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Colombia’s National Hydrocarbons Agency (ANH) cancelled three contracts it had signed with Optima-Range, a joint venture between the UK’s Range Resources and Australia’s Optima Oil Corporation, on Wednesday.

Colombia’s ANH cancels three contracts

BOGOTA, January 15, 2016 – Colombia’s National Hydrocarbons Agency (ANH) cancelled three contracts it had signed with Optima-Range, a joint venture between the UK’s Range Resources and Australia’s Optima Oil Corporation, on Wednesday.

According to the ANH, the joint venture provided “inauthentic letters of credit” in an effort to meet contractual obligations for exploration and production blocks PUT-5, VSM-1 and VMM-7, which the venture had been awarded in Colombia’s 2012 bidding round.

 

In addition to the cancellation, the venture has been ordered to pay USD 54 million to the ANH, and both companies will be excluded from participating in future contracts for the next five years.

Optima Oil Corporation held an 80% interest in the blocks, and Range Resources held a 10% interest, while PetroCaribbean Resources held a 10% share. It is unclear how the cancellation will affect PetroCaribbean’s operations in the country.

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