ANH receives offers for 50 blocks in mini round

Tuesday, Dec 09, 2008

Colombian hydrocarbons regulator ANH received offers for 50 blocks throughout the country in 2008's mini round, the agency said in a statement.

A total of 102 blocks were offered in areas including the Eastern Llanos basin, the Middle Magdalena valley, the Upper Magdalena basin and the Eastern Cordillera region.

Bidding companies offered to invest US$40.2mn above the required investments specified during the round. Total investment in the new areas will reach close to US$346mn.

""Considering the circumstances, we're satisfied with the response from the industry and the confidence they have showed in Colombia,"" ANH director Armando Zamora told BNamericas, adding ANH had been hoping to get at least 50 offers.

""In all of 2008, close to 100 blocks have been awarded with promised investments over US$1bn,"" he continued.

Highest bidders include: Colombia's state oil company Ecopetrol (NYSE: EC); Petroleras Andinas; Petromont; Petroandina Resources; Kinetex; Golden Oil; Geokinetics; Omega Energy; Cepsa; BD Production; Calgary-based Petrominerales (TSX: PMG); NCT Energy; TC Oil & Services; Thorneloe Energy; Winchester Oil and Gas; Montecz; Lewis Energy; Petrotesting; Consorcio Energía Colombia; Cenercol; Petróleos Colombianos; Conequipos; Petropuli; Opica BLC; Morichal Petróleo y Gas; Inepetrol; Technical Integrated Services; Hocol; and Emerald Energy.

The list includes companies from Colombia, France, Argentina, Canada and Venezuela.

Ecopetrol took four blocks in the round including Llanos 4, Llanos 9, Llanos 14 and VMM 6, the state oil company said in a separate statement. The company plans to invest US$90mn in the blocks over the next three years.

The winning companies are expected to sign E&P contracts with ANH in coming months, according to the statement.

The round was the second of the year in Colombia that failed to see all blocks receive offers. Just 22 of the 43 blocks received offers in November for the Colombia round. ANH said at the time it would offer the remaining blocks at a later date.