(Frontera Energy, 24.Mar.2021) — Frontera Energy Corporation, Cenit Transporte y Logística de Hidrocarburos S.A.S. and Oleoducto Bicentenario de Colombia S.A.S. separately announced today that the Office of the Attorney General of Colombia (Procuraduría General de la Nación) has delivered its opinion on the Conciliation Agreement between Frontera, CENIT and Bicentenario. The opinion is favorable, recommending that the conciliation be approved.
As announced by the Company, on 16 November 2020 Frontera, CENIT and Bicentenario reached an agreement for the joint filing of a petition for approval of a conciliation agreement which, upon completion and approval by the competent Colombian court, will resolve all the disputes between the parties related to the Bicentenario Pipeline and the Caño Limón – Coveñas Pipeline, and will terminate all the pending arbitration proceedings related to such disputes. All the Frontera subsidiaries involved in those proceedings are also parties to the agreement, and references to Frontera include such subsidiaries. The terms of the Conciliation Agreement remain the same as previously announced.
Delivery of the favourable opinion by the Procuraduría General de la Nación represents the first of two stages of review of the Conciliation Agreement. If the Conciliation Agreement is approved by the Administrative Tribunal of Cundinamarca, the second stage of the process will be completed, and the parties will be able to complete the settlement arrangement.
Given the favourable opinion delivered by the Procuraduría General de la Nación, recommending that the Conciliation Agreement be approved, Frontera, CENIT and Bicentenario have agreed to extend the deadline for the approval of the Conciliation Agreement from 30 June 2021 to 30 September 2021 or such later date as may be further agreed. If the Conciliation Agreement is not approved by 30 September 2021, then either party will become entitled to terminate the settlement arrangement, and the legal rights of the parties with respect to the disputes will not be prejudiced unless and until the required approval is obtained and the settlement arrangement is closed. There can be no assurance that the required approval will be received on a timely basis or at all.