Colombia postpones oil bidding deadlines amid price crash

Colombian hydrocarbons regulator ANH has extended a deadline for companies wishing to participate in its permanent licensing process as the coronavirus pandemic dampens appetite for new projects. 

Interested parties now have until April 3 to present necessary documents, according to the agency's updated bidding schedule. 

ANH is slated to publish the names of pre-qualified companies on April 14 and a definitive list three days later. 

Meanwhile, companies have until May 4 to submit requests for areas to be included in the permanent licensing process, which the regulator will accept or decline by July. 

Additionally, firms that qualified to bid last year will not need to update their information to remain eligible for upcoming rounds, ANH said. 

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

Brent crude futures fell around 4% on Thursday to US$26/b, dragged down by fears of a supply glut. Oil's global benchmark has shed more than 60% of its value this year.

ANH previously said it would stage at least two oil and gas licensing rounds this year: one for high potential offshore and onshore areas and a so-called "B League" auction that includes mature areas ceded by state oil company Ecopetrol. 

Some 26 areas – out of an available 70 – were auctioned in the first two cycles of the permanent offer process in 2019. In addition, ANH assigned five offshore E&P contracts to holders of technical evaluation contracts. Total investment in the 31 blocks awarded is estimated at US$2.23bn.

The auctions ended a five-year oil licensing round hiatus in the country, which relies on crude oil for more than 50% of its export revenue.