Oil companies continue to adjust their operations in Colombia

It was recently learned that Geopark intends to cancel the contracts for six oil blocks in Putumayo in which it had not carried out any production activities.

Frontera energy assesses the termination of the Caguan 5 and 6 contracts and on the other hand, after attacks in March this year in Caquet√°, Emerald Energy asked the ANH to suspend its operation in the area for three months, a term expiring on 8 May and that it can be extended.

At the same time, ExxonMobiHe announced his withdrawal from the operations he had in Magdalena Medio under a joint operations agreement with a subsidiary of Santana Energy.

While it is true that some of these business decisions predate the current government and others are more recent, they may in some way influence the policy of getting the most out of current contracts before deciding whether to create new ones. exploration and production contracts are signed.

The chairman of the Colombian Association of Oil and Gas (ACP), Francisco Lloreda, said that the attractiveness Colombia offers for investments in the hydrocarbon sector has changed over the past 10 years for several reasons, one of which is the existence of a more demanding tax regime.

“There are interesting business opportunities in the region, but what we need to do is call on Colombia to have the best competitive conditions so that companies stay in the country, continue to invest and help us develop oil and gas,” said the union leader.

He clarified that this does not conflict with the development of new renewable energy sources that they will be needed.

However, Lloreda pointed out that the sector is very dynamic and it is not surprising that there are investment, divestment and merger processes in general.

Source: El heraldo