South America has the potential to be one of the world's major sources of oil & gas. Traditionally, State-owned oil & gas companies controlled the market, but were often without the necessary funds to finance exploration & development, pipeline expansion and LNG facilities.
Sintana Energy has identified Colombia as a region that offer exceptional opportunities to acquire, explore and develop major oil & gas fields.
Over the past few years the Colombian government with steady GDP growth, competitive royalties and below average production costs has enacted a series of regulatory reforms to make the sector more attractive to foreign investors. The oil sector is largely driving this investment, in part due to government programs to make the country attractive to foreign oil companies.
Colombia provides technically attractive, undercapitalized opportunities where ownership interests with excellent economics and terms can be acquired. Companies can now have longer exploration licenses, and can also own 100 percent stakes in oil ventures. These opportunities are in proven hydrocarbon systems in multiple basins with established production and potential for world-class discoveries.
Foreign direct investment (FDI) entering Colombia hit a record US$16.8 billion in 2013, up 0.87% from last year according to statistics released by the Bank of the Republic. According to Reuters, the petroleum, hydrocarbons and mining sector received the most investment - with an influx of US$13.7 billion, it amounted to an overwhelming 81.6% of total investment, up 2.9% compared to last year.
In addition, it has implemented a partial privatization of state oil company Ecopetrol in an attempt to revive its upstream oil industry. Columbia is the United States largest source of coal imports and tenth largest source of oil imports and fifth largest reserves in South America. Much of the current exploration and development focus is in the following basins;
Colombia produced 1,008,000 barrels of oil per day (BOPD) in June 2014, slightly lower than the recent all-time high of 1,031,000 BOPD in August of 2013. (Source: EIA)
Colombia's energy ministry reported the country's oil reserves have increased 2.9 percent to a record-breaking 2.445 billion barrels at the end of 2013. (Source: Reuters)
Colombia's landscape naturally lends itself to be ideal for exploration and development with: