Colombian oil and gas auction receives 30 bids for an estimated value of 148.5 million dollars

By Oliver Griffin

BOGOTÁ, Dec 1 (Reuters) – Colombia received offers for 30 blocks from seven companies during its latest oil and gas auction, the government announced on Wednesday, as the South American country seeks to maintain energy self-sufficiency amid a push to develop energy sources. renewable energy.

The offers have an estimated investment value of just over $ 148.5 million.

Colombia has about 6.3 years of proven oil reserves and 7.7 years of gas, so it is seeking to increase them.

The result means that Colombia will exceed its goal of awarding 10-15 oil and gas blocks this year, as well as the goal of President Iván Duque’s government to sign 50 contracts during his term.

“Today we can tell the country that we have complied with 69 areas,” Mines and Energy Minister Diego Mesa said at a press conference in reference to the new tenders and the 39 blocks awarded in previous auctions.

Parex Resources placed more than half of the bids, while Colombian majority state oil company Ecopetrol and its own subsidiary Hocol bid for five blocks.

Other companies that submitted bids were Lewis Energy, Maurel & Prom, Frontera Energy, and CNE Oil & Gas, which is owned by Canacol Energy.

The government offered 28 blocks for bidding before the auction, while the oil and gas industry proposed another 25 areas for consideration.

A total of 17 companies were authorized to participate in the auction.

The oil and gas industry is an important source of income and foreign exchange for Colombia and the Duque government seeks to sign 50 contracts during his four-year term, which ends in August 2022. So far, 39 contracts have been signed.

The offers received reflect an improvement over last year’s auction, when, mired in the coronavirus pandemic, the fourth largest economy in Latin America only signed four hydrocarbon contracts with two companies.

The next stage of the round will be on December 16, when the companies will be able to present counter offers for the blocks that received offers. (Reporting by Oliver Griffin. Translated by Luis Jaime Acosta)

Leave a Reply

Your email address will not be published. Required fields are marked *