According to British author James Barrie, there are few sights more impressive than a Scotsman out to make a profit.
If that is true, the people of Colombia would be advised to pay attention.
Scottish Enterprise, Aberdeen, a government funded organization set up to assist native companies, has surveyed opportunities for petroleum industry supplies and services in Colombia.
Scottish Enterprise reported a national oil and gas industry dominated by one project: development of Cusiana and Cupiagua oil fields by a group of companies led by BP Exploration Co. (Colombia) Ltd.
SPENDING
In 1987 91 Colombian exploration spending was in the $150 200 million/year range. In 1992 this shot up to $350 million despite a fall from more than 80 wildcats at their peak in 1988 to about 40 in 1992.
Two thirds of the 1992 exploration spending was attributed to Cusiana and Cupiagua drilling. The agency said initial BP wells cost as much as $20 million each, although the cost has been lowered (OGJ, May 10, 1993, p. 30).
Average depth on wells drilled to 1991 was 5,000 ft. By contrast, Cusiana/Cupiagua activity typically has involved drilling to 15,000 ft.
Development drilling has declined too, peaking at almost 200 wells in 1988, then plunging to less than 40 in 1992.
Scottish Enterprise said spending on logging and drilling services was as little as 30% of total well costs in shallow to medium depth wells. In deeper, more difficult wells now being drilled by BP and others, however, logging and drilling services are estimated to account for as much as 60% of development well costs.
With this trend toward deeper, more difficult wells, Scottish Enterprise drew a parallel with an oil region familiar to Scottish firms.
"Given the deep, often high angle wells that are required, particularly in the development phase, the access problem and logistic difficulties, there are marked similarities to the North Sea," the agency said.
TIGHT MARKET
The market for "traditional" drilling services in Colombia is valued at $60 million/year. The market for "Cusiana type" drilling services is estimated at $120 million/year.
However, Colombian market positions have already been secured by another group that is impressive in its push for business: U.S. oil field service companies.
Scanning a list of Colombian oil industry participants reveals familiar U.S. service sector names. Those companies have branches in every oil arena of the world, including the North Sea.
Colombia's "...current service industry will adapt to provide much of the needs," admits Scottish Enterprise, "and opportunities will therefore be most likely in the truly specialist areas."
The agency recommends that Scots stick to what they know best: directional drilling tools and services, completion services, fishing tools and expertise, and measurement and logging while drilling.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
