Columia is a country with immense potential in terms of oil reserves. The country is the third largest producer of oil anyway, and they are auctioning blocks to private companies to ensure better production of oil. The first government auction in two years saw Royal Dutch Shell plc (ADR)(NYSE:RDS.A) as well as the Repsol SA (ADR)(PINK:REPYY) getting blocks through the auction, they were amongst the top most bidders for the blocks of natural gas and oil, which had been put up on the market like this, after a good two years.
The country is giving licenses to other producers and after having given them 115 blocks, the country officials are probably trying to boost production soon. National Hydrocarbons Agency has a website which shows the preliminary results of 115 blocks having gone to different companies. The blocks being offered are not shams as well. They consist of more than two dozen areas which contain the oil, as well as the natural gas, which, according to the report, is stuck between the shale oil.
The output from the country has been jumping up, and the amount of production being done through Columbia is increasing all the time. Having seen a 72 percent growth since the year 2007, the country has been such an attractive place for factory owners because they have increased security at the blocks themselves. According to data compiled by the U.S government, the other countries such as Argentina and Ecuador lag behind Columbia.
The reserves yield about 2.3 billion barrels of oil, which is a hug amount, and does not match up to the oil production of a number of places. Shell had to outbid many other companies in order to get for itself, a particularly lucrative exploratory block which is off Columbia’s northern coast, at the Caribbean. Ecopetrol manages to procure for itself, a shale rock block which is at the eastern province, near the border of Venezuela. While Kelly OpDeWeegh, a spokeswoman from Shell stated that the company is going to look out in the future for the immense potential in Columbia, both Ecopetrol and Gran Tierra were not available for comments.