Hydrocarbon Exploration Potential in

Ecuador and Colombia. Where to Go

and Why?

Consulting Services in London

Latin America: An Overview
 Latin America in the World Oil & Gas Industry

Onshore Gas
Onshore O&G
Offshore O&G

YTF
Africa

126
YTF Gbbl
Lat Am
135
Gbbl

From EIA 2019

 Oil Daily Production

7.6 mmbo/d 6.8 mmbo/d

6.5 mmbo/d
3.6 mmbo/d

2.9 mmbo/d

Not including Middle East, Russia, North America From Yearbook Enerdata
 Gas Daily Production
+9 mmboe/d
5.6 mmboe/d

3.8 mmboe/d
3.3 mmboe/d
3.2 mmboe/d

Not including Middle East, Russia, North America From Yearbook Enerdata`
Countries with O&G exports representing > 1.5% GDP

From World Bank

 Decrease in rate of reserves replacement: Exploration is required

From EIA
What´s going on in this area
Regional G&G and New Opportunities

Turonian Super Rich

Source Rock
“La Luna Shales”

Venezuela

Colombia

Ecuador

(Blakey, 2002)
Ecuador: Context
Current Daily Oil Production • New E&P contract model
(Participation Contract)
Target: 1.000 Kbopd • Pre-established minimum commitments
• Pre-defined royalties
• Offer contractual security

• Identify oilfields that could be efficiently

Currently: 490 Kbopd produced by private companies
Daily production range between 1.000 to
Exports = 49% of country’s 30.000 bpdp
• Promote new bid rounds according to
international standards to increase its
Local Consumption 25%
attractiveness
Ecuador

Net electricity importer

• Convert oil power plants to gas.
Not enough domestic supply.
• Gas proven reserves = 385 BCF
• Gas production around 12 BCF per year
• More infrastructure is needed to market
natural gas
From EIA 2020
Ecuador 2021-2022

Shushufindi

A A 1 Qtr 2022. Intracampos II.

Around 11 blocks, some with production

Ecuador B Southeastern Bid round TBD

B

C III QTR 2022: Gas Offshore round

C

Open Acreage O&G power plants Oil Pipes Gas piipes

Ecuador and Southern Colombia
• New stratigraphic traps in Cretaceous reservoir “N ss”
• Fractured Upper Cretaceous limestones still to develop
• Several non-closure structures that have oil

Pg & Ng

Cretaceous
Colombia: Context

Target: 1.000 Kbopd • Updated E&P contract model.

• One exploratory phase of 6 years & 25
years production
Currently: 750 Kbopd • Minimum commitment: 1 exploratory
• 9% royalties
Exports = 30% of country’s
• Permanent allocation process where all open
areas can be proposed to be included in small
Local Consumption 40% bid round processes
Colombia

• Gas production 380 BCF per year

• Gas consumption 375 BCF per year

• Gas reserves at current levels of consumption,

could last for 5 years
• Domestic gas network continues its expansion
• Industrial and fuel mobility consumption is
increasing
From EIA 2020
 Colombia

Current permanent allocation process

where most of the areas have been
unlocked by the government to receive
proposals from a previously qualified
company

46 E&P blocks are no on offer for a

process ending on December 2021

Round 2021 Permanent Process O&G power plants Oil Pipes Gas piipes
 Colombia

Onshore exploration highlights

• Llanos Basin
• Middle Magdalena Foothills
• Sinu and San Jacinto Basins

Round 2021 Permanent Process O&G power plants Oil Pipes Gas piipes
 Llanos Basin
Llanos and Magdalena basins, are
already mature areas but recent new
approaches for new plays have made a
Cusiana difference.

A Heavy oil from Rubiales in 2005

B B Paleocene stratigraphic/structural play

Castilla

Rubiales Low Cretaceous reservoir deeper target

A

50 km

Round 2021 Permanent Process Oil Pipes Gas piipes

 Colombia Llanos Basin Cross Section
• Antithetic faults targeting Oligocene / Eocene sandstones are the most
succesful play in the basin

Pg & Ng

Cretaceous
 Colombia Llanos Basin Cross Section
• Now it is changing to a new play in Paleocene sandstones
• Jacana field is over 200 mmb stooip (15° API)

Pg & Ng

Cretaceous
Opportunities
• Paleocene channel belt sandstones in a combined structural - stratigraphic trap
Middle Magdalena Basin
Llanos and Magdalena basins, are
already mature areas but recent new
approaches for new plays have made a
B
difference.
La Cira

A Eastern Cordillera Foothills

Velazques
A
B Upper Cretaceous shale oil and gas

50 km

Round 2021 Permanent Process Oil Pipes Gas piipes

Middle Magdalena Basin
• Paleocene stratigraphic play has been proven. Acordionero field from Gran Tierra
• Subthrust play has not been tested. Next to the kitchen. Upper Cretaceous reservoirs

Ng

Pg
Cretaceous
 Northern Colombia

North of Colombian onshore where most

Chuchupa
of the gas discoveries have been done
Perla recently (Lower Magdalena Basin)
Maracaibo B
D
A Light Oil and Gas

Kronos
A
B Dry Gas
C
Venezuela
C Sinu – San Jacinto Emergent Basin
B

C Offshore
50 km Colombia

Round 2021 Permanent Process O&G power plants

Northern Colombia
• Explored from 1920´s to 60´s only. Light oil was produced. Industry moved to LMB
• New seismic and stratigraphic wells have been key to propose an underexplored play
that involves Paleocene and Eocene reservoirs.

Ng

Pg

Cretaceous
There are opportunities
Ecuador
• New government is establishing
more attractive and stable contract
terms
• New bid round near fields
• Participation contracts to increase
production of some fields
• A long term plan to reconvert oil
power plants for gas is on the table
• Offshore gas round is possible in
2022
There are opportunities
Colombia
• Permanent allocation process
• More flexible E&P contracts.
• Commitments can be fulfilled at any
time within the 6 years exploratory
phase
• Gas market for domestic, industrial
and power is in demand for the
next decades
There are opportunities
Opportunities for reduce carbon
intensity

Scope 2:
• Geothermal pilots have been
successful in Colombia
• Constant radiation through-out the
year for PV projects

Scope 3
• Part of the biggest rainforest on the
planet. Plenty of local projects for
reforestation and afforestation
Parex
• Arrived in Colombia in 2009, four blocks 50% W.I., No production
• Currently the 3rd bigger oil producer in Colombia (~50 kbopd)
• Market Cap = 3.1 BUSD
 Consulting Services in London

mesa.andres@horizonz.com.co