Colombia has shelved two environmental licensing requests made by oil companies ConocoPhillips and Canacol Energy Ltd. for fracking projects in northern Cesar province, two sources with knowledge of the matter said March 20.
Colombia does not yet allow hydraulic fracturing, known as fracking, but the government says use of the technique could nearly triple Colombia’s oil and gas reserves.
An expert commission convened by the government to study non-conventional exploration methods has recommended strict monitoring of three pilot projects to determine whether the techniques should be widely used.
The companies did not meet minimum conditions for the Piranga project, a source from the licensing authority said, while the Plata project raised possible water protection concerns.
U.S.-based ConocoPhillips and Canada’s Canacol can request to re-open the licensing process for the projects in the future, the source said, adding the decision is not a definitive no.
ConocoPhillips had an 80% stake in the projects and Canacol the remaining 20%.
ConocoPhillips said it was reviewing the decision. A source at Canacol said the company was doing the same.
Several other companies, including state-run Ecopetrol , have applied for fracking licenses.
Recommended Reading
Which Haynesville E&Ps Might Bid for Tellurian’s Upstream Assets?
2024-02-12 - As Haynesville E&Ps look to add scale and get ahead of growing LNG export capacity, Tellurian’s Louisiana assets are expected to fetch strong competition, according to Energy Advisors Group.
EQT, Equitrans to Merge in $5.45B Deal, Continuing Industry Consolidation
2024-03-11 - The deal reunites Equitrans Midstream Corp. with EQT in an all-stock deal that pays a roughly 12% premium for the infrastructure company.
From Tokyo Gas to Chesapeake: The Slow-burning Fuse that Lit Haynesville M&A
2024-03-01 - TG Natural Resources rides the LNG wave with Rockcliff deal amid shale consolidation boom.
EQT, Equitrans Midstream to Combine in $5.5B Deal: Reports
2024-03-11 - EQT Corp.'s deal would reunite the natural gas E&P with Equitrans Midstream after the two companies separated in 2018.
Chesapeake-Southwestern Deal Delayed Amid Feds Scrutiny of E&P M&A
2024-04-05 - The Federal Trade Commission asked Chesapeake and Southwestern for more information about their $7.4 billion merger — triggering an automatic 30-day waiting period as the agency intensifies scrutiny of E&P deals.