Uchenna Izundu
International Editor
LONDON, Apr. 3 -- Colombia has invited operators to bid for 43 blocks in its latest licensing round, with contracts expected to be signed with successful applicants by October.
The acreage, spanning over 7 million hectares, are in the natural gas-prone Sinu North area; Cesar Rancheria area, which is also gas prone and holds the potential for unconventional gas; Cordillera area, a frontier province; and Crudos Pesados West, a heavy oil region.
Armando Zamora, director general of Colombia's National Hydrocarbons Agency (ANH), told delegates at the London roadshow that 17 blocks were on offer in the heavy oil zone. "According to a study by Halliburton, it is estimated to hold 20 billion bbl of oil in place." Seventeen fields have been discovered near the blocks and three petroleum systems have been found in the basin.
About 122 wells have been drilled on the San Jacinto basin in the Sinu North area with 17 wells in the Guajira basin in Cesar Rancheria; four in the Eastern Cordillera basin, and 61 in the Llanos basin in Crudos Pesados West.
Separately, Colombia is offering operators the chance to develop 8 frontier heavy oil blocks in the East Llanos basin.
Colombia also is keen to attract small and medium sized operators for its mini bidding round that will be launched shortly, Zamora added. "There will be 100 blocks available, and we will offer those that have been surrendered to the ANH in productive areas. The round will close in September."
Foreign investment in Colombia's petroleum sector is expected to be more than $5 billion this year compared with $3.5 billion in 2007. Colombia hopes to sign 70-80 exploration and production contracts by yearend compared with 56 last year.
Operators drilled more than 70 wildcat wells in 2007, and Colombia wants this to increase to 90 in 2008. Technical success rates were over 40%.
Carolina García, licensing coordinator at ANH told delegates that operators must be prequalified before they can submit applications for acreage. Production will last 24 years unless operators seek an extension. They must acquire seismic data under the first phase of the exploration program and drill wells or shoot 3D seismic during later stages.
"In the '90s people were worried about Colombia's sufficiency in oil, but now that's stabilized, and the outlook is for increased growth," Zamora said. "We want to produce 1 million b/d of oil within the next 10-15 years, and we have enough reserves to be self-sufficient for the next 20 years."
Despite having only 7 tcf of proven gas reserves, Colombia has started exporting up to 150 MMcfd of gas to its gas-rich neighbor Venezuela.
Contact Uchenna Izundu at [email protected].