Can Colombia Replicate Brazil’s Offshore Oil And Gas Market Boom?

In The Offshore Market of Brazil, Guyana, and To A Lesser Extent, Suriname Are Getting Most Of The Attention When It Comes To Oil And Gas From South America, With Opportunities Emerging In Colombia.

It is believed that the Caribbean coast of the Andean country has considerable potential for oil and natural gas in Colombia’s offshore industry. Diego Mesa, Colombia’s Minister of Mines and Energy, announced the reactivation of offshore activity in Colombia with great fanfare in early October 2020.

Read Also

• Large Volumes Of Hydrocarbons Discovered Remain “Stuck” In The Oil Fields Of The South Atlantic In Brazil, Angola, And The Falklands
• Petrobras Drills Well And Identifies Hydrocarbons In The Pre-Salt Of The Campos Basin
• Petrobras Detects Hydrocarbons In Peroba
• Petrobras Tender With 55% Local Content Launched For Supply Of Flexible Pipelines
• Petrobras Hires Two Semi-Submersible Platforms For Maintenance And Support In The Pre-Salt

Colombia Wants To Copy The Success Of The Oil And Gas Market In Brazil

This Is An Important Development For A Country That Despite Relying On Oil To Drive Economic Growth, Has Limited Proven Reserves Of Just Over 2 Billion Barrels With A Disturbingly Short Production Life Of 6 Years.

The Decline In Investment Due To Low Oil And Gas Prices, The Lack Of Onshore Oil Discoveries Since 2009, And Deteriorating Internal Security Are Heavily Weighing On Plans To Increase Onshore Oil Reserves And Production.

The Central Government’s Attempts In Bogotá To Initiate Unconventional Hydrocarbon Production Through The Introduction Of Hydraulic Fracturing To Increase Onshore Oil Reserves And Production Have Been Frustrated By Colombian Courts.

Increase In Demand For Natural Gas

In Fact, The Lack Of Major Hydrocarbon Discoveries, The Rapid Depletion Of Mature Natural Gas Fields, And A Sharp Increase In Demand For Natural Gas Have Forced Colombia To Start Sustained Imports Of Liquefied Natural Gas In 2017. 

The Colombian Government And The Industry’s Top Authority, The Colombian Association Of Oil And Gas (ACP – Spanish Acronym), Believe That The Huge Offshore Hydrocarbon Potential Of The Andean Country Is Key To Ensuring Colombia’s Energy Security. The Andean Country Has 4 Recognized Hydrocarbon Basins Along Its Caribbean Coast, The Offshore Basins Of Cayos, Colombia, Guajira, And Sinú.