Concludes hearing of counteroffers from the second cycle of the 2019 oil auction

14 assigned areas, and counteroffer from Parex for block LLA124 that improved to double the initial offer from Geopark – Hocol of 12 million dollars 

At the end of the Counteroffer Hearing of the second cycle of the PPAA 2019 auction, held today, the National Hydrocarbons Agency – ANH confirmed the allocation of 14 blocks out of the 15 that were in dispute, and received a counteroffer from Parex Resources Colombia Ltd. for block LLA 124, located in the Llanos basin, to compete against the proposal from the Temporary Union Geopark – Hocol, which presented the best initial proposal for the area. The counterproposal doubled the initial offer, which went from 12 to 24 million dollars, additional resources that benefit the country.

With this result, the allocation of the 14 blocks represents investment commitments exceeding 500 million dollars. According to Luis Miguel Morelli, president of the ANH, «The balance of today's hearing is excellent news for the country. From this moment, 14 of the 15 blocks in dispute are allocated, contracts that can be signed in the coming days, and one block remains in competition whose definition will be known on December 12, depending on whether the initial proponent improves the received counteroffer. In the second cycle of the PPAA 2019 auction, so far, investment commitments of about 512 million dollars have been generated, a figure that could increase if Geopark – Hocol exercises the option to improve the received counteroffer. With these results, added to the 16 contracts already signed this year, we will close this year with 31 signed contracts and estimated investment commitments exceeding 2.712 billion dollars. This result is particularly satisfactory during the first year of President Duque's Government, and reaffirms the confidence of oil investors in the reactivation of the sector, an effort of this Administration to ensure energy self-sufficiency, maintain exchange rate and fiscal balance, and support the growing demand for social investment in the country.».

The 14 assigned blocks, the awarded companies, and the block that remains in dispute, LLA 124, are appreciated in the following infographic:

COUNTEROFFER HEARING AND ALLOCATIONS II CYCLE PPAA 2019

 

The 14 assigned blocks will be confirmed by the ANH to the awardees in the coming days, at which point the contracts will begin to be signed.
In the case of LLA 124, the only block that remains in the bidding, the counteroffer received today will be validated by an independent auditing firm, and on December 11, the National Hydrocarbons Agency will publish its acceptance, or not. On December 12, only the Temporary Union Geopark – Hocol will be able to exercise the option to improve the counteroffer, while the winner of the last block in dispute of the second cycle of the PPAA 2019 auction will be known.

Source: ANH