for  hydrocarbons<br />
Contents – Part I<br />Colombia<br />Industry background<br />Open Round Colombia 2010<br />Legal aspects and Contracts<br...
Colombia in South America:<br /><ul><li>Oldest democracy
2nd  population : 	45 million
3rd  crude producer:	800,000 b/d (2010 est.)
3rd economy : 	GDP: US$395 billion</li></ul>US$8500/Cap (PPP)<br /><ul><li>3rd recipient of FDI	:	US$10.6 billion (2008)</...
- sedimentary (land)  : ~ 0.8 million sq km
- marine	             : ~ 0.9 million sq km</li></li></ul><li>FDI flows in South America<br />Source:	 UNCTAD<br />
FDI by economic activity (2008)<br />Source:	 Banco de la República<br />
Growing investment in hydrocarbons<br />Historic FDI in oil & gas<br />*E = estimated<br />Source: Banco de la República<b...
Institutional framework - since 2003<br />Ministry of Mines and Energy<br />
Strategic framework<br />The ANH is the agency responsible for promoting<br />the optimal and sustainable exploitation <br...
its efficient and transparent administration of the hydrocarbon resource and coordinated work with both industry and commu...
its professional staff, its high technological level and the agility of its process</li></li></ul><li>Contents<br />Colomb...
Oil in South America<br />Proven reserves (Billion barrels)<br />Venezuela<br />99,4<br />Production<br />2,5<br />Colombi...
Gas in South America<br />Proven reserves (Tera cubic feet)<br />Venezuela<br />170<br />Production<br />Trinidad & Tobago...
Reserves<br />Oil<br />Gas<br />(E)<br />(E)<br />(E) = end-2010 estimate<br />
Growing production<br />Average annual production<br />Average monthly production<br />(last 12 months)<br />Oil<br />Gas<...
Exploration activity has increased considerably<br />Million (Ha)<br />Open Round<br />TEA<br />E&P<br />Production<br />
Licensing activity continues to increase and seismic data acquisition activity is high …<br />* TEA: Technical Evaluation ...
… the highest number of exploratory wells and high success rates …<br />
Perceptions on Colombia´s attractiveness<br />Prospectivity <br />5<br />4<br />3<br />Fiscal terms<br />Personal  safety<...
E&P operator companies in Colombia<br />18<br />Plus 70 non operators<br />
Colombia offers good business opportunities<br /><ul><li>A prolific geology
A good business environment
An appropriate institutional framework
A competitive and fair contract
Competitive rounds
Stability remains in the sector
… still a window of opportunity</li></li></ul><li>Challenges<br /><ul><li>Community consultations
Community relations
Social investment
Employment of locals
Roads
Salaries
Local politics
Environmental licensing</li></li></ul><li>Book in your agendas<br />Cartagena, 22 - 25 June , 2010 <br />IV Colombia Oil a...
Contents<br />Colombia<br />Industry background<br />Open Round Colombia 2010<br />Legal aspects and Contracts<br />Commun...
Areas on offer<br />Number of Blocks<br />Area (Ha)<br />138<br />5.893.685<br />8.459.046<br />31<br />56<br />33.253.683...
Minimum exploratory program<br />
Minimum exploratory program<br />
Key Milestones<br />15th October, 2009<br />Preliminary terms of reference<br />Final terms of reference<br />19thFebruary...
Road Show<br />London, Edinburgh<br />Toronto<br />Singapore<br />Shanghai<br />Calgary<br />Madrid<br />Perth<br />Housto...
Data packs<br />* Gives the right to participate in the process <br />
Exploratory programs<br /><ul><li>The minimum exploratory program of areas object of this process shall be expressed in Un...
Additional investment in seismic and wells shall be credited on the basis of Unitary Prices’ Table
Other investments on the basis of paid invoices</li></li></ul><li>Pre qualification criteria<br /><ul><li>Legal
Financial
Operational
Environmental
Corporate social responsibility</li></li></ul><li>Types of company qualification<br />(*) Additive within consortia<br />
Required pre-qualification documents<br /><ul><li>Letter of intent to participate in process, signed by legally empowered ...
Documents as required for legal, financial, technical, operational, environmental and/or corporate social responsibility q...
Original documents in Spanish language, or translated by official translator</li></ul>	(No apostille necessary at this sta...
Consortia<br /><ul><li>Pre-agreement includes: object, parties, rules, etc. or the respective letter of intent (MOU)
Participation interest of Operator must be at least 40%.
Duration: at least for validity of E&P contract and/or Special TEA plus one more year
Each participant and its members shall be individually evaluated</li></ul>No participant may submit more than one bid for ...
Financial aspects<br />Minimum equity (net assets) per block  (*) :<br /><ul><li>Type 1 Area: 	US$6 MM
Type 2 Area: 	 US$20 MM
Type 3 Area: 	 US$200 MM</li></ul>Financial statements with notes for last three (3) years in USD, dully audited<br />The ...
Financial aspects<br />Individual companies or consortia are exempted from presenting financial documentation when an indi...
has a risk qualification within last 12 months equal or higher than:</li></li></ul><li>Technical criteria<br />Only for Re...
Geologist
HSE Professional					</li></li></ul><li>Operational capacity<br />* At least two (2) wells drilled in the last three (3) y...
Allowance for restricted operators<br /><ul><li>Only one block in Type 1 areas
3 contracts if total equity ≥ US$100.000.000</li></li></ul><li>Environmental and corporate social responsibility<br />docu...
Last environmental management annual report
Corporate social responsibility policy document
Last corporate social responsibility annual report </li></li></ul><li>Bidding documents<br /><ul><li>Official envelope
Cover letter (model provided in ToR)
Bidding format with:
Additional investment proposed - in multiples of USD 100,000
“X%” – percent  participationin production
Letter of intent to conform consortium, if applicable
Guarantees</li></li></ul><li>Award criteria<br />(*) tie-braker<br />
Contents<br />Colombia<br />Industry background<br />Open Round Colombia 2010<br />Legal aspects and Contracts<br />Commun...
Contractual aspects<br />Contents:<br />Legal framework<br />Contract generalities<br />Main contract provisions<br />Spec...
Legal Framework<br /><ul><li> 1991 Constitution:articles 101, 102 and 332.
 Law 80 of 1993, Article 76.
Decree-Law 1760 of 2003.
Upcoming SlideShare
Loading in …5
×

1 Open Round Colombia 2010 Legal Aspects And Contracts Communities Final Houston

1,722
-1

Published on

Open Round Colombia 2010 is an overview of the open licensing round to be held in Colombia in 2010. This presentation was presented in Houston, Texas on February 9th, 2010 as part of the road show for the open bid round This is a detailed overview of the requirements and opportunities of the blocks that are being put up for bid. If you have any questions please do not hesitate to contact me directly. We also have copies of the technical geologic analysis for every area being offered. doug.green@translation-source.com.

Published in: Business
1 Comment
1 Like
Statistics
Notes
  • Hello Group.!!! I am From Colombia. I participating in a contest and its presentations I liked very much, because in my company we working with web design,& e-marketing, in the slide we talk about the reasons for have a site in the web, and how you can do it very easy, I invited, to visit my slide and if it likes, please add me to your favorites, thank you very much. Congratulations! I’ll add to favorites. I hope you add me to your favorite ’♥’ bye bye See my presentation

    - http://slidesha.re/5Td1I5
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
1,722
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
71
Comments
1
Likes
1
Embeds 0
No embeds

No notes for slide

1 Open Round Colombia 2010 Legal Aspects And Contracts Communities Final Houston

  1. 1. for hydrocarbons<br />
  2. 2. Contents – Part I<br />Colombia<br />Industry background<br />Open Round Colombia 2010<br />Legal aspects and Contracts<br />Communities and environmental priorities<br />
  3. 3. Colombia in South America:<br /><ul><li>Oldest democracy
  4. 4. 2nd population : 45 million
  5. 5. 3rd crude producer: 800,000 b/d (2010 est.)
  6. 6. 3rd economy : GDP: US$395 billion</li></ul>US$8500/Cap (PPP)<br /><ul><li>3rd recipient of FDI : US$10.6 billion (2008)</li></ul>- in oil & gas : US$ 3.4 billion (2008)<br /><ul><li>4th Land surface area: 1.2 million sq km
  7. 7. - sedimentary (land) : ~ 0.8 million sq km
  8. 8. - marine : ~ 0.9 million sq km</li></li></ul><li>FDI flows in South America<br />Source: UNCTAD<br />
  9. 9. FDI by economic activity (2008)<br />Source: Banco de la República<br />
  10. 10. Growing investment in hydrocarbons<br />Historic FDI in oil & gas<br />*E = estimated<br />Source: Banco de la República<br />
  11. 11. Institutional framework - since 2003<br />Ministry of Mines and Energy<br />
  12. 12. Strategic framework<br />The ANH is the agency responsible for promoting<br />the optimal and sustainable exploitation <br />of the country’s hydrocarbons resources;<br />through an integrated administration approach, <br />seeking a balance between the interests of <br />the State, Colombian society and industry<br />Mission<br />Vision<br /> The ANH shall be recognized globally as a model government institution by:<br /><ul><li>its knowledge of the Colombian geological potential and the optimization of its exploitation;
  13. 13. its efficient and transparent administration of the hydrocarbon resource and coordinated work with both industry and community; and
  14. 14. its professional staff, its high technological level and the agility of its process</li></li></ul><li>Contents<br />Colombia<br />Industry background<br />Open Round Colombia 2010<br />Legal aspects and Contracts<br />Communities and environmental priorities<br />
  15. 15. Oil in South America<br />Proven reserves (Billion barrels)<br />Venezuela<br />99,4<br />Production<br />2,5<br />Colombia (E)<br />(2%)<br />Growing<br />Brazil<br />Ecuador<br />3,8<br />12,6<br />Falling<br />(*)<br />2,6<br />Argentina<br />(12%)<br />(*) Production as of December 2009<br />(E) = end-2009 estimate<br />Sources: BP Statistical Review 2009; ANH Analysis<br />
  16. 16. Gas in South America<br />Proven reserves (Tera cubic feet)<br />Venezuela<br />170<br />Production<br />Trinidad & Tobago<br />17<br />Colombia (E)<br />4,1<br />Growing<br />(2%)<br />Falling<br />Brazil<br />12<br />Bolivia<br />(*)<br />Argentina<br />15<br />(7%)<br />(*) Production as of December 2009<br />*E = reserves estimated<br />Sources: BP Statistical Review 2009; ANH Analysis<br />
  17. 17. Reserves<br />Oil<br />Gas<br />(E)<br />(E)<br />(E) = end-2010 estimate<br />
  18. 18. Growing production<br />Average annual production<br />Average monthly production<br />(last 12 months)<br />Oil<br />Gas<br />Oil<br />Gas<br />
  19. 19. Exploration activity has increased considerably<br />Million (Ha)<br />Open Round<br />TEA<br />E&P<br />Production<br />
  20. 20. Licensing activity continues to increase and seismic data acquisition activity is high …<br />* TEA: Technical Evaluation Agreement<br />
  21. 21. … the highest number of exploratory wells and high success rates …<br />
  22. 22. Perceptions on Colombia´s attractiveness<br />Prospectivity <br />5<br />4<br />3<br />Fiscal terms<br />Personal safety<br />2<br />1<br />Expected<br />0<br />Colombia<br />Political stabilitya<br />Legal security<br />Source: Arthur D. Little, 2008<br />Economic stability<br />
  23. 23. E&P operator companies in Colombia<br />18<br />Plus 70 non operators<br />
  24. 24. Colombia offers good business opportunities<br /><ul><li>A prolific geology
  25. 25. A good business environment
  26. 26. An appropriate institutional framework
  27. 27. A competitive and fair contract
  28. 28. Competitive rounds
  29. 29. Stability remains in the sector
  30. 30. … still a window of opportunity</li></li></ul><li>Challenges<br /><ul><li>Community consultations
  31. 31. Community relations
  32. 32. Social investment
  33. 33. Employment of locals
  34. 34. Roads
  35. 35. Salaries
  36. 36. Local politics
  37. 37. Environmental licensing</li></li></ul><li>Book in your agendas<br />Cartagena, 22 - 25 June , 2010 <br />IV Colombia Oil and Gas Investment Conference<br />
  38. 38. Contents<br />Colombia<br />Industry background<br />Open Round Colombia 2010<br />Legal aspects and Contracts<br />Communities and environmental priorities<br />
  39. 39. Areas on offer<br />Number of Blocks<br />Area (Ha)<br />138<br />5.893.685<br />8.459.046<br />31<br />56<br />33.253.683<br />Total<br />225<br />47.606.414<br />*TEA: Technical Evaluation Agreement<br />
  40. 40. Minimum exploratory program<br />
  41. 41. Minimum exploratory program<br />
  42. 42.
  43. 43.
  44. 44.
  45. 45.
  46. 46.
  47. 47. Key Milestones<br />15th October, 2009<br />Preliminary terms of reference<br />Final terms of reference<br />19thFebruary, 2010<br />Pre qualification documents<br />19thFebruary - 19thApril, 2010<br />Pre qualification list<br />24thMay, 2010<br />Bidding<br />21st June, 2010<br />
  48. 48. Road Show<br />London, Edinburgh<br />Toronto<br />Singapore<br />Shanghai<br />Calgary<br />Madrid<br />Perth<br />Houston<br />Río de Janeiro<br />New York<br />Sydney<br />
  49. 49. Data packs<br />* Gives the right to participate in the process <br />
  50. 50. Exploratory programs<br /><ul><li>The minimum exploratory program of areas object of this process shall be expressed in Unitary Prices (PU), previously established by ANH
  51. 51. Additional investment in seismic and wells shall be credited on the basis of Unitary Prices’ Table
  52. 52. Other investments on the basis of paid invoices</li></li></ul><li>Pre qualification criteria<br /><ul><li>Legal
  53. 53. Financial
  54. 54. Operational
  55. 55. Environmental
  56. 56. Corporate social responsibility</li></li></ul><li>Types of company qualification<br />(*) Additive within consortia<br />
  57. 57. Required pre-qualification documents<br /><ul><li>Letter of intent to participate in process, signed by legally empowered representative (mandatory in all cases)
  58. 58. Documents as required for legal, financial, technical, operational, environmental and/or corporate social responsibility qualification criteria
  59. 59. Original documents in Spanish language, or translated by official translator</li></ul> (No apostille necessary at this stage)<br />
  60. 60. Consortia<br /><ul><li>Pre-agreement includes: object, parties, rules, etc. or the respective letter of intent (MOU)
  61. 61. Participation interest of Operator must be at least 40%.
  62. 62. Duration: at least for validity of E&P contract and/or Special TEA plus one more year
  63. 63. Each participant and its members shall be individually evaluated</li></ul>No participant may submit more than one bid for the same area or be part of more than one association or plural bidder for the same area<br />Note: no temporary unions are allowed to bid<br />
  64. 64. Financial aspects<br />Minimum equity (net assets) per block (*) :<br /><ul><li>Type 1 Area: US$6 MM
  65. 65. Type 2 Area: US$20 MM
  66. 66. Type 3 Area: US$200 MM</li></ul>Financial statements with notes for last three (3) years in USD, dully audited<br />The above requirements per block are cumulative<br />(*) Individually or per consortium<br />
  67. 67. Financial aspects<br />Individual companies or consortia are exempted from presenting financial documentation when an individual proponent or one member of a consortium is:<br /><ul><li>listed in the last publication of “The Energy Intelligence Top 100: Ranking the World’s Top Oil Companies” issued by “Petroleum Intelligence Weekly”, or
  68. 68. has a risk qualification within last 12 months equal or higher than:</li></li></ul><li>Technical criteria<br />Only for Restricted Operator:<br /><ul><li>Petroleum Engineer
  69. 69. Geologist
  70. 70. HSE Professional </li></li></ul><li>Operational capacity<br />* At least two (2) wells drilled in the last three (3) years<br />Participants listed in the last issue of “The Energy Intelligence Top 100: Ranking the World’s Top Oil Companies” qualify automatically<br />
  71. 71. Allowance for restricted operators<br /><ul><li>Only one block in Type 1 areas
  72. 72. 3 contracts if total equity ≥ US$100.000.000</li></li></ul><li>Environmental and corporate social responsibility<br />documents<br /><ul><li>Environmental policy document
  73. 73. Last environmental management annual report
  74. 74. Corporate social responsibility policy document
  75. 75. Last corporate social responsibility annual report </li></li></ul><li>Bidding documents<br /><ul><li>Official envelope
  76. 76. Cover letter (model provided in ToR)
  77. 77. Bidding format with:
  78. 78. Additional investment proposed - in multiples of USD 100,000
  79. 79. “X%” – percent participationin production
  80. 80. Letter of intent to conform consortium, if applicable
  81. 81. Guarantees</li></li></ul><li>Award criteria<br />(*) tie-braker<br />
  82. 82. Contents<br />Colombia<br />Industry background<br />Open Round Colombia 2010<br />Legal aspects and Contracts<br />Communities and environmental priorities<br />
  83. 83. Contractual aspects<br />Contents:<br />Legal framework<br />Contract generalities<br />Main contract provisions<br />Special TEA Contract<br />Common aspects of E&P and special TEA contracts<br />
  84. 84. Legal Framework<br /><ul><li> 1991 Constitution:articles 101, 102 and 332.
  85. 85. Law 80 of 1993, Article 76.
  86. 86. Decree-Law 1760 of 2003.
  87. 87. Regulation 008 of 2004 with amendments.</li></li></ul><li>Legal framework<br />Contract generalities<br />Main contract provisions<br />Special TEA Contract<br />Common aspects of E&P and special TEA contracts<br />
  88. 88. General principles<br />An E&P contract grants:<br /><ul><li>permission to remove the hydrocarbons owned by the state from its natural reservoir and to transport them to the surface</li></ul>The contractor shall:<br /><ul><li>perform all activities at its own cost and risk
  89. 89. obtain all required permits
  90. 90. indemnify the ANH free of any liabilities
  91. 91. observe best oil industry practices
  92. 92. procure national good and services when possible, under equal conditions</li></li></ul><li>Legal framework<br />Contract generalities<br />Main contract provisions<br />Special TEA Contract<br />Common aspects of E&P and special TEA contracts<br />
  93. 93. Contract duration and stages<br /><ul><li>Duration: 30 years
  94. 94. Exploration: 6 years
  95. 95. Production: 24 years
  96. 96. Exploration period
  97. 97. Two phases of 36 months each.
  98. 98. The first phase is mandatory.</li></li></ul><li>Notice of discovery and evaluation program<br /><ul><li>Presence of hydrocarbons shall be notified within 4 months following any discovery
  99. 99. Evaluation program must be submitted within six (6) months after notice of discovery
  100. 100. Maximum duration of evaluation is one (1) year, with possible extensions:
  101. 101. 1 additional year when exploratory wells are included
  102. 102. 2 years in case of natural gas or heavy crude diescovery</li></li></ul><li>Production period<br /><ul><li>Up to 24 years
  103. 103. Starts after declaration of commerciality and submission of development plan
  104. 104. Possible extension, subject to conditions</li></li></ul><li>Economic terms<br />Standard:<br /><ul><li>Royalties
  105. 105. Use of subsoil (to cover administration costs)
  106. 106. Participation in high prices
  107. 107. Technology transfer</li></ul>Plus: share of production offered in bidding round<br />
  108. 108. Economic terms<br />
  109. 109. Royalties<br /><ul><li>Paid monthly
  110. 110. Applied to gross average volume of production by field
  111. 111. Paid in cash or kind at ANH’s choice</li></ul>Production % (per field)<br />For light crudes<br />25%<br />20%<br />8%<br />600<br />400<br />5<br />125<br />Production Level<br />(1,000 boe/day)<br />
  112. 112. High price participation (oil)<br />A share of production (Q) equivalent to the established percent (S) of the part of the average monthly reference WTI price (P) that exceeds a base price (Po), divided by the average monthly reference price (P) <br />– applies after cumulative production reaches 5MMBls<br />table 1<br />Where:<br />P = WTI monthly average price (in USD)<br />Po = Base price (in USD) [table 1]<br />S = established percentage [table 2]<br />table 2<br />
  113. 113. Illustration<br />For API gravity = 20° -&gt; Po = USD 34,6 <br />Q(%)<br />50<br />40<br />34<br />27<br />17<br />P (WTI)<br />4P<br />0<br />34,6<br />69,2<br />103,8<br />138,4<br />173,1<br />o<br />5P<br />P<br />P<br />2P<br />3P<br />o<br />o<br />o<br />o<br />o<br />
  114. 114. High price participation (gas)<br /><ul><li>Applies after the 5th year of production of gas for export, when the Henry Hub reference price exceeds the base price (Po).
  115. 115. Participation in production (Q) is equivalent to:</li></ul>Where:<br /><ul><li>P = Henry Hub Price, and
  116. 116. Po = Reference base price (see table)
  117. 117. S = Participation percentage (same as oil)</li></li></ul><li>Confidentiality of information<br /><ul><li>All technical information must be submitted to the ANH as it is produced (includes data interpretation and reports)
  118. 118. All information subject to confidentiality agreements:
  119. 119. Data : 5 years
  120. 120. Interpretation and analysis : 20 years</li></li></ul><li><ul><li>Legal framework
  121. 121. Contracts general information
  122. 122. Exploration and Production Contract
  123. 123. Special TEA Contract
  124. 124. Common aspects of E&P and special TEA contracts</li></li></ul><li>Special TEA Contract<br />Technical Evaluation Agreement<br /><ul><li>Object:</li></ul>The conduct of technical evaluation activities for the selection of a prospective areas for an E&P contract<br /><ul><li>Duration: thirty six (36) months
  125. 125. Economic terms:
  126. 126. Surface fee</li></li></ul><li>Special TEA Contract<br />Technical Evaluation Agreement<br />Appraiser´s rights:<br /><ul><li>Reservation of extensive area to carry out technical evaluation activities
  127. 127. Selection of one area for an E&P contract
  128. 128. Exclusivity period until selection of an E&P contract, or end of term
  129. 129. Third parties may nominate areas for E&P contracts within TEA area after exclusivity is lifted</li></li></ul><li>Special TEA Contract<br />Technical Evaluation Agreement<br />Additional rights:<br /><ul><li>Matching of one third party proposal for an E&P contract, after exclusivity is lifted, or
  130. 130. Selection of a second area for an E&P contract, waiving its rights to match a third party proposal
  131. 131. Nomination of additional areas for E&P within TEA area</li></li></ul><li>Special TEA Contract<br />Technical Evaluation Agreement<br />Third party rights:<br /><ul><li>Proposing an E&P Contract once exclusivity right has been lifted
  132. 132. Nomination of additional areas for E&P contract
  133. 133. Participation in competitive processes on third party nominations for E&P contract(s)</li></li></ul><li>Special TEA Contract<br />Technical Evaluation Agreement<br />Confidentiality:<br /><ul><li>During the duration of the TEA or,
  134. 134. Until the TEA holder proposes an E&P</li></li></ul><li><ul><li>Legal framework
  135. 135. Contracts general information
  136. 136. Exploration and Production Contract
  137. 137. Special TEA Contract
  138. 138. Common aspects of E&P and Special TEA contracts</li></li></ul><li>Common aspects <br /><ul><li>Right to assign interest to a thrid party
  139. 139. Right to invoke arbitration for dispute resolution
  140. 140. Area relinquishment:</li></ul>Within the first eighteen months of the contract, contractor may relinquish up to 50% of the contract area. <br /><ul><li>Obligation to:
  141. 141. Follow community consultation procedures when required
  142. 142. Obtain environmental license when required</li></li></ul><li>Guarantees<br />Bank letter of credit for:<br /><ul><li>10% of minimum exploratory program
  143. 143. 100% of additional investment
  144. 144. 50% upon signature of the contract
  145. 145. 50% at end of first 18 months</li></ul>-&gt; Additional investment guarantee may be reduced as the value of <br /> activities are credited after their completion<br />
  146. 146. Contract relinquishment<br />Opportunity: within the first 18 months of the first phase<br />Condition: the contractor shall transfer to the ANH 50% of the value of all non-fulfilled activities of the Minimum Exploratory Program and 100% of the balance of additional investmentnotused in exploration.<br />
  147. 147. Contents<br />Colombia<br />Industry background<br />Open Round Colombia 2010<br />Legal aspects and Contracts<br />Communities and environmental priorities<br />
  148. 148. MINISTRY OF ENVIRONMENT, HOUSING AND TERRITORIAL DEVELOPMENT<br />Environmental and Social Priorities<br />Viceministry of Environment<br />
  149. 149. COLOMBIA UN PAÍS MEGADIVERSO<br />COLOMBIA, A MEGADIVERSE COUNTRY<br /><ul><li>Lodges nearly 10% of the planet’s biodiversity
  150. 150. 2nd country with more biodiversity in the world
  151. 151. 1st in species biodiversity by square kilometer
  152. 152. 68,7% of the continental surface is covered by natural ecosystems, including rainforests, grasslands and natural water bodies.
  153. 153. Colombia has 150 sp. of Corals and 2200 sp. marine molluscs.
  154. 154. 61 million ha. of natural rainforest
  155. 155. 2 million ha. of paramos
  156. 156. 16 million ha. of savannas
  157. 157. 24.5 million ha. of dry lands (arid and semiarid)
  158. 158. 2.5 million ha. of wetlands (natural continental water bodies, continental hydrophytes, coastal lagoons, mangrove swamps)
  159. 159. 11,6 million ha. of protected areas.</li></li></ul><li>COLOMBIA, A MEGADIVERSE COUNTRY<br /><ul><li>35 million ha. inhabitated by local communities (Indigenous reservations, Afro-Colombians)
  160. 160. 87 Indigenous ethnics
  161. 161. 3 groups of Afro-Colombian population: San Basilio de Palenque raizals (roots of people), San Andrés, Providencia and Santa Catalina raizals and Afro-Colombian population in general
  162. 162. 1.392.623 Indigenous: 3.43%
  163. 163. 4.311.757 Afro-Colombians: 10.62%
  164. 164. 4.858 town - people “rom” or gipsy: 0.01%</li></li></ul><li>INSTITUTIONAL QUALITIES<br />Environmental National System (SINA)<br /><ul><li>MAVDT: Central Level
  165. 165. 33 CARS: Regional Level
  166. 166. 6 AA: Urban Level
  167. 167. 5 institutes dedicated to environmental investigation
  168. 168. MAVDT has the private competency for the hydrocarbon sector</li></li></ul><li>LICENSING FOR THE HYDROCARBON SECTOR<br /><ul><li>It is not possible to carry out any activity at National Parks.
  169. 169. The permissions for water use, air use and species banned, among others, are implicit on the Environmental Licence.
  170. 170. Environmental Impact Studies are elaborated according with the existing terms of reference.
  171. 171. Any project could be considered by public hearing
  172. 172. The Diagnostic of Environmental Alternatives is request only in the hydrocarbons sector for the tubes transport</li></li></ul><li>Environmental Study of Alternatives<br />ENVIRONMENTAL LICENSING STAGES<br />Ministry time 4.5 months = 18 weeks<br />User’s time<br />0.75 m<br />1.25 m.<br />2 m.<br />2.5 m.<br />Environmental Impact Study<br />Further information<br />Need’s assessment Presentation of alternatives<br />Alternative Selection<br />Visit and evaluation Environmental Impact Study<br />Evaluation of further information<br />Stages<br />3 a 6 m.<br />0.5 a 2 m.<br />Ministry <br />Time<br />1 a 2 m<br />3 – 4 m.<br />8 - 12 m<br />Stage 1<br />Stage 2<br /><ul><li>Less than 5% of the projects carry out stage 1, regarding an Environmental Study of Alternatives (The actual exploration and exploitation projects of hydrocarbons are on the potential oil wells)
  173. 173. Environmental Impact Studies are done by companies simultaneously with the project design.
  174. 174. Total process time at the hydrocarbon sector is 11 months. The user takes 6 months approximately. Source: Oil Colombian Association, 2008.
  175. 175. Prior Consultation and / or Public Hearing are not included</li></li></ul><li>COLOMBIA: WE ARE 50% SEA<br /><ul><li>Marine Areas: 892.118 Km2.
  176. 176. Land Area: 1.139.951 Km2
  177. 177. Coastal line: 3.513 Km
  178. 178. Territorial Water Area: 892.118 km2
  179. 179. Emerged Coastal Area: 15.232 Km2</li></li></ul><li>ENVIRONMENTAL LICENSING PROCESS - OFFSHORE<br /><ul><li>Additionally to the requirements established for the Environmental Licensing, a permission for investigation needs to be asked to the General Maritime Direction (DIMAR).
  180. 180. Terms of reference are available for hydrocarbons exploitation and exploration activities offshore</li></li></ul><li>REGULATORY FRAMEWORK<br />Ministry of Environment, Housing and Territorial Development<br />Ministry of Interior and <br />Justice<br />Act 99 de 1993<br />Act 70 de 1993<br />Decree 1220 de 2005 “Whereby environmental licences are regulated”<br />Decree 1320 de 1998 “Whereby prior consultation with communities (Indigenous and Afro-Colombian) are regulated<br /><ul><li>Enforceability of Environmental Licence
  181. 181. Environmental Studies (DAA y EIA)
  182. 182. Procedure
  183. 183. Process of participation
  184. 184. Requirements
  185. 185. Procedure</li></li></ul><li>PRIOR CONSULTATION – KEY FACTS <br />Ethnic communities should get involved, at least, within the following aspects: <br />Characterization of the area of influence<br />Identification and evaluation of impacts to their culture<br />Definition of management measures that meet the identification and evaluation of impacts. <br />This process should count on:<br />Accompaniment of the Ministry of Interior and Justice<br />Verification from the MAVDT along the process and prior consultation, to be included in the Environmental Licence<br />Colombia has a differents mechanism of civil society participation<br />Stackeholders<br />Public audiences<br />Environmental Observants<br />
  186. 186. ENVIRONMENTAL LICENSING – KEY FACTS<br />Identify if the project requires removal of forest reserve areas. <br />Control of the quality of the environmental studies specifically.<br />Collect primary information during the exploratory stage of the project <br />Fulfill the guidelines of participation <br />
  187. 187. ENVIRONMENTAL LICENSING - HIDROCARBONS<br /><ul><li>At 2010 approximately 400 companies of the hydrocarbon sector, request environmental licenses</li></li></ul><li>THANK YOU<br />
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×