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Hocol signs 4 contracts for oil exploration in Colombia

Colombia has proven reserves of 1,958 million barrels, equivalent to 6.2 years of consumption, with a current average production of 865,000 barrels per day, of which 50 percent is for domestic consumption and the rest for export

The installations of Ecopetrol's Castilla oil rig platform are seen in Castilla La Nueva, Colombi

The installations of Ecopetrol's Castilla oil rig platform are seen in Castilla La Nueva, Colombia June 26, 2018. Picture taken June 26, 2018. REUTERS/Luisa Gonzalez

Reuters | Luis Jaime Acosta

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Hocol, a subsidiary of oil company Ecopetrol, signed four contracts with Colombia on Thursday to explore the same number of blocks that will require investments of around 100 million dollars to close the bidding process, in order to revitalize the hydrocarbons sector of the South American country, the company reported.

Leer en español: Hocol firma 4 contratos para exploración petrolera en Colombia

The first block called COR 9 is located in the department of Tolima, in the southwest of the country, has an area of 126.6 square kilometers and will require investments of 16 million dollars for seismic and drilling a well.

The blocks Llanos 86, Llanos 87 and Llanos 104, owned in equal parts by Hocol and GeoPark, which will operate them, are located in the departments of Meta and Casanare, in the eastern plains of the country, and add up to 2,752 square kilometers.

The two companies committed to investing between 80 and 110 million dollars for seismic and drilling six exploration wells in the three blocks.

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"This Permanent Area Assignment Process has been a success, and the reactivation of the oil and gas industry is evident, and for Hocol, this represents a great success," said Hocol president Rafael Guzmán.

"Acquiring these four blocks strengthens our growth strategy, consolidates our portfolio, and also leverages the strategy of the Ecopetrol Group," he added in a statement.

Colombia has proven reserves of 1,958 million barrels, equivalent to 6.2 years of consumption, with a current average production of 865,000 barrels per day, of which 50 percent is for domestic consumption and the rest for export. The country seeks to increase these reserves to at least 10 years of consumption.

With the bidding round, Colombia expects investments of 1,500 million dollars in the next months in exploration activities and to increase its reserves in 1,000 million equivalent barrels of oil.

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