From a selection of 144 Energy Country Profiles, KeyFacts Energy feature Colombia in the continuing series of snapshot reports, with selected information taken from our popular 'Energy Country Review' database.

Colombia experienced a dramatic rise in energy production since the implementation of regulatory reforms in 2003. Additionally, appealing fiscal terms, increased security, and a positive reputation for respecting contract sanctity has helped encourage an influx of international companies and investment capital. Colombia’s steadfast economic policies have allowed it to maintain investment grade credit ratings while other hydrocarbon dependent economies in the region have faltered. Furthermore, continued improvements in security are expected to continue with the execution of the peace accord and demobilization.

Overview(1)

• In 2021, Colombia was South America’s largest coal producer and second-largest petroleum and other liquids producer after Brazil. The country is also a significant oil exporter; in 2021, it was the fifth-largest crude oil exporter to the United States.
• Energy consumption in Colombia totaled 1.7 quadrillion British thermal units (quad) in 2020. At 31%, oil accounted for the largest share of Colombia’s total energy consumed.
• Columbia uses hydropower for most of its electricity needs. Despite being a major coal producer, Colombia uses very little coal domestically, instead exporting most of its coal production.

Exploration and production

• According to the Oil & Gas Journal, Colombia had 1.8 billion barrels of proved crude oil reserves as of January 2022.
• Colombia’s total petroleum and other liquids production fell from 808,000 barrels per day (b/d) in 2020 to an average of 760,000 b/d in 2021, continuing a production decline trend from recent years. Production declines in both years were the result of shut-ins driven by COVID-19-related lockdowns and delayed exploration in addition to social protests and attacks by guerilla groups on key midstream oil infrastructure.
• All of Colombia’s crude oil production occurs onshore (a mature resource base), and EIA expects that crude oil production will continue to decline. Ecopetrol, Colombia’s national oil company, is focusing on increasing output from the maturing Rubiales, Castilla, La Cira, and Chichimene fields through infill drilling, rather than undertaking new exploration. The Llanos Orientales (Eastern Llanos) Basin east of the capital, Bogota, is the main source of production. Its heavy, sour crude oil make up Colombia’s key export grades, Castilla Blend and Vasconia.
• Colombia has no offshore oil production, but its plans include contracting with companies to explore and develop its offshore region in an effort to increase oil reserves. Industry reports indicate that offshore oil production could increase reserves, but production would likely not begin until the late late 2020s.
• The shale formations in Colombia are the Cesar-Rancheria Basin, the Middle Magdalena Valley Basin, the Llanos Basin, and the Maracaibo/Catatumbo Basin (on the border of Venezuela and Colombia). Since 2019, unconventional drilling has been under a moratorium. The Agency of National Hydrocarbon (ANH), Colombia’s hydrocarbon regulator, planned to start pilot fracking projects in 2020. However, these projects were delayed as a result of the COVID-19 pandemic.
• The Colombian government has approved four companies to participate in pilot projects: Ecopetrol, ExxonMobil, Drumond Energy, and Tecpetrol Colombia. Ecopetrol and Repsol are scheduled to start drilling in Colombia’s offshore Caribbean block this year, while additional pilots were also approved in Colombia’s Middle Magdalena Valley Basin. In 2013, an EIA report indicated that the quality of the La Luna formation (part of the Middle Magdalena Valley Basin) is similar to North America’s shale plays. The La Luna formation is a deep marine shale mixed with marl and limestone, much like the Eagle Ford and Niobrara Shale plays in the United States.

Country Key Facts

Natural gas

• According to the Oil & Gas Journal, Colombia had proved natural gas reserves of nearly 3 trillion cubic feet (Tcf) as of January 2022.
• In 2020, Colombia produced 399 billion cubic feet (Bcf) of dry natural gas, and it consumed about 413 Bcf. Colombia predominantly produces associated natural gas (meaning natural gas from oil deposits). Natural gas production in Colombia comes from two main sources: associated gas from inland fields (Cusiana, Cupiagua, and Pauto Sur) and unassociated gas from offshore fields (Chuchupa field). Colombia’s national oil company, Ecopetrol, is the primary producer, but foreign firms also operate in Colombia. Among the largest fields, only one - Chuchupa - is located offshore and was operated by Chevron until the sale to Hocol in November 2019.
• Colombia’s oil production requires the majority of the country's produced natural gas (nearly 50%) to be re-injected to bolster recovery efforts, which will become increasingly widespread as producers seek to enhance oil recovery amid declining exploration. In addition, the Barrancabermeja and Reficar refineries use natural gas-fired plants to power their daily operations.
• Colombia has a large shale gas potential; however, only pilot projects are currently allowed. In 2019, the national oil company Ecopetrol entered into a joint venture with Occidental to develop natural gas in the United States’ Permian Basin to gain relevant knowledge in shale projects that is likely to be used in Colombia once the ban on fracking is lifted.
• In November 2020, Ecopetrol announced a climate strategy to reach its sustainability goals, including a 20% emissions reduction by 2030 or zero routine flaring by 2030. To achieve this goal, Ecopetrol committed to stop routine flaring at its operations, joining the Global Gas Flaring Reduction Program led by the World Bank.

(1) Source EIA

E&P COMPANIES

Canacol 

Canacol operates over 1.5 million net acres in 10 exploration and production gas contracts in Colombia, located in the Lower & Middle Magdalena Basins. The Company's proved plus probable (2P) gas reserves have been assessed at 637 billion cubic feet with a before tax present value, discounted at 10%, of $1.7 billion dollars. In addition, 188 identified future exploration and development drilling prospects and leads were assessed to contain 5.7 trillion cubic feet of gross mean un-risked prospective natural gas resources.

Canacol is part of the energy transition towards a cleaner energy matrix in Colombia. Natural gas is increasingly important for Colombia as the country phases out oil and coal as energy sources, replacing them with natural gas in a transition to a cleaner, more renewable energy matrix. This will be essential in achieving the government’s target of reducing greenhouse gases (GHGs) and particulate matter, especially within large population centers. The Colombian government is committed to a 51% reduction of GHG emissions by 2030. To meet the government's target, natural gas will be critical, thus the use of gas in Colombia is expected to grow 4% annually from 2020 to 2033.

Canacol Energy Colombia country profile

CEPSA

CEPSA's main asset is the production field of Caracara, where the company have managed to maximize production since 2008. CEPSA also carry out exploration and production in the Casanare region and in the basin of the Valle Superior del Río Magdalena.

CEPSA Colombia country profile

Chevron

As a result of Chevron’s acquisition of Noble Energy in October 2020, two exploration plays in Colombia were added to Chevron’s portfolio.

Chevron has a 40 percent-owned and operated working interest in Colombia-3 and Guajira Offshore-3 blocks located off Barranquilla and Santa Marta’s shores, covering more than 800,000 net acres (3,237 sq km). 

In April 2020, the company completed the sale of its interests in the offshore Chuchupa and onshore Ballena natural gas fields.

Chevron Colombia country profile

CNOOC International

Originally Nexen Petroleum Colombia opened an office in Bogota in February 1995. CNOOC International now holds assets in both shale gas and conventional oil in Colombia and was one of the first companies to explore for shale gas in the country.

CNOOC International Colombia country profile

ConocoPhillips

VMM-3 Block
In 2015, ConocoPhillips assumed operatorship of the VMM-3 Block, which extends over approximately 67,000 net acres. The block contains the Picoplata 1 well, which completed drilling in 2015. In 2017, ConocoPhillips performed production testing operations and in 2019 plugged and abandoned the well. The block remains in force majeure due to ongoing litigation initiated by activists that suspended the technical regulations, as well as lack of approval of the environmental license. 

MM-2V
In 2017, ConocoPhillips acquired interest in and operatorship of the VMM-2 Block, which extends over approximately 58,000 net acres and is contiguous to the VMM-3 Block. The block remains in force majeure due to ongoing litigation initiated by activists that suspended the technical regulations, as well as lack of approval of the environmental license.

ConocoPhillips Colombia country profile

Ecopetrol

Ecopetrol S.A. is the largest company in Colombia, the fourth largest Latin American oil company, and one of the top 40 largest oil companies in the world.

Ecopetrol  is an integrated company participating in the hydrocarbon value chain, from exploration and production of oil and gas, to marketing and processing fuels and value added products. It owns and operates the two main refineries of Colombia.

Ecopetrol operates a transportation network of over 9,000 kilometers of pipelines connecting its production to refineries, consumption centers, and ports in the Atlantic and Pacific coasts of Colombia.

Ecopetrol also invests in research and development, and runs the most important hydrocarbon investigation center in Colombia, the Instituto Colombiano del Petróleo. 

The Ecopetrol Business Group currently comprises more than 30 companies, in businesses ranging from hydrocarbon exploration, production, transportation to refining, petrochemicals and biofuels, with operations in Colombia, Brazil, Peru and the United States. 

Ecopetrol Colombia country profile

Equinor

Equinor entered Colombia in 2014, with the award of a 33.33% working interest in the COL4 offshore license in the Caribbean Sea. Repsol is the operator of the license with 33.34% and ExxonMobil holding the remaining 33.33%.

Equinor also holds a 20% equity share in the Guajira Offshore 1 license. Repsol operates the Guajira Offshore 1 (GUA OFF-1) license with a 30% working interest and the remaining 50% is held by Ecopetrol. A 2D and 3D seismic survey has been conducted and all major license commitments for the current exploration phase are fulfilled.

Equinor Colombia country profile

Equión Energía

Equión are a hydrocarbon exploration and production company whose shareholders are Ecopetrol S.A. (51%) and Repsol (49%). Since 1986 the Company have developed responsible and sustainable oil activities in the department of Casanare.

Equion Colombia country profile

ExxonMobil

In November 2021, Colombia provisionally approved ExxonMobil Corp’s plan to develop a pilot project for hydraulic fracturing, known as fracking, in the country’s Valle Medio del Magdalena basin.

With the Platero investigative project ExxonMobil becomes the second company to begin a fracking pilot project in Colombia, after majority state-owned oil company Ecopetrol.

The project is expected to attract $53 million in investment.

ExxonMobil Colombia country profile

Frontera

Frontera's daily production on March 1, 2022 was approximately 42,000 boe/d and the Company's year-to-date average to March 1, 2022 was approximately 40,500 boe/d.

Currently, the Company has five drilling rigs and five workover rigs active at its Quifa, Coralillo, Corcel, Copa and Guaduas operations in Colombia and at the Perico block in Ecuador. In the fourth quarter of 2021, the Company drilled 14 development wells including 12 at Quifa, and 2 at Guatiquia and completed 56 workovers and well services at Quifa, Guatiquia, Canaguaro, Abanico, Corcel, Cajua, Cravoviejo, Cubiro and Casimena. In 2021, the Company drilled 42 producer wells, 3 injector wells and completed 148 workovers and well services.

Frontera Energy Colombia country profile 

GeoPark

GeoPark's Colombian assets currently give them access to more than 600,000 gross exploratory and productive acres across 8 blocks in what the company believe to be one of South America’s most attractive oil and gas geographies.

Average net production in Colombia grew 15% to 32,191 boepd in 2Q 2019 compared to 27,940 boepd in 2Q 2018, reflecting continued successful exploration, appraisal and development drilling in the Llanos 34 block.

GeoPark Colombia country profile

Gran Tierra

Gran Tierra transformed their portfolio through four strategic, accretive acquisitions in Colombia in 2016, which established a dominant land position in the highly prospective, underexplored Putumayo Basin and a new core area in the prolific Middle Magdalena Valley Basin.

The company submitted winning bids totaling a combined $30.4 million for two blocks which Ecopetrol, offered as part of the Ronda Campos Ecopetrol 2016 ("Bid Round") in an electronic live auction held on November 25, 2016. Gran Tierra's winning bids are for the Santana and Nancy-Burdine-Maxine Blocks, which are located in the Putumayo Basin.

Ecopetrol holds operatorship and a 100% working interest ("WI") in each of the Santana and Nancy-Burdine-Maxine Blocks. Upon execution of definitive documents relating to the purchase of these blocks, Ecopetrol will transfer ownership of the blocks' assets, contracts, permits and licenses, as well as 100% ownership of Ecopetrol's rights and obligations in respect of the oil and gas assets, by entering into assignment agreements with Gran Tierra. Each assignment agreement would be subject to the prior approval of Colombia's Agencia Nacional de Hidrocarburos (ANH).

Gran Tierra Colombia country profile 

Gulfsands

Gulfsands holds a 100% interest in one Exploration and Production Contract in Colombia: the Llanos Block 50 (“LLA-50”) contract. The LLA-50 licence, which was suspended in 2018, remained in suspension during the year, by agreement with the Agencia Nacional De Hidrocarburos (“ANH”) as a result of environmental issues and restrictions which impact the ability to execute relevant exploration activities over the areas of interest.

Gulfsands Petroleum Colombia country profile

HOCOL

HOCOL began its search for hydrocarbons six decades ago in the Magdalena Valley, and since then it has made exploration an axis of its growth strategy. The permanent activity in this field has allowed the Company to increase its oil and gas reserves and anticipate effectively the decline of the production of its mature fields. The exploratory portfolio of HOCOL includes light, heavy, extra-heavy crudes and gas, in the basins of the Upper and Lower Valleys of the Magdalena, the Piedemonte, the Llanos and the Guajira.

HOCOL Colombia country profile 

Houston American Energy 

Houston American Energy announced the acquisition, effective October 31, 2019, of a membership interest in Hupecol Meta, LLC which owns the CPO-11 block in the Llanos Basin in Colombia.

In December 2019, Houston American Energy announced the acquisition of an additional interest in Hupecol Meta, LLC, doubling its interest in the Company. Hupecol Meta owns the 639,405 gross acre CPO-11 block in the Llanos Basin in Colombia, comprised of the 69,128 acre Venus Exploration area, operated by Hupecol, and 570,277 acres which was 50% farmed out to Parex Resources by Hupecol. In total, the CPO-11 block covers almost 1000 square miles with multiple identified leads and prospects expected to support a multi-well drilling program. Through its membership interest in Hupecol Meta, Houston American now holds a 2% interest in the Venus Exploration area and a 1% interest in the remainder of the block.

Houston American Energy Colombia country profile

Interoil

Interoil’s assets in Colombia include two production licences, Puli-C and Altair, plus two exploration contracts LLA-47 and Cor-6, both onshore blocks placed in very prolific hydrocarbon provinces in the Llanos Basin.

In addition, Interoil has an operating service contract with Ecopetrol for the Toqui-Toqui field, which is located close to the Mana field, and which is licensed by Hocol, a sister company of Ecopetrol.

Interoil Colombia country profile

Lewis Energy

Lewis Energy Colombia (LEC) has been investing in Colombia since 2003 and has been a qualified operator in Colombia since 2007. The focus of the company is on gas production on the north coast of Colombia. LEC operates fields in the Sinu San Jacinto foldbelt and in the Llanos Basin. Presently LEC has an acreage position in Colombia exceeding 360,000 gross acres. The company is actively developing multiple formations on the north coast taking advantage of its strategically located infrastructure near major gas markets.

Lewis Energy Colombia country profile

Occidental

In October 2020, Occidental signed an agreement to sell its onshore assets in Colombia to The Carlyle Group for total consideration of approximately $825 million, with $700 million up front and the remainder payable subject to certain production and commodity price targets. The transaction includes operations and working interests in the Llanos Norte, Middle Magdalena and Putumayo Basins. Occidental will retain a presence in country with its exploration blocks offshore Colombia.

Offshore, Occidental is partnering with Colombia’s national oil company, Ecopetrol, in the early phases of deepwater exploration for oil and natural gas resources. Occidental holds interest in approximately 16 million acres across nine blocks in the Caribbean offshore. 

Occidental Colombia country profile

ONGC Videsh

ONGC Videsh has a significant presence in oil & gas sector of Brazil and Colombia. It holds stakes in seven exploratory blocks. In addition, ONGC Videsh is the joint owner of the oil producing company Mansarovar Energy Colombia Ltd (MECL) along with its partners Sinopec of China. 

ONGC Videsh Colombia country profile

Parex

Calgary based Parex holds interests in approximately 2.3 million gross acres over 24 onshore blocks in Colombia’s Llanos and Magdalena Basins.

Parex Resources Colombia country profile

Perenco

Perenco started operating in Colombia in 1993, when the company acquired assets in the Los Llanos Basin. Twenty one years later, the presence of the company was enhanced with the acquisition of Petrobras Colombia (PEC).

In 2014, Perenco acquired the Colombian assets of Petrobras, including interests in 11 exploration and onshore production blocks, as well as interests in the Colombia and Alto Magdalena pipelines. In Tolima, the Guando field is one of the three greatest discoveries made in Colombia over the last 15 years.

The operated production of Perenco in Colombia now exceeds 21,000 boepd.

Perenco Colombia country profile

Petrobras

Petrobras Colombia, the local subsidiary of Brazil's NOC Petrobras, began operating in the country in 1972, carrying out deepwater exploration activities for oil and gas. 

As part of their 2013-2017 Business and Management Plan Petrobras announced the sale of 100% of the shares issued by Petrobras Colombia Limited (PEC) to Perenco for US$ 380 million.

Petrobras continue to run its offshore exploratory blocks in Colombia, as well as its distribution business, and press ahead with its single-block onshore exploratory operation.

Petrobras Colombia country profile

PetroSantander

PetroSantander, Inc. engages in exploration and production of oil and gas in the United States, Colombia, and Brazil. The company was founded in 1995 and is based in Houston, Texas.

PetroSantander Colombia country profile

Repsol

Repsol arrived in Colombia in 1983 to develop their exploration and production activities throughout the country. Colombia represents a strategic country for the Company and is one of their key development areas.

Akacías project
The Akacías production field, operated by ECOPETROL, is located in the Acacías and Guamal municipalities in the Department of Meta. The field has 37 active wells built into 6 clusters, and current production is around 16,700 BOPD.

Development plans for the project include a objective of 74 wells, of which 51 will be active and 23 injection, that will be mechanically and electrically connected to a Central Production Facility. The Facility, on which construction should begin in 2022, will aid in reaching the target of approximately 50,000 BOPD by around 2025. The plans also consider incorporating energy transition strategies such as geothermal, solar, and green hydrogen energy production, which are currently undergoing pre-feasibility studies.

Repsol Colombia country profile

Shell

In February 2020, Ecopetrol and Shell EP Offshore Ventures signed an agreement whereby Shell acquired a 50% stake in the Fuerte Sur, Purple Angel and COL-5 blocks, located in the deep waters of the Colombian Caribbean, following the discovery of a new gas province with the Kronos (2015), Purple Angel and Gorgon (2017) wells. Subsequent to the agreement, Shell assumed the operation of the blocks.

In December 2020, Ecopetrol completed the 50% sale of its stake in the Fuerte Sur, Purple Angel and COL-5 blocks, located in Colombian Caribbean deep water, to Shell.

Shell Colombia country profile

Sintana Energy

Sintana Energy is a public Canadian oil and natural gas exploration company listed on the Canadian TSX Venture Exchange under the trading symbol SEI. With offices in Toronto and Calgary, Canada; Dallas, Texas; and Bogota, Colombia, the Company's primary assets are ownership interests in several blocks in Colombia's prolific Magadalena Basin. 

The Company's private participation interests in Colombia, held by Patriot Energy Sucursal Colombia ("Patriot"), wholly owned by Sintana, include 100% of the conventional and 30% of the unconventional resource in the 43,158 acre VMM-37 Block which is located in the Middle Magdalena Basin. These interests are subject to all applicable regulatory and government approvals, including those of Colombia's National Hydrocarbon Agency (the ANH).

Sintana Energy Colombia country profile

Tecpetrol

Tecpetrol explores and produces oil and gas in Argentina, Bolivia, Colombia, Ecuador, Mexico, Peru and Venezuela. With more than 760 wells in production, the areas where it operates are home to plants and facilities for primary and secondary recovery, gas conditioning and processing, and power generation.

In February 2021, Tecpetrol was among four companies to prequalify for Colombia's second licensing round for unconventional oil and gas projects.

Tecpetrol Colombia country profile

TotalEnergies

TotalEnergies have been involved in oil and gas exploration and production in Colombia since 1971. The company also market petroleum products and related services. 

The Company hold a 55% interest in the Mundo Nuevo license, which is under exploration.

TotalEnergies have sold their majority stake and terminated our operations in the Niscota block and, as part of our environmental obligations, are taking part (50%) in reforestation, civil engineering and other rehabilitation activities.

TotalEnergies Colombia country profile

VETRA Energia

VETRA Energia, S.L. is one of the largest privately held independent oil producers in Colombia.

Based in Bogota, Colombia, the Company was founded in 2003.

VETRA Energía engages in the exploration and production of oil and gas. It produces oil and gas from various production blocks located in Middle Magdalena Valley, Lianos and Catatumbo, and Putumayo.

In addition to its producing assets, VETRA has an extensive portfolio of exploration concessions awarded by the Agencia Nacional de Hidrocarburos (“ANH”) during the 2010 and 2012 bidding rounds. These concession blocks are distributed between the Putumayo and Llanos Basins and represent a significant upside opportunity for the company.

VETRA Energia Colombia country profile

RENEWABLE

Brookfield

Toronto based Brookfield Renewable Partners operates one of the world’s largest publicly-traded renewable power platforms. Its portfolio consists of approximately 19,000 MW of capacity and 5,274 generating facilities in North America, South America, Europe and Asia. It has an established track record of creating value by prudently acquiring, building and financing assets, and actively managing its operations.

In January 2016, Brookfield Renewable Partners acquired Colombia’s third-largest power generation portfolio, based primarily on hydro and accounting for roughly 20% of the country’s generation, with 3,000 megawatts of capacity.

Brookfield Renewable Partners Colombia country profile

Cubico

UK based Cubico are one of the world’s leaders in providing renewable energy, covering the whole energy chain from development and/or construction to operation and management.

In October 2019, Cubico announced its plans to create a platform of up to 400 MW of solar PV in Colombia in partnership with Latin American energy company Celsia, an affiliate of Grupo Argos.

Cubico Colombia country profile

EDP Renewables

EDPR is a global leader in the renewable energy sector and is currently present in 14 markets  (Belgium, Brazil, Canada, France, Greece, Italy, Mexico, Poland, Portugal, Romania, Spain, the UK, US and Colombia). 

In March 2019, EDP Renováveis secured two 20-year contracts at an auction organized by the Colombian Government for the construction of wind farms. The contracts refer to the Alpha (212 MW) and Beta (280 MW) onshore wind projects, which are currently being developed by EDPR and have an expected commercial operation date in 2022.

EDPR Colombia country profile

KeyFacts Energy: Country Profile