When one thinks about South American oil giants, one typically doesn’t think about Colombia. The Agencia Nacional de Hidrocarburos (ANH) hopes to change that perception.

The ANH has been on a road show to promote exploration opportunities in Colombia through “Open Round Colombia 2010.” Up for offer are almost 200,000 sq miles (518,000 sq km) of acreage, both onshore and offshore, with three options for companies to participate. Type 1, the minimum exploratory program, requires one well to be drilled within the first 36 months and two more within the next 36 months, or one additional well within 18 months and the relinquishment of 50% of the area. This applies to all basins. The Type 2 option, which applies to the Guajira, Sinu-San Jacinto, Lower Magdalena Valley, Eastern Llanos, and Choco basins onshore and the Los Cayos, Tumaco, Uraba, and Sinu basins offshore, requires exploration surveys within the first 36 months and the drilling of two wells onshore in the next 36 months or one well offshore. The Type 3 option, which applies to some of the same basins as Type 2, requires that the exploratory program should be developed in a single 36-month phase, additional exploratory surveys should be carried out and, in the case of several onshore basins, the drilling of one exploration well within the second 36 months.

Colombia is offering up almost 200,000 sq miles (518,000 sq km) in its latest Open Round. (Map courtesy of ANH)

Colombia’s proved reserves are dwarfed by neighbors like Venezuela and Brazil, but it has considerable hydrocarbon potential. The ANH estimates that the country has 2.5 MMbbl of recoverable oil and 6.9 Tcf of recoverable natural gas. Production of both oil and gas has ramped up considerably in the past couple of years. Exploration activity is also on the rise, and it is estimated that the open round will result in about 360,000 sq miles (932,400 sq km) of land with current production, E&P activities, or technical evaluation agreements taking place. Last year almost 8,000 miles (12,800 km) of 2-D seismic (or its 3-D equivalent) was shot in Colombia.

The ANH also estimates that the open round will result in 88 wildcats being drilled in 2010. The technical success rate of Colombian wells is hovering in the 60% range.

An attractive place to do business

Literature from ANH touts several reasons why operators should invest in Colombia:

• Diverse geology and play opportunities;

• Small to giant field discovery potential;

• Light to heavy oil as well as natural gas;

• Onshore and offshore opportunities;

• A well-established oil services industry;

• Production infrastructure; and

• Access to Atlantic and Pacific import markets.

Additionally, the country has a good business environment, favorable contract terms, competitive licensing rounds, an educated workforce, and access to growing domestic and international markets for oil and gas.

The giant fields that have been discovered to date are primarily sandstone reservoirs and are structural rather than stratigraphic. Field depths range from around 4,000 to about 10,000 ft (1,220 to 3,505 m).

For more information about this open round, visit www.colombiaround2010.com.

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