(ANH, 11.Jul.2019) — After more than five years without offers or rounds of new blocks for Exploration and Production of hydrocarbons in Colombia, the new Permanent Process of Area Allocation (PPAA) launched by the National Hydrocarbons Agency – ANH at the beginning of 2019 starts to bear its first fruits with the signing of four contracts, one with Hocol S.A. and three with the Temporal Union Hocol – Geopark, in order to advance activities in the COR-9, LLA104, LLA-86 and LLA-87 blocks, over a joint area of approximately 217,000 hectares.
Luis Miguel Morelli, President of the ANH, pointed out: “This news confirms that President Duque’s commitment to reactivating the hydrocarbons sector is progressing steadily and is part of the results of his first year in office. With the signing of these four contracts, which are part of the 11 that were assigned in the first window of 2019, we estimate investment commitments for more than 158 million dollars, if they are fully developed. Those favored where the Temporal Union Hocol – Geopark, for blocks LLA-104, LLA-86 and LLA-87, and Hocol for the COR-9 block. These are large companies that have shown operational excellence and good exploratory results in the country. For example, Geopark is the second private operator in Colombia with a production of more than 70,000 barrels of oil equivalent per day. We appreciate the commitment of these companies to invest in the country and we wish them success in the development of their commitments”. Rafael Guzmán Ayala, President of Hocol S.A., said: “This Permanent Process of Area Allocation has been a success. The reactivation of the oil and gas industry is evident; and for Hocol, this represents a great milestone. Acquiring these four blocks strengthens our growth strategy, consolidates our portfolio, and also leverages the strategy of the Ecopetrol Group. Likewise, we celebrate our partnership with Geopark, one of the leading E&P companies in Latin America”.
For its part, Marcela Vaca Torres, Legal Representative of the Temporary Union Hocol – Geopark and President of Geopark Colombia, said: “We thank the ANH for the reactivation of the Process of Area Allocation, the first step to guarantee national energy self-sufficiency. We are excited to lead an ambitious exploration program with Hocol, which will result in the expected increase in reserves for the country.”