IAHL Corporation (IAHL)

[Gators12]

Colombian oil and gas regulator ANH is close to publishing new rules that will ease requirements for companies with exploration and production contracts.

In a draft resolution released for public comment in May, ANH proposed a 50% extension to drilling timetables in the first phase of exploration and 100% in the second.

It also opened the possibility for operators affected by force majeure to request changes to the physical boundaries of their licenses.

“The ANH has worked in recent months to fine tune an agreement after reviewing comments from the industry," the agency’s president Clara Guatame said during an energy event in Bogotá.

Among other proposals, ANH has proposed that holders of licenses for unconventional oil and gas deposits may convert their contracts to allow conventional exploration in the same areas.

In addition, unconventional block holders would be free to use the acreage to develop renewable power projects or carbon capture, utilization and storage (CCUS) initiatives.

ANH says the measures will boost the chances of success for existing contract holders and allow the country to reinforce its energy security through the incorporation of new reserves.

"The purpose is to establish criteria that encourage exploration activity," Guatame added.

According to statistics agency Dane, oil and gas accounted for more than a third of Colombia's total export revenue in 2022.