Insight
Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity
Report summary
On 24 June 2016, Colombia's national oil company, Ecopetrol, launched a bid round for 20 of its minor onshore fields. This follows the region's other national oil companies, including Petrobras, YPF and Pemex in the divestment of non-core assets in a low oil price environment. This divestiture is part of an initiative to exercise capital discipline and reduce costs after Ecopetrol's near 40% 2016 capital budget cut. We see this as the company's first step in rationalising its portfolio as it pursues a US$400-900 million divestment target over 2016/2017.
Table of contents
- Bids are due in September
- Qualification is similar to the Colombia 2014 round
- Twenty fields on offer across four basins
-
Sliding scale royalties dramatically improve field economics
- Incremental production scenario
- Undisclosed minimum acceptable bids could produce a mismatch in expectations
- A diverse array of companies have shown interest
- Above-ground risk remains a concern
- A first step to address falling production
Tables and charts
This report includes 9 images and tables including:
- Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Table 1
- Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 1
- Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Table 2
- Illustrative fiscal regime comparison
- Sliding scale model concession royalty
- Terrorism risk index map of Colombia
- List of fields on offer
- Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 3
- Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 4
What's included
This report contains:
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