On May 20, 2020, the National Hydrocarbons Agency (“ANH”) published Addendum No. 12 to the Permanent Process for the Allocation of Areas (“PPAA”), in order to define the requirements and procedures to which the companies interested in participating in the Third Cycle of the PPAA, will be subject.
Among the amendments included in Addendum No. 12 of the PPAA are the following:
- EThere will be two ways to participate in the Third Cycle of the PPAA: (i) express interest in unassigned areas of the PPAA in two consecutive cycles; and (ii) requesting the incorporation of areas. Bear in mind that ANH´s delimited areas will not be offered upon the ANH initiative.
- The Letter of Intent and Expression of Interest is included as Format No. 29. By means of said letter, the company already qualified expresses its interest in an area (i) not allocated in two previous consecutive cycles of the PPA; or (ii) for which an application for incorporation is submitted, and therefore undertakes to submit an offer for that area. Failure to comply with the commitment to submit the offer imposes on the interested company the obligation to pay US$ 100,000, in favor of the ANH within 30 calendar days following the date of the offers submission. The qualified company that caused the incorporation of the area to the PPAA and presented the corresponding Letter of Intent, would be the only one with the right to submit an offer for it and to be declared as the initial proponent, if its offer is deemed valid.
- Numeral 6.15 of the terms of reference (“TDR”) is modified in relation to the rules for updating the information determining the qualification, which includes the information submitted to prove their Economic-Financial and Technical and Operational Capacity, by completing the respective forms.
AAdditionally, Addendum No 12 modifies the PPAA schedule, included in section 5.1 of the TDR, to establish that:
a. The publication of the land map with the areas subject to the Third Cycle of the PPAA will be on July 1, 2020.
b. LThe submission of the documents to update the authorization of the companies already qualified will take place between May 20 and August 31, 2020.
c. After the review made by the ANH of the documents submitted by the companies, the final list of qualified companies will be published on September 25, 2020.
d. The submission of the Letter of Intent and Expression of Interest will be made between May 20 and June 17, 2020. The ANH will evaluate such letters in the period between May 20 and June 30, 2020.
e. The publication of the areas incorporated into the PPAA, which request or expression of interest has been submitted no later than June 17, 2020, will take place on August 3, 2020.
f. The offers submission by those who have submitted an application for area incorporation and expression of interest will be on October 30, 2020.
To simplify the identification of the changes introduced in the PPAA, the ANH published a compiled version of the TDRs highlighting the changes in red.
To access Addendum No. 12, the new formats, and compiled TDRs, please visit the following link: http://www.anh.gov.co/Asignacion-de-areas/Paginas/PPAADefinitivo.aspx