Page 8 - LatAmOil Week 24 2021

LatAmOil COLOMBIA LatAmOil

“[Ten] of the areas that the ANH is offering have exploratory drilling as a way to increase reserves
great prospectivity for gas and 18 for oil, so the and increase production. Conditions are in
signing of new contracts, which will be added to place for investors to take advantage of this
the 35 signed in the last two years, will contrib- broad portfolio of opportunities offered by the
ute to an increase in oil reserves,” he was quoted 2021 Colombia Round.”
as saying in ANH’s statement. “Additionally, The bidding round was launched at a time
additional investments will be attracted to the of turmoil for Colombia’s hydrocarbon indus-
country and new job opportunities will be gen- try. The South American state has seen pro-
erated to continue closing gaps in the regions.” duction levels sink since late April, when the
ANH president Armanda Zamora also many of the country’s citizens took the streets to
expressed optimism, saying: “As a country, we protest over President Ivan Duque’s economic
enjoy attractive contractual conditions, promis- policies. Duque has since walked back some
ing prospectivity and a new land map with pre- of his most controversial plans, but protesters
defined areas for companies to nominate their have mounted many demonstrations and put
own blocks, in addition to a great offer from up roadblocks that served to disrupt oil and
the ANH. Additionally, we have a modern allo- gas production, processing, transport and field
cation model of areas that seeks to encourage operations. ™

GUYANA
Guyana’s total oil revenues

may top $500mn by year-end

GUYANA’S government may see the balance bring the total amount in the fund up more than
of the Natural Resources Fund, the sovereign $500mn.
wealth fund in which it deposits its share of oil This seems like a reasonable assumption,
export revenues, rise to $500mn or more by the given that Brent crude is currently trading above
end of this year. $74.00 per barrel.
To date, Georgetown has put more than Guyana began producing oil on a commer-
$344mn, the sum of its earnings and royalties cial basis in December 2019, when ExxonMobil
from the four cargoes of oil exported in 2020 (US) and its partners brought the Liza-1 section
and the two cargoes exported in 2021, into the of the Stabroek offshore block on stream. Under
Natural Resources Fund. It may be able to export the group’s contract, the government is entitled
another three cargoes of about 1mn barrel of oil to 50% of the profit oil extracted from Liza-1. It
each before the end of the year. has been selling its share of production with the
Accordingly, assuming that world oil prices help of marketing agents, since the country does
remain at $52 per barrel or higher, these three not have a refinery to process crude into fuel for
cargoes will fetch at least $156mn, enough to the local market.

Guyana’s government exported its first cargo of profit oil last year (Photo: Guyana’s Ministry of the Presidency)

P8 www. NEWSBASE .com Week 24 17•June•2021