Exploration potential and opportunities in Colombia APPEX London
Exploration potential and opportunities in Colombia APPEX London 2007 • AAPG International Prospect & Property Expo London, March 20 -22, 2007
Agenda • Colombia: a new business environment • Perspectives on new reserves • Oil & Gas opportunities in Colombia • 2007 Caribbean bidding round • Heavy oil selection process
I. Colombia: a new business environment
Production and reserves recover 1. Reserves and production Average Production (million barrels per day Reserves (million barrels) Source: Ecopetrol, ANH Crude Reserves Crude Production Estimado ANH - Preliminary Preliminar - ANH estimate
To encourage investment in exploration and production: The ANH promotes exploration investment… Attractive fiscal terms Geological studies in frontier areas Bid rounds …while Ecopetrol plays an effective operating role Direct exploration Improving recovery in mature fields Development of heavy crudes Internationalisation
Industry perceptions show strengths Prospectivity 5 4 Personal safety 3 Fiscal terms 2 1 0 Legal security Political stability Macroeconomic stability Source: Arthur D. Little, 2005 Expected Colombia
II. Perspectives on new reserves
Under alternative crude production scenarios, self-sufficiency would extend until… Crude production scenarios (000 b/d) 1. 000 900 Abundance 800 700 Base - crude 600 500 Base - gas 400 Current Reserves 300 200 Scarcity Demand (Pre-2007) 100 2006 2007 Source: Arthur D. Little 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
III. Oil & Gas opportunities in Colombia
Exploration activity has increased considerably E&P Areas in 2003 March 2007
Early exploration in frontier areas for competitive processes … Cayos Caribe Offshore Cesar-Ranchería Sinú-San Jacinto Cordillera Oriental Pacific Offshore Chocó Cauca-Patía Llanos – heavy oil belt
IV. 2007 Caribbean bidding round
A number of bid rounds are being prepared (tentative years) Caribbean 2007 Cesar Ranchería 2008 -9 Soápaga 2008 Chocó 2009 -10 Heavy oil belt
A new scheme of simple rounds for smaller areas is being introduced in 2007
A new hub in the Caribbean offshore scene…
Selected areas for Caribbean bidding round 2007 No. of basic blocks: 37 Area per full block: 138, 000 Ha Total Area: 3, 817, 000 Ha Depth: Up to 2, 000 mts
Available Data US$ 23. 200. Access to Basic information Item Amount Seismic Programs 38 Seismic lines 475 Seismic length 14. 943 Km Wells 34 Files with original records 662 Files with images of records 586 Well History Technical documents 307 documents of 23 wells 30 documents with 667 files Complete data packages will be handed out to companies registering in the Round
Speculative Seismic Date: 2004 Commencement date: Oct 2006 GXT CGG Americas Inc.
Proposed schedule (to be confirmed)
Activity in the area TAYRONA a be ib ar an Se C BARRANQUILLA FUERTE NORTE CARTAGENA GUAJIRA FUERTE SUR VENEZUELA
Activity in the Area Guajira Production start date: Dec/74 Companies: Chevron, Ecopetrol Fields: Chuchupa - Ballenas Production: 421 MPCD (2006) Commercial Reserves: 1, 96 TPC (Dec. 2005)
Activity in the Area Tayrona (1 st ANH Contract) Companies: Petrobras (40%), Exxon. Mobil (40%) and Ecopetrol (20%) Area: 2, 215, 369 Ha Start date: Aug. 13, 2004 Activity performed: • Acq. 1, 100 km 2 3 D Seismic • Rep. 5, 555 km 2 D Seismic • Electromagnetic probing (R 3 M) 432 km Ongoing activity: • Acq. 3467 km 2 3 D Seismic (Progress 56%) Stage 2 is ongoing: Ends Feb/08
Activity in the Area Fuerte Norte y Sur Companies: BHP Billiton (75%), Ecopetrol (25%) Area: 480, 500 and 473, 490 Ha Start date: Apr. 7, 2006 Activity performed: • Bathymetry: 2, 376 km • Heat flow: 20 points Ongoing activity: • Piston core: 133 samples (68% progress) • Acq. 5980 km seismic 2 D (50% progress) Stage 1 is ongoing: Ends Oct. /07
V. Selection process for heavy oil development
Llanos basin and southwest heavy oil zone South-West heavy oil zone
Preliminary block map of southwest heavy oil zone GENERAL SCOPE AREA AND DATA Basin Area: 220, 000 Km 2 Southwest Side Basin Area: 84, 600 Km 2 Wells: 1360 (all basin) 2 D Seismic Data: Over 87000 Km (all basin) Heavy Oil Producing Fields: 19 (all basin) Principal fields: Castilla 109 MMBO Rubiales 45. 5 MMBO Proven Developed Reserves: 178. 5 MMBO Proven Not Developed Reserves: 236 MMBO Probable Reserves: 428 MMBO Estimated OOIP: 2000 -8000 MMBO (all basin) Petroleum System: Gachetá Cretáceo-Terciario. Generated the 98% of Hydrocarbons in the Llanos Basin.
Investor selection process A different selection approach is being proposed: Estimated dates(*) 1. Invitation announcement for 2. expressions of interest May 2007 3. 2. Due date for Eo. Is and short list July 4. 3. 5. Reception of integrated exploration and development proposals September 6. 4. Direct negotiations and selection by panel 7. of experts November (*) Preliminary, subject to change October -
III Colombia Oil & Gas Conference, February 2008
Thank you! www. anh. gov. co director. general@anh. gov. co
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