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Colombia Upstream Fiscal and Regulatory Report-New Licensing Expected As New Regulations Are Implemented

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Details

Colombia Upstream Fiscal and Regulatory Report-New Licensing Expected As New Regulations Are Implemented

Summary

"Colombia Upstream Fiscal and Regulatory Report-New Licensing Expected As New Regulations Are Implemented", presents the essential information relating to the terms which govern investment into Colombia's upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state's take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Colombia's upstream oil and gas investment climate.

Scope

Overview of current fiscal terms governing upstream oil and gas operations in Colombia

Assessment of the current fiscal regime's state take and attractiveness to investors

Charts illustrating the regime structure, and legal and institutional frameworks

Detail on legal framework and governing bodies administering the industry

Levels of upfront payments and taxation applicable to oil and gas production

Information on application of fiscal and regulatory terms to specific licenses

Outlook on future of fiscal and regulatory terms in Colombia

Reasons to buy

Understand the complex regulations and contractual requirements applicable to Colombia's upstream oil and gas sector

Evaluate factors determining profit levels in the industry

Identify potential regulatory issues facing investors in the country's upstream sector

Utilize considered insight on future trends to inform decision-making

READ MORE

Table Of Content

Scope

1 Table of Contents

1. Table of Contents 1

1.1. List of Tables 2

1.2. List of Figures 3

2. Regime Overview 4

3. State Take Assessment 6

4. Key Fiscal Terms 7

4.1. Royalties, Bonuses and Fees 7

4.1.1. Subsoil Use Fees 7

4.1.2. Technology Transfer Contribution 9

4.1.3. Royalties 9

4.1.4. Production Participation 10

4.1.5. Additional Production Participation 13

4.1.6. High Price Participation 13

4.1.7. Community Benefit Program Contribution 15

4.2. Direct Taxation 15

4.2.1. Corporate Income Tax 15

4.2.2. FTZ Reduction 16

4.2.3. CREE (until 2017) 16

4.2.4. CREE Surtax (until 2017) 16

4.2.5. Deductions and Depreciation 17

4.2.6. Withholding Tax 17

4.3. Indirect Taxation 18

4.3.1. VAT 18

4.4. State Participation (under Association Contracts) 18

5. Regulation and Licensing 21

5.1. Legal Framework 21

5.1.1. Governing Law 21

5.1.2. Contract Type 22

5.1.3. Title to Hydrocarbons 22

5.2. Institutional Framework 23

5.2.1. Licensing Authority 23

5.2.2. Regulatory Agency 23

5.2.3. National Oil Company 23

5.3. Licensing Process 24

5.3.1. Licensing Rounds 24

5.3.2. Prequalification 25

5.3.3. Bidding 28

5.4. License Terms 29

5.4.1. Duration and Relinquishments 29

5.4.2. Work Obligation 30

5.4.3. Relinquishment 31

6. Outlook 33

7. Appendix 34

7.1. Contact Us 34

7.2. Disclaimer 34


List Of Figure

1.2 List of Figures

Figure 1: Regime Flow Chart 5

Figure 2: Colombia, Indicative NPV10/boe, IRR and State Take Comparison, Regional 6

Figure 3: Colombia, Legal Framework 21

Figure 4: Colombia, Institutional Framework 23


List Of Table

1.1 List of Tables

Table 1: Regime Overview 4

Table 2: Colombia, Subsoil Use Fees (US$/ha), Technical Evaluation Agreements, 2017 7

Table 3: Colombia, Subsoil Use Fees (US$/ha), Conventional Resources, Exploration Contracts, 2017 7

Table 4: Colombia, Conventional Deposits, Subsoil Use Fees (US$/ha), Exploration Phase, 2016 8

Table 5: Colombia, Unconventional Deposits, Subsoil Use Fees (US$/ha), Exploration Phase, 2016 8

Table 6: Colombia, Standard Sliding Scale Royalty Rates (Light Crude) 9

Table 7: Colombia, Discounts to Light Crude Royalty Rate 10

Table 8: Colombia, Production Participation Adjustment Factor, 2017 11

Table 9: Colombia, Production Participation Rates (%), 2014 Round 12

Table 10: Colombia, Threshold Benchmark Prices, Liquids, High-Price Participation, 2017 13

Table 11: Colombia, Threshold Benchmark Prices, Gas, High-Price Participation, 2017 14

Table 12: Colombia, High Price Participation Rate (%), 2017 14

Table 13: Colombia, Corporate Income Tax Rate, Foreign Entities, 2015-2016 15

Table 14: Colombia, Corporate Income Tax Rate, All Entities, 1995-2012 16

Table 15: Colombia, CREE Surtax, 2015-2018 17

Table 16: Colombia, Participation Split-2nd Generation (1990-1994) 18

Table 17: Colombia, Participation Split-3rd Generation (1994-1999) 19

Table 18: Colombia, Participation Split-3rd Generation (1994-1999) 20

Table 19: Colombia, Financial Capacity Prequalification Requirements by Area, 2017 25

Table 20: Colombia, Indebtedness Ratio Calculation, Financial Economic Capacity Score, 2017 26

Table 21: Colombia, Debt Service Coverage Ratio Calculation, Financial Economic Capacity Score, 2017 26

Table 22: Colombia, Score Value (USD per point), 2017 26

Table 23: Colombia, Required Investment Ratings for Financial Capacity Exemption, 2017 27

Table 24: Colombia, Evaluation Criteria, 2014 Round 29

Table 25: Colombia, Minimum Exploration Work Program Requirements, Bid Round 2014 30

Table 26: Colombia, Exploration Phase Financial Guarantee Reduction, Exploration Phases Three Years or Greater, 2015 31

Table 27: Colombia, Exploration Phase Financial Guarantee Reduction, Exploration phases Less Than Three Years, 2015 31

Licence Rights

Single User License:
Report can be used by individual purchaser only

Site License:
Report can be shared by unlimited users within one corporate location, e.g. a regional office

Corporate User License: 
Report can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

Section Purchase

To know more information on Purchase by Section, please send a mail to support@kenresearch.com

Colombia Upstream Fiscal and Regulatory Report-New Licensing Expected As New Regulations Are Implemented

Summary

"Colombia Upstream Fiscal and Regulatory Report-New Licensing Expected As New Regulations Are Implemented", presents the essential information relating to the terms which govern investment into Colombia's upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state's take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Colombia's upstream oil and gas investment climate.

Scope

Overview of current fiscal terms governing upstream oil and gas operations in Colombia

Assessment of the current fiscal regime's state take and attractiveness to investors

Charts illustrating the regime structure, and legal and institutional frameworks

Detail on legal framework and governing bodies administering the industry

Levels of upfront payments and taxation applicable to oil and gas production

Information on application of fiscal and regulatory terms to specific licenses

Outlook on future of fiscal and regulatory terms in Colombia

Reasons to buy

Understand the complex regulations and contractual requirements applicable to Colombia's upstream oil and gas sector

Evaluate factors determining profit levels in the industry

Identify potential regulatory issues facing investors in the country's upstream sector

Utilize considered insight on future trends to inform decision-making

READ MORE

Scope

1 Table of Contents

1. Table of Contents 1

1.1. List of Tables 2

1.2. List of Figures 3

2. Regime Overview 4

3. State Take Assessment 6

4. Key Fiscal Terms 7

4.1. Royalties, Bonuses and Fees 7

4.1.1. Subsoil Use Fees 7

4.1.2. Technology Transfer Contribution 9

4.1.3. Royalties 9

4.1.4. Production Participation 10

4.1.5. Additional Production Participation 13

4.1.6. High Price Participation 13

4.1.7. Community Benefit Program Contribution 15

4.2. Direct Taxation 15

4.2.1. Corporate Income Tax 15

4.2.2. FTZ Reduction 16

4.2.3. CREE (until 2017) 16

4.2.4. CREE Surtax (until 2017) 16

4.2.5. Deductions and Depreciation 17

4.2.6. Withholding Tax 17

4.3. Indirect Taxation 18

4.3.1. VAT 18

4.4. State Participation (under Association Contracts) 18

5. Regulation and Licensing 21

5.1. Legal Framework 21

5.1.1. Governing Law 21

5.1.2. Contract Type 22

5.1.3. Title to Hydrocarbons 22

5.2. Institutional Framework 23

5.2.1. Licensing Authority 23

5.2.2. Regulatory Agency 23

5.2.3. National Oil Company 23

5.3. Licensing Process 24

5.3.1. Licensing Rounds 24

5.3.2. Prequalification 25

5.3.3. Bidding 28

5.4. License Terms 29

5.4.1. Duration and Relinquishments 29

5.4.2. Work Obligation 30

5.4.3. Relinquishment 31

6. Outlook 33

7. Appendix 34

7.1. Contact Us 34

7.2. Disclaimer 34


List Of Figure

1.2 List of Figures

Figure 1: Regime Flow Chart 5

Figure 2: Colombia, Indicative NPV10/boe, IRR and State Take Comparison, Regional 6

Figure 3: Colombia, Legal Framework 21

Figure 4: Colombia, Institutional Framework 23


List Of Table

1.1 List of Tables

Table 1: Regime Overview 4

Table 2: Colombia, Subsoil Use Fees (US$/ha), Technical Evaluation Agreements, 2017 7

Table 3: Colombia, Subsoil Use Fees (US$/ha), Conventional Resources, Exploration Contracts, 2017 7

Table 4: Colombia, Conventional Deposits, Subsoil Use Fees (US$/ha), Exploration Phase, 2016 8

Table 5: Colombia, Unconventional Deposits, Subsoil Use Fees (US$/ha), Exploration Phase, 2016 8

Table 6: Colombia, Standard Sliding Scale Royalty Rates (Light Crude) 9

Table 7: Colombia, Discounts to Light Crude Royalty Rate 10

Table 8: Colombia, Production Participation Adjustment Factor, 2017 11

Table 9: Colombia, Production Participation Rates (%), 2014 Round 12

Table 10: Colombia, Threshold Benchmark Prices, Liquids, High-Price Participation, 2017 13

Table 11: Colombia, Threshold Benchmark Prices, Gas, High-Price Participation, 2017 14

Table 12: Colombia, High Price Participation Rate (%), 2017 14

Table 13: Colombia, Corporate Income Tax Rate, Foreign Entities, 2015-2016 15

Table 14: Colombia, Corporate Income Tax Rate, All Entities, 1995-2012 16

Table 15: Colombia, CREE Surtax, 2015-2018 17

Table 16: Colombia, Participation Split-2nd Generation (1990-1994) 18

Table 17: Colombia, Participation Split-3rd Generation (1994-1999) 19

Table 18: Colombia, Participation Split-3rd Generation (1994-1999) 20

Table 19: Colombia, Financial Capacity Prequalification Requirements by Area, 2017 25

Table 20: Colombia, Indebtedness Ratio Calculation, Financial Economic Capacity Score, 2017 26

Table 21: Colombia, Debt Service Coverage Ratio Calculation, Financial Economic Capacity Score, 2017 26

Table 22: Colombia, Score Value (USD per point), 2017 26

Table 23: Colombia, Required Investment Ratings for Financial Capacity Exemption, 2017 27

Table 24: Colombia, Evaluation Criteria, 2014 Round 29

Table 25: Colombia, Minimum Exploration Work Program Requirements, Bid Round 2014 30

Table 26: Colombia, Exploration Phase Financial Guarantee Reduction, Exploration Phases Three Years or Greater, 2015 31

Table 27: Colombia, Exploration Phase Financial Guarantee Reduction, Exploration phases Less Than Three Years, 2015 31

Single User License:
Report can be used by individual purchaser only

Site License:
Report can be shared by unlimited users within one corporate location, e.g. a regional office

Corporate User License: 
Report can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

To know more information on Purchase by Section, please send a mail to support@kenresearch.com