Duties and challenges of the regulation related to decommissioning and abandonment of oil wells in Colombia

Under Colombian petroleum legislation, certain procedures must be applied when an oil well that has been drilled turns out to be dry or must be abandoned due to mechanical problems. In these cases the steps of physical abandonment, dismantling of facilities and restoration must be fulfilled, a situation that can occur in any of the phases of the contract, leading to a variation in the obligations by the concessionaire according to the activities that must be performed in each phase. The Agencia Nacional de Hidrocarburos (ANH by its acronym in Spanish) is the administrator of the hydrocarbon resource in Colombia and within its functions is the concession aire of the areas for the exploration and exploitation of hydrocarbons. This document highlights the role of the ANH as a contractual subject and responsible for compliance with the contractual obligations between the Agency and the concessionaires as well as the rules and regulations established by law. Liabilities may arise in relation to non-fulfilment of these obligations, which have led to a series of solution mechanisms being devised, according to the special nature of the concession.