(ANH Colombia, 14.Jun.2019) — Colombia’s National Hydrocarbons Agency (ANH) reveals the initial proposals of the seven individual companies and the consortium that start the bid to stay with 11 area in the first cut of the Permanent Process of Area Allocation (PPAA) of 2019.
After the process of validation of offers made by independent auditor, Gestión y Auditoría Especializada S.A.S., the ANH publishes the list of best initial proposals for the 11 areas that remain in dispute in the first cut (auction) of the Permanent Process of Area Allocation (PPAA) of 2019.
According to Luis Miguel Morelli, President of the ANH, “With the publication of the initial proposals for the 11 areas that remain in competition, the bid for the first blocks that the country will assign in the last five years remains strong. The second round of this bid will continue on June 26, when the Counter-Offer Hearing is held. On that day, any of the 22 qualified investors will have the possibility to improve the initial proposal of any of the 11 areas that are of interest to them. As president of the ANH, but above all as a Colombian, I expect a large participation of counter-offers, because with each proposal received the investment grows and the country as a whole benefits.”
Success of the Permanent Process of Area Allocation (PPAA)
One fact to highlight within the new PPAA, which was launched last February by the ANH, is the possibility for investors to propose areas that are of interest to them and that have not been offered by the Agency.
“Among the 22 investors authorized for the first cut of the PPAA, the ANH received 38 requests for the incorporation of areas. These proposed areas will be studied by the Agency, and those that comply will be incorporated into the Land Map as available areas and may be part of the blocks that are offered in the cuts (auctions) planned for the rest of 2019. These areas will be published during the month of August.”ANH President Luis Miguel Morelli
Counter-offer Hearing on June 26
The counteroffers received on June 26 will be validated by the firm Gestión y Audiencia Especializada S.A.S., independent auditor, and on July 8, the National Hydrocarbons Agency will publish the definitive list of the most favorable counter offer for the areas that received proposals. On July 9, only the initial proponents of each area in dispute may exercise the option to improve the respective counteroffer. Finally, on July 16, after validation of the independent audit, the ANH will publish through an administrative act the award of the 11 areas in competition to the best offer reached for each of them. As of July 17, the new contracts will be subscribed.