Public vote in Colombia ruffles industry

BOGOTA, June 6, 2017 – The Colombian Petroleum Association (ACP) on Monday called upon the government to take steps to create legal certainty for exploration activity in the face of mounting public disapproval of such work.

The organisation’s call followed a public vote on Sunday in a Meta province municipality, where a majority of residents voted to ban drilling and exploration and production activities. Twenty more referendums are scheduled to take place across Colombia, which the ACP believes could prompt energy companies to cease investment.

The municipality in question, Cumaral, is the base of operations for ONGC Videsh-Sinopec joint venture Mansarovar Energy.

In comments on Sunday’s vote, the company said it hoped that “with the help of the national government we can rapidly define clear rules for companies and investors, to solve the legal and regulatory uncertainty that the energy sector find itself in.”

“Legal uncertainty will lead to a nosedive for exploration and production activity in Colombia. There won’t be investment or exploration if a wave of public votes continues,” ACP President Francisco Jose Lloreda said on Monday.

In other news, Ecopetrol on Monday said it had been able to resume operations in the La Cira Infantas oilfield following the end of protests and blockades that had forced it to cease production from 667 wells, resulting in losses of 35,603 bopd. Protests over modifications to working practices began on May 17.

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