Petrobras to invest four times as much in Colombia this year
Brazilian State-owned oil company Petroleo Brasileiro (Petrobras) will invest $ 150 mm in Colombia this year, four
times as much as in 2005, the company's top official in Colombia said.
Petrobras will invest $ 35 mm in the offshore Tayrona Block located on the Caribbean coast, Dirceu Abrahao, the Chief
Executive of Petrobras's Colombian operations, said during a conference in Cartagena gathering officials from mining,
oil, and gas companies.
The company is exploring for oil in the Tayrona block in association with ExxonMobil and Colombian state-owned oil
company Ecopetrol. Abrahao said the three companies may start to drill wells in Tayrona in 2007.
The company will invest the remainder in the other blocks where it operates such as Guando, Villa Rica and Tierra
Negra. Abrahao said there are "high expectations" of finding oil in Tayrona, according to the Mines, Oil and Gas
Congress.
Separately, Petrobras boosted oil production at Guando to 35,000 bpd.
"The idea is to maintain the production during the year so that the company and the country benefit from high oil
prices," the CEO said. Oil companies will probably invest as much as $ 750 mm in oil exploration this year, 50 % more
than last year, as private companies are attracted by government incentives and high oil prices, according to the
National Hydrocarbons' Association, or ANH.
The Colombian government is encouraging companies to invest in the country to seek oil through tax incentives and
lower royalties for eventual production. Colombia currently produces around 519,000 bpd, down sharply from peak
production of 830,000 bpd in 1999. The country consumes roughly 261,000 bpd. The end of self-sufficiency is estimated
for 2012 if no new reserves are found in the country.
Vast territories, potentially rich in hydrocarbons, remain unexplored in Colombia, which shares many of the
geological features of its oil-rich neighbour, Venezuela. Many believe the Llanos and Magdalena basins, in
particular, may hold significant reserves.
