1.250
%
Uncertain
59
mm boe
76
%
The operating environment is relatively stable, with continuing improvement in the tax regime, aimed at promoting investment. However, more recent experiences indicate that the regulator (ANH) is adopting a more interventionist approach to its regulation. However, with the election of President Gustavo Petro, Colombia’s first-ever leftist president who took office in August 2022, has supported the concept of domestic sovereignty in key economic sectors, creating high levels of uncertainty within oil & gas. Consequently, we maintain our Uncertain outlook and risk premia.
June 1, 2024
Americas - South
mm bbl
bcf
Northern South America, bordering the Caribbean Sea and the North Pacific Ocean, between Ecuador, Panama, Venezuela.
Concession
The current Concession Contract model was introduced in 2004 and replaced the 30 year old Ecopetrol Association Contract model. The new contracts are based on a royalty system with fundamental differences from the previous Association Contract in use in Colombia. In 2018, the ANH launched the Permanent Process of Allocation of Areas, which will allow the interested companies to request areas for exploration and production of hydrocarbons continuously, eliminating the need for carrying out bidding procedures for the allocation of areas. Under this process, the interested companies will send their proposal to the ANH, which will then make public the proposal inviting third parties to participate and bid for the allocation.
Terrorist threatens have diminished considerably during the recent years and particularly after the signing of the peace agreement with FARC. There are some remote rural areas where there is still terrorist threat from the ELN. In the major cities, the terrorist threat is very low. The installation of President Gustavo Petro, Colombia’s first-ever leftist president who took office in August 2022, has supported the concept of domestic sovereignty in key economic sectors, creating high levels of uncertainty within the private sector, especially energy.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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