Colombian Government Issues 4 New Petroleum Concessions To Parex Resources & Canacol Energy Unit

Colombia’s National Hydrocarbons Agency – ANH signed 4 new contracts today, as a conclusion of the third cycle of the Permanent Area Assignment Process, or PPAA.

Parex Resources and CNE Oil & Gas, a subsidiary of Canacol Energy, were awarded four areas, with associated investments estimated at approximately US$ 40 million.

“The signing of these four contracts, which represent an associated investment of approximately 40 million dollars, are a sample of how the government’s policies for the reactivation of the hydrocarbon sector have worked, because after 5 years without signing new exploration and production contracts, we will close 2020 with 30 new contracts thanks to the Continuous Area Nomination Process. This sector will continue to be the core of the sustainable reactivation as a gateway to investment and employment generation, as well as the fundamental axis of our energy self-sufficiency,” said Minister of Mines and Energy, Diego Mesa Puyo.

Above photo: Rafael Pinto of Parex Resources signs contracts for the third cycle of the PPAA in ANH offices. Photo: ANH

“The result of the third cycle of the PPAA is the reflection of a sector that has remained active and in force, despite the challenges posed by the pandemic and the price crisis and also of the stake that companies like Parex and Canacol have made in the Colombian industry. We already have great expectations for the fourth cycle, the Colombia Round 2021, which will present an attractive offer of opportunities, the revision of the contractual terms and the simplification of the processes,” added Armando Zamora Reyes, President of the ANH.

The first two cycles of the PPAA awarded 26 areas with investment commitments of $950 million dollars. A total of 70 areas were offered, with an award success rate of 37%.

The third cycle completes 30 awarded areas with associated investments of nearly one billion dollars.

The fourth cycle of the PPAA, the Colombia 2021 Round is expected to present an attractive offer of opportunities based on geological knowledge, the redefinition and release of the land map, the simplification of the terms of reference, a more efficient selection process of contractors, done in a joint construction with the industry and other stakeholders.