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Colombia’s Energy and Mining Policy Introduction to major investment opportunities Carlos Rodado Noriega Minister of Mines and Energy Korea, September 15th, 2011
Colombia’s Energy and Mining Policy
Introduction to major investment opportunities
Carlos Rodado Noriega
Minister of Mines and Energy
Korea, September 15th, 2011
1. Mineral Potential
5. Improved Security
3. Political and Legal Stability
4. Healthy Business
Environment
2. Economic Stability
Why you should invest in Colombia?
1. Mineral and Hydrocarbons Potential
2. Economic Stability3. Political and Legal Stability4. Healthy Business
Environment5. Improved Security
1. MINERAL POTENTIAL 1. Mineral Potential
2.Economic
Stability
3. Political Stability 4. Healthy Business
Environment
5. Improved Security
We come from a mining tradition even before pre Hispanic times. However, Colombia has not fully developed its mining potential yet.
2. Why you should invest in Colombia?
Source: Ingeominas
1. MINERAL POTENTIAL1. Mineral Potential
2.Economic
Stability
3. Political Stability 4. Healthy Business
Environment
5. Improved Security
Nickel
Coal
Gold
Emeralds
Key:
Variety of Minerals throughout an
unexplored territory
2. Why you should invest in Colombia?
1. Mineral Potential
2.Economic
Stability
3. Political Stability 4. Healthy Business
Environment
5. Improved Security
Why you should invest in Colombia?
The basis of our potentialRESOURCES POTENTIAL
Oil 2.5 – 40 MMB
Gas 4.3 – 8.5 TCF
Hydroelectricity 100 GW
Coal 7,063 – 16,992 MMT46% of LAC reserves
1. MINERAL POTENTIAL
Coal: Colombia is a Key player in the world and owns the biggest reserves in Latin America
Production 74.4 MTn (2010)
Reserves proven 7,062 MTn
Reserves Potential
17,800 MTn
Ranking 4th exporter and 10th producer in the world
Characteristics Thermal coal: 88%Metallurgic coal: 12%
Heating power 10,000 - 12,000 BTU
1. Mineral Potential
2.Economic
Stability
3. Political Stability
4. Healthy Business
Environment
5. Improved Security
Cerrejon
La LomaEl DescansoCalenturitas
Paz del Río
Source: Ingeominas
2. Why you should invest in Colombia?
Production 53 Tn (2010)
Reserves 90 Million Oz.
Characteristics Production comes from alluvial extraction mainly.
La Colosa
Gramalote
Titiribí
La BodegaAngostura
Source: Ingeominas
1. MINERAL POTENTIALGold: Significant inferred potential
Why you should invest in Colombia?
1. Mineral Potential
2.Economic
Stability
3. Political Stability
4. Healthy Business
Environment
5. Improved Security
1. MINERAL POTENTIALNickel: Significant inferred potential
Production 109 MLb (2010)
Reserves 1.6 million tons
Ranking 9th producer in the world
Characteristics Production is concentrated in Cerromatoso, in Cordoba, managed by BHP Billiton
Cerromatoso
Source: Ingeominas
2. Why you should invest in Colombia?
1. Mineral Potential
2.Economic
Stability
3. Political Stability
4. Healthy Business
Environment
5. Improved Security
Production 5.2 Million carats (2010)
Ranking First producer in the world,57% of total production
Characteristics Best quality and appearance
La Pita
Source: Ingeominas
1. MINERAL POTENTIALEmeralds : Significant inferred potential
2. Why you should invest in Colombia?
1. Mineral Potential
2.Economic
Stability
3. Political Stability
4. Healthy Business
Environment
5. Improved Security
1. HYDROCARBONS POTENTIALColombia, a country with hydrocarbon potential
2. Why you should invest in Colombia?
1. Mineral Potential
2.Economic
Stability
3. Political Stability
4. Healthy Business
Environment
5. Improved Security
Source: ANH, Nuevos aportes a la estimación del potencial de hidrocarburos en Colombia (2009).
Total 54,681 MEPB
We want to sign at least 215 new E&P contracts
Source: MME – ANH
Drill at least 570 new A3 exploratory wells
Source: MME – ANH
* Number of wells with the current contract commitments, it can vary when new contracts get signed.
Increase oil production to 1.150 KBPD in 2014
Source: MME
Forecast of Audited Crude Production 2011 – 2014(Thousand of Barrels per Day – Kbpd)
2. Why you should invest in Colombia?
INTRODUCTION TO THE MAIN PROJECTS
Colombia - Korea
Given the above, there are opportunities for Korea Participation in Hydrocarbons
E&P
We would like to
increase Korea
presence in
Colombia:
Exploration activity is intense
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Million (Ha)
Technical Evaluation Agreement
Production
Exploration
Land mapE&P contracts signed august 31th, 2011
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CONTRATO OPERADORA
BARBOSA NEXEN PETROLEUM COLOMBIA LIMITED
CAG 5 CONSORCIO META-TCOG CAG-5
CAG 6 CONSORCIO META-TCOG CAG-6
CAUCA 6 GRANTIERRA ENERGY COLOMBIA LTD
CAUCA 7 GRANTIERRA ENERGY COLOMBIA LTD
COR 11 CANACOL ENERGY COLOMBIA S.A
COR 15 MAUREL AND PROM COLOMBIA B.V.
COR 23 KINETEX SUCURSAL COLOMBIA INC
COR 24 CONSORCIO META-PSE-COR-24
COR 33
ALANGE ENERGY CORP SUCURSAL
COLOMBIA
COR 39 CANACOL ENERGY COLOMBIA S.A
COR 4
AUSTRALIAN DRILLING ASSOCIATES PTY
LTD SUCURSAL COLOMBIA
COR 6
INTEROIL COLOMBIA EXPLORATION AND
PRODUCTION
CPO 16 HOCOL S.A.
CR 2 OGX PETROLEO E GAS
CR 3 OGX PETROLEO E GAS
CR 4 OGX PETROLEO E GAS
GARAGOA NEXEN PETROLEUM COLOMBIA LIMITED
GUA OFF 3
SHELL EXPLORATION AND PRODUCTION
COLOMBIA CAÑO SUR GMBH SUCURSAL
COL
LLA 05
VETRA EXPLORACION Y PRODUCCION
COLOMBIA S.A.S
LLA 06 ECOPETROL S.A.
LLA 07
META PETROLEUM CORP SUCURSAL
COLOMBIA
LLA 08 ECOPETROL S.A.
LLA 11 STETSON OIL AND GAS LTD
LLA 13 HOCOL S.A.
LLA 15
PETROMINERALES COLOMBIA LTD
SUCURSAL COLOMBIA
LLA 37 ECOPETROL S.A.
LLA 38 ECOPETROL S.A.
LLA 39 HOCOL S.A.
LLA 40 CONSORCIO RAMSHORN-APCO
LLA 41
ALANGE ENERGY CORP SUCURSAL
COLOMBIA
LLA 42 TELPICO LLC
LLA 45 PERENCO COLOMBIA LTD
LLA 47
INTEROIL COLOMBIA EXPLORATION AND
PRODUCTION
LLA 48 SERVIOJEDA COMPAÑIA ANONIMA
LLA 52 ECOPETROL S.A.
LLA 55
META PETROLEUM CORP SUCURSAL
COLOMBIA
CONTRATO OPERADORA
LLA 56 TABASCO OIL COMPANY LLC
LLA 57 PAREX RESOURCES INC
LLA 58 HUPECOL OPERATING CO LLC
LLA 59
PETROMINERALES COLOMBIA LTD
SUCURSAL COLOMBIA
LLA 61 SUELOPETROL CA SA CA
LLA 62 HUPECOL OPERATING CO LLC
LLA 71 GEO TECHNOLOGY LA CA
LOS PICACHOS HUPECOL OPERATING, CO LLC
MACAYA HUPECOL OPERATING CO LLC
PUT 3 VAST EXPLORATION INC
PUT 6 PETRO CARIBEAN RESOURCES LTD
PUT 7 PETRO CARIBEAN RESOURCES LTD
PUT 8 CONSORCIO VETRA-C&C
PUT 9 META-TCOG PUT-9
PUT 10 GRANTIERRA ENERGY COLOMBIA LTD
SAMICHAY A ECOPETROL S.A.
SAMICHAY B ECOPETROL S.A.
SANGRETORO CANACOL ENERGY COLOMBIA S.A.
SSJS 1 CONSORCIO SK-ECOPETROL
TUM OFF 3 ECOPETROL S.A.
VIM 2 SK INNOVATION CO LTD
VIM 5 OGX PETROLEO E GAS
VIM 6 HOCOL S.A.
VMM 11
ALANGE ENERGY CORP SUCURSAL
COLOMBIA
VMM 18 MONTAJES JM
VMM 26 OGX PETROLEO E GAS
VMM 27
SHELL EXPLORATION AND PRODUCTION
COLOMBIA CAÑO SUR GMBH SUCURSAL
COL
VMM 28 PETROLEOS DEL NORTE S.A.
VMM 32 CONSORCIO CPVEN-ECOPETROL
VMM 35
ALANGE ENERGY CORP SUCURSAL
COLOMBIA
VMM 37 PATRIOT ENERGY SUCURSAL COLOMBIA
VSM 12
ALANGE ENERGY CORP SUCURSAL
COLOMBIA
VSM 13
ALANGE ENERGY CORP SUCURSAL
COLOMBIA
VSM 14 TECNICA VIAL S EN CA
VSM 15 FLAMINGO OIL S.A.
VSM 22 TELPICO LLC
VSM 3 TELPICO LLC
VSM 9 HOCOL S.A.
Reserved areas / Future offerings
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Reserved areas
54.619.955 Has
• Bidding Rounds
2012
2013
2014
Double oil pipelines’ transport capacity
OCENSA
March 2011: Capacity from 460 to 560 Kbpd
December 2013: Capacity from 560 to 660 Kbpd
Total Invesments: U$ 1.200 millions
1
Oleoducto Bicentenario de Colombia - OBC
(Araguaney–Coveñas)
December 2012: Capacity from 450 Kbpd.
Invesment: U$ 4.000 millions
2
Oleoducto de Colombia – ODC.
December 2011: Capacity from 230
a 300 Kbpd.
Invesment: U$ 350 millions
3
Oleoducto Transandino – OTA.
December 2012: Capacity from
50 to 80 Kbpd.
Invesment: U$ 200 millions
4
Modernize our refining capacity
Investments: US$ 3.891 million
Capacity: 165 Kbd
Operation starts in:
June - 2013
Investments: US$ 3.386 million
Capacity: 250 Kbd
Operation starts in:
August – 2016
Cartagena
Master Plan
Barrancabermeja
Modernization
Increase energy supply by 38% in 2018
Hydroelectric power station
Hydroelectric power station
(Proyects due 2014)
Gas thermal power station
Coal thermal power station
Fuel Oil thermal power station
Railroads expansion
Tren del Carare
Doble línea férrea La Loma – Santa Marta
Recuperación del sistema férreo central
Participation of Korea companies in developing
non conventional hydrocarbons
Shale Oil
Tight gasCoal bed Methane
Colombia is an excellent destination for mining investors!
We invite you all not to miss this opportunity
Thank You!
Carlos Rodado NoriegaMinister of Mines and Energy
COLOMBIAwww.minminas.gov.co
