Insight
Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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
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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 the following images and tables:
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Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Table 1Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 1Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Table 2
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Illustrative fiscal regime comparisonSliding scale model concession royaltyTerrorism risk index map of ColombiaList of fields on offerColombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 3Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 4
What's included
This report contains:
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