INVEST INOIL GOODS ANDSERVICES SECTOR

Liberta y Orden

COLOMBIA IN THE WORLD

Colombia is within the top 20 oil producing countries, producing over one million barrels of oil. International Energy Agency, 2013.

Colombia has become the fourth largest oil producer in Latin America surpassing Argentina, Ecuador, Peru, and Chile. International Energy Agency, 2013. BP, 2012.

In 2012, Ecopetrol became one of the leading companies worldwide, ranking as the sixth in the world by market capitalization. Bloomberg, 2012.

OIL PRODUCTION 2000-2013

CURRENT SECTOR SITUATION • Oil accounted for 6% of Colombian GDP in

2012.DANE,2012.• The investment in theoil sector accounts for

37% of FDI received in the country. CentralBank,2013.

• The Government goals for 2014 include toexploremorethan570wellsandtohavemorethan204contractsofE&P.MinesandEnergyMinistry.

• Leaded by National Agency of Hydrocarbons(ANH), the Ronda Colombia 2012 presentedpositiveresultsaftertheawardingof50blocks,five related to nonconventional hydrocarbonsandsix tooffshorefieldswhichwill representUS$2,600 million in exploring investment inthemediumrun.

3,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013JUN.

2,500

1,500

3,000

2,000

1,000500

Venezuela Peru Brazil Ecuador Argentina Colombia Source:BPEnergyOutlook2012,IEA,2013.

• There was an increase of 77% of daily oilproductionfrom2007to2012.ANH,2012.

INVESTMENT OPPORTUNITIES IN OIL GOODS AND SERVICES

THE HYDROCARBONS INDUSTRY IN COLOMBIA CURRENTLY HAS THE POTENTIAL TO DEVELOP:1. Upstream: Exploration and Production

Colombiahasareservepotentialof47billionofbarrelsofoilandthePUME1projectionsforthenext18yearsleadstotheincreaseintheoilreservesofthecountrythrough:

• Secondaryrecuperation:Increaseofsecondaryrecuperationgoingfrom16%to30%

• Heavycrudefindings• Newimprovementsinnonconventionalfields

- Fieldgeology,seismic,andprospective- Hydraulicfracturingandstimulationwellservices

companies- Technologiesinrecoveryactivities- Technologies in discovery and recuperation of

heavycrude- Stimulation(hydraulicfracturing)wellservices- Drillingcompanies- Productionorimportofpropante(afracturesand

which comes from mining fields and is used infracturingoilfields)

- Waterinjectionplants- Watertreatmentplants- Reciprocatingandcentrifugationinjectionpumps- Chemicaltreatmentfortheproductionphase- Recordsanddrillingshots

- Oiltransportinfrastructure- Developmentofnewcapacityforhydrocarbons

storage- Logistic services and construction of offshore

platforms- Handlingoilfieldabandonment- Development and construction of oil and gas

tanks

- Electricpowergenerationwithgasforwells

1. Planning Unit for the Mining and Energy Sector.

Source:BPStatisticalReviewofWorldEnergy,January,2012.

Thisscenariocreatesnewinvestmentopportunitiesinthedifferentstagesofthevaluechainthrough:

• Strategicallianceswithlocaloilgoodsandservicescompanies• Newcompaniescreation• Mergersandacquisitions• Greenfieldprojects

2. Downstream: Transport and Storage

3. Other services

1. ANDEAN REGION

2. ORINOQUIA REGION

4. AMAZON REGION

3. CARIBBEAN REGION

•Santander: Fourth oil producer with 53,437 BPD. From the Ronda Colombia2012, 5 blocks were awarded. It has the biggest refinery of the country located inBarrancabermeja.

•Huila:Sixthoilproducerwith36,222BPD.FromtheRondaColombia2012,oneblockwasawarded.

•Cundinamarca:Oilproductionof772BPD.FromtheRondaColombia2012,oneblockwasawarded.

•Meta:BiggestoilproducerinColombia(461,816BPD).FromtheRondaColombia2012,8blockswereawarded.

•Casanare:Secondoilproducerwith166,847BPD.FromtheRondaColombia,7blockswereawarded.

•Arauca:Thirdoilproducerwith69,193BPD.FromtheRondaColombia5blockswereawarded.

•Putumayo:Seventhoilproducerwith35,055BPD.FromtheRondaColombia2012,5blockswereawarded.

•Bolivar:Oilproductionof15,378BPD.FromtheRondaColombia2012oneblockwasawarded.IthasthepresenceofthesecondmostimportantrefineryinCartagena.

1.2.

3.

4.

INVESTMENT OPPORTUNITIES BY REGIONS

Duetotheincreaseofoilproductionoverthelastyears,theinvestmentlevelfromdifferentcompanieshasbeengrowinginsidethecountry.Here,wecanseethetopproducingcompaniesinColombia.

BUSINESS NETWORk

• Ecopetrol,Colombia.361.1Kbpd

• Hocol,Colombia.361.1Kbpd

Source:MinistryofMinesandEnergyofColombia,2013.

• GranTierraEnergy,Canada.361.1Kbpd

• EquiónEnergía,Colombia.41.8Kbpd

• Mansarovar,China,India.41.8Kbpd

• Cepcolsa,Spain.30.1Kbpd

• PacificRubialesEnergy,Canada.267.8Kbpd

• OccidentalPetroleumCo,UnitedStates.60.2Kbpd

• Petrobras,Brazil.24.1Kbpd

• PerencoColombia,UnitedKingdom.17.8Kbpd

• NationalHydrocarbonsAgency (ANH): TheANH is theauthorityresponsible of promoting the optimal use of the oil resources,comprehensively managing them and harmonizing the interestsamongthesociety,thenationalGovernment,andthecompanies.

• Campetrol: The association brings together domestic and foreigncompanies thatofferoilfield services. Their role is to facilitate theidentification of common problems of companies, seek solutions,ensure subsector strengtheningofgoods, services, andsupplies tobenefitthecountry.

• Proexport: Colombia’s entity in charge of the promotion ofinternationaltourism,foreigndirectinvestment,andnontraditionalexports.

IMPORTANT COMPANIES HAVE CHOSEN COLOMBIA AS THEIR INVESTMENT DESTINATION

RELATED ENTITIES

• Halliburton,U.S.A.:TheCompanyarrived inColombia in1943andoffersgeneralprovisionofservicesfortheoilindustry.

• BakerHughes,U.S.A.: TheCompanyoffers services related to theoilsector.

• Schlumberger, France: The Company offers technical servicesdirectly related to oil exploration and exploitation. SchlumbergerarrivedinColombiain1938.