One of the new features of this cycle is the offering of 8 areas for TEA contracts, which means that they will be assigned to evaluate the hydrocarbon potential and identify prospects for the eventual signing of an E&P contract.
The signing of new contracts, adding to the 35 that have been signed since 2019, will help increase oil and gas reserves and improve Colombia's energy self-sufficiency.
The National Hydrocarbons Agency (ANH) launched the Colombia 2021 Round that brings 32 new areas to investors, 28 of them offered by the ANH and 4 presented by companies interested in participating in the process for the continued reactivation of the hydrocarbons sector that started in 2019.
"Ten of the areas offered by the ANH are highly prospective for gas and 18 for oil, so the signing of new contracts, which will be added to the 35 signed in the last two years, will contribute to the increase of hydrocarbon reserves and improve Colombia's energy self-sufficiency. In addition, this will attract additional investments to the country and generate new employment opportunities to continue closing gaps in the regions", said the Minister of Mines and Energy, Diego Mesa.
Of the total number of blocks offered by the ANH, 5 are offshore and 23 are in continental areas, located in 9 basins: 4 commercial (Lower Magdalena Valley, Middle Magdalena Valley, Upper Magdalena Valley and Llanos) and 5 in frontier basins (Urabá, Sinú - San Jacinto, Chocó Continental, Chocó Offshore and Tumaco Offshore), i.e., that have been under-explored in the past.
Another new feature of the Colombia 2021 Round is the offer of 8 areas for TEA contracts, which means that they will be assigned to evaluate their hydrocarbon potential and identify prospects to enter into an eventual E&P contract in the future. The remaining areas will be offered as E&P contracts, meaning that they are ready for hydrocarbon exploration and production.
"As a country we enjoy attractive contractual conditions, promising prospects and a new land map with predefined areas for companies to nominate their own blocks, in addition to a great offer from the ANH. Furthermore, we have a modern model for area allocations that seeks to encourage exploratory drilling as a way to increase reserves
and production. The conditions are in place for investors to take advantage of this broad portfolio of opportunities offered by the Colombia Round 2021," said the president of the ANH, Armando Zamora.
In the Colombia Round 2021, blockchain technology will be implemented again for the submission of offers and counteroffers, taking into account the success of the pilot executed in the third cycle. This tool will provide greater transparency and reliability in the process.
The E&P areas being offered by the ANH count with available seismic information and technical, social and environmental characteristics. In addition, a Nation-Territory Coordination and Concurrence Procedure is being developed for each of them in order to facilitate a clear and informed relationship between authorities, communities and operating companies.
The public hearings for the presentation of offers and counteroffers by the companies are scheduled for November and December 2021, so that the signing of contracts for the awarded areas can take place in the last month of this year.
