Colombia has seen a re-surgence in interest in its oil and gas sector after fiscal reforms relaxed investment terms earlier this decade.
Foreign investment in the sector touched $3.5 billion in 2008 and investments are expected to hold at that level in 2009 in spite of a much lower oil price environment that has scaled back the ambitions of some smaller companies.
Only one company that participated in the latest bidding round said it couldn’t provide a bank guarantee, Zamora said.
We have been listening. So far we have managed to sign all contracts except for one.
Colombian oil production is anticipated to increase to 650,000 barrels per day 2009, up from about 580,000 bpd 2008 as new investments bear fruit.
The country’s proved oil and gas reserves, while small at only 1.5 billion barrels of oil equivalent, are increasing, which bodes well for the future, Zamora said.
Around 10 of the blocks that are anticipated to be offered in 2010 bidding round are in waters claimed by Nicaragua.
However, Colombian officials are sure Bogota’s claim to sovereignty of over the waters has been strengthened by a ruling by the World Court upholding the validity of a treaty that underlies the basis of Colombia’s claim over the area.
