Colombia extends deadline for E&P bids
Colombia has set new deadlines for the third cycle of its auctions of oil and gas drilling rights as a result of the distruption caued by the COVID-19 pandemic.
The new deadline to present preliminary documents to participate in the next bidding round for exploration and production (E&P) contracts is August 31, according to the country’s hydrocarbons industry regulatory body ANH.
The names of the companies that have been pre-qualified will be published on September 21, and a definitive list of eligible companies will be released four days later.
Expressions of interest from potential participants in the bidding round are due on June 17, with initial bids scheduled to be received on October 30. Companies will then have until November 17 to lodge counteroffers, while the initial bidders can exercise an option to raise their offers on any counter proposals on November 30.
Contracts will be awarded for areas with no counter offers on November 27, and those with counter offers on December 14.
Companies have so far submitted interest in 39 blocks: five of which are offshore and the rest onshore.
The blocks are likely now seen as less attractive given the sharp drop in oil prices, which would dampen the profitability of areas awarded. And as a result of the oil price slump, many operators have cut their expenditure budgets.
