May 4th, 2020

Despite the fact that the fall in oil prices and the health crisis caused by COVID-19 have severely hit the hydrocarbon industry worldwide, the National Hydrocarbon Agency ("ANH") published on April 28, 2020 the Addendum No 11 through which it modified the schedule of the Permanent Area Allocation Process (“PPAA”), thus ratifying the interest of the National Government in this industry.

Thus, if the dates included in the new schedule are met, by November 30 the new contracts would start to be executed. The schedule, among others, established that the deposit of the final offers will be on October 30, and the interested companies will be able to submit their counteroffers on November 17.
It is worth mentioning that the number of blocks to be offered in this third cycle has not been defined; however, the ANH seeks to have at least 50. The blocks that were not awarded in previous cycles will be part of the areas offered  in this third cycle.

Therefore the schedule is modified in order to: (i) expand the second period for the submission of request for incorporation of areas; (ii) establish the publication date of the areas subject to the PPAA; and (iii) define the dates for the activities included in the third cycle of the PPAA.

Thus, the schedule of the PPAA has been amended as follows:

Filing stage, Assessment of requests for incorporation of areas, and Publication of the areas incorporated into the PPAA:


Filing requests for the incorporation of areas

Permanent - As of 05/31/19

Assessment of the incorporation of areas requests

Permanent - As of 05/31/19


Deposit and Validation of Offers and Counteroffers - Third Cycle


Offer´s submission / Bid bond / Opening hearing


Offer confirmation

10/30/20 a 11/04/20

Publication of the preliminary selection order of the initial offers  


Comments to the initial offers

11/06/20 and 11/09/20

Response to comments, Publication of the declaration of the initial offers and/or Declaration of non-allocation of areas


Counteroffer deposit / Bid bond / Counteroffer opening hearing


Counteroffer confirmation

11/17/20 a 11/19/20

Publication of the preliminary selection order of the most favorable counteroffer


Comments to the preliminary selection order of the most favorable counteroffer

11/23/20 and 11/24/20

Response to comments to the preliminary selection order of the most favorable counteroffer and publication of the most favorable counteroffer.


Exercise of the initial proponent option


Confirmation of the offers submitted by initial proponents

11/30/20a 12/02/20

Publication of preliminary list of eligibility.


Comments to the preliminary eligibility list

12/04/20 and 12/07/20

Response to comments to the preliminary eligibility list and publication of the final eligibility list



Offer and Counteroffers Deposit and Validation Stage - Third Cycle


Allocation of areas for which no counteroffers were submitted


  • Contract execution

As of 11/30/20

Allocation of areas subject to counteroffers


  • Contract execution

As of 12/15/20


For more information regarding the Addendum No. 11 to the PPAA, please click on the following link: 

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