Abstract This chapter discusses the legal and institutional regime for exploration and development of unconventional reservoirs in Colombia; the country's current potential; the advances in public procurement; the authorities' concerns; and the main challenges that the industry is facing. Colombia's current energy policy supports the research, exploration, and exploitation of unconventional reservoirs. This was evident during Round Colombia 2012, when 31 blocks were offered for unconventional reservoirs and five contracts were signed. The development and growth of unconventional hydrocarbon projects in Colombia will depend on the environmental authorities' efficiency analysing, processing, and issuing environmental licences, which requires adequate technical knowledge of the peculiarities of this industry. One of the main challenges facing the authorities and the industry is engaging and educating communities on the technical characteristics of exploration and exploitation of unconventional reservoirs.