Colombia’s government and the FARC rebels on Aug. 24 announced they had reached final agreement on historic peace accords following nearly four years of talks in Havana. Although Colombian voters must approve the deal in a nationwide referendum, set for Oct. 2, the government says a “peace dividend” could add a percentage point or more to the country’s gross domestic product. How would Colombia’s peace process change the outlook for the country’s energy sector and chances for production gains? Will foreign investors make big bets on Colombia’s oil and gas opportunities, or, in a period of low oil prices, will they seek to invest in more predictable environments elsewhere in the world? Will the energy sector, long a target of pipeline sabotage and severe harassment of its employees, see a more favorable security situation as a result of the accords?
IPD’s John Padilla and Sergio Torres comment. Download the the Energy Advisor to read more.