04-09-08 India and Colombia have signed a Memorandum of Understanding (MoU) for cooperation in the hydrocarbon sector. Shri Murli Deora, Minister for Petroleum & Natural Gas, Government of India and Mr Hernan Martinez Torres, the visiting Minister of Energy & Mines, Government of Colombia signed the MoU.
Shri Deora informed that the MoU provides an umbrella framework to facilitate and enhance bilateral cooperation in this sector.

The two sides have agreed to cooperate in the entire spectrum of the hydrocarbon sector particularly in the areas of exploration and production of oil and gas, exchange of training and human resource development, and exchange of visits of professionals and technicians.
He also said, "We will be setting up a Joint Working Group in the hydrocarbon sector for enhancing cooperation between our two friendly countries."

Shri Deora, further, underlined that despite geographical distance, India and Colombia are partners in pursuance of energy security. ONGC Videsh Limited hasa producing asset in Colombia as a joint venture with a Chinese company Sinopec. This asset has current crude oil production of 25,000 bpd. ONGC Videsh Limited also has three offshore exploration blocks in Colombia. OVL is the operator in two of these blocks.
He added, "We are exploring opportunities for participation in implementing enhanced oil recovery (EOR) and improved oil recovery (IOR) projects in the existing fields of Colombia."

Mr Hernan Martinez Torres stated that the MoU between Colombia and India is significant, pointing out the tremendous potential for Colombia's association with India in the energy sector. This is the first of a series of MoUs with Indian authorities which could be concluded between the two countries, he said, adding that a similar MoU was considered in a mining sector meeting.
Mr Martinez stressed that the MoU signing was the initiation of an excellent process of cooperation between India and Colombia.

Earlier, the two Ministers led respective delegations during bilateral discussions. They reviewed the existing cooperation and discussed new areas of cooperation like greater participation of Indian entities in exploration and production in Colombia, projects for improved/enhanced oil recovery from existing fields, training oil and gas sector technologists of Colombia in the excellent state-of-art facilities with Indian oil sector PSUs, production and blending of bio-fuels, etc.
Colombia, the fifth-largest hydrocarbon rich country in South America had 1.54 bn barrels of proven crude oil reserves. The country produces nearly 525,000 bpd of oil. Colombia produced 830,000 bpd in 1999, and it is believed that with extensive exploration and new discoveries the production of oil in Colombia can be enhanced.

ONGC Videsh Ltd. (OVL) of India, recognizing the hydrocarbon potential of Colombia, set up its first operation in 2006, through joint acquisition of oil producing assets along with Sinopec of China. In addition, ONGC Videsh Ltd. has also acquired three deep water offshore exploration blocks RC 8, 9 & 10 on the Caribbean side of Colombia.
ONGC Videsh Ltd. currently has operation in 17 countries and its oil and gas production was nearly 8.8 mm toe from its international projects.

Besides the two Ministers, Petroleum Secretary Shri R.S. Pandey, CMD ONGC Shri R.S. Sharma, CMD GAIL Mr U.D. Choubey, CMD OIL Shri M.R. Pasricha and CMD EIL Shri Mukesh Rohatagi from the Indian side and Dr Jose Armando Zamora, Director General, National Hydrocarbon Agency of Colombia and the Colombian Ambassador to India from the Colombian side were present on the occasion.