When C&C Energia discovered that their oil exploration block contained ecological preserves, they gave it back to the government and got out of their commitments to drill the lots. This seems to me like exactly what an oil company should do. The market hasn’t been treating C&C very kindly ever since a May 30 press release. But the real issue here seems to be the government of Colombia. What were they thinking, auctioning off an oil exploration block when, in C&C’s words, “several National Ecological Reserves were identified within the block boundaries.”
Note that this site previously covered something vaguely similar. Now, I don’t know, maybe C&C isn’t giving us the whole story. But if they are — wouldn’t it save everyone time and heartache if countries did biological inventories and mapped their protected areas and endangered species before inviting in the oil drills?