Colombia offers respite for crisis-stricken oil firms

Oilfield operators in Colombia will be granted more time to meet contractual obligations as part of efforts to ease the impact of plummeting international prices. 

A draft emergency plan published by national hydrocarbons regulator ANH stipulates that companies can extend deadlines for exploration programs, evaluation activities and declarations of commercial viability. They will also be able to postpone the submission of exploration and development plans. 

ANH said the measures were needed "to mitigate the adverse effects of the fall in international prices and its impact on oil revenues."

Extensions of 12 months will be granted to eligible companies, with the option of an additional six-month deferral if conditions are met. 

Projects cannot be suspended already and the deadlines for which companies are seeking an extension must be due to expire within the next 12 months. 

In addition, spot and future West Texas Intermediate crude prices must be below US$40 at the time of the request. 

The changes come as global energy markets reel from the coronavirus outbreak and a price war between Saudi Arabia and Russia.

Brent crude closed Monday at US$20.09/b, its lowest level since February 2002, hammered by fears of a supply glut. The global oil benchmark has shed around 70% of its value since January .

ANH has released the plan for public consultation, which can be seen here, in Spanish.