GeoPark in process of terminating six oil blocks in southern Colombia

Sintana Energy

28/04/2023 14:00

By Oliver Griffin
       BOGOTA, April 28 (Reuters) - Oil and gas company GeoPark
 GPRK.N  has processes underway to terminate contracts for six
oil blocks in Colombia's Putumayo province, the company told
Reuters.
    GeoPark acquired 12 blocks in Putumayo, as well as other
assets in Colombia, when it bought formerly London-listed energy
company Amerisur Resources, in a deal worth around 242 million
pounds (roughly $300 million) and finalized in 2020. 
    None of the blocks now being terminated are producing or
have previously produced oil, GeoPark said in a statement this
week.
    Energy companies are exiting hydrocarbon exploration and
production contracts in Colombia, despite statements from the
leftist government of President Gustavo Petro that they make the
most of existing oil and gas block contracts.
    Petro has pledged not to allow any new licenses.
    GeoPark requested the termination of two of the contracts -
involving three blocks - due to force majeure, the company said.
    For at least two of the blocks, the force majeure situation
was related to security problems, it said, without elaborating
further.    
    Two of the requests for termination are being evaluated by
the National Hydrocarbons Agency (ANH) regulator and two are
being liquidated.    
    Four of the termination requests were made during the
previous government. 
    The ANH "is evaluating the request to terminate some
contracts, the process is ongoing," it told Reuters in a
statement. 
    Exploration on an additional block has been suspended due to
force majeure since 2019, before GeoPark's takeover of Amerisur,
the company added. 
    Earlier this week Reuters reported that U.S oil major Exxon
Mobil Corp (XOM.N) is in talks with the ANH about possibly
recovering investment in a fracking pilot project.
    Exxon has held eight exploration and production contracts in
Colombia, including the fracking pilot. All either have been or
are being ended, suspended or liquidated, the ANH said. 
    Colombia's congress has been preparing to pass a fracking
ban backed by Petro, who took office nearly nine months ago. It
has already passed the Senate and is expected to get final
congressional approval in the coming months.
    There are some 70 hydrocarbon contracts in Colombia which
are either suspended or in the initial phases of development,
Minister of Mines and Energy Irene Velez told Reuters in an
interview last year. 
    "Through governmental institutional management, we can
ensure that the contracts come to fruition," Velez said at the
time. 
     

 (Reporting by Oliver Griffin
Additional reporting by Luis Jaime Acosta
Writing by Oliver Griffin; Editing by Aurora Ellis)
 ((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))