Newsweek - USA (2019-12-06)

A

ft er fi ve years without assigning

petrol blocks, ANH is reac-

tivating the sector, having signed

16 contracts for exploration and

production, sparking something of a

revolution at the agency.

Colombia is announcing itself among

the most competitive markets in Latin

America – behind regional powerhouse

Brazil – given its political stability com-

pared with its resource-rich but turbulent

neighbors of Venezuela and Ecuador, and

Mexico and Argentina further afi eld.

Colombia produces an average of

about 860,000 barrels of crude per day.

Oil is both its top export and source of

foreign exchange.

Since the election of President Duque

to government, ANH has attracted

millions of dollars, which investors say is

in part due to the country’s robust contract

infrastructure. “Th e thing that makes

Colombia most attractive to us is contract

stability,” said Charle Gamba, the founder

and CEO of Canacol, a Canadian gas

company based in Bogotá. “Th ere’s no risk

of contracts being reneged here.”

Colombia also boasts a wealth of

conventional fuels beneath its soil and seas

that are the envy of competitors due to

their mineral variety – from heavy, light

and medium crudes to gas.

Yet despite its attractiveness to major

players, ANH also provides opportunities

geared towards smaller companies,

off ering oilfi elds located in the country’s

interior. Unlike before, investors can

explore any territory they wish, rather

than relying on concessions only granted

within regions mandated by ANH.

Similarly, changes in procedure mean

that investors now receive assistance

throughout the entirety of the process,

beyond the initial purchase of the

concession. ANH now accompanies

investors through all the secondary

processes required, from environmental

issues to labour practices.

In September this year, ANH

announced that Colombia will have 59

blocks on off er in its next round of oil

bidding, following 11 contracts won by

six companies earlier this year, which the

agency expects will generate approximately

US$500 million in investment.

“Th e off er of blocks in this second

auction is aimed towards ensuring energ y

self-suffi ciency in Colombia, increasing

reserves and generating critical resources

to maintain fi scal and trade balances,” the

announcement statement said.

LUIS MIGUEL MORELLI,PRESIDENT OF THE

NATIONAL HYDROCARBONS AGENCY

Morelli previously served as the governor of the Norte de

Santander department, leaving to join the boards of Canadian

energy companies, before becoming head of ANH.

Offshore is the future

“Off shore is something new for Colombia, and

two companies are really taking a big leap here

• Shell and Noble Energy. For 40 years off shore
  was essentially not happening in Colombia.
  Th ese two companies that we have brought in
  will drill the deepest well on the Colombian
  Caribbean coast.”
  Foresight is key
  “Th e investment will generate employment, get
  the economy moving along, but we need to under-
  stand and foresee the problems that could arise.
  Th e previous government modifi ed the process of
  granting concessions, involving local communities
  and giving them the ability to object to company
  projects. Right now we are looking to reform – to
  democratize the economy – so that we can foresee
  any problems and be more agile.”
  Invest in infrastructure
  “Outside of hydrocarbons, I would love to see more
  investment in transport infrastructure. And within
  our industry, it’s something we notice, because
  in transporting gas it becomes a question of what
  comes fi rst: the chicken or the egg? Do you invest
  in gas exploration fi rst or in its transportation? We
  have learned a lot from our American collaborators
  about how to improve this. And by improving it we
  can improve an entire country.”
  *VUÅPJ[
  “Th e problems Colombia faced were not related
  to politics but to drug traffi cking in places where
  the illegal coca crop is grown. And this can aff ect
  the security considerations of the oil industry.
  We have worked to anticipate these risks and
  generate resources for the regions, which can give
  people an alternative to criminality.”

A REVOLUTION AT COLOMBIA’S

NATIONAL HYDROCARBONS AGENCY

Formed in 2003 to oversee the administration of Ecopetrol, Colombia’s state-owned
petrochemicals company, the National Hydrocarbons Agency (ANH) has swiftly
evolved to become a vital resource for investors of all sizes in an increasingly
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Exploring a bright, sustainable and prosperous future for Colombia

NATIONAL HYDROCARBONS AGENCY | COLOMBIA | anh.gov.co/en-us

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COLOMBIA / SPONSORED SPECIAL REPORT

17 DECEMBER 2018

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