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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.

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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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