Press Release

Colombia has Witnessed 136 Oil and Gas Discoveries Since 2007

October 16th, 2012

Global Information Inc. would like to present a new market research report, "Oil and Gas Exploration and Production (E&P) in Colombia - Market Analysis, Competitive Landscape and Forecasts to 2020" by GlobalData.

Colombia has emerged as one of the most attractive upstream investment destinations, as several discoveries in the country have attracted investors attention. Based on the number of oil and gas discoveries worldwide during 2007 to 2012, Colombia ranked third after Brazil and Australia. Colombia witnessed around 136 oil and gas discoveries during the period.

The figure below shows the standing of Colombia globally in terms of oil and gas discoveries during 2007 to 2012.


In the early 2000s, Colombias oil and gas reserves dropped significantly as a result of a decline in exploration activities due to continued guerilla attacks and a subsequent drop in foreign direct investments in the countrys oil and gas exploration and production sector. In 2003, the government of Colombia initiated restructuring of the countrys hydrocarbon sector, mainly focusing on sector organization, public governance, and fiscal and regulatory regimes redesign. These measures helped the country to attract investments in its oil and gas exploration activities, which led to an increase in discoveries and reserves.

Colombia is Estimated to Have Proved Oil and Gas Reserves of About Three Billion Barrels of Oil Equivalent

According to BP Plcs Statistical Review of World Energy 2012, Colombia was estimated to have proved oil and gas reserves of about 3,024.6 million barrels of oil equivalent (MMboe) at the end of 2011. Since 2006, the countrys proved oil and gas reserves have increased at an Average Annual Growth Rate (AAGR) of 5.7%.

The figure below shows the historical trend of Colombias proved natural gas reserves for 2006-2011.


Of the total proved oil and gas reserves, Colombia had two billion barrels (billion bbls) of proved oil reserves by the end of 2011. The country accounts for 0.12% of the global proved oil reserves. Colombia was estimated to have 163 billion cubic meters (bcm) of proved natural gas reserves by the end of 2011. The countrys proved natural gas reserves were 0.08% of the worlds total proved natural gas reserves.

Oil and Gas Production in Colombia is Estimated to Grow to 627 MMboe by 2020

Oil and gas production in Colombia has grown at an AAGR of about 9.9% over the 2006-2011 period. The countrys total oil and gas production was estimated to be about 400.5 MMboe in 2011. The production is estimated to grow to 627 MMboe in 2020, witnessing an AAGR of about 4.8% over the 2012-2020 period.

The figure below presents the growth of oil and gas production in Colombia since 2006, and estimated production in 2020.


The majority of crude oil and natural gas production in the country is light oil, representing about half of the total production in 2011. Heavy oil currently accounts for about 31% of the countrys total oil and gas production. However, the significance of heavy oil in the countrys oil and gas production has been gaining prominence in the past few years.

The figure below presents the share of light oil, heavy oil and natural gas in Colombias total oil and gas production in 2011.


Pacific Rubiales is Emerging as a Strong Independent E&P Company in Colombia

Besides Ecopetrol, of the top five companies based on production, Meta Petroleum and Petrominerales Colombia Ltd have been rapidly increasing oil and gas production in the country. Meta Petroleum is a subsidiary of Pacific Rubiales Energy Corp, a company with a strong focus on exploration and production activities in Colombia and other countries in the region, such as Peru and Guatemala. Other subsidiaries through which Pacific Rubiales operates in Colombia include Petromagdalena (formerly Alange Energy), Pacific Stratus Energy Ltd, Kappa Energy Company Inc and Maurel et Prom Colombia B.V. (49.99% stake).

In 2011, Pacific Rubiales Energy Corp had an average gross oil and gas production of 218.5 Mboe/d (net production of 86.5 Mboe/d). The companys net production increased by 52% over the net production in 2010. This was driven primarily by increased production from the Rubiales and Quifa SW fields in Colombia.

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