The president of the National Hydrocarbons Agency (ANH), Orlando Velandia, provided details to Rate Analitik about How the process changed so that companies can cancel an oil and gas contract in Colombia I return their areas to the State for environmental effects.
“In article 7 of Agreement 2 of 2017 we had established that: when, by provisions of competent authorities, environmental restrictions were established that entirely affected compliance with the oil and/or gas exploratory obligations in a contract, it could occur. the possibility of terminating the contract by mutual agreement,” said the official.
But he highlighted that this rule, next, said: “when these restrictions were not total (100%), but rather a large percentage, conditions were established to determine – under certain aspects – whether or not it was viable to terminate the contract”.
According to Velandia, this had not been regulated. “Unfortunately, since 2017, that had been left like that and what we did was find an expeditious mechanism and it was in Resolution 301 of 2024 of the ANH”.
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In this regulation, the National Hydrocarbons Agency establishes the mechanism and procedures necessary to evaluate those conditions – coming from a competent authority – that limit the area given to carry out the exploration.
“And, under certain criteria and information, The ANH can evaluate them and sit down with the contractor to terminate that contract.. Completing a hydrocarbon contract was almost a milestone in this country, but, if the agreement is voluntary between the two parties, we must look – under certain circumstances – at how to finalize it by mutual agreement,” said the president of the ANH.
It must be said that this contract would not be 100% forgotten, This opens the possibility for the company to transfer its investments; In effect, no longer in the delivered area – due to its environmental restrictions – but could take advantage of other agreements – already pre-established – and migrate its resources – if the contractor wishes – or, ultimately, terminate the obligation.
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It is worth mentioning that This does not apply, specifically, to the suspension of contracts.. “Normally the suspension occurs because we are pending environmental or social licensing; On the other hand, in this case of termination of contracts it applies because there has already been a ruling from the competent authority that says ‘in short, such a company cannot advance its operations in a specific area’: there the contract ends.”
*This interview took place within the framework of the ACGGP Exploration Convention.
