Colombia to sign contracts with Canadian companies for four oil blocks

Canacol Energy (Alberta)

17/11/2020 21:44

By Oliver Griffin
    BOGOTA, Nov 17 (Reuters) - Colombia will sign contracts with
two Canadian oil and gas companies for four onshore blocks after
no counteroffers were made during the Andean country's most
recent energy auction, the national hydrocarbons agency (ANH)
said on Tuesday. 
    CNE Oil & Gas, a subsidiary of Canacol Energy Ltd  CNE.TO ,
and the Colombian arm of Parex Resources Ltd  PXT.TO  each
placed two bids in an initial auction at the end of last month.
 urn:newsml:reuters.com:*:nL8N2HK94B
    Since there were no counteroffers, the ANH will sign
contracts on Nov. 30 with CNE Oil & Gas for blocks VIM 44 and
VMM 47, as well as with Parex Resources for blocks LLA 134 and
VIM 43, according to a statement and the agency's press office. 
    The offers are worth an estimated $40 million in total, the
ANH added. 
    "We are very pleased to have received offers in 2020," ANH
President Armando Zamora said, adding Colombia will be able to
continue enjoying the benefits of its underground wealth, as
well as securing self-sufficiency in energy. 
    Some 16 companies originally qualified to bid, in a
difficult year for fossil fuels due to falling demand, high
supply and low prices.  urn:newsml:reuters.com:*:nL1N2HE0XU

 (Reporting by Oliver Griffin in Bogota
Editing by Matthew Lewis)
 ((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))