(Energy Analytics Institute, Jared Yamin, 15.Jun.2018) – Colombia’s National Hydrocarbon Agency (ANH by its Spanish acronym) approved the new oil and gas exploration and exploitation contract model for offshore areas.
The contract aims to entice large petroleum companies to make favorable investments in Colombia — especially those made in the most vulnerable regions — through investments and work programs that benefit communities, royalties, economic rights and via a percentage participation in production that favors the state.
“This is great news for the country, given that a good contractual scheme is a fundamental element when it comes to a petroleum company defining its investments. Today, we are more competitive in the proposal to attract large investments,” announced the agency, citing ANH President Orlando Velandia Sepúlveda.“We look for companies with experience, the best technology and a robust financial structure,” he added.
This contractual model, when compared to the previous, represents a great advance in all aspects, and creates a positive environment for companies and investments to remain in Colombia, said Sepúlveda.
The new contractual model applies to operators executing technical evaluation contracts, and companies that have rights to convert contracts into exploration and production contracts, as well as the companies selected in future competitive processes in offshore areas.
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