The Colombian Government has signed exploration and production (E&P) contracts with Anadarko Colombia, a subsidiary of Occidental Petroleum, for four offshore blocks.

The four blocks, COL-1, COL-2, COL-6, and COL-7, are estimated to cost $1.4bn in total, reported Reuters.

The blocks being offered by the government are located off the coasts of the La Guajira, Magdalena, and Atlantico provinces of Colombia.

According to Colombia’s National Hydrocarbons Agency (ANH), the blocks cover an area of nearly 1.6 million hectares.

ANH president Armando Zamora was quoted by the news agency as saying: “The four contracts make up a third node for exploratory activity which, added to the two existing areas being developed in the maritime areas of La Guajira and Uraba, completes the panorama of potential of the entire Caribbean coast.”

The ANH said that new blocks would ensure energy independence as the country is left with less than eight years of gas reserves.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Colombian Minister of Mines and Energy Diego Mesa said that the latest E&P contracts bring the total number of contracts signed under the present government to 39.

Mesa was cited by Reuters as saying: “This is a very important milestone.

“This confirms that Colombia’s hydrocarbons sector continues to very attractive to direct foreign investment.”

Earlier this year, Occidental Petroleum agreed to sell non-strategic acreage in the Permian Basin in Texas to an affiliate of Colgate Energy Partners III for $508m.

The Permian Basin assets have approximately 10,000 barrels of oil equivalent per day (boepd) of production capacity from about 360 active wells.