved by the legislature, allocations for producing regions increase from around 11% to 25%; resources for the poorest municipalities increase from 10.7% to 15%; and, for the first time, specific resources are allocated for environmental protection, which can reach up to 5%. Additionally, the reform also eliminates centralized approval processes, providing greater agility and efficiency in the execution of resources received by municipalities and departments.

“The reduction of resources for producing regions, resulting from the previous reform, has been one of the reasons for the increase in conflict in the territory and distrust towards the sector, which is why we believe this change opens a new opportunity to demonstrate that the oil and gas sector is the main ally of regional development in the areas of operation,” assured the union leader.

Finally, the ACP calls on the national Government, the Congress of the Republic, and the regions to continue coordinating efforts, within the framework of the law that develops the Legislative Act, and to establish and support oversight that ensures the optimal investment of resources.