Page 8 - LatAmOil Week 41 2022

LatAmOil COLOMBIA LatAmOil

“We received this news in the best way in Eco- COP4-5 trillion ($866.82mn-1.08bn).
petrol,” he was quoted as saying by Reuters. “I Petro’s administration is working on fiscal
welcome that it isn’t an export tax per barrel, but reform legislation with the aim of increasing
a surcharge system to be considered with the budget revenues by COP22 trillion ($4.77bn)
industry.” per year.
The government’s original proposal had The government will need the additional
envisioned the levying of a 20% tax on oil and funds to cover the cost of the social welfare
coal exports, with higher rates taking effect programmes that the president’s team wants to
whenever oil prices topped $71 per barrel or coal implement to counter inequality and poverty. ™
prices went above $86 per tonne, as well as an
additional 5% tax on oil and mining companies.
After this plan met with strong resistance from
Colombia’s hydrocarbon and mining sectors,
Petro’s team put forward a plan for the impo-
sition of a surcharge on the extractive sector in
place of export taxes. Under this new plan, the
surcharge rate would take effect in 2023 at 10%
and then drop to 5% in 2025.
The plan also calls for subjecting hydroelec-
tric power plant (HPP) operators to a 3% sur-
charge, Reuters noted.
This surcharge will remain in effect from
2023 to 2026, he news agency said, citing
the latest version of a Petro administration
presentation.
For his part, Bayon told reporters that Eco-
petrol was still reviewing the government’s new
plan in a bid to determine how exactly it would
affect the company. He did not elaborate, but
Reuters said the NOC had originally estimated
that fiscal reform would cause it to incur costs of Petro (L) and Bayon (R) met at an Ecopetrol solar park in August (Photo: Ecopetrol)

VENEZUEL A
Washington expected to soften sanctions

on Venezuela soon, sources inform WSJ

THE US government may soon scale back One of the main beneficiaries of such a policy
sanctions on Venezuela government, a move shift would be Chevron, the US oil major that
that would allow for the resumption of crude oil has maintained a token presence in Venezuela
exports from the South American country to the even after shutting down all of its commercial
US, Europe and other foreign markets. operations there.

Fuel shortages remain common in Venezuela (Photo: FEE.org)

P8 www. NEWSBASE .com Week 41 12•October•2022