Offshore exploration, a pending task

Colombia still presents delays in offshore exploratory activities, a situation that negatively impacts the country's development.

 The exploration and exploitation of hydrocarbons are key conditions for local markets to strengthen, maintaining their competitive nature in the eyes of international investors. Efforts must be added to onshore exploration, that is, within the countries, so that offshore exploration has the necessary boost and becomes a real and efficient part of the economies. Unfortunately, Colombia presents a serious lag in this matter.

«It is no secret that offshore exploration is costly, as it involves conducting studies with different scopes in geology and geophysics with the aim of thoroughly understanding the offshore basins classified by the National Hydrocarbons Agency (ANH). Therefore, it is necessary for the State to show a true willingness to carry it out.

In this regard, the recent presentations at forums by the new president of the ANH are very encouraging, who has referred to offshore as a «strategic objective,» explains Diana Sanclemente, senior partner at the firm Sanclemente Fernández Abogados S.A. Figures provided by the lawyer indicate that approximately only one-third of the square kilometers of the offshore basins have been covered by a geophysical intervention process called 3D seismic exploration, which allows evaluating whether hydrocarbons exist in the seabed.

«These studies have been advanced by international exploration and production companies in execution of exploratory commitments, and the results are confidential for a certain period of time according to the respective contract and regulations. Such investigations must be carried out by the ANH as a priority with sufficient advance before any round on offshore blocks, so that companies can acquire state-of-the-art information and study it in order to participate in competitive processes regarding them,» adds Sanclemente. So far, technical studies on the seabed are being conducted through bathymetry, but it must be a state priority to carry out 3D seismic in the remaining two-thirds of the basins that correspond to our country, as well as to encourage exploratory drilling by international companies and Ecopetrol Costa Afuera Colombia S.A.S.

Potential that can be harnessed

The hydrocarbons sector represents an important part of the total income generated for the Colombian economy, so addressing offshore exploration is a fundamental issue.

«It is difficult to determine Colombia's true potential in offshore hydrocarbons until more exploration is carried out. For now, according to the latest drilling, gas findings have been announced,» assures the senior partner of Sanclemente Fernández Abogados S.A.

And she adds that «the exploration and exploitation of hydrocarbons is a long-term endeavor. If the Government wants to catch up, it must direct its efforts towards this issue. Colombia competes for foreign investment, not only in the region but also in the world. If some countries prove to be more competitive than others and demonstrate greater prospectivity, they will attract the flow of those investments. For example, in the region, the focus is offshore in Mexico, Guyana, Brazil, and very recently to the east of the province of Newfoundland, Canada, whose results include record offers for several million dollars, so Colombia must get in tune to avoid falling further behind.».

But, to definitively route into offshore exploration, legal and fiscal stability is crucial, as well as for the State to aim to allow greater agility in obtaining the licenses and permits required to carry out these studies and in bringing in the necessary technology to execute it, since offshore exploration is also affected in the particular case of the Caribbean by the weather, as hurricane season complicates or makes activity impossible. Hence the need to immediately begin these processes. «During the past administrations, there was a high turnover of ministers in the Ministry of Mines and Energy, which prevented continuity in public policies and led to a loss of the learning curve. Although the ANH implemented important measures in light of the low price situation, there was not enough coordination among the different ministries to advance the hydrocarbons sector,» says Diana Sanclemente. The consequences of further delays in these actions could lead Colombia to import crude oil, which would be a severe blow to the national economy.

«Offshore exploration and enhancing hydrocarbons would have positive effects in the country, because there would be more resources for this Government's Development Plan, benefiting health, education, and infrastructure, for example, and the regions to materialize their particular projects. Likewise, Colombia would position itself before foreign companies, which means more investment entering our economy,» says the lawyer.

In all this, law firms like Sanclemente Fernández Abogados S.A. become managers of knowledge and maintain continuity in it for decades. «We also understand the regulatory environment and facilitate the entry of foreign companies interested in exploration and exploitation in their interaction with government entities to enable their development. It is undesirable for Colombia to lose its moment when the possibilities of attracting investment are still viable and of vital interest for generating income and employment for the country,» concludes Diana Sanclemente.