Friday, July 25, 2014

Colombia: Nineteen Firms Respond to Oil, Natural Gas Tenders

According to The Latin American Tribune, Colombia received bids from nearly a score of companies interested in 26 of the 95 oil and natural gas blocks on offer in a bidding round that will conclude next month, the National Hydrocarbons Agency (ANH) said.

ANH said a total of 19 companies have filed bids.

Five of the 14 offshore blocks on offer attracted interest from oil majors, which Colombian media said included US-based Anadarko, as well as Spain’s Repsol and Norway’s Statoil and US-based ExxonMobil, who jointly bidded.

The Mines and Energy Ministry said crude production in Colombia averaged 1,008,000 barrels a day in June 2014, up 6% from a month earlier.

COMMENT: Since 2010, companies in Colombia’s mining and hydrocarbons sectors have paid around 37 trillion pesos (some $19.2 billion) in royalties, President Juan Manuel Santos said in May.

Separately, Colombian state-controlled oil company Ecopetrol said it will not adopt Canadian partner Pacific Rubiales’ STAR technology, which is designed to enable more efficient recovery of heavy-crude reserves.

The companies said in a joint statement that they decided to end the STAR pilot project after analyzing the technical reports.

Pacific Rubiales had been seeking to use the technology to double the recovery of heavy-crude reserves at the Quifa field, located in the central province of Meta.