RE:Colombia’s presidential favorite seeks global coalition to eAnd so the attack on private property begins. Petro said that he proposes taxing fertile, unused land. That's exactly how Chavez started his "socialist revolution" back in 1998 when he was running for president. Once gaining power it went from taxing unused land to state sanctioned right to squat on it. Then it went to outright confiscation by the state. Will Petro stop there? Will he confiscate entire oilfields like they did to ExxonMobil, ConocoPhillips and a few others in Venezuela?
So the Colombian peso is dropping in exchange value as foreign investment tapers off for fear of the socialist agenda. That might be good for fec because their costs are in pesos. They can buy more pesos with their US dollars effictively lowering their cost in US dollar terms.
We'll see how they manage this. No new capex in exploration maybe and turn existing reserves into cash as fast and as profitable as they can. Margins should be great. Lower operating expenses because of falling peso and high hydrocarbon prices in US dollar terms. A great operating model if Petro doesn't pull another Chavez - forcing producers to sell at state dictated prices or price controls, which decimated the private sector in Venezuela. So hopefully fec monetizes their reserves quickly and gets in a position to exit, if necessary.