News and AnalysIs for

The Ministry of Mines and Energy (MinMinas) is preparing a Conpes document that would create greater incentives for investment in off-shore exploration, one of its priorities in expanding Colombia’s proven reserves.

We used press reports earlier this week to publish an article on the (supposedly) joint MinMinas / MinAmbiente decree on seismic. Now we have found the original MinAmbiente (only) press release and the draft decree.

MinMinas recently released the country’s reserve estimates for crude oil and natural gas for YE2013. The biggest questions are around sustainability for gas.

The use of oil, gas and minerals finder technology (OFT) which harnesses satellite imagery to identify mineral content has been in Colombia for around three years, but technology suppliers say that it is only recently gaining interest for exploration.

In order for Colombia to achieve self- sufficiency for its own oil supply, an important and dramatic discovery of reserves must happen this decade, otherwise keeping along current trends the reserves logged would not supply the country past 2018, according to a government report.

The Colombian Petroleum Association (ACP) says that it expects 140 exploratory wells to be drilled in 2014, a number which is 20% above its total for last year but well below lofty projections from the National Hydrocarbons Agency, which expects 233.

A survey performed by the Colombian Petroleum Association (ACP) found that 80% of the companies that participated have plans to increase investment in exploration this year, and the ACP president Alejandro Martínez says there are a number of macro factors that will push for greater investment in exploration.

After receiving the signature of the Ministry of Mines and Energy Amylkar Acosta, the National Hydrocarbons Agency has published conditions and rules for E&P contracts involving unconventional resources.

The Colombian Minister of Mines and Energy, Amylkar Acosta, heralded an optimistic view for 2014, saying that not only are investors continuing to believe in Colombia’s potential, but also a potential record of exploratory wells, some 240, will be drilled this year.

Peru’s Mines and Energy Eleodoro Mayorga has announced that the government will eliminate the requirement for environmental impact studies for seismic exploration to encourage investment, a move that could mean more interest in the Andean country over the complexities of seismic exploration in Colombia.