ANH Approves Deal Between Ecopetrol And Shell

(ANH, 24.Dec.2020) — The ANH approved the entry of Shell EP Offshore Ventures Limited, Colombian branch as operating partner of three Hydrocarbon Exploration and Production contracts in the deep waters of the Colombian Caribbean, through the assignment of 50% interest in each of those contracts, held solely by the Colombian state-owned Ecopetrol S.A.

Highlights

— Col-5, Purple Angel and Fuerte Sur, are the contracts subject to the assignment, which have great potential in natural gas.  

— Shell will contribute its great knowledge and expertise in deep waters for the exploration of border basins. 

These contracts are Col-5, Purple Angel and Fuerte Sur, in which Shell will contribute with its knowledge and experience to face the technical challenges presented by the maritime operation, representing a great opportunity for Colombia to develop its energy potential in a safe and efficient way. 

Reactions

“This agreement, which is the result of the National Government’s review of the Legal Regulatory Framework for Offshore Projects, represents new opportunities for the sustainable reactivation of Colombia and for energy security, given the potential in gas, considered the fuel of the energy transition, as it reduces by 40% carbon emissions and 96% particulate matter. In addition, natural gas is an essential service in the lives of Colombians: 8 out of 10 households use it daily,” said the Minister of Mines and Energy, Diego Mesa. He added that the development of these reservoirs will enable it to boost the Caribbean region as a hub for oil goods and services, generate local employment and contribute to the economy of its coastal cities.

“The ANH has developed studies that indicate the important presence of an oil system in the Caribbean Sea. It is great news for the country that these two important players, Ecopetrol and Shell, are deploying all their knowledge and technology in the development of these border basins,” stated Armando Zamora Reyes, President of the ANH.

“We are very excited about these approvals: They represent a lot for Shell in Colombia and in our path to continue working for energy security and the transition to low carbon footprint energies,” said Ana Duque, President of Shell in Colombia.

About the New Offshore Regulation

On 8 October 2020 the Ministry of Mines and Energy issued the new regulation for Offshore, which ensures the application of best practices and international standards during drilling, intervention and production of hydrocarbons, taking into account technical, operational, process safety and environmental aspects. The new regulation strengthens the requirements in the exploration and production phase. 

The new resources could increase the gas and oil reserves that currently reach 8.1 and 6.3 years respectively. 

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