AHN ends 2019 with the allocation of 14 new oil contracts
The National Hydrocarbons Agency (ANH) confirmed the allocation of 14 oil contracts for equal numbers of the 15 that were in dispute, and received a counteroffer from Parex Resources Colombia Ltd. for LLA 124, located in the Llanos basin, for compete against the proposal of the Geopark – Hocol Temporary Union, which presented the best initial proposal for the area. The counterproposal doubled the initial offer from US$12 million to US$24 million, additional resources that will benefit the country.
With this result, the allocation of the 14 oil contracts represents investment banking commitments in excess of US$500 million.
According to Luis Miguel Morelli, president of the ANH, “The balance of today’s audience is excellent news for the country. From now on, 14 of the 15 disputed blocks are allocated, contracts that can be concluded in the coming days, and there is a competing block whose definition will be known on December 12, depending on whether the initial proponent improves the counteroffer received “.
Each contract represents a new investment for oil exploration.
Morelli added that in the second cycle of the auction, so far, investment commitments of about $512 million have been generated, a figure that could increase if Geopark – Hocol exercises the option of improvement to the counter-offer received.
The year generates exploration commitments for 2,712 MUSD
“With these results, added to the 16 contracts already signed this year, we will be closing this year with 31 agreements signed and commitments to develop investment generation for oil exploration estimated to exceed US$2.712 billion,” he said.
This is how the 14 blocks were allocated:
Oil contracts
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