The Colombian oil industry once again beat
the odds and kept
its average oil production above 1 million barrels per day for the month of
March. Oil production in the country actually increased by 4.2% over the
previous year to an average of 1,021,000 BPD, slightly below February’s average
of 1,027,000 BPD. The Colombian minister of Mines and Energy, Tomás González
was excited by the results, saying, “For the first time we have had six
consecutive months at this level of production.” He explained that this means
extra revenue for the Colombian government to pay for its various social
programs.
In mining sector news, Reuters
reported that an international arbitrator decided that Brazilian company CCX
Carvão de Colombia will not be able to negotiate a sale of three coal mines in the
Colombian Guajira to a group of investors represented by Blackstone Group LP.
According to the ruling, this prohibition is in place until a final decision
can be reached on a request by Yildirim Holding Inc., with whom CCX had entered
into an asset-purchase agreement for the mines in 2014. Blackstone had
reportedly bid $170 million for CCX’s Cañaverales and Papayal coal projects.
Colombian business journal La
República reported on the Colombian mining industry’s worries regarding
Colombia’s new National Development Plan. According to the article, the
Colombian mining industry has become severely weakened and destabilized by
legal and judicial uncertainty. The laws and regulations governing the sector
seem to be in constant flux, and an industry that once held tremendous
potential to be a real driver of economic growth in the country is now in
jeopardy. The report calls on the government to make a detailed analysis of the
National Development Plan to assess the destabilizing impact it could have on
the mining industry.
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