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9 Pages

Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity


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.

What's included?

This report includes 2 file(s)

  • Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity PDF - 1.57 MB 9 Pages, 4 Tables, 5 Figures
  • Ecopetrol onshore bid round.xls XLS - 687.50 KB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

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  • 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

In this report there are 9 tables or charts, including:

  • Bids are due in September
    • Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Table 1
  • Qualification is similar to the Colombia 2014 round
  • Twenty fields on offer across four basins
    • Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 1
  • Sliding scale royalties dramatically improve field economics
    • Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Table 2
    • Illustrative fiscal regime comparison
    • Sliding scale model concession royalty
    • Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 3
    • Colombia: Ecopetrol minor field divestments offer juniors fresh opportunity: Image 4
  • Above-ground risk remains a concern
    • Terrorism risk index map of Colombia
  • A first step to address falling production
    • List of fields on offer
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