(ANH Colombia, 26.Jun.2019) — At the end of the Counteroffer Hearing of the first auction of the PPAA, held today, the National Hydrocarbons Agency (ANH) confirmed the allocation of 10 blocks, out of the 11 that were in dispute, and received a counteroffer from Frontera Energy Colombia Ltd. for the VIM22 block, located in the Lower Magdalenta Valley, to compete with Geopark Colombia S.A.S. who presented the best initial proposal for the area.
With this result, the allocation of the 11 blocks represents investment commitments of more than 500 million dollars.
“The balance of today’s auction, in which the National Hydrocarbons Agency celebrates 16 years of operation, is excellent news for the country. As of this moment 10 of the 11 disputed blocks are assigned, contracts that can be celebrated in the next days, and there is still a block remaining in competition whose definition will be known on July 9, depending on whether the initial proponent improves the counteroffer received. In this first auction, investment commitments have been generated for more than 500 million dollars, a figure that, added to the five offshore contracts already signed, exceeds 1,500 million dollars. This result, in the first year of the government of President Duque, confirms the confidence of oil investors in the efforts of this Administration to reactivate the sector and restore dynamism to the national economy.”— ANH President Luis Miguel Morelli said 26 June 2019.
The counteroffer received today will be validated by the independent firm ‘Gestión y Audiencia Especializada S.A.S.’, and on July 8 the National Hydrocarbons Agency will publish its acceptance, or not, as a more favorable counteroffer (best counteroffer). On July 9, only Geopark Colombia S.A.S. can execute the option of improving the counteroffer. That day the winner of the block VIM22, last in dispute in the first auction of 2019, will be known.