This EITI Report covers Colombia's extractive sector in 2014-2015. It was published in January 2017.
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.
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.
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.
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.
|Gas||5.7||trillion cubic feet|
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.
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
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
This EITI Report covers Colombia's extractive sector in 2013. It was published in December 2015.
This is the Colombia EITI 2014-2016 work plan (in accordance with Requirement 1.5).
This is the Colombia EITI 2014 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
EITI responsibilities:Geographically: Latin America and CaribbeanOther areas include reporting, mining, sub national flows and accounting standards and research.
Dr Paris has worked both in the private sector in banking and consulting and in the