ACP as a source of information
Source: miputumayo.com.co – Regional
Date: September 05
Headline: Oil drives the economy in five departments of the country
A study by Fedesarrollo indicates that Arauca, Casanare, Meta, Putumayo, and Santander register the best indicators in GDP, employment, and public finances. (…) This is indicated by Fedesarrollo through research revealing that Arauca, Casanare, Meta, Putumayo, and Santander, thanks to hydrocarbon operations, have recorded a positive dynamic for their public finances. (…) An analysis conducted by the Colombian Petroleum Association (ACP) compared the development indicators of municipalities with and without oil production in five departments of the country (Meta, Casanare, Santander, Arauca, and Boyacá), which represent 85% of Colombia's hydrocarbon production. The findings show that in most of the analyzed aspects, municipalities with oil activity present better results. In terms of income, the study concludes that oil municipalities contribute to the GDP of their departments 11 times more than non-oil municipalities, and receive five times more income in taxes, royalties, and contributions from the General System of Participations.
Hydrocarbons Sector
Source: El Tiempo
Date: September 06
Headline: $ 9 billion in royalties could add 1 point of growth to the country
If one of the legacies of National Planning is the issue of territorial development, royalties are key. The mobilization of these resources makes a significant contribution to economic growth, which had not been measured until now. This entity, prior to the departure of the director, Gloria Alonso, calculated how much the dividends from the exploitation of the subsoil contribute to the increase in gross domestic product (GDP). (…) We maintain this, but less is saved and that money is given to producers so that communities do not oppose oil exploration, which generates most of the royalties for us. Oil and mining are what finance equity. Resources for health and education come from oil revenues. If we do not show the regions the benefits that exploration can bring, neither producers nor non-producers will see the royalties.
Source: La República
Date: September 06
Headline: Exploratory drilling has grown 8.3% this year
The most recent report from Campetrol highlights that as of July, there was drilling of 26 exploratory wells. This figure represents 47.3% of the goal set by the ANH for 2019. The reactivation of the oil industry continues to show good signs, despite still facing significant challenges. The signing of 16 new contracts, as a result of the first oil auction, is just one of the several positive signals that have already emerged in the sector, where not only have better production indicators been recorded, but also 26 new exploratory wells in the country. According to the latest report from Campetrol, the new excavations represent an annual growth of 8.3% in exploration. This figure, while indicating a good outlook for the remainder of the year, translates to 47.3% of the goal set by the National Hydrocarbons Agency in 2019, which expects to close with 55 accumulated wells for the year.
Source: Portafolio
Date: September 06
Headline: Oil: the country would close the year with 900,000 barrels/day
Sector analysts affirm that the operational conditions are in place to reach the projected goal. Campetrol and Naturgas diverge from the projections. The optimism for the oil reactivation and the behavior in crude production, (…) “The reactivation of the hydrocarbon sector is a reality in Colombia. While in the second quarter of 2016 and 2017, activity had reductions of -9.4% and -5.2%, respectively, in the same period of the last two years it has been growing,” said the Minister of Mines and Energy, María Fernanda Suárez. (…) Likewise, the production account includes the development of the Capachos block by Parex Resources in the municipality of Tame (Arauca). This contract includes the Andina and Capachos fields, which together produced more than 5,000 barrels daily, representing a growth of three times compared to the volumes produced in January 2019 (1,685 barrels per day).
Source: El Nuevo Siglo
Date: September 06
Headline: Off the record. Cue for fracking (I)
In the framework of the Twenty-Fifth Meeting of the Administrative Litigation Jurisdiction, yesterday in Santa Marta, President Iván Duque took the opportunity to send several messages about key issues that the Government is pending regarding rulings from the Council of State, one of them – if not the most important – related to the exploitation of oil and gas using the fracking or hydraulic fracturing methodology. As is known, since last year the highest court of administrative litigation provisionally suspended Decree 3004 of 2013 and Resolution 90341 of 2014, regulations in which the Government had set the criteria for the exploration and exploitation of hydrocarbons in unconventional deposits with fracking in the national territory, due to the possible environmental impact of these practices.
Source: El Nuevo Siglo
Date: September 06
Headline: Reserve problem
Precisely this week a debate took place in Congress about whether to enable fracking in Colombia or not. There, the president of Ecopetrol, Felipe Bayón, indicated that with unconventional deposits, gas reserves would increase to 40 years and crude oil reserves – which today are only at six years – would also increase over time. “We need to go verify the potential, the pilots of the unconventional would allow us to understand if the potential is real, but if you add the liquids and gas, Colombia could go from 6 years of oil reserves to 20, 25, or 30 years of reserves. And in gas, we could go from 10 to 40, 50, or 60 years,” he stated.
Source: El Frente
Date: September 06
Headline: Fracking is vital for the future of Colombia
According to the Promigas report, Unconventional Deposits have a potential of up to 24 trillion cubic feet in areas of Magdalena Medio, Cesar-Ranchería, and Catatumbo. In Colombia, gas will not run out as long as the right alternative is chosen to maintain reserves. This is the main conclusion of the Natural Gas Sector report 2019, presented this Tuesday by Promigas, which provided an overview of the sector up to 2018 and in which the future of this sector in the country is glimpsed. (…) Regarding fuel reserves, the figures from the sector report reveal that the country's proven reserves are currently 3.8 TPC, with an R/P factor of 9.8 years. In this regard, the report concludes that Colombia has alternatives for supply, highlighting offshore deposits, unconventional deposits (fracking), and LNG imports, with the latter emphasizing the importance of Venezuela.
Source: Ámbito Jurídico
Date: September 05
Headline: «The regulation on consultations is very atomized throughout its legal structure»
On the occasion of the 20th anniversary of the Department of Mining and Energy Law at the Universidad Externado de Colombia, the XV International Conferences on Mining and Energy Law and the II International Congress of the Ibero-American Energy Association will soon be held. Luis Ferney Moreno, director of that department, spoke with ÁMBITO JURÍDICO about several current issues in this important area of law. (…) A. J.: Is the country prepared for ‘fracking’? L. F. M.: Colombia has been developing a regulatory framework in this area for more than 10 years. Experts from both countries that apply hydraulic fracturing and horizontal drilling techniques and those that have prohibited it have been consulted. Currently, the legal regime is robust, but as this technology develops so quickly, regulation will always be subject to improvements and updates.
Regional News
Source: Extra Llano
Date: September 05
Headline: The price of gasoline will not increase
The Ministry of Mines and Energy, led by María Fernanda Suárez, announced that the price of gasoline will remain stable during the month of September; however, it reported that diesel will have an increase of 93 pesos. In Villavicencio, the gallon of gasoline will have a price of 9,834 pesos.
Source: meridiano70.co
Date: September 05
Headline: Oxy reported the blocking of operations by the communities
Since last Wednesday, August 28, neighboring communities to the oil operations of Occidental de Colombia, LLC (Oxy), in Arauca, blocked several areas, preventing the normal development of activities in three of the Company's facilities, to request the Company to make modifications to the Voluntary Social Management Plan (PVGS). Oxy, as the operator of the Cravo Norte, Cosecha, Rondón, and Chipirón Association Contracts, in partnership with Ecopetrol S.A., and in accordance with its Social Responsibility Policy, agreed with the communities in the area of influence of its operations on a PVGS for the years 2018 and 2019…
Source: llaneraradio.com
Date: September 05
Headline: In Yopal, they will build a new headquarters for the educational institution Teresa de Calcuta
With the approval of this initiative, an 8-year story comes to an end, since a ruling ordered the relocation of an educational institution that was suffering from being too close to the operation of Perenco. For the construction of this institution to begin, the municipality of Yopal must receive the Manantiales property, so that Perenco can invest in the construction of the new school that will benefit the sector. (…) Prior to the approval of the project, a working group was held, called by the president of the Yopal Council, Edwin Ramírez, who managed to ensure that the investment of 1,360 million pesos was not considered as a social investment by the oil company Perenco in the Manantiales village, but that these resources should be invested due to an obligation established by the National Hydrocarbons Agency. This working group was accompanied by councilor Fabio Castro.
Colombian Association of Oil and Gas