Colombia - Oil and Gas Exploration and Production EquipmentColombia - Oil and Gas E & P
Overview
Total market size = (Total local production + imports) - exports)
Units: USD millions
Source: World Trade Atlas; Industry Associations
The oil and gas sector is a key generator of central government income and, as the industry gradually recovers globally from the long period of low commodity prices that started in 2014, it is also recovering with President Duque’s efforts to reactivate long-delayed policies and regulations to attract foreign investment in the development of onshore and offshore exploration activities. Industry reports a more optimistic view of the medium-term; however, there are still several hurdles from municipalities opposing extractive industry activities, extensive timelines for environmental licensing, and ongoing attacks to the country’s energy infrastructure from insurgency groups like the ELN. Operating companies also have high production costs and face relatively high taxes.
During 2018, Colombia reached an average production rate of 886,000 barrels per day, a decline from its 2015 peak of over 1 million barrels per day. However, average natural gas production reached 1.05 billion cubic feet per day with Ecopetrol (Equion and Chevron leading the production), revealing a worrisome downward trend due to declining fields. The government under President Duque is aggressively promoting investment in offshore oil and gas exploration and moving forward with a process that could result in exploration and production of unconventional hydrocarbons to help increase the country’s reserves of crude oil and natural gas to reduce the risk of becoming net importers of hydrocarbons.
The Ministry of Mines and Energy reports that Colombia’s known oil reserves dropped to 1.9 billion barrels due to the lack of significant oil discoveries, allowing for the country to be self-sufficient until 2025, with an increased risk of becoming a net importer of crude oil if no major discoveries are found before then. Natural gas reserves dropped to 3.7 trillion cubic feet (TCF) of proven reserves.
Leading Sub-Sectors:
The National Hydrocarbons Agency (ANH) has mandated all exploration and production companies operating in Colombia to provide the agency with information on hydrocarbons resource and reserves following approved methodologies by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), and American Association of Petroleum Geologists (AAPG). ANH estimates undiscovered resource reserves of conventional hydrocarbons could reach up to 10 billion barrels and unconventional hydrocarbons reserves could reach up to 20 billion barrels. Preliminary conventional natural gas reserves could yield up to 11.4 TCF of probable and potential reserves from Colombian onshore and offshore basins under exploration (Tayrona, Sinu, Tumaco, and Choco areas). Unconventional gas sources such as coalbed methane could yield preliminary reserves of 7.5 TCF of recoverable reserves, mostly in la Guajira and the Cesar basins. Other potential reserves point to tight shale gas (mostly in the Magdalena Medio basins), and methane hydrates found in the Caribbean and Pacific Ocean basins.
On February 14, 2019, government officials received a report from the experts of the Commission on Hydraulic Frackturing who recommended the development of multiple unconventional hydrocarbon pilot projects, to be designed jointly with the relevant environmental and sectoral entities. These projects would initially focus on the Cesar-Rancheria and Middle Magdalena Valley basins. Several companies have expressed interest in participating. The projects aim to develop a critical baseline of information on the basins, groundwater, seismic data, operational development, and other critical information that would assist in a more transparent development of unconventional resources during the expected two-year timeframe. Industry belives the effort would increase government revenue during the projected lifetime of the prospects, attracting some USD 36 billion in government revenue.
Trade Events
II Cumbre de Petróleo y Gas (II Oil and Gas Summit)
November 13-15, 2019
Agora Bogotá Convention Center
Bogotá, Colombia
Web Resources
U.S. Commercial Service Bogota contact: Norcia Ward, Commercial Assistant
Email: Norcia.WardMarin@trade.gov
Tel: 57 1 275 2703
ECOPETROL, SA
Energy and Natural Gas Regulatory Commission (CREG)
Colombian Petroleum Association (ACP)
Colombian Petroleum Services Chamber (Campetrol)
Mining and Energy Planning Unit (UPME)
National Planning Department (DNP)
Ministry of Mines and Energy (MME)
U.S. Trade and Development Agency (TDA)
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
| Year | 2017 | 2018 | 2019 estimated |
|---|---|---|---|
| Total Local Production | 225 | 226 | 230 |
| Total Exports | 110 | 115 | 118 |
| Total Imports | 1,887 | 1,955 | 2,000 |
| Imports from the US | 732 | 805 | 807 |
| Total Market Size | 2,002 | 2,066 | 2,112 |
| Exchange Rates | COP 2,951 | COP 3,000 | COP 3,300 |
Units: USD millions
Source: World Trade Atlas; Industry Associations
The oil and gas sector is a key generator of central government income and, as the industry gradually recovers globally from the long period of low commodity prices that started in 2014, it is also recovering with President Duque’s efforts to reactivate long-delayed policies and regulations to attract foreign investment in the development of onshore and offshore exploration activities. Industry reports a more optimistic view of the medium-term; however, there are still several hurdles from municipalities opposing extractive industry activities, extensive timelines for environmental licensing, and ongoing attacks to the country’s energy infrastructure from insurgency groups like the ELN. Operating companies also have high production costs and face relatively high taxes.
During 2018, Colombia reached an average production rate of 886,000 barrels per day, a decline from its 2015 peak of over 1 million barrels per day. However, average natural gas production reached 1.05 billion cubic feet per day with Ecopetrol (Equion and Chevron leading the production), revealing a worrisome downward trend due to declining fields. The government under President Duque is aggressively promoting investment in offshore oil and gas exploration and moving forward with a process that could result in exploration and production of unconventional hydrocarbons to help increase the country’s reserves of crude oil and natural gas to reduce the risk of becoming net importers of hydrocarbons.
The Ministry of Mines and Energy reports that Colombia’s known oil reserves dropped to 1.9 billion barrels due to the lack of significant oil discoveries, allowing for the country to be self-sufficient until 2025, with an increased risk of becoming a net importer of crude oil if no major discoveries are found before then. Natural gas reserves dropped to 3.7 trillion cubic feet (TCF) of proven reserves.
Leading Sub-Sectors:
- Seismic activity services (two and three dimensional)
- Drilling equipment (including directional drilling) and drilling fluids
- Wellhead equipment (Christmas trees, valves, compressors, pumps, piping equipment, safety equipment, well completion, casing, and cementing equipment)
- Improved production stimulation and artificial lift systems
- Enhanced oil recovery for selected fields
- Crude oil and natural gas pipeline design and construction services
The National Hydrocarbons Agency (ANH) has mandated all exploration and production companies operating in Colombia to provide the agency with information on hydrocarbons resource and reserves following approved methodologies by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), and American Association of Petroleum Geologists (AAPG). ANH estimates undiscovered resource reserves of conventional hydrocarbons could reach up to 10 billion barrels and unconventional hydrocarbons reserves could reach up to 20 billion barrels. Preliminary conventional natural gas reserves could yield up to 11.4 TCF of probable and potential reserves from Colombian onshore and offshore basins under exploration (Tayrona, Sinu, Tumaco, and Choco areas). Unconventional gas sources such as coalbed methane could yield preliminary reserves of 7.5 TCF of recoverable reserves, mostly in la Guajira and the Cesar basins. Other potential reserves point to tight shale gas (mostly in the Magdalena Medio basins), and methane hydrates found in the Caribbean and Pacific Ocean basins.
On February 14, 2019, government officials received a report from the experts of the Commission on Hydraulic Frackturing who recommended the development of multiple unconventional hydrocarbon pilot projects, to be designed jointly with the relevant environmental and sectoral entities. These projects would initially focus on the Cesar-Rancheria and Middle Magdalena Valley basins. Several companies have expressed interest in participating. The projects aim to develop a critical baseline of information on the basins, groundwater, seismic data, operational development, and other critical information that would assist in a more transparent development of unconventional resources during the expected two-year timeframe. Industry belives the effort would increase government revenue during the projected lifetime of the prospects, attracting some USD 36 billion in government revenue.
Trade Events
II Cumbre de Petróleo y Gas (II Oil and Gas Summit)
November 13-15, 2019
Agora Bogotá Convention Center
Bogotá, Colombia
Web Resources
U.S. Commercial Service Bogota contact: Norcia Ward, Commercial Assistant
Email: Norcia.WardMarin@trade.gov
Tel: 57 1 275 2703
ECOPETROL, SA
Energy and Natural Gas Regulatory Commission (CREG)
Colombian Petroleum Association (ACP)
Colombian Petroleum Services Chamber (Campetrol)
Mining and Energy Planning Unit (UPME)
National Planning Department (DNP)
Ministry of Mines and Energy (MME)
U.S. Trade and Development Agency (TDA)
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.