Historic signing of 15 oil contracts

In a marathon day of contract signing, held at the National Hydrocarbons Agency

WITH 31 EXPLORATION AND PRODUCTION CONTRACTS SIGNED AND INVESTMENT COMMITMENTS OF MORE THAN 2.714 BILLION DOLLARS IN 2019, THE DUQUE GOVERNMENT DELIVERS FOR THE COUNTRY AND TAKES FIRM STEPS IN THE REACTIVATION OF THE SECTOR

In a marathon contract signing event held at the facilities of the National Hydrocarbons Agency - ANH, the awardees of the 15 areas assigned in the second cycle of the Permanent Area Allocation Process (PPAA) of 2019 reaffirmed their commitment to the country's development. These contracts generate estimated investment commitments of around 514 million dollars (see infographic).

According to Luis Miguel Morelli, president of the ANH, «Today's event is historic for the country, as 11 individual investors and four temporary unions agreed to sign their contracts in a single day to reaffirm the industry's commitment to the country's development. For Colombia and for the Government of President Duque, the balance of 2019 is particularly satisfactory. After five years without signing new contracts, we close the year with 31 exploration and production contracts that represent investment commitments of more than 2.714 billion dollars. The reactivation of the sector is advancing steadily, and our greatest effort is now focused on providing the necessary support to investors so that these resources can be executed quickly for the benefit of communities and territories.».

Colombia returns to the oil game

Another good news for the country is that it remains relevant and attractive for oil investment, even though it does not have high prospectivity like some of its continental neighbors such as Mexico, Brazil, or Venezuela. “Under the new Permanent Area Allocation Process (PPAA), in the two cycles that took place this year, a total of 70 areas were offered, including some proposed directly by the ANH and others incorporated at the request of investors, of which 26 became new contracts. This represents a success allocation rate of 37 %, higher than the international average of 30 % for areas assigned by competition. We are back on the investors» radar and we need to capitalize on it soon," concluded Morelli.

For her part, María Fernanda Suárez, Minister of Mines and Energy, stated: “The awarding of 26 blocks in the Permanent Area Allocation Process, and the signing of 5 offshore contracts, in this Government, after five years without signing exploration and production contracts, confirms the reactivation of the sector for the benefit of Colombians. This translates into new job opportunities, estimated investments of more than 2.700 billion dollars, and revenues to continue closing equity gaps in the regions. Hydrocarbons will continue to be necessary for a while, and we must respond to the growing demand for these energy sources while advancing in the energy transformation.».