The National Government has recently announced that it is studying whether or not to deliver new oil contracts. Among the considerations that are taking into account aspects such as environmental and economic aspects that would be impacted by this decision.
(Oil contracts are under review and some will be reactivated).
Although this possibility is being analyzed, the Minister of Mines and Energy, Irene Vélez, said that of those already delivered in the past, the Ministry together with the National Hydrocarbons Agency (ANH) and the Colombian Petroleum Association (ACP) are Reviewing the contracts.
The objective of this is to reactivate 35 of the 380 exploration and production contracts that are on hold due to social problems., according to what was indicated by the head of the portfolio. She said that with respect to oil contracts, the priority is to get them out of the current bottleneck they are in.
Vélez pointed out that putting these blocks into operation would increase the life index of the reserves.
(There are already oil companies stopping their investments in the country).
According to the information published by the ANH, there are 37 current contracts, plus two extensions, that are suspended.
Some of these were suspended in the preliminary phase, although the vast majority were in the exploration phase.
Some of the companies that have these contracts are Ecopetrol, Gran Tierra Energy, Parex, Amerisur or Sierra Col, among other.
This process seeks to give viability to some of these blocks “In order to guarantee the exploratory activities involved in them, as well as the contribution that hydrocarbon contracts that are already in the development and production phase can provide,” Minister Vélez assured.
The analyzes of the portfolio indicate that of the contracts in execution, 29 have been prioritized and if the potential reserves are incorporated, it would be up to 5.6 times the total that is proven.
Likewise, within the surveys carried out by the Ministry and the Agency, 18 were suspended for reasons of social conflict, of which 3 are in the process of prior consultation; another 10 for reasons of public order and 4 for environmental proceedings.
(Why fracking in the US is Ecopetrol’s most profitable business).
The industry has indicated that this is a good first step, although they stress that it is still necessary to launch new rounds for the allocation of areas.
Nelson Castañeda, president of Campetrol, assured that this is good news for the sector. According to the union leader, the feasibility of the blocks will play a fundamental role in maintaining security and energy autonomy, which is added to the industry’s efforts to maintain production levels.
About, Francisco José Lloreda, president of the ACP, also highlighted the initiative of the Ministry of Mines and Energy.
However, Castañeda assured that it is likely that new blocks will continue to be required. He even considered that in the medium and long term, the future of unconventional deposits or fracking projects should be reconsidered. All this in order to maintain autonomy while the country carries out the energy transition in a sustainable way.
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