Uchenna Izundu
International Editor
LONDON, Apr. 9 -- Colombia is drawing up a contingency plan to address operators' future needs as it seeks to encourage investment in its petroleum sector.
Armando Zamora, director general of Colombia's National Hydrocarbons Agency (ANH), told OGJ in an exclusive interview that the global shortage of equipment and personnel was a major challenge, particularly as Colombia has launched its international licensing round with 46 blocks on offer. Companies that have shown interest include Repsol, ExxonMobil Corp., Sinopec, Reliance, Total SA, and the Turkish National Petroleum Co.
However, he is confident that the market will respond to correcting the shortage. ANH is meeting with the government's planning and infrastructure departments later this week to evaluate what must be provided to meet transport, social, and communication needs if exploration is successful under various scenarios. It also will talk with the environment ministry, the ministry of the interior, and the security forces.
"Everyone is expecting results from the exploration to show that our promotional efforts have paid off," Zamora said. "The new frontiers that we are offering may be big with heavy oil and gas. The level of activity for this licensing within the next 3 years will jump, so people say we need professionals, equipment, and infrastructure and facilities that haven't been there in remote areas. Our system has been able to react to the previous jump in exploration; we need to coordinate our response with the rest of the government."
Operators are developing interest in natural gas frontiers in the North Caribbean Sea and the north Cantral area, and in heavy oil east of the onshore Llanos basin.
Colombia expects to see $5 billion in foreign investment across the oil and gas chain this year. As much as 30% of that amount will be dedicated to exploration in the Llanos basin in the east; the Magdalena river from the south to the north of Colombia; Putumgo on the border with Ecuador, and Catatumbo, which borders Venezuela.
"We are being advised by the former chairman of Petroleos de Venezuela SA on our heavy oil belt," Zamora said.
Colombia is aiming to produce 1 million boe/d by 2015. State-owned oil company Ecopetrol currently produces 400,000 b/d. Zamora said Ecopetrol's strategy is to leverage its finances by working with foreign companies. "The whole world is eager for barrels, so Ecopetrol can offer barrels in exchange for joint ventures. Around 70% of the 1 million boe/d would come from Colombia and 30% from abroad—first in Latin America and then the Gulf of Mexico. Its president wants to recruit international talent…and pay the right salary."
The agency, which is 3 years old, is considering setting up a conversion graduate school to retrain engineers from other disciplines in petroleum engineering as it struggles to attract and retain professionals. Staff turnover is high because ANH offers public salaries compared with other companies in the industry.
Contact Uchenna Izundu at [email protected].
