Colombia

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2014
Latest Data From 2013
Website EITI Colombia

Overview

In 2013 Colombia reached two milestones in the extractive sector: record foreign direct investment (US$ 8 billion) and 1 million barrels/day of oil production. However, with the current fall in commodity prices, the sector contibution to the economy is significantly reduced in subsequent years. After 2013 when the oil, gas and mining industries contributed US$ 16.85 billion to the treasury, the 2014-2015 EITI Report shows revenues declining to US$ 13.2 billion in 2014 and US$ 4.33 billion in 2015. While production has been stable, lower commodity prices reduced the the industry’s fiscal contribution. Royalty payments, although reduced from previous years, became the largest revenue stream in 2015. Dividends from the state-owned company Ecopetrol fell 60% from 2013 to 2015.

Challenges of the extractive sector are related to inadequate infrastructure, uncertain post-peace programmes and use of the royalties as per the royalty distribution system introduced in 2013 which have caused unease among local governments. Colombia is giving priority to reducing mining illegality ad the recent 2014-2015 Colombia EITI Reports addresses this issue. 

Colombia is using the EITI to provide credible and contextualized data to inform public debate on issues such as levels of taxation, revenue distribution and quality of expenditures. The country also discloses detailed information on environmental and social payments in its most recent Colombia 2014-2015 ETI Report

Tax code

The Ministry of Energy establishes policy and regulate the sector. Main responsibilities includes fiscalization, collecting and distributing a number of different revenue streams, oversight of environmental aspects and social contributions. Two agencies, National Hydrocarbon Agency (ANH) and the Mining National Agency (ANM) administer oil and gas and mining resources. ANM is responsible for the hydrocarbons contracts and the ANM for the mining titles (cadaster). The agencies administer the reserves in both subsectors. The National Development Plan establishes priorities and policy guidelines to the Ministry. It is supported by an internal planning unit (UPME) responsible for collecting information, analyzing it and producing technical advice. The Colombian’ State owns 88.5 % of  Ecopetrol (mixed  -governmental and private- stock-holding corporation ) listed in both Colombia, New York and Toronto stock exchanges.

Contracts

Colombia has different licensing regimes for hydrocarbons and for mining. In the hydrocarbons side it is the National Hydrocarbons agency who is responsible for assigning areas as established in Decrees 2288 of 2004 and 714 of 2012. In mining, it is the National Mining Agency responsible for issuing mining titles according to what was established in Law 685 of 2001.

Mining contracts - available upon request at the National Mining Agency (printed copies with redacted clauses, not digital)

Production

In 2013 Colombia produced:

  • Oil:  1 million barrels/day
  • Gas. 1182 million of cubic feet/day
  • Coal: 85496 Kton
  • Nickel: 49320 tons
  • Iron-ore: 710047 tons
  • Gold: 55745 kgs
  • Silver: 13968 kgs
  • Emeralds: 2627 thousand kilates

This year, Colombia exported a total of US$ 58.8 billion of which US$ 32.5 billion were from oil and derivatives and US$ 10 billion from mining.

Natural resources

In 2013, the extractive industry in Colombia contributed to 72% of total exports, generated 19% of  fiscal revenues and represented 7.7% of the GDP.The sector generated direct employment for more than 330.000 people and received 50% of foreign direct investment (US$ 16.2 billion)

According to the 2015 BP Statistical Review, Colombia has reserves of 2.4 thousand million barrels of oil and 5.7 trillion cubic feet of natural gas. Colombia is the world's fourth largest coal exporter with, according to the National Statistics Department, with 6.247.000 thousand of tonnes (Kton) of coal reserves. Colombia has also significant reserves of nickel, iron-ore and gold. However, only 13% of gold production was associated to legally awarded titles.

CommodityReservesUnit
Oil240000million barrels
Gas5.7 trillion cubic feet
Coal85497Kton
Nickel15542Kton
Iron-ore82532Kton

Oil and Gas Production (Sm3 o.e.)

Initializing chart.

Mineral Production (in Tonnes)

Initializing chart.

Revenue collection

In 2013, Colombia received US$ 18.1 billion from the extractive sector. These revenues came mainly from dividends ofEcopetrol (37%), royalties (25%) and income tax (21%). The hydrocarbons sector generated 93.5% of these revenues.

Initializing chart.

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • Colombia EITI Report 2014-2015 includes the findings of the scoping study on sub-national EITI data disclosure.
  • Colombia EITI Report 2014-2015 offers an overview of the environmental payments applicable in the country's extractive industry, including an assessment of the availability of data and its potential for future reconciliation.
  •  Data collection and reconciliation of fiscal information for Colombia 2014-2015 EITI Report was carried out through an online data platform developed by the independent administrator in order to generate efficiency and to start embedding EITI reporting in government and companies' systems.
  • EITI Colombia offers an online training programme which explains in 5 modules the country's extractive industry and how citizens can participate in accountability processes.
  • Civil society is engaged in implementation not only through the multi-stakeholder group, but also through the Mesa de la Sociedad Civil para las Industrias Extractivas, a wider network dedicated to transparency in the sector.

Implementation

Colombia completed its first EITI Report in January 2016. The second Colombia EITI Report covering fiscal years was published in December 2016. The reports covers corporate tax, royalties, Ecopetrol’s dividends and other taxes. As no significant discrepancies were found in the reconciliation of fiscal data, the country prepares to move to mainstreamed implementation. The Macroeconomic and Planning Unit (UPME) in the Ministry of Mines is developing a comprehensive system that would centralise, from the regulatory agencies, most of the relevant information of the sector. The National Hydrocarbons Agency is ready to provide most of the information for the oil and gas sector. On the mining side however, the National Mining Agency is yet to update the Cadastre and other information systems. For this reason, mainstreaming implementation in the mining sector will take more time than in the oil and gas sector

Governance

The Ministry of Mines and Energy hosts the EITI national secretariat. Deuty-Minister of Mining, Carlos Andrés Cante is the EITI Champion and Patricia Gamboa performs as the National Coordinator. Within the Ministry, the sectorial planning unit (UPME) supports the MSG technical work. Below is the detailed composition of the National Tripartite Commission:

  • Government constituency
  • EITI Champion: Deputy Minister of Mines- Carlos Andrés Cante
  • National Tax Office (DIAN) - Christian Jaramillo - Sandra Virguez (alternate)
  • Planning National Department (DNP) - Amparo Garcia - Catalina Rueda (alternate)
  • Industry constituency
  • Ecopetrol - Claudia Vergara - Juan Manuel Rios (alternate)
  • Colombian Petroleum Association (ACP) - Francisco Lloreda - Rafael Hertz (alternate)
  • Colombian Mining Association (ACM) - Santiago Angel - Raul Buitrago (alternate)
  • Civil Society constituency
  • Transparencia por Colombia - Elizabeth Ungar - Andres Hernandez (alternate)
  • Externado University - Ana Carolina Gonzalez
  • Fora Nacional por Colombia - Fabio Velázquez

Timeline

Validation

Colombia's Validation against the Standard will commence on 1 July 2018. The country was admitted as EITI candidate in 2014.