Press Release

Colombia: Minenergía and ANH review 380 contracts in search of reserves that support the Just Energy Transition

Bnamericas Published: Thursday, November 17, 2022
Colombia: Minenergía and ANH review 380 contracts in search of reserves that support the Just Energy Transition

This Minenergia release was published using machine translation.

During the opening ceremony of the V Summit of Oil, Gas and Energy, the Minister of Mines and Energy, Irene Vélez Torres, explained that the Ministry began the constitution of a technical table together with the National Hydrocarbons Agency (ANH) and the Colombian Association of Oil and Gas (ACP) to analyze 380 contracts and identify the bottlenecks that some that are detained for reasons associated with public order, social conflict and environmental procedures, among others, may have.

"Together with the National Hydrocarbons Agency (ANH) we are carrying out an evaluation of the current situation of the hydrocarbon exploration and exploitation contracts that are currently signed between the ANH and investors in this sector, including Ecopetrol", stated the Minister.

Vélez noted that this analysis also makes it possible to make viable those that are suspended or in the process of termination. "This is 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," he added.

The official said that, within the contracts in execution, 29 have been prioritized, whose materiality could represent the incorporation of up to 5.6 times the proven commercial gas reserves in the country, and that, currently, there are 35 suspended contracts. “32 contracts have the capacity to incorporate prospective resources if exploratory activity is carried out”, explained the Minister.

According to Vélez, the main reasons for suspension of the 32 contracts that have an exploratory opportunity are: 18 are suspended due to Social Conflict (3 are in the process of Prior Consultation and the rest are suspended due to Territorial Planning and community issues); 10 are suspended by Public Order; and 4 are suspended by Environmental Procedure.

For his part, Francisco José Lloreda, president of the ACP, reiterated the importance of guaranteeing Colombia energy security and said that within this scenario it is "fundamental to resume the contracts that are suspended." "The leadership of the Minister is of greater relevance to analyze, with the other entities, which contracts can be unlocked, since there we can surely find reserves that will be useful to Colombia," he added.

At the ACP event, Minister Vélez recognized the support that companies in the hydrocarbon sector are providing to the Just Energy Transition process, with investments in technology and clean energy production projects.

Francisco José Lloreda pointed out that "in the oil and gas industry we are aware of the climate crisis and that is why in our activities we are carrying out adaptation programs to climate change and renewable energy in their operation."

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