Australia's Range Resources says it has reached an agreement with Colombia's National Hydrocarbons Agency (NHA) to settle all outstanding claims and disputes between NHA and the consortium of Optima Oil Corporation and the company.

In 2016, Colombia revoked hydrocarbon licences after the NHA said the consortium failed to provide it with the correct letters of credit (L/Cs).

Licences revoked

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.

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.

Acceptable outcome

Range noted that it has worked with its legal advisers and the consortium partners to reach an acceptable outcome.

The settlement agreement confirms that Range and the consortium have no liability for any payments or debts, and that all proposed penalties have been lifted.

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