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Colombia Overview

Platino’s exploration assets are located in Colombia, one of South America’s most stable and fiscally attractive jurisdictions.  Colombia has been focused on attracting foreign investment to its energy sector through various initiatives in the last ten years, including:

  • Emphasis on sound macroeconomic policies and political stability;
  • Implementation of a new energy fiscal regime and land allocation system designed to engage foreign energy investors through lower, sliding-scale royalties, the ability for foreign companies to own 100% stakes in oil ventures and lengthening exploration phases;
  • Introduction of the Agencia Nacionale Hidrocarburos ("ANH") as the regulatory authority to oversee this new system and enhance efforts to showcase Colombia’s potential to the global energy community; and
  • Increased security efforts to provide certainty to foreign operators that their operations will be safe.

After a period of decline from a peak of ~800k bbl/d of oil production in the 1990’s to ~525k bbl/d of oil production in 2005, the government’s steps to revive the oil industry have resulted in a significant increase in oil production.  The Colombian government is close to attaining its goal of 1 MM bbl/d of oil production, a significant milestone entrenching Colombia as a meaningful global oil producer.  

Source: ANH data

Colombia offers key access to global energy markets and favorable realized crude pricing at Vasconia.

Operating in Colombia

The continued development of the energy industry in Colombia as well as macroeconomic dynamics provide several advantages to operating in Colombia, including:

  • Access to global energy markets and favorable realized crude pricing at Vasconia;
  • High availability of local technical and operational workforce capabilities;
  • Improving transportation alternatives, including the construction of the Oleoducto Bicentenario de Colombia ("OBC") pipeline; and
  • Significant access to energy services, including civil works construction and drilling rigs.