Statement to the public opinion

Regarding the issuance of Decree 328 of February 28, 2020, «By which guidelines are established to advance Comprehensive Research Pilot Projects - PPII on Unconventional Reservoirs (...)”, the Colombian Petroleum Association (ACP), representing the operating companies of the private regime that would participate in these projects, wishes to communicate to the public:

• Colombia has been discussing the development of its unconventional reservoirs for more than ten years. Inaction during those years has created an environment of legal uncertainty detrimental to the country, which, in addition to demanding oil and gas for its consumption, requires the fiscal revenues generated by this industry that are fundamental for the national economy, even more so in a scenario of limited proven oil and gas reserves.

• In this regard, the industry highlights the work undertaken by the current National Government to give a technical and scientific character to the discussion on the use of the Multistage Hydraulic Fracturing with Horizontal Drilling -FH-PH- technique for the development of Unconventional Reservoirs, YNC, through the convening of an interdisciplinary and independent commission of experts, among whose recommendations is to develop Comprehensive Research Pilot Projects, PPII-. The Government's decision to adopt this recommendation and to move forward with the PPII is responsible for the country.

• The PPII will allow generating knowledge to evaluate with technical, objective, and measurable criteria the Multistage Hydraulic Fracturing with Horizontal Drilling -FH-PH- technique and validate the potential of these reservoirs, in addition to strengthening institutional capacity, promoting citizen participation, transparency, and access to information.

• In this sense, Decree 328 of February 28, 2020, is a step in the right direction and allows us to advance. However, for the operating companies, it is important to know and review the entirety of the regulation, most of which is pending issuance, to make investment decisions. The PPII involve approximate investments of US$ 650 million, which is why it is important that the conditions for their implementation exist.

• From the industry, we see a great challenge, which is the articulation in the Government entities to ensure consistency between the Decree and the regulations to be issued, coordination in actions, and compliance with established timelines; therefore, we respectfully call on all State entities to support the PPII, which are of great social and economic importance for the country.

 

In the oil and gas industry, we highlight the importance of the issuance of the Decree that establishes the guidelines to advance the Comprehensive Research Pilot Projects (PPII). This is a responsible decision and of great social and economic importance for the country. pic.twitter.com/I0tWobyxmS

— Colombian Petroleum Association ACP (@ACP_Colombia) March 4, 2020