Colombia mulls more favourable offshore rules
BOGOTÁ, June 11, 2014 – The Colombian government is mulling new rules for offshore production, as it wants to increase exploration and production along its Atlantic and Pacific coasts.
The government’s National Planning Department will soon publish a document outlining measures aimed at fostering Colombia’s underdeveloped offshore sector. Proposals include better contract terms. Companies would be given more time to carry out their exploration and production programmes.
The National Planning Department will also suggest the creation of a free trade zone to increase the demand in offshore equipment, akin to what Brazil has done to facilitate the growth of its offshore sector.
Rules for offshore exploration have already been relaxed for the Ronda Colombia 2014 bid round, including a 20-percent royalty discount for gas – much of the offshore potential consists of gas. The government wants to have the document ready before the end of the bid round on 23 July.