“The oil sector aims to contribute 100 trillion pesos in the period 2018 – 2022”: ACP

According to calculations by the Colombian Petroleum Association (ACP), between 2018 and 2022 the hydrocarbons sector could generate around 100 trillion pesos in tax revenues for the country from taxes, contractual economic rights, dividends, and royalties for the regions, which would support initiatives to continue generating progress and improve the quality of life for Colombians.

• To achieve this, it is necessary to increase investment in exploration and production (E&P) to USD$7.000 million annually.
• This investment would allow for an increase of 2000 million barrels in reserves and meet the goals of the Medium-Term Fiscal Framework.
• The ACP proposes priority measures to boost investment in E&P and to ensure the supply of liquid fuels and natural gas.

To achieve this, it is necessary to increase investment in exploration and production, rising from USD$4.500 million in 2018 to USD$7.000 million annually over the next four years. This figure would allow for maintaining the current production of 860,000 bpd, increasing oil reserves by 2000 million barrels (which totaled 1782 million barrels in 2017), and sustaining revenues to ensure macroeconomic stability and meet the goals of the Medium-Term Fiscal Framework.

“Investment in the sector is being reactivated, but it is still half of what was executed in the years prior to the fall in international crude oil prices, which is why we at the ACP have proposed priority proposals to materialize these investments, achieve the projected contributions for the country, and continue to be an ally of its development,” said Francisco José Lloreda Mera, executive president of the ACP.

Among the group of decisions and measures proposed by the guild, the following are prioritized:

1. Achieve a competitive tax regime.
2. Expedite the allocation of areas.
3. Reform the General Royalty System.
4. Review operational costs.
5. Ensure legal stability.
6. Facilitate competition in the importation of liquid fuels and gradually liberalize the market.
7. Work on the Readiness Plan for the incorporation of new reserves (YNC).

These actions aim to incentivize exploration and production in conventional fields, incorporate additional oil and gas reserves in new geological frontiers, facilitate operations in the territory, and ensure the supply of liquid fuels and gas in a competitive market.

 “We have the opportunity to take advantage of the wealth of our subsoil and turn it into a sustainable development instrument for the country and its regions. Today we reiterate to the country that we are committed to working together, with the government, the regions, and the communities, to achieve a competitive sector that can continue contributing to the progress of Colombia as it has in the last 100 years,” concluded Lloreda Mera.