Colombia court ruling on fracking paves way for contracts worth over $500 mln to advance

Parex Resources

08/07/2022 19:54

BOGOTA, July 8 (Reuters) - A decision by Colombia's top
administrative court, which ruled against a lawsuit seeking to
nullify regulations affecting fracking, will allow seven
non-conventional energy contracts worth $517.4 million to move
forward, Mines and Energy Minister Diego Mesa said on Friday.
    Colombia's Council of State on Thursday rejected a lawsuit
that sought to nullify norms regulating commercial exploration
and exploitation of non-conventional energy deposits, including
hydraulic fracturing, also known as fracking, ruling the
regulations legal.  urn:newsml:reuters.com:*:nL1N2YO2VR
    Development of non-conventional energy sources, such as
fracking, are controversial in Colombia, where supporters and
energy companies maintain the practice is crucial for Colombia's
economy and energy self-sufficiency. Critics say it will damage
the environment and bodies of water.
    Though the court suspended regulations for developing
non-conventional energy deposits in late 2018, it allowed
investigative pilot projects to go ahead.
    While Thursday's ruling has no bearing on the pilot
projects, it will allow seven contracts for non-conventional
energy projects in Colombia's Cesar province to advance to the
next step, Mesa said in a video shared with journalists. 
    "The decision made by the Council of State has implications
with respect to seven contracts that were signed between 2013
and 2016," Mesa said, referring to deals signed with coal miner
Drummond and oil companies ConocoPhillips  COP.N  and Parex
 PXT.TO . 
    Neither Drummond nor Parex, which hold four contracts and
one contract respectively, were immediately available to
comment. 
    A spokesperson for ConocoPhillips, which has signed two
contracts, declined to comment on the court's decision. 
    "Those seven contracts go to the environmental licensing
stage," Mesa added.
    Anti-fracking activists decried the court's decision, saying
it would endanger the environment, as well as communities near
fracking projects. 
    Colombian President-elect Gustavo Petro, who takes office in
August, has vowed to block fracking once in office and also
promised to put an end to the pilot projects.

 (Reporting by Oliver Griffin; editing by Jonathan Oatis)
 ((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))