IAHL Corporation (IAHL)

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During the WEF in Davos, Irene Vélez-Torres, Colombia’s Minister of Mines and Energy, said: “We decided that we are not going to award new gas and oil exploration contracts […] as part of our commitment to the fight against climate change because we know that this decision, which is planetary, is absolutely urgent. We reviewed existing contracts and it was determined that they would guarantee the national gas supply until beyond the year 2037 and there may even be surplus resources.”

The government’s plan is to “strengthen existing contracts and unlock the suspended ones”, while beginning a “progressive and gradual” energy transition to more renewables and the democratisation of power generation.

This plan is based on a report released last December entitled Balance of hydrocarbon contracts and resources available for the Just Energy Transition, which caused controversy due to the following statement: “It is possible to infer that the contingent resources, both from the Sinú 9 block and from the offshore discoveries, can supply the national demand and, even, produce a surplus in its production until the year 2037. If we take into account the prospective resources this supply can be extended to the year 2042.” In other words, Colombia does not need new oil and gas fields.