Colombia plans to lower taxes for oil firms to incentivize offshore exploration and production in its waters, according to Reuters.
The aim is to sustain production levels and increase private investment – domestic and from overseas – in an industry that is an important contributor to the country’s balance of trade.
This plan will see contracts for offshore blocks in the Caribbean given 25% discounts on income taxes and exemption from value added tax.
Like other oil-producing nations, Colombia has been feeling the slump in crude prices in the form of declining production.
Canadian firm Pacific Exploration and Production Corporation is the biggest overseas investor in Colombia’s offshore oil industry.