Colombia Oil Reserves Rose 10% In 2011; Government Says More Needed

Colombia Oil Reserves Rose 10% In 2011; Government Says More Needed

BOGOTA - Colombia's proven oil reserves climbed 10% last year compared with 2010, but the government says more is needed and is urging companies to spend more on exploration.

According to data released late Thursday from the government's oil licensing agency ANH, proven reserves were 2.259 billion barrels at the end of last year, versus 2.058 billion barrels in 2010.

Colombia is Latin America's fourth largest oil producer and is likely to soon reach a record 1 million barrels a day of crude oil output, after averaging 936,000 barrels a day last year. Oil production last month averaged 955,000 barrels a day.

However, Mines and Energy Minister Mauricio Cardenas warned earlier this week, in a speech to oil companies in Cartagena, that focus needs to shift toward building up reserves.

"We have to invest more in [exploration]," Cardenas said. "Let's not just put the foot on the accelerator of oil production, let's fill up the tank."

Cardenas said state-controlled Ecopetrol, which is responsible for 60% of production in Colombia, "has 8.3 years worth of reserves, and there are companies here that have less than that. We need to focus on exploration."

Ecopetrol has 1.857 billion barrels worth of proven reserves of oil, far less than Brazil's Petroleo Brasileiro SA, which has reserves of about 15 billion barrels of oil equivalent.

Copyright (c) 2012 Dow Jones & Company, Inc.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Logistics Coordinator & Optimization Analyst
Expertise: Logistics Management
Location: Billings, MT
Associate Category Manager or Category Manager Job
Expertise: Logistics Management|Purchasing|Supply Chain Management
Location: Denver, CO
Contracts Advisor
Expertise: Budget / Cost Control|Contracts Engineer|Supply Chain Management
Location: San Ramon, CA
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours