BOGOTA, Colombia – The Hocol Petroleum Ltd. board of directors has approved the formation of a new company, Ecopetrol Costa Afuera Colombia S.A.S., which will be responsible for exploration and production activities offshore Colombia.
Ecopetrol Costa Afuera Colombia S.A.S. said it will be eligible for the tax, tariff, and other benefits of Decree 2682 of 2014, recently modified by Decree 2129 of 2015, which establishes the conditions and requirements for establishing Permanent Offshore Free Trade Zones in Colombia.
The Colombian Ministry of Trade, Industry and Tourism issued the decrees, which offer a special income tax rate, certain VAT tax exemptions, and other fiscal incentives to promote exploration and production offshore Colombia.
Hocol Petroleum Ltd. is a wholly-owned subsidiary of Ecopetrol SA, which is currently responsible for activity offshore Colombia, as operator and non-operator. Ecopetrol Costa Afuera Colombia SAS is an indirect subsidiary of Ecopetrol SA. It has an authorized capital of COP$2,000,000,000 ($596,313) and subscribed capital of COP$400,000,000 ($119,289).