Colombia Receives 2 Billion in Oil Exploration Investment

Colombia, the number four producer of oil in Latin America, has obtained offers for oil investment amounting to $2.64 billion by crude companies trying to perform E&P activities in the Andean nation, said the National Hydrocarbons Agency.

Over the past decade, the oil industry of Colombia has appealed to international direct investment that strengthened the growth of the economy and export revenues following years of falling crude oil production in the late 90′s.

Production-slated areas in the region are estimated to be awarded with an investment amounting to $2.64 billion, according to the hydrocarbons agency.

Adjudication of the oil exploration blocks is set to happen on the 26th of November, with a second auction following on the 28th of November. 115 oil exploration blocks were bid on, consisting of 13 offshore regions and 30 for non-conventional exploration.

Colombia’s oil output has increased over the past decade with support from enhanced security, investments in heavy crude deposits and improved revenue-sharing terms.

Levels of production have been rapidly increasing in the past years, and Colombia hopes to attain the benchmark of 1 million barrels daily before 2012 ends, almost twice as much as the output level of Ecuador, a neighboring country that also happens to be the smallest member of OPEC.

The government of Colombia is hoping that foreign oil investment will let the country raise its reserves 20 times at best, to 41 billion barrels by the year 2030 or 7.7 billion barrels at the very least.