Colombia has seen its oil and gas production levels rise steadily in recent years, with oil recovering from a period of flat output prior to 2008 and a gas surplus allowing for exports since 2007.

This was achieved when the Bogota government offered new blocks to operators, made regulatory changes, and improved security considerably.

With access to more acreage came more exploration activity, which led to rising production rates. Increased exploration work is being maintained, and in the last week three, discoveries have been made.

Canada’s Petrominerales Ltd. has flowed oil from the Curito-1 exploration well on the Casanare Este block.

The probe was drilled to a total depth of 3,167 m (10,390 ft) and initial tests were carried out using a progressive cavity pump with oil flowing from four intervals: the Ubaque, Gacheta, Mirador, and Carbonera C7.

“We plan to evaluate the well over a long-term production test to determine the potential size and additional follow-up locations of this new multi-zone discovery,” the company said.

Meanwhile, GeoPark has made two finds on the same block within a week.

The operator flowed oil from the Tua-4 well on its Tua oil field in the Llanos 34 block. The Tua-4 well was drilled to a total depth of 3,432 m (11,260 ft) and a test was carried out using an electric submersible pump in the Gacheta formation at a depth of around 3,280 m (10,762 ft).

During the test, the well flowed at an average of 526 b/d of 11° API oil through a 51 mm choke.

A second test was also carried out on the Guadalupe formation, at a depth of around 3,260 m (10,696 ft)), which flowed 857 b/d of 16.1° API oil through a 19 mm choke.

GeoPark noted that further production would be needed to determine stabilized flow rates from the well and the extent of the reservoir. It added that output from the Tua field, which was discovered in July 2012, was currently averaging around 4,800 b/d.

The second oil discovery came at the Tarotaro-1 exploration well, which lies in Block 34 in the Llanos basin. GeoPark operates the block with a 45% stake.

The well was drilled to a total depth of 3,175 m (10,417 ft) and production testing was carried out at 2,955 m (9,695 ft) in the Guadalupe formation. Oil of 15.5° API flowed at an average rate of 2,239 b/d.

GeoPark has already spudded the nearby Tarotaro-2 well to further appraise the discovery, which is its fourth find since it entered Colombia in 2012.

“GeoPark has identified additional attractive prospects on its Colombian properties and is carrying out a 1520 well drilling program in Colombia in 2013,” the company said.

Oil production

In 2012 Colombia had around 2 Bbbl of proven crude oil reserves, up from 1.9 Bbbl in 2011.

“Colombia’s increasing reserves are a result of the exploration of several new blocks that were auctioned in the last bidding round in 2010. Much of Colombia’s crude oil production occurs in the Andes foothills and the eastern Amazonian jungles. Meta department, in central Colombia, is also an important production area, predominately of heavy crude oil, and its Llanos basin contains the Rubiales oil field, the largest producing oil field in the country,” the US Energy Information Administration (EIA) said.

Colombia produced 923,000 b/d of oil in 2011, up 35% from the 595,000 b/d produced in 2008.

“This rising production trend is continuing. Most recently, the Ministry of Mines and Energy reported that Colombian production reached 951,000 b/d in March 2012, and that production is expected to 1.5 [MM]b/d by 2020,” added the EIA.

“A combination of changes to the regulatory framework and an improved security situation has contributed to increasing investment in the country by international oil companies. Pipelines and other energy infrastructure are still the targets of attacks by anti-government guerrillas, but the number and severity of these attacks is lower than in the past,” the EIA said.

“As a result of these improvements, Colombia reversed the decline in its oil production in 2008 and is now experiencing rapid growth.”

The largest producing oil field in the country is the Rubiales heavy oil field in Meta department. It is operated by Pacific Rubiales and Ecopetrol. Gross production at Rubiales exceeded 124,000 b/d in 2010, up from 37,000 b/d in 2008. Other large oil fields include Cano Limon, Castilla, and Cupiagua.

Gas output

Colombia had proven natural gas reserves of 4.7 Tcf (133.1 Bcm) in 2012, up from 4 Tcf (113.3 Bcm) in 2011.

Most of Colombia’s natural gas reserves are located in the Llanos basin, although the Guajira basin accounts for the majority of current production.

“Natural gas production, like oil production, has been rising substantially in the last few years owing to increasing international investment in exploration and development, rising domestic consumption, and new export opportunities,” the EIA said.

Colombia produced 398 Bcf (11.3 Bcm) of dry natural gas in 2010, while consuming 321 Bcf (9.1 Bcm). Around 57% of the country’s total gross natural gas production of 1.124 Tcf (31.8 Bcm) was reinjected to help enhanced oil recovery projects. In 2007, natural gas production began to exceed consumption, allowing for exports.

Chevron is the largest natural gas producer in Colombia, producing on average 642 Mcf/d (18.2 Mcm/d) gross natural gas and supplying around 65% of the country’s needs.

Chevron and partner Ecopetrol run the offshore Caribbean Chuchupa field in the Guajira Basin, the largest non-associated natural gas field in the country. Chevron also operates the nearby onshore Ballena and Riohacha fields.

The two largest onshore gas fields in Colombia – Cupiaga and Cusiana in the Llanos basin in central Colombia – were acquired from BP by Ecopetrol and Talisman Energy in 2010.

Unconventional potential

Earlier this month, Canacol Energy started drilling for shale oil in the Oso Pardo 1 exploration well on the Santa Isabel E&P Contract in the Middle Magdalena Valley.

Under the terms of agreements between Canacol and ConocoPhillips, Canacol will hold a 30% operated stake in the deep Cretaceous section of the contract, with ConocoPhillips holding 70%. Canacol retains a 100% contractual interest in the shallow Tertiary section of the concession.

Colombia could also contain up to 2.2 Tcf (62.3 Bcm) of the unconventional coalbed methane (CBM) resource, said the EIA.

Drummond has signed contracts with Ecopetrol to extract CBM from both the La Loma and El Descanso mines.

“CBM has the potential to dramatically increase Colombia’s proven natural gas reserves, facilitate greater domestic production, and potentially allow additional exports to neighboring countries,” the EIA said.

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