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Colombia auctioning areas with shale crude potential

20th February 2014

Colombia will auction areas for the first time that may contain non-conventional or shale crude

Colombia will auction areas for the first time that may contain non-conventional or shale crude

Colombia will auction areas for the first time that may contain non-conventional or shale crude for the purpose of upholding a wave of foreign investment into the sector, Reuters has reported.

Known as Latin America's 4th largest oil producer, Colombia aims to amass around USD 2.6 bn by selling more than 22 million hectares for exploration and production at the July 23rd auction, the National Hydrocarbons Agency (ANH), which is overseeing the auction, has revealed.

Crude output increased by 6.6 per cent to a little above 1 million barrels per day in 2013, the majority of which was extracted by Ecopetrol.

Pacific Rubiales, Canadian petroleum exploration and production company,is the largest player that will take part in the auction, which will also include Chevron, Shell and Exxon Mobil.

Gathering additional investment is essential because Colombia's reserves had decreased to 2.38 billion barrels by the end of 2012.

Venezuela's reserves are now believed to be more extensive than Saudi Arabia’s.

In 2013, two reserve finds gave credence to Colombia's belief that there are large recoverable reserves in the central province of Meta, an area that will receive a share of Ecopetrol's USD 75 billion investment through 2020.

The company aims to increase its production by 30 per cent.

Ecopetrol revealed in December that an area it owns with Canada's Talismann Energy could contain around 1.3 billion barrels of crude. The company has also declared Cano Sur Este, which it said has reserves amounting to around 22.4 million barrels.

 

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