(ANH, 1.Dec.2021) — During the Deposit of Proposals Hearing for the fourth cycle of the Permanent Process of Area Assignment (PPAA) Colombia Round 2021, 7 companies submitted bids for 30 blocks, thus consolidating the reactivation of the hydrocarbons sector that the Ministry of Mines and Energy and the National Hydrocarbons Agency (ANH) have been leading since August 2018.
An initial investment of more than $148mn was secured with an award success rate of 56% of the areas proposed by the ANH and the companies, which will continue to contribute towards boosting the country’s economic reactivation. With these 30 offers, the drilling of at least 28 exploratory wells will be guaranteed.
“The reactivation of the hydrocarbons sector in Colombia is a reality. With the success we achieved in the Colombia Round 2021 we close the year with a flourish, reaching 69 contracts signed so far in this Government, allowing us to continue boosting Colombia’s economy and betting on the development of the regions and the closing of gaps. The hydrocarbons sector is fully aligned with the national Energy Transition policy, the fight against climate change and the goal of achieving carbon neutrality by 2050”, said the Minister of Mines and Energy, Diego Mesa.
In the Colombia Round 2021, 27 areas received bids for hydrocarbon exploration and production contracts (E&P) and 3 for Technical Evaluation Contracts (TEA). Parex Resources was the company that submitted the largest number of bids in this new cycle, with 18 areas.
“Colombia Round 2021 showed the benefits of the process and gave companies the opportunity to choose areas as well as be able to learn about the ANH’s offer in under-explored regions. This also demonstrates the confidence of the sector in Colombia, which has an attractive and secure regulatory framework. We hope to receive further investment at the counter-offer proposal hearing,” said Armando Zamora, president of the National Hydrocarbons Agency.
It is also worth noting that the areas are located in the Upper, Middle and Lower Magdalena Valley, Eastern Cordillera, Sinú San Jacinto and Llanos basins, with Casanare and Meta being the departments with the greatest presence of blocks.
What’s Next
On 9 December, the National Hydrocarbons Agency will publish the declaration of initial proposal and/or declaration of non-assignment of areas.
Subsequently, on 16 December, the deposit of the counteroffers on these 30 areas will be made.
Finally, the areas that do not have any counter offers will be awarded on 20 December and those that do have some type of counter offer will be awarded on 17 January 2022.
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