ENERGY ADVISOR a WEEKLY PUBLICATION of the DIALOGUE October 4, 2019

LATIN AMERICA ADVISOR ENERGY ADVISOR A WEEKLY PUBLICATION OF THE DIALOGUE www.thedialogue.org October 4, 2019

BOARD OF ADVISORS FEATURED Q&A TOP NEWS Nigel Blackaby Global Head, OIL & GAS International Arbitration Group, Freshfields Bruckhaus Deringer Is Colombia Likely Ecuador to Leave Mary Rose Brusewitz OPEC in 2020: Member, Clark Hill Strasburger to Allow Fracking in Energy Ministry Jeffrey Davidow The Energy Ministry announced Senior Counselor, the Andean nation would leave the The Cohen Group the Near Future? 14-member group in January. Jonathan C. Hamilton Page 2 Partner, White & Case Ana Heeren OIL & GAS Managing Director, FTI Consulting Pemex Seeking to Raul Herrera Take Over Drilling Partner, Corporate & Securities Practice, at Talos Energy Arnold & Porter Find: Sources James R. Jones The Mexican state oil firm is Chairman, Monarch Global Strategies pushing to control drilling operations in the area off the southern Jorge Kamine Colombian Mines and Energy Minister María Fernanda Suárez has said that fracking could Gulf coast where Talos Energy Counsel, nearly triple the country’s reserves of crude and gas. // File Photo: Colombian Government. Skadden Arps discovered nearly one billion barrels of crude, amid President Craig A. Kelly Director, Colombia’s top administrative court last month maintained a Andrés Manuel López Obrador’s Americas Int’l Gov’t Relations, temporary suspension on the use of fracking techniques to bid to strengthen the state firm, Exxon Mobil sources said. extract oil and gas. The moratorium on the regulation for the Tyler Kruzich Page 3 Director, Int’l Gov’t Affairs for Q development of unconventional deposits has been in place the Western Hemisphere, since November as part of an ongoing lawsuit that an environmental Chevron OIL & GAS lawyer filed against the energy ministry. What does the decision mean Jorge León Guaidó Needs U.S. Energy Economist, for the case and for companies hoping to start using fracking tech- BP Support to Retain niques in Colombia? What’s next in the legal process, and can regulation Jeremy Martin Citgo: Palacios Vice President, Energy & Sustainability, for fracking be expected anytime soon? Where does public opinion Institute of the Americas on the fracking debate stand, and what steps should Colombia take to Venezuelan opposition leader Juan Guaidó and his allies need Larry Pascal ensure responsible use of the technique? Chairman, continued U.S. support to prevent Americas Practice Group, Citgo’s seizure, said Citgo Chair- Haynes & Boone woman Luisa Palacios. R. Kirk Sherr, member of the Energy Advisor board and Charles Shapiro Page 2 President, president of Clearview Strategy Group: “On Sept. 17, the World Affairs Council of Atlanta Council of State revisited the fracking decision by stating that R. Kirk Sherr the moratorium did not include early stage ‘pilot’ projects, President, A Clearview Strategy Group and a few such pilot projects will likely proceed. Meanwhile, as domestic Mark Thurber crude projection has declined to around 900,000 barrels per day (bpd), Partner, Hunton Andrews Kurth the Colombian government has made the fracking issue mainly one of Jose L. Valera dire economic necessity. Colombian officials point out the significant Partner, impact to the Colombian economy that would result if fracking did not Mayer Brown LLP advance (thus limiting new reserves and production). Oil is the country’s Lisa Viscidi Program Director, number-one export, and Colombia on average has exported well over Inter-American Dialogue 500,000 barrels of crude oil per day since 2011, earning over $10 billion per year recently. Fracking development would take place far from Bo- gotá, but all of the key regulatory, environmental and other administrative Palacios // File Photo: Citgo. Continued on page 3

OIL AND GAS NEWS is to seek a [U.S. executive] order to protect NEWS BRIEFS Venezuela’s assets abroad,” he said, Reuters Venezuela’s Guaidó reported. Meanwhile, in a ruling on Monday, a Oil Spill Contaminates U.S. appeals court lifted an impediment that Beaches Along Coasts Needs U.S. Support to had frozen efforts by defunct Canadian gold miner Crystallex to take control of Citgo, The of Eight Brazilian States Retain Citgo: Palacios Wall Street Journal reported. The U.S. Court of A mysterious oil spill has contaminated Appeals for the Third Circuit’s decision allows beaches across the coastline of eight Brazilian Venezuelan opposition leader Juan Guaidó Crystallex to resume attempts to seize Vene- states, the country’s environment agency said needs more support from the administration of zuela’s 100 percent ownership stake in Citgo last Friday, Reuters reported. The spill has af- U.S. President Donald Trump in order to retain as compensation for a $1.4 billion government fected 3,000 kilometers of coastline on Brazil’s control of state oil company PDVSA’s U.S.- debt. [Editor’s note: See related Q&A in the northeast region, with oil-coated birds and sea based refiner Citgo, Citgo Chairwoman Luisa Aug. 30 issue of the Energy Advisor.] turtles washing up, according to environmental Palacios said Wednesday at a conference at agency Ibama. The origin of the spill is still the Inter-American Dialogue in Washington. Ecuador to Leave unknown, although authorities have ruled out Guaidó, whom dozens of countries recognize Brazil’s offshore oil exploration activity as the as Venezuela’s legitimate interim president, OPEC in 2020 in Bid source of the spill, the agency said. earlier this year named a board of directors of Citgo, effectively wresting control of the to Boost Oil Revenue company from Venezuelan President Nicolás Costa Rica to Run on 98% Maduro’s government. Since then, Guaidó Ecuador will leave the Organization of the Pe- and his allies have been fighting to avoid the troleum Exporting Countries, or OPEC, in Janu- Renewable Energy for ary in a bid to increase its revenue from crude Fifth Straight Year: Gov’t oil sales, the country’s Energy Ministry said on Costa Rica is to generate more than 99 percent A payment on PDVSA’s Tuesday. The Andean nation has not been com- of its energy from renewable sources this year, plying with OPEC quotas as it looks to boost 2020 bond is due Oct. 27. marking the fifth consecutive year that the crude oil production, which has been around Central American country runs on more than 530,000 barrels per day (bpd) for the past year, 98 percent clean energy, according to data refiner’s seizure. Most of Citgo’s shares are Bloomberg News reported. In September, Ec- from the National Center for Energy Control, or pledged to holders of PDVSA’s 2020 bond, for uador’s output was ahead of only the Republic CENCE, The Tico Times reported last week. So which the company had put up half of Citgo of Congo, Gabon and Equatorial Guinea in the far this year, 67.5 percent of Costa Rica’s elec- shares as collateral. The remaining shares are 14-member group. Since January, OPEC, Russia tricity came from hydropower, 17 percent from pledged to Russian state oil company Rosneft and other producers have implemented an wind, 13.5 percent from geothermal sources, as collateral. In May, the Venezuelan opposi- agreement to reduce output by 1.2 million bpd, 0.84 percent from biomass and solar panels, tion made a $71 million interest payment on a pact that OPEC+ renewed in July until March and 1.16 percent from backup plants. the 2020 PDVSA bond to prevent creditors from 2020. “The decision is based on the issues and seizing Citgo, one of the Andean nation’s most internal challenges that the country must take important assets abroad. However, another on related to fiscal sustainability,” the ministry $913 million payment on the 2020 bond is due said in a statement, without providing further Int’l Arbitration Tribunal Oct. 27. If the opposition fails to make the pay- details, Reuters reported. “This measure is Rules Ecuador Must Pay ment, creditors could attempt to seize the U.S.- in line with the national government’s plan $471.8 Million to Perenco based company. Palacios said Wednesday that to reduce public spending and generate new the Trump administration’s backing had been income,” the statement added. The government An international arbitration tribunal has ruled key for the opposition to retain control of Citgo. of President Lenín Moreno is struggling with that Ecuador must pay $471.8 million to French However, she called on continued support tight liquidity due to a large fiscal deficit and oil firm Perenco for violating a bilateral invest- from the U.S. government, saying it would be foreign debt load, according to the report. ment deal, the local attorney general’s office “contradictory” to not try to “save Citgo from Ecuador joined OPEC in 1973, suspended its said, Reuters reported. In the same ruling, the shareholders” after all that was done to save membership in 1992 and rejoined in 2007, El International Centre for Settlement of Invest- it from Maduro’s control. Her remarks echoed Comercio reported. The country will “continue ment Disputes’ tribunal asked Perenco to pay a statement Guaidó made earlier this week. to support all efforts that seek to stabilize the to Ecuador some $60.7 million for environmen- “We’re going to need help, and the first thing world oil market,” the ministry said. tal damages in the oil blocks it operated in the Andean nation, according to the report.

Pemex Seeking to FEATURED Q&A / Continued from page 1 controls take place in the capital—compare with its pilot projects, one can be optimistic Take Over Drilling at the United States, where a complex web of that indeed this seems to be the case. The Talos Energy Find both state and federal regulations applies, challenge is whether other stakeholders are and many states were ahead of the federal willing to follow a similar approach. This Mexican state oil company Pemex is seeking government on various regulatory fronts. is not to dismiss legitimate concerns from to take over drilling operations in the area The Colombian fracking standoff also has communities and environmental organiza- off Mexico’s southern Gulf coast where U.S. strong echoes of the U.S. situation circa tions; however, to opt for a complete ban company Talos Energy discovered nearly one 2010 with the release of the anti-fracking without providing realistic economic alterna- billion barrels of crude two years ago, Reuters documentary ‘Gasland,’ followed in 2013 by tives to the challenges of oil dependency is reported Monday, citing two former Mexican the pro-fracking documentary ‘FrackNation.’ not a viable strategy. Additionally, Colombia energy officials and two company executives Misstatements by both the pro-fracking has had past oil bonanzas, and, unfortunate- with knowledge of internal Pemex discussions. and anti-fracking sides often obfuscate a ly, we have not used them properly. In many The discovery in 2017 marked the first find sensible middle ground. Further complicat- cases, the communities have paid a heavy by a foreign firm since Mexico’s oil industry ing matters, the fracking debate continues price. We are a country addicted to oil reve- was nationalized nearly 80 years earlier. Now, to evolve and now includes a robust focus nues but with modest oil reserves. We must Pemex is reportedly looking to run the drilling on the methane impact on climate change. find a way to reduce our fiscal dependency operations amid President Andrés López Ob- In the end, Colombia’s fracking debate will on oil. So, if we are going to accept the risks rador’s push to strengthen the state company. not disappear and may even complicate associated with the use of this technique, His predecessor, Enrique Peña Nieto, oversaw Colombia’s desire to be a perceived as an we must ensure that the benefits to society an energy reform that ended Pemex’s monop- environmental leader.” are there, too. I hope we can learn from our oly and opened the country’s energy sector past mistakes.” to private companies’ participation, Reuters Roger Tissot, independent reported. Talos found oil in a shallow-water energy economist: “The Council Enrique Ortiz, program director field, which it dubbed Zama. Pemex could have of State has clarified its Sept. at the Andes Amazon Fund: “Co- a potential claim to control over Zama because A 10 decision: the moratorium on lombia is at a crossroads. The it has drilling rights to an adjacent field, and the fracking continues, but Ecopetrol’s proposed A country’s dwindling oil reserves oil deposits most probably extend into Pemex pilot projects can still go ahead. The gov- are projected to end by 2021, concluding territory, though the firm has not yet proved ernment and the industry have highlighted more than 30 years of self-sufficiency. As that, according to the report. “If Pemex does the urgency of going ahead with the use a result, the government has started an end up operating it, that would not send a good of the technique because of the decline aggressive plan to attract investments, signal to private investors,” one executive from in reserves. Without fracking, they warn auctioning 59 blocks for exploration. an oil major with several offshore projects in of significant negative economic impacts: President Duque’s pro-business government Mexico told the wire service. Neither Pemex a loss of export and fiscal revenues, and has brought optimism to the energy sector. nor the Energy Ministry responded to Reuters’ Colombia becoming a net importer of oil. Oil However, its most promising hope relies on requests for comment. Last month, Talos represents an important share of the coun- unconventional sources of shale oil and gas. received a two-year contract term extension try’s export and fiscal revenues. Moreover, It is estimated that fracking would more than and regulatory approvals for additional explo- industry experts have mentioned the insignif- triple Colombia’s reserves, assuring energy ration activities on Block 7, which is located icant level of risk of water contamination or security for the next 30 years. However, a in the offshore part of Mexico’s Sureste basin, earthquakes, citing many studies. There is a high court decision withholds these plans under its production-sharing contract, World general consensus that if proper regulations by extending a moratorium on fracking. Oil reported. Talos operates Block 7, which are adopted and best practices are followed, The government sponsored an independent includes Zama, in a consortium with partners there should be no reason for concern. multidisciplinary high-level commission Sierra Oil & Gas and Premier Oil. It was the first The challenge is whether the country has report that clearly states the many risks that such extension granted to a private company the institutional capabilities not only to fracking brings. But the report also gave a for offshore exploration in Mexico, according adopt proper regulations, but also to ensure green light to experimental operations—a to the report. [Editor’s note: See related Q&A on that they are properly implemented, and quasi-scientific development of shale oil López Obrador’s plans for the oil and gas sec- best practices are followed. Observing the and gas extraction aiming to provide with tor in last week’s issue of the Energy Advisor.] scientific approach that Ecopetrol proposed informed decisions to the government for Continued on page 6

POWER SECTOR NEWS ADVISOR Q&A Sempra Energy to Sell Interests in Peru Will Colombia’s Controversial Units to Yangtze Tax Reform Be Voided?

Sempra Energy on Monday announced a A tax reform that took effect in inducing more domestic and foreign invest- deal to sell its equity interests in its Peruvian Colombia at the beginning of ment, and shifting the economy’s potential operations for $3.59 billion in cash to China this year is facing a challenge GDP growth permanently higher with higher Yangtze Power International, subject to closing Q in the country’s Constitution- productivity over time, the corporate tax cut adjustments for working capital and net in- al Court. Former Vice President Germán is too timid to make much of a difference. debtedness. The agreement includes Sempra’s Vargas is challenging the reform, saying Even at the eventual 30 percent, it will be sale of its 83.6 percent stake in Peruvian utility procedural errors in the law’s passage last well above the worldwide average of 23 company Luz del Sur and its interest in energy year violate the constitution. The reform percent, or even the emerging market BRICS service firm Tecsur and Inland Energy, Luz del raises taxes on some individuals and re- Sur’s generation business. The deal is expected duces them for companies, beginning next to close in the first quarter of next year, and year. How likely is the reform to be struck it is subject for approval by Peru’s anti-trust down? What would be the consequences for It does appear that authority and the Bermuda Monetary Authority, the government, individuals and compa- there is a strong case the U.S.-based company said. “It directly sup- nies if the Constitutional Court invalidates for the court repealing ports our mission of building North America’s it? What effects is the tax reform already the law...” premier energy infrastructure company,” Jeffrey having on Colombia’s economy? — David Ross W. Martin, Sempra’s chairman and CEO, said in the statement. “Proceeds from this transaction David Ross, global fund will be used to strengthen our balance sheet manager at La Financière de average of 27 percent. Capital goes where and meet the growing capital needs of our core L’Echiquier in Paris: “A number it is most welcome, and that is still not utilities in California and Texas,” he added. A of changes went into effect this Colombia. As an example, non-oil/non-min- Meanwhile, an active sales process continues year that optimists called a tax reform. It ing foreign direct investment in Colombia for Sempra’s electric business in Chile, which wasn’t. It was a modest shift lower in the fell 38 percent over the last two years, and includes the company’s 100 percent stake in high corporate income tax rates, offset by nothing in these tax rates will change that Chilquinta Energía and Tecnored, MarketWatch a shift upwards in individual tax rates. The trend. Furthermore, it does appear that there reported. Sempra expects to announce a deal effective corporate tax rate of 37 percent is a strong case for the court repealing the in the fourth quarter of this year. went to 33 percent for 2019 and will gradu- law, and if it is repealed, given its unpopular- ally drop to a permanent rate of 30 percent ity, it seems unlikely that the law would be in 2022. Meanwhile, the top bracket for indi- reconsidered, leaving Colombia’s economy in POLITICAL NEWS viduals rose from 33 percent (labor income) a permanently uncompetitive position.” or 35 percent (capital) to 39 percent, which Peruvian VP Aráoz has made it unpopular as the electorate sees their taxes increase. While in theory the low- EDITOR’S NOTE: More commentary on this Resigns Amid er corporate rates should help to structurally topic appears in Tuesday’s issue of the Latin reform Colombia’s economy, allowing its America Advisor. Constitutional Crisis companies to be more globally competitive,

Peruvian Vice President Mercedes Aráoz, resignation letter, which she posted to Twitter. were met for the president to take that action. whom lawmakers had sworn in as the coun- On Monday, President Martín Vizcarra invoked Vizcarra has tried to push through reforms try’s disputed acting president a day earlier, a provision in the Constitution to dissolve including anti-corruption measures, only to see resigned Tuesday. “The fundamental reason for Congress, a move that he said was neces- them stall in Congress. Lawmakers responded my resignation is that the constitutional order sary to break a political impasse. Questions by suspending Vizcarra’s powers and swearing has been broken in Peru,” Aráoz wrote in her remain, however, as to whether the conditions in Aráoz as acting president. However, it was

NEWS BRIEFS unclear whether that action had any effect as brother, Juan Antonio “Tony” Hernández, who it happened after Vizcarra dissolved Congress. stands charged with drug trafficking. Richman Mexico Will Unveil In stepping down on Tuesday, Aráoz cited a did not provide more details about the alleged statement by the Organization of American bribe. The Honduran president is named in Infrastructure Projects to States earlier in the day that said only Peru’s court documents as a co-conspirator in the Boost Economy: AMLO Constitutional Tribunal should decide on the case, but he has not been charged with any The Mexican government will soon unveil a se- legality of Vizcarra’s dissolution of Congress. crime. The president’s office strongly denied ries of major infrastructure projects designed Aráoz said there were not “the minimum Richman’s allegation in a statement posted on to lift the economy, President Andrés Manuel conditions to exercise the charge given to me Twitter. “Any claim the President received or López Obrador said on Wednesday, Reuters by the Congress of the Republic.” She added, agreed to receive money from El Chapo or had reported. The president said some 1,600 “For my entire life and political career, I have anybody receive money for him, is 100% false, projects were under consideration to “reactive” always preferred the defense of my principles absurd, ridiculous, Alice in Wonderland crazy,” Mexico’s economy, which did not grow from and legality before by personal interests or my the office said. Last week in a speech at the the first quarter to the second. The investment popularity as a politician. I am convinced that United Nations General Assembly, President package includes projects worth more than in Peru we have millions of citizens who want Hernández said criminals were responsible for $400 billion over the course of López Obrador’s to construct solid and independent institutions, the allegations against him. “Because of my 2018-2024 term, two sources told Reuters. and the manner to do so is by defending them.” struggle against organized crime, I am the vic- Aráoz added that she hoped her resignation tim of a smear campaign led by drug traffick- would lead to a general election as soon as ers, gang members, corrupt and purged police, possible. Shortly after ordering the dissolution confessed killers, colluding businessmen who Chinese Companies of Congress, Vizcarra received the support of finance these criminals, and politicians,” he Finish Construction of the leaders of Peru’s armed forces and police, said. Argentina Solar Plant BBC News reported. Some 2,000 Peruvians took to the streets in Lima and other cities in Chinese companies have completed construc- a show of support for Vizcarra. The standoff ECONOMIC NEWS tion of a 300-megawatt (MW) solar plant in may last for several more days. Congress plans northern Argentina, the largest such project in to meet again on Friday to consider a motion the South American nation, Chinese state news to dismiss Vizcarra altogether. Meantime, House Democrats agency Xinhua reported Wednesday. The solar Vizcarra issued a decree, setting Jan. 26 as the farm has a total installed capacity of 315 MW ‘Making Progress’ date for fresh legislative elections. Lawmak- and a contract value of $390 million. Chinese ers elected on that date would serve out the on USMCA: Pelosi firms PowerChina and Shanghai Electric Power five-year term of the dissolved Congress, which Construction had jointly won a tender to build lasts until 2021. Until then a congressional Democrats are “making progress” on the it, Xinhua reported. State-run Import-Export commission comprised of 27 lawmakers is to trilateral trade deal between the United States, Bank of China financed 85 percent of the handle legislative duties Mexico and Canada, known as USMCA, U.S. project. House Speaker Nancy Pelosi (D-Calif.) said Wednesday, CNBC reported. However, she said Prosecutor Alleges ‘El Democrats needed more assurance before Former Salvadoran Chapo’ Gave $1 Mn to ratifying the deal. “We want to be sure that as Justice Minister Arrested we go forward, we are strengthening America’s Hernández’s Brother working families and our farmers, who are very Former Salvadoran Justice Minister René Ma- affected by this,” Pelosi said at a news confer- rio Figueroa has been detained in connection Mexican drug lord Joaquín “El Chapo” Guzmán ence alongside House Intelligence Committee with a money and asset laundering investiga- gave $1 million to the brother of Honduran Chairman Adam Schiff (D-Calif.). “We’re on a tion, prosecutors said Wednesday, the Asso- President Juan Orlando Hernández, a bribe that path to yes,” she said. While Pelosi talked to ciated Press reported. Authorities searched was intended to go to the president to buy pro- reporters, U.S. President Donald Trump blasted Figueroa’s home but could not find him. He tection for shipments of illegal drugs transiting the House speaker, saying her interest in work- later turned himself in, telling reporters he was the country, a U.S. prosecutor alleged Wednes- ing on the USMCA is “just camouflage for trying innocent. Figueroa was justice minister during day in a New York courtroom, The Wall Street to win an election through impeachment.” Pe- the government of President Tony Saca, who Journal reported. Prosecutor Jason Richman losi has denied that Democrats are unwilling to was sentenced to 10 years in jail for diverting made the claim during opening statements approve USMCA for political reasons, instead $301 millions in government funds. in the trial of the Honduran leader’s younger insisting the deal needs enforceability.

FEATURED Q&A / Continued from page 3 LATIN AMERICA ENERGY ADVISOR is published weekly by the Inter-American Dialogue Copyright © 2019 commercial production (PPII is the acronym term, such as regulatory adjustments, work- in Spanish). This report highlights the many ing with local communities, citizen participa- Erik Brand problems Colombians have with fracking: tion mechanisms, risk identification and the Publisher [email protected] mistrust in the government and its consulta- development of baselines in various aspects, tion procedures, insufficient understanding among others. In Colombia, as in many other Gene Kuleta Editor and information on the technique and its po- [email protected] tential health and environmental effects. The Anastasia Chacón González government has stated that, in spite of the Pilot projects also need Reporter moratorium extension, the experimental pilot to comply with several [email protected] projects can go forward. Even with these, it additional conditions remains to be seen if the government will be that are not easy to able to gain the ‘social license’ in a coun- achieve...” Michael Shifter, President try with abundant experiences of related — Inés Elvira Vesga Rebecca Bill Chavez, Nonresident Senior Fellow wrongdoing. President Duque will need to fix Sergio Bitar, Nonresident Senior Fellow previous mistakes, develop an appropriate Joan Caivano, Director, Special Projects regulatory framework and carry on a public countries, there is strong opposition to the Michael Camilleri, Director, Rule of Law Program discussion on what fracking would mean for use of the technique because opponents Kevin Casas-Zamora, Nonresident Senior Fellow Colombia’s future.” believe that its impact on the environment is Héctor Castro Vizcarra, Nonresident Senior Fellow catastrophic and irreversible. Opponents of Julia Dias Leite, Nonresident Senior Fellow Inés Elvira Vesga, senior coun- fracking have campaigned strongly in that Ariel Fiszbein, Director, Education Program sel at Holland & Knight: “The regard. Colombia is acting prudently by hav- Peter Hakim, President Emeritus Council of the State decided to ing formed a Committee of Experts that has Nora Lustig, Nonresident Senior Fellow maintain the suspension of the already given its opinion and by promoting Margaret Myers, Director, Asia and A Latin America Program demanded norms that contain the technical the pilot projects, but the requirements to regulation for fracking. As a consequence, carry out the projects are demanding and Manuel Orozco, Director, Migration, Remittances & Development the projects that imply the use of this require a lot of interaction with communities Xiaoyu Pu, Nonresident Senior Fellow technique cannot be advanced while the sus- as well as a clarification of the regulatory Jeffrey Puryear, Senior Fellow pension is maintained. The moratorium does framework. Environmental education is also Mateo Samper, Nonresident Senior Fellow not include pilot projects, but for these, the needed so that communities do not oppose Tamar Solnik, Director, Finance & Administration Mines and Energy Ministry will need to issue the development of projects without foun- Lisa Viscidi, Director, Energy Program new regulations. Pilot projects also need to dation, as well as providing environmental Denisse Yanovich, Director of Development and comply with several additional conditions authorities with enough resources so that External Relations that are not easy to achieve in the short they can exercise the required controls.” Latin America Energy Advisor is published weekly, with the exception of some major U.S. holidays, by the Inter-American Dialogue 1155 15th Street NW, Suite 800 Washington, DC 20005 Phone: 202-822-9002 www.thedialogue.org Advisor Video ISSN 2163-7962 Subscription Inquiries are welcomed at Pressures Building on [email protected] China-Latin America Relations The opinions expressed by the members of the Board of Advisors and by guest commentators do not necessarily A Latin America Advisor video production with represent those of the publisher. The analysis is the sole Margaret Myers, view of each commentator and does not necessarily represent the views of their respective employers or Director of the Asia & Latin America Program firms. The information in this report has been obtained Inter-American Dialogue from reliable sources, but neither its accuracy and completeness, nor the opinions based thereon, are guaranteed. If you have any questions relating to the PLAY contents of this publication, contact the editorial offices of the Inter-American Dialogue. Contents of this report may not be reproduced, stored in a retrieval system, or transmitted without prior written permission from the publisher.