Permanent area allocation procedure, important news for the country: ACP

The Colombian Petroleum Association (ACP) welcomes the launch of the Permanent Area Allocation Procedure by the Ministry of Mines and Energy and the National Hydrocarbons Agency, which will serve to give a new boost to the hydrocarbons sector.

• Offer of new areas, fundamental to boost the hydrocarbons sector
• Permanent allocation scheme, key for an agile and dynamic process

 

“It is very positive that this competitive process is being launched. After four years without allocating areas, with exploration investments remaining at low levels in recent years, and given the country's need to find new reserves, this is undoubtedly a great opportunity for Colombia,” highlighted the president of the guild, Francisco José Lloreda Mera.

The initial offer of 20 blocks identified by the ANH, within the framework of a permanent allocation scheme, will allow companies to submit their bids to the Authority at any time, injecting greater dynamism into the sector and making the area allocation processes more agile and competitive. “Although some aspects of the procedure are still pending, such as the starting points for minimum investment that will be required, we hope that the pending regulation will be finalized and stable rules of the game will be established that allow us to put Colombia back on the radar of international investment and continue to promote the development of our hydrocarbon resources,” emphasized Lloreda Mera.

It is worth noting that the country has oil reserves for 5.7 years, and gas reserves for 11.7 years, which is why encouraging investments in exploration (onshore, offshore, enhanced recovery, smaller fields, among other geological frontiers) is of great importance to ensure energy self-sufficiency and fiscal sustainability in Colombia.