Colombia’s Auction for Petroleum Exploration Blocks Receives Historic 19 Bids From 7 Producers

After five years without any new signed hydrocarbons exploration and production contracts, Colombia’s ANH (National Hydrocarbons Agency) in charge of the allocation of oil fields for production, achieved a historic success rate of 55% of the areas offered. Two continental blocks, LLA 87 of the Llanos Orientales basin and VIM 22 of the Valle Magdalena basin, were the most desired by investors with three offers received for each one.

According to Luis Miguel Morelli, president of the ANH, “The result of this first bidding hearing for oil blocks in 2019 is excellent news for the country.” Investors showed an appetite for 11 of the 20 areas offered by the agency, reaching a remarkable success rate of 55% of the total postulated placement Seven of the companies qualified to bid presented 19 proposals, whose validity will be verified by an independent audit firm

Bidders:

• • • Frontera Energy
    • Parex Resources
    • Gran Tierra Energy
    • Geopark Colombia
    • Ecopetrol Costa Afuera
    • Hocol
    • ONGC Videsh

The proposals received today will be validated by the firm Gestión y Audiencia Especializada SAS, independent auditor, and on June 13, the National Hydrocarbons Agency will publish the final list of the best initial proposals for each of the 11 areas that received offers and the declaration of unallocated area for those blocks that did not receive a proposal from the investors. These unbid areas may be included in the new auctions scheduled by the ANH later in the year.

The bid process will continue on Wednesday, June 26, when the counter-offer hearing is held, where companies will have the possibility of improving the best initial proposal of each of the 11 areas being actively bid upon. After the validation of counteroffers by the auditing firm, the ANH will publish on July 8 the most favorable counteroffer statement for each of the 11 areas in competition. On July 9, only the initial proponents of each area in dispute may execute the option to improve the respective counteroffer. Finally, on July 16, after validation of the independent audit, the ANH will publish through an administrative act the award of the 11 areas in competition to the best offer reached for each of them. As of July 17, the new contracts will be subscribed.