30-01-06 The Colombian National Hydrocarbons Agency said it had approved eight new oil and gas exploration and production contracts and five preliminary contracts of 2006 for a total of $ 38 mm in investments.
The ANH, as the agency is known, boosted the negotiations of such contracts as part of an effort to encourage the discovery of new hydrocarbon reserves.

The Australia-based mining company BHP Billiton secured two areas of about 475,000 hectares each in the Caribe Offshore basin. The company plans to spend about $ 13 mm in each area during the next six years, the ANH said.
The ANH also granted rights for exploration to Occidental Petroleum in an area called "Cascabel" in Magdalena river basin. The exploration program will last 4 years and includes a commitment to invest $ 1.9 mm in the 46,000-hectare area.

Hocol, the Colombian unit of French oil company Etablissements Maurel et Prom, committed to invest $ 6.3 mm in exploring two areas in the Llanos basin in the Andes foothills.
London-based Taghmen Energy secured the Midas block, which is located in the Magdalena river basin. Taghmen's exploration six-year program includes a $ 1.5 mm investment.
Canada-based Apex Energy also secured the rights to seek oil and gas in the Magdalena basin. Apex committed to invest $ 1.1 mm during four years.
Finally, Colombian company Competrol committed to invest $ 199,000 in exploration in the Chicuaco area of the Llanos region.

In addition to these contracts, Russia's largest oil producer, LUKoil Holdings, Occidental Petroleum and Spain-based Compania Espanola de Petroleo, London-based Texican Oil and state-owned Colombian oil company Ecopetrol all secured rights to carry out preliminary evaluation -- a step before formal exploration -- for five different areas in the country and committed to invest about $ 1 mm.
The ANH had signed 31 exploration and production contracts in 2005, more than the 30 originally planned last year.

The administration of President Alvaro Uribe hopes the new contracts will lead to the discovery of new oil reserves. If Colombia fails to find new reserves, the country will become a net oil importer by 2011, said National Hydrocarbons Agency Director Armando Zamora in November.
Vast territories, potentially rich in hydrocarbons, remain unexplored in Colombia, which shares many of the geological features of its oil-rich neighbour, Venezuela. The Llanos and Magdalena basins, in particular, may have significant reserves.

According to the Finance Ministry, average oil production may have increased to 519,350 bpd in 2005 from earlier estimations of 510,000 bpd, after the government approved several actions such as extending association contracts due to expire and ensuring that international companies maintain investments until wells are so depleted that they are no longer commercially viable.