To All: Source: Bloomberg
Colombia's Ecopetrol Set to Adjust Oil Terms, Espectador Says
Bogota, May 10 (Bloomberg) -- Empresa Colombiana de
Petroleos, Colombia's state oil company, may cut its share of
oil association contracts to between 25 percent and 35 percent
from 50 percent in a bid to make investment more attractive for
foreign companies, El Espectador newspaper reported. Reducing the
state company's share in oil contracts would boost Ecopetrol's
income and tax revenue for the government by increasing
exploration activity, the newspaper reported, citing Mines and
Energy Minister Luis Carlos Valenzuela. Under the present system,
oil companies usually have to offer Ecopetrol, as the state
company is known, a 50 percent share in discovered reserves, the
newspaper said.
Last week, congress approved moves to abolish a 20 percent
royalty paid by oil companies to local government, replacing it
with a sliding scale of payments of between 5 percent and 25
percent, in a bid to lure more investment to Colombia.
(EE 5/10 P. 1B)
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This has to be good news for HEC. Maybe they will make a release to advise us of what effect it will have on Harken's operations.
Keep Smilin'
Rod. |
