If you got a question, look no further.
We post the most common questions
in our FAQ section.
Please fill in the form below to receive a Free Sample of the Report.
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 ColombiaReasons 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
1 Table of Contents1. Table of Contents 11.1. List of Tables 21.2. List of Figures 32. Regime Overview 43. State Take Assessment 64. Key Fiscal Terms 74.1. Royalties, Bonuses and Fees 74.1.1. Subsoil Use Fees 74.1.2. Technology Transfer Contribution 94.1.3. Royalties 94.1.4. Production Participation 104.1.5. Additional Production Participation 134.1.6. High Price Participation 134.1.7. Community Benefit Program Contribution 154.2. Direct Taxation 154.2.1. Corporate Income Tax 154.2.2. FTZ Reduction 164.2.3. CREE (until 2017) 164.2.4. CREE Surtax (until 2017) 164.2.5. Deductions and Depreciation 174.2.6. Withholding Tax 174.3. Indirect Taxation 184.3.1. VAT 184.4. State Participation (under Association Contracts) 185. Regulation and Licensing 215.1. Legal Framework 215.1.1. Governing Law 215.1.2. Contract Type 225.1.3. Title to Hydrocarbons 225.2. Institutional Framework 235.2.1. Licensing Authority 235.2.2. Regulatory Agency 235.2.3. National Oil Company 235.3. Licensing Process 245.3.1. Licensing Rounds 245.3.2. Prequalification 255.3.3. Bidding 285.4. License Terms 295.4.1. Duration and Relinquishments 295.4.2. Work Obligation 305.4.3. Relinquishment 316. Outlook 337. Appendix 347.1. Contact Us 347.2. Disclaimer 341.1 List of TablesTable 1: Regime Overview 4Table 2: Colombia, Subsoil Use Fees (US$/ha), Technical Evaluation Agreements, 2017 7Table 3: Colombia, Subsoil Use Fees (US$/ha), Conventional Resources, Exploration Contracts, 2017 7Table 4: Colombia, Conventional Deposits, Subsoil Use Fees (US$/ha), Exploration Phase, 2016 8Table 5: Colombia, Unconventional Deposits, Subsoil Use Fees (US$/ha), Exploration Phase, 2016 8Table 6: Colombia, Standard Sliding Scale Royalty Rates (Light Crude) 9Table 7: Colombia, Discounts to Light Crude Royalty Rate 10Table 8: Colombia, Production Participation Adjustment Factor, 2017 11Table 9: Colombia, Production Participation Rates (%), 2014 Round 12Table 10: Colombia, Threshold Benchmark Prices, Liquids, High-Price Participation, 2017 13Table 11: Colombia, Threshold Benchmark Prices, Gas, High-Price Participation, 2017 14Table 12: Colombia, High Price Participation Rate (%), 2017 14Table 13: Colombia, Corporate Income Tax Rate, Foreign Entities, 2015-2016 15Table 14: Colombia, Corporate Income Tax Rate, All Entities, 1995-2012 16Table 15: Colombia, CREE Surtax, 2015-2018 17Table 16: Colombia, Participation Split - 2nd Generation (1990-1994) 18Table 17: Colombia, Participation Split - 3rd Generation (1994-1999) 19Table 18: Colombia, Participation Split - 3rd Generation (1994-1999) 20Table 19: Colombia, Financial Capacity Prequalification Requirements by Area, 2017 25Table 20: Colombia, Indebtedness Ratio Calculation, Financial Economic Capacity Score, 2017 26Table 21: Colombia, Debt Service Coverage Ratio Calculation, Financial Economic Capacity Score, 2017 26Table 22: Colombia, Score Value (USD per point), 2017 26Table 23: Colombia, Required Investment Ratings for Financial Capacity Exemption, 2017 27Table 24: Colombia, Evaluation Criteria, 2014 Round 29Table 25: Colombia, Minimum Exploration Work Program Requirements, Bid Round 2014 30Table 26: Colombia, Exploration Phase Financial Guarantee Reduction, Exploration Phases Three Years or Greater, 2015 31Table 27: Colombia, Exploration Phase Financial Guarantee Reduction, Exploration phases Less Than Three Years, 2015 311.2 List of FiguresFigure 1: Regime Flow Chart 5Figure 2: Colombia, Indicative NPV10/boe, IRR and State Take Comparison, Regional 6Figure 3: Colombia, Legal Framework 21Figure 4: Colombia, Institutional Framework 23