Invest in Oil Goods and Services Sector

1. INVEST IN
OIL GOODS AND
SERVICES SECTOR
COLOMBIA IN THE WORLD
Colombia is within the top 20 oil producing countries,
producing over one million barrels of oil. International
Energy Agency, 2013.
Colombia has become the fourth largest oil producer in
Latin America surpassing Argentina, Ecuador, Peru, and
Chile. International Energy Agency, 2013. BP, 2012.
In 2012, Ecopetrol became one of the leading companies
worldwide, ranking as the sixth in the world by market
capitalization. Bloomberg, 2012.
L ib erta
y O rd e n

2. OIL PRODUCTION 2000-2013
3,500
3,000
2,500
2,000
1,500
1,000
500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 JUN.
2013
Venezuela
Peru
Brazil
Ecuador
Argentina
Colombia
Source: BP Energy Outlook 2012, IEA, 2013.
CURRENT SECTOR SITUATION
• Oil accounted for 6% of Colombian GDP in
2012. DANE, 2012.
• The investment in the oil sector accounts for
37% of FDI received in the country. Central
Bank, 2013.
• There was an increase of 77% of daily oil
production from 2007 to 2012. ANH, 2012.
• The Government goals for 2014 include to
explore more than 570 wells and to have more
than 204 contracts of E&P. Mines and Energy
Ministry.
• Leaded by National Agency of Hydrocarbons
(ANH), the Ronda Colombia 2012 presented
positive results after the awarding of 50 blocks,
five related to nonconventional hydrocarbons
and six to offshore fields which will represent
US$2,600 million in exploring investment in
the medium run.

3. INVESTMENT OPPORTUNITIES IN OIL GOODS AND SERVICES
Colombia has a reserve potential of 47 billion of barrels of oil and the PUME1
projections for the next 18 years leads to the increase in the oil reserves of
the country through:
• Secondary recuperation: Increase of secondary recuperation going from
16% to 30%
• Heavy crude findings
• New improvements in nonconventional fields
This scenario creates new investment opportunities in the different stages
of the value chain through:
•
•
•
•
Strategic alliances with local oil goods and services companies
New companies creation
Mergers and acquisitions
Greenfield projects
THE HYDROCARBONS INDUSTRY IN COLOMBIA CURRENTLY HAS THE POTENTIAL TO DEVELOP:
1. Upstream: Exploration and Production
2. Downstream: Transport and Storage
-- Field geology, seismic, and prospective
-- Hydraulic fracturing and stimulation well services
companies
-- Technologies in recovery activities
-- Technologies in discovery and recuperation of
heavy crude
-- Stimulation (hydraulic fracturing) well services
-- Drilling companies
-- Production or import of propante (a fracture sand
which comes from mining fields and is used in
fracturing oil fields)
-- Water injection plants
-- Water treatment plants
-- Reciprocating and centrifugation injection pumps
-- Chemical treatment for the production phase
-- Records and drilling shots
-- Oil transport infrastructure
-- Development of new capacity for hydrocarbons
storage
-- Logistic services and construction of offshore
platforms
-- Handling oil field abandonment
-- Development and construction of oil and gas
tanks
3. Other services
-- Electric power generation with gas for wells
Source: BP Statistical Review of World Energy, January, 2012.
1. Planning Unit for the Mining and Energy Sector.

4. INVESTMENT OPPORTUNITIES BY REGIONS
1. ANDEAN REGION
• Santander: Fourth oil producer with 53,437 BPD. From the Ronda Colombia
2012, 5 blocks were awarded. It has the biggest refinery of the country located in
Barrancabermeja.
• Huila: Sixth oil producer with 36,222 BPD. From the Ronda Colombia 2012, one block
was awarded.
• Cundinamarca: Oil production of 772 BPD. From the Ronda Colombia 2012, one block
was awarded.
3.
2. ORINOQUIA REGION
• Meta: Biggest oil producer in Colombia (461,816 BPD). From the Ronda Colombia 2012,
8 blocks were awarded.
• Casanare: Second oil producer with 166,847 BPD. From the Ronda Colombia, 7 blocks
were awarded.
• Arauca: Third oil producer with 69,193 BPD. From the Ronda Colombia 5 blocks were
awarded.
3. CARIBBEAN REGION
• Bolivar: Oil production of 15,378 BPD. From the Ronda Colombia 2012 one block was
awarded. It has the presence of the second most important refinery in Cartagena.
4. AMAZON REGION
• Putumayo: Seventh oil producer with 35,055 BPD. From the Ronda Colombia 2012, 5
blocks were awarded.
4.
1.
2.

5. Business Network
Due to the increase of oil production over the last years, the investment level from different companies has been growing inside the country.
Here, we can see the top producing companies in Colombia.
• Ecopetrol, Colombia.
361.1 Kbpd
• Equión Energía,
Colombia.
41.8 Kbpd
• Gran Tierra
Energy, Canada.
361.1 Kbpd
• Mansarovar,
China, India.
41.8 Kbpd
• Pacific Rubiales
Energy, Canada.
267.8 Kbpd
• Petrobras, Brazil.
24.1 Kbpd
• Cepcolsa, Spain.
30.1 Kbpd
• Occidental Petroleum
Co, United States.
60.2 Kbpd
• Hocol, Colombia.
361.1 Kbpd
• Perenco Colombia,
United Kingdom.
17.8 Kbpd
Source: Ministry of Mines and Energy of Colombia, 2013.

6. IMPORTANT COMPANIES HAVE CHOSEN
COLOMBIA AS THEIR INVESTMENT DESTINATION
RELATED ENTITIES
• National Hydrocarbons Agency (ANH): The ANH is the authority
responsible of promoting the optimal use of the oil resources,
comprehensively managing them and harmonizing the interests
among the society, the national Government, and the companies.
• Halliburton, U.S.A.: The Company arrived in Colombia in 1943 and
offers general provision of services for the oil industry.
• Baker Hughes, U.S.A.: The Company offers services related to the
oil sector.
• Schlumberger, France: The Company offers technical services
directly related to oil exploration and exploitation. Schlumberger
arrived in Colombia in 1938.
• Campetrol: The association brings together domestic and foreign
companies that offer oilfield services. Their role is to facilitate the
identification of common problems of companies, seek solutions,
ensure subsector strengthening of goods, services, and supplies to
benefit the country.
• Proexport: Colombia’s entity in charge of the promotion of
international tourism, foreign direct investment, and nontraditional
exports.