Range Resources has announced that a court in Colombia has finally approved the settlement of a dispute over letters of credit (L/Cs) and work commitments in the country.

In 2016, Colombia revoked hydrocarbon licences after the National Hydrocarbons Agency (NHA) said the consortium of Range Resources and Optima Oil Corporation failed to provide it with the correct L/Cs.

Over a year ago Range Resources said it had reached an agreement with the NHA to settle all outstanding claims and disputes between the state-owned hydrocarbons company and the consortium.

Exploration blocks

The consortium was told in 2016 that it would no longer be able to explore for hydrocarbons on three exploration blocks. The licences were awarded to the consortium by NHA in December 2012.

But the agency alleged that the oil firms had not fulfilled their exploration work commitments while Optima presented invalid L/Cs.

Late settlement

Colombia, through the NHA, then sought a US$53 million claim in relation to allegations that work commitments were not fulfilled and that invalid L/Cs had been presented.

A year ago, Range had expected court approval within six months, but this has now only just come through.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.