BOGOTA – Colombia will hold a second bidding round to potentially grant contracts to companies interested in exploring non-conventional oil and gas deposits, using techniques like fracking, the National Hydrocarbons Agency (ANH) said.

Colombia to hold bidding round for investigative fracking projects- oil and gas 360

Source: Reuters

Majority state-owned oil company Ecopetrol ECO.CN, Exxonmobil XOM.N, and Drummond already have contracts for investigative projects and may submit offers in this new round, as can other companies, the ANH said in a statement late on Tuesday.

Development of non-conventional energy deposits – including hydraulic fracturing, or fracking, for shale gas – is highly polarizing in Colombia and commercial development of such deposits is currently not permitted.

Each company can be awarded up to two contracts, the ANH said, and a maximum of four contracts will be granted.

“The purpose of the pilot projects is to acquire sufficient scientific information so a decision about the use of hydraulic fracturing can be made, to take advantage of the potential of non-conventional energy sources,” ANH president Armando Zamaro said.

Ecopetrol has already submitted a proposal which is under evaluation, the ANH said, and the schedule for the second round will be published shortly.

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