Colombia Oil Markets Investment Opportunities, Market Analysis and Forecasts to 2020

1 Table of Contents 2
1.1 List of Tables 9
1.2 List of Figures 11
2 Colombia Energy Sector 12
2.1 Colombia Energy Sector, Market Overview 12
2.2 Colombia Energy Sector, Crude Oil 13
2.2.1 Colombia Crude Oil, Overview 13
2.2.2 Colombia Crude Oil, Supply and Demand Balance 13
2.2.3 Colombia Crude Oil, Regulatory Structure 19
2.2.4 Colombia Crude Oil, Infrastructure 19
3 Colombia Petroleum Fiscal Regime 21
3.1 Colombia Petroleum Fiscal Environment 21
3.2 License Terms 21
3.3 Key Fiscal Terms 22
3.4 Sample Cashflows Calculations 26
4 Colombia Oil Upstream Investment Environment Benchmarking 27
4.1 Introduction 27
4.2 The Overall Ranking 27
4.3 Upstream Fiscal Attractiveness 28
4.3.1 Maximum Government Take Index 29
4.3.2 Maximum State Participation Index 29
4.3.3 Domestic Market Obligation Index 29
4.4 Oil Sector Performance 30
4.4.1 Exploration Activity 32
4.4.2 Oil Production 33
4.4.3 Oil Reserves 33
4.4.4 Oil Consumption 34
4.4.5 Refining Industry 34
4.5 Economic Performance 34
4.5.1 GDP Growth Index 36
4.5.2 FDI Confidence Index 36
4.5.3 Balance of Trade Index 37
4.6 Socio-Political Performance 37
4.6.1 Democracy Index 39
4.6.2 Governance Index 39
5 Colombia Exploration and Production Sector 40
5.1 Colombia Exploration and Production Sector, Country Snapshot 40
5.1.1 Colombia Exploration and Production Sector, Key Data 40
5.1.2 Colombia Exploration and Production Sector, Crude Oil Assets Map 40
5.2 Colombia Exploration and Production Sector, Gross Crude Oil Production 41
5.2.1 Colombia Exploration and Production Sector, Gross Crude Oil-Historical Production 41
5.2.2 Colombia Exploration and Production Sector, Gross Crude Oil Production by Assets 42
5.2.3 Colombia Exploration and Production Sector, Gross Equity Weighted Crude Oil Production by Company 44
5.2.4 Colombia Exploration and Production Sector, Market Share (%) based on Gross Equity Weighted Crude Oil Production 46
5.3 Colombia Exploration and Production Sector, Gross Crude Oil Forecasts 47
5.3.1 Colombia Exploration and Production Sector, Gross Crude Oil Forecasted Production 47
5.3.2 Colombia Exploration and Production Sector, Gross Revenue Forecast 49
5.3.3 Colombia Exploration and Production Sector, Government Take Forecast 50
5.3.4 Colombia Exploration and Production Sector, Contractor Take Forecast 51
5.4 Colombia Exploration And Production Sector, Crude Oil Asset Details 52
5.4.1 Colombia Exploration And Production Sector, Active Crude Oil Asset Details 52
6 Colombia Pipeline Sector 53
6.1 Colombia Pipeline Sector, Key Data 53
6.2 Colombia Pipeline Sector, An Overview 53
6.3 Colombia Pipeline Sector, Comparision of Key Crude Oil Pipeline Companies 53
6.4 Colombia Pipeline sector, Comparison of Key Petroleum Product Pipeline Companies 54
6.5 Colombia Pipeline Sector, Crude Oil Pipelines 55
6.6 Colombia Pipeline Sector, Petroleum Product Pipelines 56
7 Colombia Refining Sector 58
7.1 Colombia Refining Sector, Key data 58
7.2 Colombia Refining Sector, An Overview 58
7.3 Colombia Refining Sector, Total Refining Capacity 58
7.4 Colombia Refining Sector, Capacity – Wise Market Share by Company 59
7.5 Colombia Refining Sector, Crude Distillation Unit Capacity 60
7.6 Colombia Refining Sector, Fluid Catalytic Cracking Capacity 60
8 Colombia Oil and Chemicals Storage Sector 61
8.1 Colombia Oil and Chemical Storage Sector, Key Data 61
8.2 Colombia Oil and Chemical Storage Sector, An Overview 61
8.2.1 Colombia Oil and Chemicals Storage Sector, Total Storage Capacity 61
8.3 Colombia Oil and Chemical Storage Sector, Capacity – Wise Market Share by Company 62
8.4 Oil and Chemicals Storage Sector, Storage Capacity 64
9 Profile of ECOPETROL S.A. 65
9.1 ECOPETROL S.A., Key Information 65
9.2 ECOPETROL S.A., Company Overview 65
9.3 ECOPETROL S.A., Business Description 65
9.3.1 ECOPETROL S.A., Business Description, Business Overview 65
9.3.2 ECOPETROL S.A., Business Description, All Other 65
9.3.3 ECOPETROL S.A., Business Description, Exploration and Production 66
9.3.4 ECOPETROL S.A., Business Description, Refining and Petrochemicals 68
9.3.5 ECOPETROL S.A., Business Description, Transportation 69
9.3.6 ECOPETROL S.A., Business Description, Major Products and Services 70
9.4 ECOPETROL S.A., Value Chain Analysis 71
9.4.1 ECOPETROL S.A., Value Chain Analysis, Upstream 71
9.4.2 ECOPETROL S.A., Value Chain Analysis, Midstream 72
9.4.3 ECOPETROL S.A., Value Chain Analysis, Downstream 73
9.4.4 ECOPETROL S.A., Value Chain Analysis, Retail 73
9.5 ECOPETROL S.A., SWOT Analysis 73
9.5.1 ECOPETROL S.A., SWOT Analysis, Overview 73
9.5.2 ECOPETROL S.A., SWOT Analysis, Strengths 74
9.5.3 ECOPETROL S.A., SWOT Analysis, Weaknesses 75
9.5.4 ECOPETROL S.A., SWOT Analysis, Opportunities 76
9.5.5 ECOPETROL S.A., SWOT Analysis, Threats 77
9.6 ECOPETROL S.A., Revenue Analysis 77
9.6.1 ECOPETROL S.A., Revenue by Segment 78
9.6.2 ECOPETROL S.A., Revenue by Geography 78
10 Profile of Occidental Petroleum Corporation 79
10.1 Occidental Petroleum Corporation, Key Information 79
10.2 Occidental Petroleum Corporation, Company Overview 79
10.3 Occidental Petroleum Corporation, Business Description 79
10.3.1 Occidental Petroleum Corporation, Business Description, Business Overview 79
10.3.2 Occidental Petroleum Corporation, Business Description, Chemical 80
10.3.3 Occidental Petroleum Corporation, Business Description, Oil and Gas 81
10.3.4 Occidental Petroleum Corporation, Business Description, Major Products and Services 83
10.4 Occidental Petroleum Corporation, Value Chain Analysis 84
10.4.1 Occidental Petroleum Corporation, Value Chain Analysis, Upstream 84
10.4.2 Occidental Petroleum Corporation, Value Chain Analysis, Midstream 85
10.5 Occidental Petroleum Corporation, SWOT Analysis 85
10.5.1 Occidental Petroleum Corporation, SWOT Analysis, Overview 85
10.5.2 Occidental Petroleum Corporation, SWOT Analysis, Strengths 86
10.5.3 Occidental Petroleum Corporation, SWOT Analysis, Weaknesses 87
10.5.4 Occidental Petroleum Corporation, SWOT Analysis, Opportunities 87
10.5.5 Occidental Petroleum Corporation, SWOT Analysis, Threats 88
10.6 Occidental Petroleum Corporation, Revenue Analysis 88
10.6.1 Occidental Petroleum Corporation, Revenue by Segment 89
10.6.2 Occidental Petroleum Corporation, Revenue by Geography 89
10.7 Financial and Operational Review 91
10.7.1 Financial Statements 91
10.7.2 Financial Ratios 92
11 Profile of Chevron Corporation 93
11.1 Chevron Corporation, Key Information 93
11.2 Chevron Corporation, Company Overview 93
11.3 Chevron Corporation, Business Description 93
11.3.1 Chevron Corporation, Business Description, Overview 93
11.3.2 Chevron Corporation, Business Description, Chemicals 94
11.3.3 Chevron Corporation, Business Description, Downstream Segment 95
11.3.4 Chevron Corporation, Business Description, Others Segment 97
11.3.5 Chevron Corporation, Business Description, Upstream Segment 98
11.4 Chevron Corporation, Value Chain Analysis 99
11.4.1 Chevron Corporation, Value Chain Analysis, Upstream 100
11.4.2 Chevron Corporation, Value Chain Analysis, Midstream 101
11.4.3 Chevron Corporation, Value Chain Analysis, Retail 102
11.4.4 Chevron Corporation, Value Chain Analysis, Power Generation 102
11.4.5 Chevron Corporation, Value Chain Analysis, Transformation 103
11.5 Chevron Corporation, SWOT Analysis 104
11.5.1 Chevron Corporation, SWOT Analysis, Overview 104
11.5.2 Chevron Corporation, SWOT Analysis, Strengths 105
11.5.3 Chevron Corporation, SWOT Analysis, Weaknesses 106
11.5.4 Chevron Corporation, SWOT Analysis, Opportunities 106
11.5.5 Chevron Corporation, SWOT Analysis, Threats 108
11.6 Chevron Corporation, Revenue Analysis 109
11.6.1 Chevron Corporation, Revenue by Segment 109
11.6.2 Chevron Corporation, Revenue by Geography 110
11.7 Chevron Corporation, Financial and Operational Review 111
11.7.1 Financial Statements 111
11.7.2 Financial Ratios 112
12 Financial Deals Landscape 113
12.1 Detailed Deal Summary 113
12.1.1 Rumored Deals 113
12.1.2 Merger 114
12.1.3 Acquisition 116
12.1.4 Debt Offerings 123
12.1.5 Partnerships 124
12.1.6 Asset Transactions 125
13 Recent Developments 135
13.1 License Rounds 135
13.1.1 May 13, 2009: Colombia To Offer 96 Oil, Gas Blocks In 2010 135
13.2 License Awards 136
13.2.1 May 01, 2009: Petro Andina Resources Wins Four Exploration Blocks In Colombia 136
13.2.2 Feb 18, 2009: Emerald Energy Wins Durillo Contract In Colombia 136
13.2.3 Jan 29, 2009: Emerald Wins Exploration And Production Contract In Colombia 136
13.2.4 Jan 08, 2009: Thorneloe Receives E&P Rights In Colombia 137
13.2.5 Jan 07, 2009: PetroLatina Wins Putumayo-4 Block In Colombian License Bidding Round Mini-Ronda 2008 137
13.3 Strategy and Business Expansion 138
13.3.1 May 20, 2009: Ecopetrol To Be The New Operator Of Ocensa 138
13.4 Recent Discoveries 139
13.4.1 May 20, 2009: Talisman Energy Discovers Gas Condensate Field In Niscota Block, Colombia 139
13.4.2 Apr 23, 2009: Pacific Rubiales Energy Discovers Oil At Arrendajo, Buganviles Blocks In Colombia 139
13.4.3 Apr 06, 2009: Ecopetrol Confirms Oil Discovery At Quriyana-1 Well In Putumayo, Colombia 140
13.4.4 Jan 21, 2009: Pacific Rubiales Discovers Oil At LISA-1 Well In Guasimo Block, Colombia 141
13.5 Drilling and Production Updates 141
13.5.1 May 14, 2009: Ecopetrol To Boost Its Production To More Than 600,000 Boped By 2011 141
13.5.2 May 06, 2009: Petrolifera Petroleum Halts Drilling At LaPinta #1 Well On Sierra Nevada License Onshore Colombia 142
13.5.3 May 05, 2009: Ecopetrol Updates On Gibraltar 3 Well In Siriri Block, Colombia 142
13.5.4 Apr 28, 2009: PetroLatina Energy Updates On Los Angeles-11 Well In Middle Magdalena Valley, Colombia 143
13.5.5 Apr 27, 2009: Petrominerales Produces Oil From Corcel-D3 Well In Llanos Basin, Colombia 145
13.5.6 Apr 23, 2009: Pacific Rubiales Energy Updates On Guasimo, Quifa Blocks In Colombia 147
13.5.7 Apr 14, 2009: Canacol Energy Provides Reserves Update For Rancho Hermoso, Entrerrios Fields in Colombia 148
13.5.8 Mar 24, 2009: Emerald Energy Updates On Jacinto No.1 Well In Jacaranda Block, Colombia 149
13.6 Financial Announcements 150
13.6.1 May 13, 2009: Ecopetrol Reports Consolidated Net Income Of COP1.6 Trillion For Q1 2009 150
13.6.2 Mar 02, 2009: Petrominerales Reports Q4 2008 Results 152
13.6.3 Feb 17, 2009: Ecopetrol Reports Q4 2008 Results 155
13.6.4 Feb 09, 2009: Ecopetrol Reschedules Release Date Of Fourth Quarter 2008 Financial Results 158
13.7 Other Significant Developments 158
13.7.1 May 06, 2009: Ecopetrol Recommences Operation At Trasandino Pipeline In Southern Colombia 158
13.7.2 May 01, 2009: Petro Andina Provides Q1 2009 Operational Update 159
13.7.3 Apr 27, 2009: Canacol Energy Updates On Ombu E&P Contract In Caguan Putumayo Basin, Colombia 162
13.7.4 Apr 17, 2009: Petrolifera Petroleum Provides Operations Update 163
13.7.5 Apr 15, 2009: Petro Vista Energy Provides Operations Update 164
13.7.6 Apr 09, 2009: Gran Tierra Energy Provides Operations Update 165
13.7.7 Apr 07, 2009: Pacific Rubiales Energy, Ecopetrol To Evaluate STAR Technology At Rubiales Field In Colombia 166
13.7.8 Apr 05, 2009: Ecopetrol Requires About $2 Billion For Investment Plan In 2009 167
14 Appendix 169
14.1 Methodology 169
14.1.1 Coverage 170
14.1.2 Secondary Research 171
14.1.3 Primary Research 171
14.1.4 E&P Forecasts 171
14.1.5 Midstream Forecasts 173
14.1.6 Expert Panel Validation 173
14.2 Contact Us 173
14.3 About GlobalData 173
14.4 Disclaimer 174

1.1 List of Tables
Table 1: Colombia, Historical and Forecasted Production and Consumption of Crude Oil, 1996-2020 14
Table 2: Colombia, Historical and Forecasted Exports of Crude Oil, 1996-2020 16
Table 3: Colombia, Historical Reserves of Crude Oil, 1996-2008 18
Table 4: Colombia, Crude Oil and Natural Gas, Royalty Rate, 2007 23
Table 5: Colombia, Trigger Price For Various Crude Oil Quality, 2007 24
Table 6: Colombia, Trigger Price For Various Natural Gas Quality, 2007 24
Table 7: Colombia, Depreciation Rate For Fixed Assets, 2007 25
Table 8: South and Central America, Investment Benchmarking, Overall Country Rankings, 2008 27
Table 9: South and Central America, Investment Benchmarking, Upstream Fiscal Attractiveness, 2008 28
Table 10: South and Central America, Investment Benchmarking, Oil Sector Performance, 2008 30
Table 11: South and Central America, Investment Benchmarking, Economic Performance, 2008 35
Table 12: South and Central America, Country Standings, Economic Performance, 2008 35
Table 13: South and Central America, Investment Benchmarking, Socio-Political Performance, 2008 37
Table 14: South and Central America, Country Standings, Socio-Political Performance, 2008 38
Table 15: Colombia, Crude Oil Key Statistics, 2008 40
Table 16: Colombia, Total Gross Crude Oil Production (MMBBLs), 2001-2008 41
Table 17: Colombia, Gross Crude Oil Production (MMBBLs), by Assets, 2001-2008 42
Table 18: Colombia, Gross Equity Weighted Crude Oil Production (MMBBLs), by Company, 2001-2008 44
Table 19: Colombia, Market Share (%) based on Gross Equity Weighted Crude Oil Production, 2001-2008 46
Table 20: Colombia, Gross Crude Oil Production (Thousand Barrels), Forecast by Assets, 2009-2014 47
Table 21: Colombia, Forecasted Assets-wise Gross Revenue(000'$), 2009-2014 49
Table 22: Colombia, Projected Assets-wise Total Government Take (000'$), 2009-2014 50
Table 23: Colombia, Projected Assets-wise Total Contractor Take (000'$), 2009-2014 51
Table 24: Colombia, Active Oil Field Assets Details 52
Table 25: Colombia, Pipeline Key Statistics, 2008 53
Table 26: Colombia, Crude Oil Pipeline Length by Company (Km), 2008 53
Table 27: Colombia, Petroleum Product Pipeline Length by Company (Km), 2008 54
Table 28: Colombia, Crude Oil Pipelines, 2008 55
Table 29: Colombia, Petroleum Products Pipelines, 2008 56
Table 30: Colombia, Petroleum Products Pipelines, 2008 (Contd.) 57
Table 31: Colombia, Refinery Key Statistics, 2008 58
Table 32: Colombia, Total Refining Capacity (MMTPA), 2000- 2013 58
Table 33: Colombia, Refining Capacity-Wise Market Share By Company 59
Table 34: Colombia, Crude Distillation Unit Capacity (MMTPA), 2000-2013 60
Table 35: Colombia, Fluid Catalytic Cracking Unit Capacity (MMTPA), 2000-2013 60
Table 36: Colombia, Oil Storage Key Statistics, 2008 61
Table 37: Colombia, Total Oil and Chemicals Storage Capacity (Thousand M3), 2000- 2013 61
Table 38: Colombia Oil and Chemicals Storage Capacity Company-wise (Thousand M3), 2000-2013 62
Table 39: Colombia, Oil and Chemicals Storage Capacity (Thousand M3), 2000-2013 64
Table 40: ECOPETROL S.A., Key Facts 65
Table 41: ECOPETROL S.A., SWOT Analysis 74
Table 42: Occidental Petroleum Corporation, Key Facts 79
Table 43: Occidental Petroleum Corporation, SWOT Analysis 86
Table 44: Occidental Petroleum Corporation, Revenue by Segment, USD Million, 2003-2007 89
Table 45: Occidental Petroleum Corporation, Revenue by Geography, USD Million, 2003-2007 90
Table 46: Occidental Petroleum Corporation, Financial Statements, USD Million, 2003-2007 91
Table 47: Occidental Petroleum Corporation, Financial Ratios, USD Million, 2003-2007 92
Table 48: Chevron Corporation, Key Facts 93
Table 49: Chevron Corporation, SWOT Analysis 104
Table 50: Chevron Corporation, Revenue by Segment, USD Million, 2003-2007 110
Table 51: Chevron Corporation, Revenue by Geography, USD Million, 2003-2007 110
Table 52: Chevron Corporation, Financial Statements, USD Million, 2003-2007 111
Table 53: Chevron Corporation, Financial Ratios, USD Million, 2003-2007 112
Table 54: General Electric And Petroleo Brasileiro Intend To Acquire 51% Stake In An Oil Refinery From Glencore International 113
Table 55: Gran Tierra Merges With Solana Resources 114
Table 56: Ecopetrol Acquires 24.7% Equity Share In Oleoducto Central From Enbridge 116
Table 57: Maurel & Prom To Sell Hocol Petroleum To Ecopetrol 118
Table 58: Pacific Rubiales Acquires Kappa Energy 120
Table 59: Petro Vista Energy Acquires Petropuli 121
Table 60: Gold Oil To Acquire Inversiones Petroleras 122
Table 61: Ecopetrol Plans To Issue Non-Convertible Bonds For $4,000 Million 123
Table 62: Meta Petroleum And Ecopetrol Form Partnership To Develop Alicante Block 124
Table 63: Suroco Energy Acquires Suroriente Block And Arjona Field From Alentar Holdings 125
Table 64: Petro Vista To Farm-Out 35% Participating Interest In Morichito Block To Golden Oil 126
Table 65: Ecopetrol To Acquire 51% Stake In Cartagena Refinery From Glencore International 127
Table 66: Maurel & Prom Plans To Sell Its Colombian Assets 128
Table 67: La Cortez Energy To Acquire 20% Interest In Maranta Exploration And Production Block From Emerald Energy 129
Table 68: Ecopetrol Acquires 17% Stake In Colombia Off-Shore Area From BHP Billiton 130
Table 69: Ecopetrol Acquires Teca Oilfield From ONGC Videsh And Sinopec 131
Table 70: Amerisur Resources Acquires Additional 35% Interest in Platanillo Block 132
Table 71: West Canyon Energy Sells 16% Stake In Buena Vista Block For $4 Million 133
Table 72: Petro Vista Acquires 25% Interest in La Maye Block From New Horizon 134

1.2 List of Figures
Figure 1: Colombia, Energy Sector break-up, 2008 12
Figure 2: Colombia, Crude Oil Production And Consumption, Thousand Barrels Per Day, 1996-2020 15
Figure 3: Colombia, Crude Oil Imports And Exports, Thousand Barrels Per Day, 1996-2020 17
Figure 4: Colombia, Crude Oil Reserves, Million Barrels, 1996-2008 18
Figure 5: Colombia, Upstream Oil & Gas Fiscal Regime (Royalty/Tax), Sample Cashflows, 2005-2016 26
Figure 6: South and Central America, Country Standings, Upstream Fiscal Attractiveness, 2008 29
Figure 7: South and Central America, Country Standings, Oil Sector Performance, by Reserves-Exploration & Production, 2008 31
Figure 8: South and Central America, Country Standings, Oil Sector Performance, by Production-Consumption & Refining, 2008 32
Figure 9: South and Central America, Country Standings, Exploration Blocks Awarded, 2008 33
Figure 10: South and Central America, Country Standings, Economic Performance, 2008 36
Figure 11: South and Central America, Country Standings, Socio-Political Performance, 2008 38
Figure 12: Colombia, Crude Oil Assets Map, 2008 40
Figure 13: Colombia, Total Gross Crude Oil Production (MMBBLs), 2001-2008 41
Figure 14: Colombia, Gross Equity Weighted Crude Oil Production (MMBBLs),by Company, 2001-2008 45
Figure 15: Colombia, Market Share (%) based on Gross Equity Weighted Crude Oil Production, 2008 46
Figure 16: Colombia, Crude Oil Pipeline Length By Company (Km), 2008 54
Figure 17: Colombia, Total Refining Capacity (MMTPA), 2000- 2013 59
Figure 18: Colombia, Total Oil and Chemicals Storage Capacity (Thousand M3), 2000- 2013 62
Figure 19: Colombia, Oil and Chemicals Storage Capacity Company-wise (Thousand M3), 2000-2013 63
Figure 20: ECOPETROL S.A., Value Chain Analysis 71
Figure 21: Occidental Petroleum Corporation, Value Chain Analysis 84
Figure 22: Chevron Corporation, Value Chain Analysis 99
Figure 23: GlobalData Methodology 170