Colombia has revoked three hydrocarbon licenses after a consortium failed to provide the correct letters of credit (L/Cs) to the National Hydrocarbons Agency (NHA).

The consortium of Range Resources and Optima Oil Corporation will no longer be able to explore for hydrocarbons on blocks PUT-5, VMM-7 and VSM-1.

Invalid L/Cs

The licenses were awarded to the consortium by NHA in December 2012.

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

Appeal anticipated

The aggregate value of the exploration work commitments for the three licenses amounts to approximately US$53 million.

Under the terms of the agreement with NHA, it is Optima's sole responsibility to complete the work commitments and provide all necessary L/Cs.

The exploration companies are reportedly seeking legal advice on these matters and are expected to lodge an appeal against the decision.

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