2011 Global Data Colombia Gas Markets

Col ombia Gas Markets, 2011
Source www.oilandgasetrack.com
GlobalData. This report is a licensed product and is not to be photocopied
GDGE0169CAR / Publi shed JUN 2011
Page (1)

Colombia Gas Markets, 2011
Reference Code: GDGE0169CAR
Publication Date: JUN 2011

Table Of Contents
Page (2)

1 Table Of Contents
1 Table Of Contents 2
1.1 List of Tables 7
1.2 List of Figures 9
2 Colombia Energy Sector 10
2.1 Colombia Energy Sector, Market Overview 10
2.2 Colombia Energy Sector, Natural Gas 10
2.2.1 Colombia Natural Gas, Overview 10
2.2.2 Colombia Natural Gas, Supply and Demand Balance 11
2.2.3 Colombia Natural Gas, Regulatory Structure 14
2.2.4 Colombia Natural Gas, Infrastructure 14
3 Colombia Gas Upstream Investment Environment Benchmarking 15
3.1 Introduction 15
3.2 The Overall Ranking 15
3.3 Upstream Fiscal Attractiveness 16
3.3.1 Maximum Government Take Index 17
3.3.2 Maximum State Participation Index 17
3.3.3 Domestic Market Obligation Index 17
3.4 Gas Sector Performance 18
3.4.1 Exploration Activity 20
3.4.2 Gas Production 21
3.4.3 Gas Reserves 21
3.4.4 Gas Consumption 22
3.5 Economic Performance 22
3.5.1 GDP Growth Index 24
3.5.2 FDI Confidence Index 24
3.6 Socio-Political Performance 24
3.6.1 Democracy Index 26
3.6.2 Governance Index 26
4 Colombia Exploration and Production Sector 27
4.1 Colombia Exploration and Production Sector, Country Snapshot 27
4.1.1 Colombia Exploration and Production Sector, Key Data 27

Table Of Contents
Page (3)

4.1.2 Colombia Exploration and Production Sector, Natural Gas Assets Map 27
4.2 Colombia Exploration and Production Sector, Marketed Natural Gas Production 28
4.2.1 Colombia Exploration and Production Sector, Total Marketed Natural Gas-Historical Production 28
4.2.2 Colombia Exploration and Production Sector, Marketed Natural Gas Production by Type 29
4.2.3 Colombia Exploration and Production Sector, Marketed Natural Gas Production by Assets 30
4.2.4 Colombia Exploration and Production Sector, Marketed Equity Weighted Natural Gas Production
by Company 31
4.2.5 Colombia Exploration and Production Sector, Market Share based on Marketed Equity Weighted
Natural Gas Production 32
4.3 Colombia Exploration and Production Sector, Marketed Natural Gas Forecasts 33
4.3.1 Colombia Exploration and Production Sector, Marketed Natural Gas Forecasted Production 33
4.4 Colombia Exploration And Production Sector, Natural Gas Asset Details 34
4.4.1 Colombia Exploration And Production Sector, Active Natural Gas Asset Details 34
4.5 Colombia, Major Natural Gas Discoveries, 2005-2010 35
4.5.1 Colombia, Natural Gas Discoveries by Year, 2005-2010 35
4.5.2 Colombia, Natural Gas Discovery Details, 2005-2010 36
4.6 Colombia Exploration and Production Sector, Recent Discoveries 37
4.6.1 May 17, 2011: Ecopetrol Announces Oil Discovery At Mito-1 Well In Meta Province, Colombia 37
4.6.2 May 09, 2011: Suroco Energy Encounters Oil At Cohembi-3 Well In Colombia 37
4.6.3 Apr 25, 2011: Ecopetrol Finds Hydrocarbons At Nunda-1 Well In Huila Province 39
4.6.4 Feb 28, 2011: Pacific Rubiales Energy Discovers Gas At Apamate-1X Well In La Creciente Block,
Colombia 40
4.6.5 Feb 07, 2011: Ecopetrol Discovers Hydrocarbons At Tinkhana-1 Well In Colombia 41
4.7 Colombia Exploration and Production Sector, Drilling and Production Updates 41
4.7.1 May 11, 2011: InterOil Produces 5,813bopd In April 2011 41
4.7.2 May 09, 2011: Brownstone Energy Puts Canaguay #1 Well On Production In Colombia 42
4.7.3 Apr 29, 2011: Petroamerica Oil Commences Drilling At Las Maracas-2 Exploration Well In Llanos
Basin, Colombia 43
4.7.4 Apr 28, 2011: Canacol Energy Provides Production Update 43
4.7.5 Apr 14, 2011: PetroLatina Energy Provides Q1 2011 Production Update 43
5 Colombia Pipeline Sector 45
5.1 Colombia Pipeline Sector, Key Data 45
5.2 Colombia Pipeline Sector, An Overview 45
5.3 Colombia Pipeline Sector, Comparison of Key Natural Gas Pipeline Companies 45
5.4 Colombia Pipeline Sector, Natural Gas Pipelines 47
6 Profile of ECOPETROL S.A. 48

Table Of Contents
Page (4)

6.1 ECOPETROL S.A., Key Information 48
6.2 ECOPETROL S.A., Company Overview 48
6.3 ECOPETROL S.A., Business Description 48
6.3.1 Business Overview 48
6.3.2 Marketing and Supply 49
6.3.3 Refining and Petrochemicals 49
6.3.4 Transportation 50
6.4 ECOPETROL S.A., SWOT Analysis 50
6.4.1 Overview 50
6.4.2 ECOPETROL S.A. Strengths 51
6.4.3 ECOPETROL S.A. Weaknesses 52
6.4.4 ECOPETROL S.A. Opportunities 53
6.4.5 ECOPETROL S.A. Threats 54
7 Profile of Occidental Petroleum Corporation 56
7.1 Occidental Petroleum Corporation, Key Information 56
7.2 Occidental Petroleum Corporation, Company Overview 56
7.3 Occidental Petroleum Corporation, Business Description 56
7.3.2 Chemical 57
7.3.3 Midstream, Marketing and Other 58
7.3.4 Oil and Gas 58
7.4 Occidental Petrol eum Corporation, SWOT Analysis 60
7.4.1 Overview 60
7.4.2 Occidental Petroleum Corporation Strengths 60
7.4.3 Occidental Petroleum Corporation Weaknesses 61
7.4.4 Occidental Petroleum Corporation Opportunities 62
7.4.5 Occidental Petroleum Corporation Threats 63
8 Profile of Petroleo Brasileiro S.A. 64
8.1 Petroleo Brasileiro S.A., Key Information 64
8.2 Petroleo Brasileiro S.A., Company Overview 64
8.3 Petroleo Brasileiro S.A., Business Descri ption 64
8.3.2 Distribution 65
8.3.3 Gas and Power 65
8.3.4 International 66
8.3.5 Refining, Transportation and Marketing 67

Table Of Contents
Page (5)

8.4 Petroleo Brasileiro S.A., SWOT Analysis 68
8.4.1 Overview 68
8.4.2 Petroleo Brasileiro S.A. Strengths 69
8.4.3 Petroleo Brasileiro S.A. Weaknesses 70
8.4.4 Petroleo Brasileiro S.A. Opportunities 70
8.4.5 Petroleo Brasileiro S.A. Threats 72
9 Financial Deals Landscape 74
9.1 Detailed Deal Summary 74
9.1.1 Acquisition 74
9.1.2 Equity Offerings 81
9.1.3 Debt Offerings 81
9.1.4 Partnerships 82
9.1.5 Asset Transactions 83
10 Recent Developments 95
10.1 License Awards 95
10.1.1 May 18, 2011: InterOil Signs Two New Exploration Blocks In Colombia 95
10.1.2 Apr 20, 2011: Vast Exploration Wins Oil And Gas Block In Colombia 95
10.1.3 Apr 08, 2011: Ecopetrol Signs Eight E&P Contracts Resulting From Colombia Round 2010 96
10.2 Strategy and Business Expansion 96
10.2.1 Mar 31, 2011: Ecopetrol And Pacific Rubiales Energy Announce Agreement To Start Pilot Project
Of Star Technology 96
10.2.2 Mar 07, 2011: Petroamerica Oil Withdraws From Two Colombian Blocks 97
10.3 Other Significant Developments 98
10.3.1 May 15, 2011: Ecopetrol To Modernize Barrancabermeja Refinery In Colombia 98
10.3.2 May 11, 2011: InterOil Re-Completes Altair-1 Well In Llanos Basin, Colombia 98
10.3.3 May 09, 2011: Petroamerica Oil Announces Balay-2 ST1 Well Test Results Confirming
Significance Of Balay Discovery, Llanos Basin, Colombia 98
10.3.4 Apr 19, 2011: Global Energy Plans New 3D Seismic Acquisition At Bolivar Association Contract
Area 99
10.3.5 Apr 18, 2011: Loon Energy Updates On Tuqueque-1X Well At Buganviles Block In Upper
Magdalena Valley Basin, Colombia 99
10.3.6 Apr 15, 2011: Parex Resources Provides Update On Colombia Operations 100
10.3.7 Apr 13, 2011: Petro Vista Energy To Test Morichito-5b Exploration/Appraisal Well In Llanos
Basin, Colombia 102
11 Appendix 103
11.1 Abbreviations 103
11.2 Methodology 103
11.2.1 Coverage 103

Table Of Contents
Page (6)

11.2.2 Secondary Research 104
11.2.3 Primary Research 104
11.2.4 Expert Panel Validation 104
11.3 Contact Us 105
11.4 Disclaimer 105

Table Of Contents
Page (7)

1.1 List of Tables
Table 1: Colombia, Historic and Forecast Production and Consumption of Natural Gas, Billion Cubic Feet, 2000-2020
11
Table 2: Colombia, Historic Reserves of Natural Gas, Billion Cubic Feet, 2000-2010 13
Table 3: South and Central America, Investment Benchmarking, Overall Country Rankings, May 2011 15
Table 4: South and Central America, Investment Benchmarking, Upstream Fiscal Attractiveness, May 2011 16
Table 5: South and Central America, Investment Benchmarking, Gas Sector Performance, May 2011 18
Table 6: South and Central America, Investment Benchmarking, Economic Performance, May 2011 22
Table 7: South and Central America, Country Standings, Economic Performance, May 2011 23
Table 8: South and Central America, Investment Benchmarking, Socio-Political Performance, May 2011 24
Table 9: South and Central America, Country Standings, Socio-Political Performance, May 2011 25
Table 10: Colombia, Natural Gas Key Statistics, 2010 27
Table 11: Colombia, Total Marketed Natural Gas Production (MMcf), 2003- 2010 28
Table 12: Colombia, Marketed Natural Gas Production by Type (MMcf), 2003- 2010 29
Table 13: Colombia, Marketed Natural Gas Production (MMcf), by Assets, 2003- 2010 30
Table 14: Colombia, Marketed Equity Weighted Natural Gas Production (MMcf), by Company, 2003- 2010 31
Table 15: Colombia, Market Share (%) of Key Companies based on Marketed Equity Weighted Natural Gas
Production, 2003-2010 32
Table 16: Colombia, Marketed Natural Gas Production (MMcf), Forecast by Assets, 2011-2015 33
Table 17: Colombia, Active Gas Field Asset Details 34
Table 18: Colombia, Number of Gas Discoveries, 2005-2010 35
Table 19: Colombia, Natural Gas Discovery Details, 2005-2010 36
Table 20: Colombia, Pipeline Key Statistics, May 2011 45
Table 21: Colombia, Natural Gas Pipeline Length by Company (Km), May 2011 45
Table 22: Colombia, Natural Gas Pipelines, May 2011 47
Table 23: ECOPETROL S.A., Key Facts 48
Table 24: ECOPETROL S.A., SWOT Analysis 51
Table 25: Occidental Petroleum Corporation, Key Facts 56
Table 26: Occidental Petroleum Corporation, SWOT Analysis 60
Table 27: Petroleo Brasileiro S.A., Key Facts 64
Table 28: Petroleo Brasileiro S.A., SWOT Analysis 68
Table 29: West Isle Energy To Acquire Reto Petroleum In Reverse Takeover Transaction 74
Table 30: Alange Energy Acquires J aguar E&P CPR Consultants 74
Table 31: AEI Services To Sell Its Interest In Operating Companies 76
Table 32: Houston American Completes The Sale Of Hupecol Llanos and Hupecol Dorotea 78
Table 33: Talisman Energy And Ecopetrol Acquires BP Exploration Company Colombia 79
Table 34: Ecopetrol Plans To Issue Shares 81
Table 35: Ecopetrol Announces Public Offering Of Bonds For $18,094 Million 81
Table 36: Ecopetrol To Form J oint Venture With Six Partners 82
Table 37: Parex Resources To Acquire Remaining 50% Interest In Four Blocks In Llanos Basin 83
Table 38: Sagres Energy Acquires 90% Participating Interest In Llanos 11 Block 84
Table 39: Sagres Energy Acquires 90% Participating Interest In Putumayo 3 Block 85
Table 40: Reto Petroleum To Acquire 30% Undivided Working Interest In Fenix Exploration And Production Contract86

Table Of Contents
Page (8)

Table 41: Repsol To Acquire 50% Stake In Two Caribbean Offshore Blocks From Ecopetrol 87
Table 42: Bolivar Energy To Acquire Additional 17.5% Interest In LLA-24 Block In Colombia 88
Table 43: Azabache Energy To Acquire 30% Working Interest In Antares Block From Petromar 89
Table 44: Assam Company To Acquire 70% Interest In Colombian Oil Block 90
Table 45: Ecopetrol To Acquire 100% Stake In Cano Sur Block From Shell Exploration 91
Table 46: Life Sciences To Acquire 35% Interest In Exploration Block, Colombia 92
Table 47: Bolivar Energy To Acquire 32.5% Interest In Arrendajo Block, Colombia 93
Table 48: Repsol Exploracion To Acquire 30% Stake In Tayrona Block 94

Table Of Contents
Page (9)

1.2 List of Figures
Figure 1: Colombia, Energy Consumption break-up (%), 2010 10
Figure 2: Colombia, Natural Gas Production And Consumption, Billion Cubic Feet, 2000-2020 12
Figure 3: Colombia, Natural Gas Reserves, Billion Cubic Feet, 2000-2010 14
Figure 4: South and Central America, Country Standings, Upstream Fiscal Attractiveness, May 2011 17
Figure 5: South and Central America, Country Standings, Gas Sector Performance, by Reserves-Exploration &
Production, May 2011 19
Figure 6: South and Central America, Country Standings, Gas Sector Performance, by Production & Consumption,
May 2011 20
Figure 7: South and Central America, Country Standings, Number of Exploration Blocks Awarded, May 2011 21
Figure 8: South and Central America, Country Standings, Economic Performance, May 2011 23
Figure 9: South and Central America, Country Standings, Socio-Political Performance, May 2011 25
Figure 10: Colombia, Natural Gas Assets Map, May 2011 27
Figure 11: Colombia, Total Marketed Natural Gas Production (MMcf), 2003- 2010 28
Figure 12: Colombia, Marketed Natural Gas Production by Type (MMcf), 2003- 2010 29
Figure 13: Colombia, Marketed Equity Weighted Natural Gas Production (MMcf), by Key Companies, 2003-2010 31
Figure 14: Colombia, Market Share (%) of Key Companies based on Marketed Equity Weighted Natural Gas
Production, 2010 32
Figure 15: Colombia, Number of Gas Discoveries, 2005- 2010 35
Figure 16: Colombia, Natural Gas Pipeline Length by Company (Km), May 2011 46

Colombia Gas Markets

Page (10)

2 Col ombi a Energy Sector
2.1 Colombia Energy Sector, Market Overview
Colombia has significant energy resources and potential for future development. The country is a
net exporter of petroleum and an important producer of high quality coal. Colombia relies on
hydroelectricity for bulk of its electricity needs, thus, enabling the country to export the produced
coal. The country is one of the largest coal exporters in the world.
Oil is the largest source of primary energy in Colombia accounting for about 50.4% of the energy
consumption respectively during 2010. Natural gas accounts for about 24.8% while coal accounts
for nearly 13.6% of the energy consumption in the country.

Figure below details the energy consumption break-up for Colombia during 2010.
Figure 1: Colombia, Energy Consumption break-up (%), 2010

Oi l
50.4%
Gas
24.8%
Electri ci ty
11.2%
Coal
13.6%

Source: GlobalData / EIA

2.2 Colombia Energy Sector, Natural Gas
2.2.1 Colombia Natural Gas, Overview
Colombias natural gas reserves stood at 3,955 billion cubic feet during 2010. The country has the
seventh largest reserves in Latin America.
During 2010, Colombias natural gas production was 397 billion cubic feet and consumption was
324.8 billion cubic feet. Colombian government has developed a mass natural gas consumption
plan (Plan de Masificacin de Gas Natural) to increase natural gas consumption in the country.
The government wants to establish Colombia as a gas hub in South America.

Page (11)

2.2.2 Colombia Natural Gas, Supply and Demand Balance
2.2.2.1 Colombia Natural Gas, Production and Consumption
Natural gas production in Colombia has increased from 211.0 billion cubic feet in 2000 to 397
billion cubic feet in 2010, at an AAGR of 6.3%. During 2010-2020, natural gas production in
Colombia is expected to increase at an AAGR 4.1%.
Natural gas consumption in Colombia increased from 2008.6 billion cubic feet in 2000 to 324.8
billion cubic feet in 2010, at an AAGR of 4.4%. During 2010-2020, natural gas consumption in
Colombia will increase at an AAGR of 3.8%.

Table below details historic and forecast figures for natural gas production and consumption in
Colombia from 2000 to 2020.
Table 1: Colombia, Historic and Forecast Production and Consumption of Natural Gas, Billion
Cubic Feet, 2000-2020

Year Producti on (Billi on Cubi c Feet) Consumption (Bi lli on Cubi c Feet)

2000 211.0 208.6
2001 219.1 214.6
2002 220.2 217.0
2003 216.8 212.8
2004 226.2 221.9
2005 242.1 236.5
2006 248.0 248.2
2007 266.0 262.8
2008 319.0 266.2
2009 371.0 307.4
2010 397.0 324.8
2011 411.6 343.8
2012 435.0 357.6
2013 471.4 370.2
2014 499.9 390.0
2015 521.2 406.0
2016 543.6 415.4
2017 561.3 436.3
2018 574.4 450.2
2019 590.0 461.2
2020 600.2 474.9


Page (12)

Figure below details the natural gas production and consumption in Colombia from 2000 to 2020.
Figure 2: Colombia, Natural Gas Production And Consumption, Billion Cubic Feet, 2000-2020

0
100
200
300
400
500
600
700
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
N
a
t
u
r
a
l

G
a
s

P
r
o
d
u
c
t
i
o
n

(
B
i
l
l
i
o
n

C
u
b
i
c

F
e
e
t
)
0
50
100
150
200
250
300
350
400
450
500
N
a
t
u
r
a
l

G
a
s

P
r
o
d
u
c
t
i
o
n

(
B
i
l
l
i
o
n

C
u
b
i
c

F
e
e
t
)
Production Consumption


Natural gas consumption and production of Colombia increased till 2010. During the forecast
period, the production and consumption are expected to show a steadily increasing trend.

Page (13)

2.2.2.2 Colombia Natural Gas, Reserves
Natural gas reserves in Colombia decreased from 6,937.0 billion cubic feet in 2000 to 3,955.0
billion cubic feet in 2010, at a negative AAGR of 5.6%.

Table below details historic figures for natural gas reserves in Colombia from 2000 to 2010.
Table 2: Col ombi a, Hi stori c Reserves of Natural Gas, Bi ll i on Cubic Feet, 2000-2010

Year Reserves (Bill ion Cubic Feet)

2000 6,937.0
2001 6,937.0
2002 4,322.0
2003 4,507.0
2004 4,507.0
2005 4,040.0
2006 4,040.0
2007 3,996.0
2008 4,342.0
2009 3,739.0
2010 3,955.0


Page (14)

Figure below details the natural gas reserves in Colombia from 2000 to 2010.
Figure 3: Colombia, Natural Gas Reserves, Billion Cubic Feet, 2000-2010

0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
N
a
t
u
r
a
l

G
a
s

R
e
s
e
r
v
e
s

(
B
i
l
l
i
o
n

C
u
b
i
c

F
e
e
t
)

Colombias natural gas reserves decreased in the last decade.
2.2.3 Colombia Natural Gas, Regulatory Structure
Commission of Regulation of Energy and Gas (CREG) regulates the natural gas sector in the
country. It also defines basic framework for activates associated with transportation, distribution
and commercialization of natural gas.
2.2.4 Colombia Natural Gas, Infrastructure
Colombia has a natural gas reserve of 3,955.0 billion cubic feet in 2010. Colombia has natural gas
reserves spread across 18 basins, seven of which have active production. The majority of the
reserves are located in Llanos basin while the majority of the production comes from Guajira
basin. Chevron is the largest natural gas producer in Colombia.
2.2.4.1 Colombia Natural Gas, Exploration and Production
Major fields: GUAJ IRA, Cusiana and La Creciente
Major players: Ecopetrol, Chevron Corporation and Pacific Stratus Energy Ltd.
2.2.4.2 Colombia Natural Gas, Pipelines
Major pipelines: Centro- Oriente Pipeline (1,005.0 Km), Promigas Colombia Gas Pipeline (673.3
Km) and Ballena- Barrancabermeja Pipeline (578.8 Km).
Major Companies: Promigas S.A. E.S.P, TGI S.A ESP and Transgas de Occidente S.A.

Page (15)

3 Col ombi a Gas Upstream Investment Environment Benchmarking
3.1 Introduction
Colombia Gas Upstream Investment Benchmarking compares the attractiveness of upstream
investment environment in the gas sector of Colombia vis--vis other countries in South and
Central America. Four major pillars have been used to analyze the upstream environment
attractiveness. These are fiscal attractiveness, upstream industry performance, economic
performance of the country and socio-political performance. Each of these pillars are sub-divided
into indicators and sub-indicators based on which the countrys overall score is calculated.

3.2 The Overall Ranking
Colombia scored fourth among the South and Central American countries in terms of upstream
investment environment attractiveness in the gas sector.

On an overall basis the rankings of various countries in South and Central America are as follows.
Table 3: South and Central America, Investment Benchmarking, Overall Country Rankings, May
2011

Country
Upstream Fiscal
Attract iveness
O & G Sector
Performance
Economic
Performance
Soci o-Politi cal
Performance
Total
Score Rank

Brazil 9.7 6.6 7.9 8.6 8.3 1
Argentina 9.3 2.9 3.0 8.1 6.0 2
Venezuela 6.4 6.0 2.9 7.9 5.7 3
Colombi a 9.5 1.2 2.9 8.5 5.6 4
Peru 10.0 0.5 2.5 7.8 5.4 5
Ecuador 7.9 0.8 1.2 7.2 4.4 6
Guatemala 8.1 0.1 1.2 7.7 4.3 7
Suriname 8.1 0.0 1.2 7.4 4.2 8
Trinidad and
Tobago 6.6 0.8 1.8 9.9 4.2 9
Cuba 7.4 0.4 1.2 6.8 4.0 10

Source: GlobalData

Colombia has good upstream fiscal attractiveness, the country scored well in economic
performance and socio-political performance indices among the South and Central American
countries. The country has a poor score in gas sector performance.

Page (16)

3.3 Upstream Fiscal Attractiveness
Upstream fiscal attractiveness index draws the comparison related to gas fiscal regimes between
the countries of South and Central America. The major indicators contributing to this pillar are the
government take, state participation, fiscal flexibility, the domestic market obligation and the risk
reward dynamics. The following sections envisage these indicators in detail.
Colombia is ranked third among South and Central American countries in the upstream fiscal
attractiveness index; it scored 9.5 points. Colombia is one of the regions averagely exploited
regions for gas. In order to attract further investment, the upstream fiscal attractiveness of
Colombia has to be further improved.
Table 4: South and Central America, Investment Benchmarking, Upstream Fiscal Attractiveness,
May 2011

Country
Max. Govt Take
Index
Fiscal
Flexibility
Max. Stat e
Parti cipation
Max. Domestic Market
Obligation
Total
Score
Pi ll ar
Ranking

Brazil 9.4 10.0 10.0 10.0 9.7 2
Argentina 8.7 2.0 10.0 10.0 9.3 4
Venezuela 4.3 3.3 8.5 7.5 6.4 10
Colombia 9.0 7.5 10.0 10.0 9.5 3
Peru 10.0 3.3 10.0 10.0 10.0 1
Ecuador 5.7 6.7 10.0 10.0 7.9 7
Guatemala 6.2 0.0 10.0 10.0 8.1 6
Suriname 6.2 0.0 10.0 10.0 8.1 5
Trinidad and
Tobago 3.2 3.3 10.0 10.0 6.6 9
Cuba 4.7 0.0 10.0 10.0 7.4 8

Source: GlobalData

Colombia scored well in the maximum government take index among the countries of the South
and Central American region.

Page (17)

Figure 4: South and Central America, Country Standings, Upstream Fiscal Attractiveness, May
2011

Source: GlobalData

3.3.1 Maximum Government Take Index
Colombia is ranked third in maximum government take index. In Colombia, the government take of
43.2% is below the regions average of 67.1% but above the worlds average of 50%. A downward
trend of government take will make the sector more attractive and invite better technologies.

3.3.2 Maximum State Participation Index
Except Venezuela, no country in the region has lower state participation. Lower state participation
would be an incentive to the investor or operator. However, at times state participation can be a
relief to the operator exploring in the deep offshore, as the government also shares the risk.

3.3.3 Domestic Market Obligation Index
Except Venezuela, no country in the region has domestic market obligation.

Page (18)

3.4 Gas Sector Performance
Gas sector performance index draws the comparison related to upstream performance between
the countries of South and Central America. The major contributors to this pillar score are the
scores derived after analyzing the exploration activity, gas reserves, production and consumption
from respective regimes of South and Central America.

Colombia ranks fourth among South and Central American countries in gas sector performance
index.
Table 5: South and Central America, Investment Benchmarking, Gas Sector Performance, May
2011

Country
Expl orat ion
Activity
Crude
Producti on Reserves Consumption
Total
Score
Pi ll ar
Ranking

Brazil 10.0 5.3 1.2 10.0 6.6 1
Argentina 2.9 6.1 0.4 2.3 2.9 3
Venezuela 0.3 10.0 10.0 3.7 6.0 2
Colombi a 1.0 2.0 0.2 1.5 1.2 4
Peru 0.5 0.5 0.2 0.9 0.5 7
Ecuador 0.4 1.4 0.5 1.0 0.8 5
Guatemala 0.2 0.0 0.0 0.4 0.1 9
Suriname 0.1 0.0 0.0 0.1 0.0 10
Trinidad and
Tobago 0.5 2.2 0.3 0.2 0.8 6
Cuba 0.3 0.2 0.0 0.9 0.4 8

Source: GlobalData

Colombia is one of the averagely explored areas in South and Central America. The government
has been promoting policies towards expanding exploration activity in order to increase the
recoverable reserves and the levels of production. The country has significant levels of production
of natural gas in the region.

Page (19)

Figure 5: South and Central America, Country Standings, Gas Sector Performance, by Reserves-
Exploration & Production, May 2011

Suriname
Venezuela
Brazil
Colombia
Argentina
Trinidad and Tobago
Ecuador
Guatemala
Peru
Cuba
-2
0
2
4
6
8
10
12
-2 0 2 4 6 8 10 12
Reserves Index
E
x
p
l
o
r
a
t
i
o
n

A
c
t
i
v
i
t
y

I
n
d
e
x
*Size Of The Bubble Indicates Production Index

Source: GlobalData

The above figure highlights the upstream gas sector performance of South and Central American
countries. Colombia with significant exploration activity and substantial reserves has significant
levels of production.

Page (20)

The following figure compares the countries production against their consumption.

Figure 6: South and Central America, Country Standings, Gas Sector Performance, by Production
& Consumption, May 2011

Brazil
Colombia
Trinidad and Tobago
Cuba
Peru
Suriname
Venezuela
Argentina
Guatemala
Ecuador
-2
0
2
4
6
8
10
12
-2 0 2 4 6 8 10 12
Crude Production Index
C
o
n
s
u
m
p
t
i
o
n

I
n
d
e
x

Source: GlobalData

3.4.1 Exploration Activity
Colombia has the third highest exploration activity among the South and Central American
countries. It accounted for 11.5% of the total new exploration in South and Central America.
During 2010, the country awarded 65 of the total 564 new exploration blocks awarded in South
and Central America. Exploration activity in Colombia has shown a highly increasing trend in the
last few years.

Page (21)

The following figure compares the exploration activity across various countries in the South and
Central American region.

Figure 7: South and Central America, Country Standings, Number of Exploration Blocks Awarded,
May 2011

0
200
400
600
800
1000
1200
Brazil Argentina Venezuela Colombia Peru Ecuador Guatemala Trinidad and
Tobago
Suriname
N
u
m
b
e
r

O
f

E
x
p
l
o
r
a
t
i
o
n

B
l
o
c
k
s
2006 2007 2008 2009 2010

Source: GlobalData

3.4.2 Gas Production
Colombia is ranked fifth in the production of natural gas in South and Central American region. In
recent years the country has shown a downward trend in gas production.
Natural gas production in Colombia has increased from 211.0 billion cubic feet in 2000 to 397
billion cubic feet in 2010, at an AAGR of 6.3%. During 2010-2020, natural gas production in
Colombia is expected to increase at an AAGR 4.1%.
3.4.3 Gas Reserves
Colombia is ranked seventh in South and Central American region in gas reserves.
Natural gas reserves in Colombia decreased from 6,937.0 billion cubic feet in 2000 to 3,955.0
billion cubic feet in 2010, at a negative AAGR of 5.6%.

Page (22)

3.4.4 Gas Consumption
Colombia is ranked fourth in the consumption index.
Natural gas consumption in Colombia increased from 2008.6 billion cubic feet in 2000 to 324.8
billion cubic feet in 2010, at an AAGR of 4.4%. During 2010-2020, natural gas consumption in
Colombia will increase at an AAGR of 3.8%.

3.5 Economic Performance
Economic performance index draws the comparison related to economic performance between the
countries of South and Central America. The major contributors to this pillar score are the scores
derived after analyzing the GDP growth, FDI confidence and balance of trade from respective
regimes of South and Central America.
Colombia ranked third among South and Central American countries in the economic performance
index. The economy of Colombia is export-oriented mostly consisting of agriculture and benefits
from its diverse industries and rich natural resources. Colombia is one of the top performers in FDI
confidence and balance of trade indices.

Table 6: South and Central America, Investment Benchmarking, Economic Performance, May
2011

Country GDP Growth Index FDI Confidence Index Trade Index Total Point s Pi ll ar Ranking

Brazil 10.0 10.0 1.4 7.9 1
Argentina 3.1 2.1 4.6 3.0 2
Venezuela 1.5 0.0 10.0 2.9 4
Colombi a 1.3 3.3 3.7 2.9 3
Peru 1.7 2.5 3.4 2.5 5
Ecuador 0.3 1.0 2.7 1.2 7
Guatemala 0.3 1.1 2.3 1.2 9
Trinidad and Tobago 0.1 1.1 4.8 1.8 6
Suriname 0.0 0.9 3.1 1.2 8
Cuba 0.5 0.9 2.5 1.2 10

Source: GlobalData

Page (23)

Table 7: South and Central America, Country Standings, Economic Performance, May 2011

Country GDP Growth Index FDI Confidence Index Producti on Index

Brazil 10.0 10.0 5.3
Argentina 3.1 2.1 6.1
Venezuela 1.5 0.0 10.0
Colombi a 1.3 3.3 2.0
Peru 1.7 2.5 0.5
Ecuador 0.3 1.0 1.4
Guatemala 0.3 1.1 0.0
Trinidad and Tobago 0.1 1.1 2.2
Suriname 0.0 0.9 0.0
Cuba 0.5 0.9 0.2

Source: GlobalData

Figure 8: South and Central America, Country Standings, Economic Performance, May 2011

Ecuador
Brazil
Venezuela
Argentina
Trinidad and Tobago
Colombia
Cuba
Guatemala
Peru
Suriname
-2
0
2
4
6
8
10
12
-2 0 2 4 6 8 10 12
GDP Growth Index
F
D
I

C
o
n
f
i
d
e
n
c
e

I
n
d
e
x
*Size Of The Bubble Indicates Production

Source: GlobalData
From the above graph, Colombia has high production levels of gas and performs well in FDI
confidence.

Page (24)

3.5.1 GDP Growth Index
Colombia ranked fifth among the South and Central American countries in GDP growth index.
The GDP of the country has been slowly increasing in the last few years. The GDP of the country
has increased from $100.4 billion in 2000 to $283.1 billion in 2010, at an AAGR of 10.4%.

3.5.2 FDI Confidence Index
Colombia ranked second in FDI confidence index. FDI inflows into Colombia have shown an
increasing trend in the last few years. FDI inflows into Colombia have increased from $2.4 billion in
2000 to $7.2 billion in 2009, at an AAGR of 12.2%. FDI stocks in the country have shown an
increasing trend. FDI stocks in Colombia have increased from $11.2 billion in 2000 to $74.1 billion
in 2010, at an AAGR of 21.0%. M&A sales deals have shown an increasing trend in the last few
years.

3.6 Socio-Political Performance
Socio-Political performance index draws the comparison related to social and political situation
and performance between the countries of South and Central America. The major contributors to
this pillar score are the scores derived after analyzing the democracy, corruption, political stability,
regulatory quality and governance levels from respective countries of South and Central America.
Colombia stands at third position in socio-political performance. The political and social situation in
Colombia is averagely matured as most of the countries in the South and Central American region.
Colombia is characterized by high corruption, positive and fair election policy, average regulatory
quality, governments effectiveness in executing policies and average levels of voice and
accountability.
Table 8: South and Central America, Investment Benchmarking, Socio-Political Performance, May
2011

Country Democracy Index Governance Index Total Point s Pi ll ar Ranking

Brazil 10.0 8.4 8.6 2
Argentina 8.9 7.9 8.1 4
Venezuela 6.1 8.2 7.9 5
Colombi a 8.6 8.5 8.5 3
Peru 7.9 7.8 7.8 6
Ecuador 6.6 7.4 7.2 9
Guatemala 7.3 7.8 7.7 7
Trinidad and Tobago 9.5 10.0 9.9 1
Suriname 8.7 7.1 7.4 8
Cuba 4.0 7.3 6.8 10

Source: GlobalData

Page (25)

Table 9: South and Central America, Country Standings, Socio-Political Performance, May 2011

Country Expl orat ion Growth Index FDI Confidence Index
Governance
Index

Brazil 10.0 10.0 8.4
Argentina 2.9 2.1 7.9
Venezuela 0.3 0.0 8.2
Colombi a 1.0 3.3 8.5
Peru 0.5 2.5 7.8
Ecuador 0.4 1.0 7.4
Guatemala 0.2 1.1 7.8
Trinidad and
Tobago 0.5 1.1 10.0
Suriname 0.1 0.9 7.1
Cuba 0.3 0.9 7.3
Source: GlobalData

Figure 9: South and Central America, Country Standings, Socio-Political Performance, May 2011

Brazil
Peru
Colombia
Suriname
Cuba
Guatemala
Argentina
Ecuador
Venezuela
Trinidad and Tobago
-2
0
2
4
6
8
10
12
-2 0 2 4 6 8 10 12
Expl oration Growth Index
F
D
I

C
o
n
f
i
d
e
n
c
e

i
n
c
e
x
*Size Of The Bubble Indicates Goverance Index

Source: GlobalData

From the above figure, almost all the countries of the region have the same level of governance.

Page (26)

3.6.1 Democracy Index
Most of the South and Central American countries score averagely in the world democracy index.
Colombia ranks fifth in the democracy index among the South and Central American countries.
Colombia which is considered as a Flawed Democracy is characterized by good electoral
procedures, high provision for basic human rights.

3.6.2 Governance Index
Colombia ranked second in the South and Central American region in terms of governance.
Colombia has high levels of corruption and low political stability. Average voice and accountability
and rule of law show the effectiveness of the governance in the country.

Page (27)

4 Col ombi a Expl orati on and Producti on Sector
4.1 Colombia Exploration and Production Sector, Country Snapshot
4.1.1 Colombia Exploration and Production Sector, Key Data

Table 10: Colombia, Natural Gas Key Statistics, 2010

Population 44,725,543
Capital Bogota
GDP Per Capita ($) 9,800
Natural Gas Production (MMcf) 397,000.0

Source: GlobalData

4.1.2 Colombia Exploration and Production Sector, Natural Gas Assets Map

Figure 10: Colombia, Natural Gas Assets Map, May 2011

Source: GlobalData

Page (28)

4.2 Colombia Exploration and Production Sector, Marketed Natural Gas
Production
4.2.1 Colombia Exploration and Production Sector, Total Marketed Natural Gas-Historical
Production

Figure 11: Colombia, Total Marketed Natural Gas Production (MMcf), 2003- 2010

0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2003 2004 2005 2006 2007 2008 2009 2010
N
a
t
u
r
a
l

G
a
s

P
r
o
d
u
c
t
i
o
n

(
M
M
c
f
)

Source: GlobalData

Table 11: Colombia, Total Marketed Natural Gas Production (MMcf), 2003- 2010

2003 2004 2005 2006 2007 2008 2009 2010
Natural Gas Production 216,843.0 226,170.5 242,115.6 248,000.0 266,000.0 319,000.0 371,000.0 397,000.0
Source: GlobalData

Page (29)

4.2.2 Colombia Exploration and Production Sector, Marketed Natural Gas Production by
Type

Figure 12: Colombia, Marketed Natural Gas Production by Type (MMcf), 2003- 2010
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2003 2004 2005 2006 2007 2008 2009 2010
N
a
t
u
r
a
l

G
a
s

P
r
o
d
u
c
t
i
o
n

(
M
M
c
f
)
Onshore Production Offshore Production
Source: GlobalData

Table 12: Colombia, Marketed Natural Gas Production by Type (MMcf), 2003- 2010

2003 2004 2005 2006 2007 2008 2009 2010
Onshore Production 44,869.9 55,659.5 72,294.7 140,550.1 148,694.3 185,938.3 216,248.0 231,402.9
Offshore Production 171,973.1 170,511.1 169,820.9 107,450.0 117,305.7 133,061.7 154,752.0 165,597.2
Source: GlobalData

Page (30)

4.2.3 Colombia Exploration and Production Sector, Marketed Natural Gas Production by
Assets

Table 13: Colombia, Marketed Natural Gas Production (MMcf), by Assets, 2003- 2010

Asset Name
2003 2004 2005 2006 2007 2008 2009 2010
GUAJ IRA

171,973.1

170,511.1

169,820.9

107,450.0

117,305.7

133,061.7

154,752.0

165,597.2
Other fields

75,977.0

78,419.4

92,664.4

107,769.5

147,968.1
Cusiana

17,924.5

29,021.6

44,669.2

42,248.1

48,102.5

54,563.4

63,457.8

35,259.0
La Creciente

12,030.0

13,991.0

14,971.5
PAUTO - FLOREA 1,056.4 3,105.6 3,253.0 4,151.0 4,708.5 5,476.0 5,859.8
CENTRO ORIENTE (EL CENTRO) 2,196.0 2,156.7 2,263.1 3,307.5 3,567.9 4,047.2 4,706.9 5,036.8
Payoa 5,256.8 5,576.6 5,973.4 2,627.0 3,074.0 3,486.9 4,055.3 4,339.5
Bonanza 3,999.6 3,948.0 3,968.3 3,670.8 2,718.7 3,083.8 3,586.5 3,837.9
Apiay 2,809.8 3,122.7 3,060.1 3,057.5 2,686.4 3,047.2 3,543.9 3,792.3
Cantagallo 656.0 691.2 1,000.0 1,317.2 1,235.6 1,401.6 1,630.1 1,744.3
Ortega 1,380.0 1,605.0 1,717.4
Montanuelo 2,649.4 2,604.3 2,560.8 1,526.4 1,179.7 1,338.1 1,556.2 1,665.3
Rancho Hermoso 263.0 885.8 941.9 1,068.4 1,242.5 1,329.6
Guepaje 2,434.3 1,843.9 1,593.7 755.7 836.9 949.3 1,104.1 1,181.4
Llanito 355.5 405.6 391.3 494.7 700.9 795.1 924.7 989.5
OPON 2,752.6 1,943.4 2,061.1 986.7 515.6 584.8 680.2 727.8
TOQUI-TOQUI 106.2 221.9 335.1 380.1 442.0 473.0
CERRITO1 (1) 393.1 590.4 385.2 150.0 174.5 186.7
GAM (DISTRITO ALTO
MAGDALENA) 58.2 117.1 131.5 129.4 146.7 170.7 182.6
Rio Ceibas 3,167.0 2,436.0 657.5 82.7 96.1 109.0 126.8 135.6
Abanico 3.4 3.9 4.5 4.8
EL PIAL 42.0 72.0
GAS CASANARE 169.2 162.3 153.4 6.3
Source: GlobalData

Page (31)

4.2.4 Colombia Exploration and Production Sector, Marketed Equity Weighted Natural Gas
Production by Company

Table 14: Colombia, Marketed Equity Weighted Natural Gas Production (MMcf), by Company, 2003-
2010

Company Name
2003 2004 2005 2006 2007 2008 2009 2010
Ecopetrol 124,225.5 129,705.8 138,906.8 101,393.8 109,851.7 125,034.4 145,281.0 139,139.5
Chevron Corporation 73,948.4 73,319.8 73,023.0 46,203.5 50,441.4 57,216.5 66,543.4 71,206.8
Pacific Stratus Energy Ltd 863.6 664.3 179.3 22.6 26.2 12,059.7 14,025.6 15,008.5
EQUION ENERGIA LIMITED 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10,930.3
Total S.A. 3,405.7 5,514.1 8,487.2 8,027.1 9,139.5 10,367.1 12,057.0 6,699.2
Petro Santander, Inc 3,679.8 3,903.6 4,181.4 1,838.9 2,151.8 2,440.8 2,838.7 3,037.6
Rancho Hermoso S.A. 0.0 0.0 0.0 0.0 0.0 0.0 1,242.5 1,329.6
COPP 2,752.6 1,943.4 2,061.1 986.7 515.6 584.8 680.2 727.8
Solana Petroleum
Corporation 920.2 697.0 602.4 285.7 316.4 358.8 417.3 446.6
Interoil Exploration And
Production 0.0 0.0 0.0 111.0 167.5 190.0 221.0 236.5
Others 7,047.2 10,422.6 14,674.5 89,130.8 93,389.9 110,747.8 127,693.3 148,237.6
Source: GlobalData

Figure 13: Colombia, Marketed Equity Weighted Natural Gas Production (MMcf), by Key Companies,
2003-2010

0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2003 2004 2005 2006 2007 2008 2009 2010
N
a
t
u
r
a
l

G
a
s

P
r
o
d
u
c
t
i
o
n

(
M
M
c
f
)
Ecopetrol Chevron Corporation Pacific Stratus Energy Ltd
EQUION ENERGIA LIMITED Total S.A. Others

Source: GlobalData

Page (32)

4.2.5 Colombia Exploration and Production Sector, Market Share based on Marketed
Equity Weighted Natural Gas Production

Table 15: Colombia, Market Share (%) of Key Companies based on Marketed Equity Weighted
Natural Gas Production, 2003-2010

Company Name 2003 2004 2005 2006 2007 2008 2009 2010
Ecopetrol 57.3 57.3 57.4 40.9 41.3 39.2 39.2 35.0
Chevron Corporation 34.1 32.4 30.2 18.6 19.0 17.9 17.9 17.9
Pacific Stratus Energy Ltd 0.4 0.3 0.1 0.0 0.0 3.8 3.8 3.8
EQUION ENERGIA LIMITED 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.8
Total S.A. 1.6 2.4 3.5 3.2 3.4 3.2 3.2 1.7
Others 6.6 7.5 8.9 37.2 36.3 35.8 35.9 38.8

Source: GlobalData

Figure 14: Colombia, Market Share (%) of Key Companies based on Marketed Equity Weighted
Natural Gas Production, 2010

35.0%
17.9%
3.8% 2.8%
1.7%
38.8%
Ecopetrol Chevron Corporation Pacific Stratus Energy Ltd
EQUION ENERGIA LIMITED Total S.A. Others

Source: GlobalData

Page (33)

4.3 Colombia Exploration and Production Sector, Marketed Natural Gas Forecasts
4.3.1 Colombia Exploration and Production Sector, Marketed Natural Gas Forecasted
Production

Table 16: Colombia, Marketed Natural Gas Production (MMcf), Forecast by Assets, 2011-2015

Asset Name 2011 2012 2013 2014 2015
Bonanza 3,914.6 3,992.9 4,072.8 3,991.3 3,911.5
GUAJ IRA 168,909.1 172,287.3 175,733.0 172,218.4 168,774.0
Llanito 1,009.3 1,029.4 1,050.0 1,029.0 1,008.4
Montanuelo 1,698.6 1,732.6 1,767.2 1,731.9 1,697.3
Ortega 1,751.8 1,786.8 1,822.6 1,786.1 1,750.4
OPON 742.4 757.2 772.4 756.9 741.8
Cusiana 69,263.0 70,648.3 72,061.3 70,620.0 69,207.6
GAM (DISTRITO ALTO MAGDALENA) 186.3 190.0 193.8 189.9 186.1
Guepaje 1,205.1 1,229.2 1,253.7 1,228.7 1,204.1
Cantagallo 1,779.2 1,814.8 1,851.1 1,814.0 1,777.8
CERRITO1 (1) 190.4 194.2 198.1 194.1 190.3
Rio Ceibas 138.4 141.1 143.9 141.1 138.2
PAUTO - FLOREA 5,977.0 6,096.6 6,218.5 6,094.1 5,972.2
CENTRO ORIENTE (EL CENTRO) 5,137.5 5,240.2 5,345.0 5,238.1 5,133.4
La Creciente 15,270.9 15,576.4 15,887.9 15,570.1 15,258.7
Payoa 4,426.3 4,514.8 4,605.1 4,513.0 4,422.7
Rancho Hermoso 1,356.2 1,383.3 1,411.0 1,382.8 1,355.1
Apiay 3,868.1 3,945.5 4,024.4 3,943.9 3,865.0
TOQUI-TOQUI 482.4 492.1 501.9 491.9 482.1

Source: GlobalData

Page (34)

4.4 Colombia Exploration And Production Sector, Natural Gas Asset Details
4.4.1 Colombia Exploration And Production Sector, Active Natural Gas Asset Details

Table 17: Colombia, Active Gas Field Asset Details

Asset Name
Area Operat or/Company Equity Partners
Reserve
Volume (MMcf)
Fenix
Colombia
Onshore
Amerisur Resources Plc
Amerisur Resources Plc , Reto Petroleum
Limited
2,500,000.0
Payoa
Colombia
Onshore
Payoa Ecopetrol (30%), Petro Santander, Inc (70%) 710,227.3
La Creciente
Colombia
Onshore
La Creciente Pacific Stratus Energy Ltd (100%) 411,100.0
Guepaje
Colombia
Onshore
Guepaje
Ecopetrol (58%), Solana Petroleum Corporation
(37.8%), TechnoPetrol Inc (4.2%)
132,000.0
Abanico
Colombia
Onshore
Abanico
Ecopetrol (50%), Kappa Energy Company Inc
(25%), Maral (15%), WOGSA (10%)

Cicuco
Colombia
Onshore
Cicuco Ecopetrol (100%)
CERRITO1 (1)
Colombia
Onshore
CERRITO1 (1)
Kappa Energy Company Inc (81%), Others
(19%)

Rio Ceibas
Colombia
Offshore
Rio Ceibas
Ecopetrol (50%), Pacific Stratus Energy Ltd
(27.27%), Petroleo Brasileiro S.A. (22.73%)

Ortega
Colombia
Onshore
Ortega Ecopetrol (100%)
Other fields
Colombia
Offshore
Other fields Others (100%)
GAM (DISTRITO ALTO
MAGDALENA)
Colombia
Onshore
GAM (DISTRITO ALTO
MAGDALENA)
Ecopetrol (100%)
OPON
Colombia
Onshore
OPON COPP
GAS CASANARE
Colombia
Onshore
GAS CASANARE Ecopetrol , HOCOL S.A. , Perenco
Llanito
Colombia
Onshore
Llanito Ecopetrol (100%)
Apiay
Colombia
Onshore
Apiay Ecopetrol (100%)
CENTRO ORIENTE (EL
CENTRO)
Colombia
Onshore
CENTRO ORIENTE (EL
CENTRO)
Ecopetrol (100%)
Bonanza
Colombia
Onshore
Bonanza Ecopetrol (100%)
Rancho Hermoso
Colombia
Onshore
Rancho Hermoso Rancho Hermoso S.A. (100%)
Cusiana
Colombia
Onshore
Cusiana
Ecopetrol (50%), EQUION ENERGIA LIMITED
(31%), Others (7.4%), Total S.A. (11.6%)

Montanuelo
Colombia
Onshore
Montanuelo Ecopetrol
PAUTO - FLOREA
Colombia
Onshore
PAUTO - FLOREA Ecopetrol
EL PIAL
Colombia
Onshore
EL PIAL Ecopetrol , Petrosantander Inc
Cantagallo
Colombia
Onshore
Cantagallo Ecopetrol (100%)
TOQUI-TOQUI
Colombia
Onshore
TOQUI-TOQUI
Ecopetrol (50.00%), Interoil Exploration And
Production (50.00%)

GUAJ IRA
Colombia
Onshore and
Offshore
Chevron Corporation
Chevron Corporation (43%), Ecopetrol (57%)

Source: GlobalData

Page (35)

4.5 Colombia, Major Natural Gas Discoveries, 2005-2010
4.5.1 Colombia, Natural Gas Discoveries by Year, 2005-2010

Table 18: Colombia, Number of Gas Discoveries, 2005-2010

Country 2005 2006 2007 2008 2009 2010
Colombia 1 3 2 8 8 7

Source: GlobalData

Figure 15: Colombia, Number of Gas Discoveries, 2005- 2010
0
1
2
3
4
5
6
7
8
9
2005 2006 2007 2008 2009 2010
N
u
m
b
e
r

o
f

G
a
s

D
i
s
c
o
v
e
r
i
e
s
Colombia

Source: GlobalData

Page (36)

4.5.2 Colombia, Natural Gas Discovery Details, 2005-2010

Table 19: Colombia, Natural Gas Discovery Details, 2005-2010

Di scovery Year Di scovery Name Bl ock Name Bl ock Operat or Basi n

2010 El Verdal-1X Talora Petrodorado Ltd. Valle Superior Del Magdalena
2010 Visure-1X Buganviles Pacific Stratus Energy Ltd Valle Inferior Del Magdalena
2010 Pedernalito-1X Guama Pacific Stratus Energy Ltd Valle Inferior Del Magdalena
2010 Oripaya 1 Uribante Ecopetrol Catatumbo
2010 Moqueta-1 Chaza Gran Tierra Energy Inc Putumayo
2010 Brillante SE-1X Sierra Nevada I Petrolifera Petroleum Limited Valle Inferior Del Magdalena
2010 Tempranillo North-1 Pijao Potrerillo Ecopetrol Valle Superior Del Magdalena
2009 Vireo 1 Oropendola Columbus Energy Sucursal Colombia Llanos
2009 Rancho Hermoso-5
2009 Mirto 1 Maranta Emerald Energy Plc Putumayo
2009 Chuira 1 Midas PetroLatina Energy Plc Middle Magdalena Valley
2009 Huron 1 Niscota HOCOL S.A. Llanos
2009 Capella No.6 Ombu Emerald Energy Plc CAG-VAU
2009 Colon 1 La Paloma Apex Energy, LLC. Valle Medio Del Magdalena
2009 Mirasol 1 Guatiquia Petrominerales Colombia Ltd Llanos
2008 Lisama North-1 Valle Medio Del Magdalena
2008 Capella No.1 Ombu Emerald Energy Plc CAG-VAU
2008 Arrayan 1 Potrerillo Ecopetrol Valle Superior Del Magdalena
2008 Popa 2 Rio Magdalena Gran Tierra Energy Inc Valle Medio Del Magdalena
2008 Corcel C J oropo Petrominerales Colombia Ltd Llanos
2008 Los Aceites 1 Guachiria Solana Petroleum Corporation Llanos
2008 Palmera 1 Azar Gran Tierra Energy Inc Putumayo
2008 La Creciente D-1 La Creciente Pacific Stratus Energy Ltd Valle Inferior Del Magdalena
2007 LCA-3 La Creciente Pacific Stratus Energy Ltd Valle Inferior Del Magdalena
2007 Mauritia Norte 1 Moriche Pacific Rubiales Energy Corporation Llanos
2006 Creciente 1 La Creciente Pacific Stratus Energy Ltd Valle Inferior Del Magdalena
2006 Don Pedro 1 Doima HOCOL S.A. Valle Superior Del Magdalena
2006 Guariquies 1 DE Mares Ecopetrol Valle Medio Del Magdalena
2005 Los Hatos 1 Los Hatos Harken de Colombia Limited. Llanos

Source: GlobalData

Page (37)

4.6 Colombia Exploration and Production Sector, Recent Discoveries
4.6.1 May 17, 2011: Ecopetrol Announces Oil Discovery At Mito-1 Well In Meta Province,
Colombia
Ecopetrol S.A. (Ecopetrol) announced the discovery of crude oil in the Mito-1 exploratory well
located in the municipality of Puerto Gaitan, in the Meta province. The exploratory well (A-3)
comprises part of the exploration campaign in the Cano Sur block in the Llanos Orientales, where
the presence of hydrocarbons had already been reported at stratigraphic wells in 2010 (Mago-1
and Draco-1).
Ecopetrol is the operator and owner of all the rights of the Cano Sur Contract for Exploration and
Exploitation signed with the National Hydrocarbon Agency (ANH Agencia Nacional de
Hidrocarburos).
The Mito-1 exploratory well is located in the Eastern sector of the Cano Sur Contract contiguous to
the Quifa field, in which Ecopetrol also has a participation.
The Mito-1 well was drilled vertically to a depth of 3,310ft, equivalent to more than 1km. It was
then completed with an artificial lift system using a progressive cavity pump (PCP). The
accumulation of hydrocarbons has been proven in the basal sands of the Carbonera formation.
The production testing conducted to date brings up a production of crude oil of 13.5o API, with an
average flow of 225bpd, a water cut on the order of 10%, and a daily average production of 200
barrels of crude.
In coming weeks the evaluation of the conditions for production and the behavior of the deposit
discovered with the Mito-1 well will continue. Additionally, Ecopetrol will proceed with the drilling
campaign within the Cano Sur block, which will encompass more than 10 exploratory wells, and
additional stratigraphic wells in coming months.
This new finding reaffirms the importance of the Llanos Orientales in Ecopetrol's growth strategy.
The Meta province represents about 40% of the company's crude production, and is one of the
focal points of the exploratory campaign in its strategy leading up to 2020.

4.6.2 May 09, 2011: Suroco Energy Encounters Oil At Cohembi-3 Well In Colombia
Suroco Energy Inc. (Suroco Energy) said that the second appraisal well of the Cohembi field in the
Suroriente block, Cohembi-3, has been successfully drilled and has encountered the thickest oil
pay section drilled to date in the Cohembi oil field.
Alastair Hill, president and CEO of Suroco Energy, said, "The Cohembi-3 results have exceeded
our expectation, by encountering 23ft of continuous oil pay, the thickest oil pay interval in the field
to date. With this result we have so far proven up an oil column of 64 feet and have still not
observed any indication of an oil-water contact. The results of the Cohembi-2 and Cohembi-3 wells
provide supporting evidence for our reservoir simulation and material balance calculations which
indicate the potential for a material increase to the currently booked proven and probable reserves
assigned to this accumulation. Subsurface work on the Cohembi field will now focus on
assimilating the information we have gathered to progress a full field development program, which
will include further stepout drilling to locate the field boundary and define water injection well

Page (38)

locations for future pressure maintenance. In addition, the Cohembi surface facilities have recently
been expanded to allow over 5,000 barrels per day of oil production.
"Cohembi-3 is the third successful well in our multi-well appraisal and development drilling
program in the Pinuna and Cohembi fields and the drilling rig will now immediately move to the
Pinuna-4 location, where we are targeting both the Villeta 'U' and 'T' reservoirs in an undrilled
structural feature located between the Pinuna and Frontera oil fields."
Cohembi-3 Well Results
The Cohembi-3 well was spud on April 14, 2011 and reached a total depth of 8,870ft on April 30,
2011, and has encountered the thickest N sand oil section to date in Cohembi. Total depth was
reached in 17 days, nine days faster than the initial projected drilling time of 26 days. Openhole
logs show that Cohembi-3 encountered 23ft of high quality net oil pay with no indication of an oil-
water contact. Porosity in the interval is approximately 25% and petrophysics indicates a low water
saturation. The Cohembi-3 reservoir interval represents the thickest oil pay section of the three
wells in the field to date. For comparison purposes, the Cohembi-2 well encountered 17ft of oil pay
and is currently producing approximately 1,537bopd (224bopd net to the corporation after
royalties) with no water production.
The Cohembi-3 well offsets the closest well, Cohembi-1, by 1km and confirms the orientation and
presence of an extensive reservoir fairway that Suroco Energy and the operator had identified
prior to drilling using 3D seismic. Cohembi-3 will now be completed and tested within the next two
weeks, and then tied in for permanent production. The production facilities at Cohembi have
recently been expanded and are now capable of handling over 5,000bpd of production (728bpd
net to the corporation after royalties).
The corporation's internally generated reservoir simulation and material balance work indicates
that the reservoir drive in the Cohembi N field is primarily expansion of the relatively low-
compressibility 19 API gravity oil, and has no aquifer pressure support. The recovery factor in oil
fields of this nature benefit greatly from pressure maintenance by water injection and the
corporation and its partner are in the process of defining a field development plan that will target
initiation of pressure maintenance by water injection in 2012. GLJ Petroleum Consultants, in its
independent evaluation of the corporation's reserves effective December 31, 2010 have assigned
reserves to the Cohembi field on the basis of 8% recovery for total 1P, 9% recovery for total 2P,
and 15% recovery for total 3P reserves.
Operations Update
Suroriente Block Production And Well Workover Program
The corporation holds a 15.8% working interest in the Suroriente block, where production has
averaged 930bopd net to the corporation (after royalties) for the 24 days from April 13, 2011 when
the Pinuna-5 well was returned to production, to May 5, 2011.
Pinuna-4 Well
Upon being released from the Cohembi-3 well, the drilling rig is expected to move immediately to
the Pinuna area to a newly constructed multi-well pad to target unrisked "prospective resources"
which have been evaluated on a "best estimate" basis to be approximately 2.3 MMbo
(approximately 0.4 MMbo to the corporation based upon its 15.8% working interest and before
royalties) in Villeta U and T sands in an undrilled structural feature located between the existing

Page (39)

Pinuna production and the Frontera field in Ecuador. The Frontera field has produced 14 MMbo
from the Villeta U and T sands (independent source: IHS Energy reporting as of April 2011).
Evaluation of unrisked prospective resources pursuant to the evaluation conducted by David
Monroe, the vice-president, engineering of Suroco Energy, and Richard Harris, manager of
geology of Suroco Energy, both qualified reserves evaluators, effective December 31, 2010. The
prospective resources estimated in that evaluation have not been risked for the chance of
discovery or the chance of development. There is no certainty that any portion of the resources will
be discovered. If discovered, there is no certainty that it will be commercially viable to produce any
portion of the resources. If a discovery is made there is no certainty it will be developed or, if it is
developed, there is no certainty as to the timing of such development.
Pinuna Field Workovers
The Pinuna-5 well was returned to production on April 12, 2011 after reperforating all of the
Villeta U perforated intervals with high performance charges and installing a repaired electric
submersible pump. As of May 5, 2011 the well is producing approximately 1,453bopd (212bopd
net to the corporation after royalties) with a watercut of 40%.
A workover to repair a suspected tubing leak in the Curiquinga-1 Villeta T oil well (with the
anticipated result of regaining approximately 80bopd of production, which would mean
approximately 12bopd net to the corporation after royalties), reperforate and retest the potentially
oil-bearing Villeta Middle U sand (which is calculated to have 9ft of net oil), and configure the well
to produce selectively from either the currently producing Villeta T or Villeta U has been
completed. The well is expected to commence production within the next few weeks, and the long
term producing configuration of the well will be decided after each zone is evaluated individually.
On April 30, 2011, workover operations commenced in the Pinuna-2 well to perforate and test the
oil-bearing Villeta U-Inferior sand (which is calculated to have 23ft of untested net oil pay) and
configure the well to produce selectively from either the currently producing Villeta T or Villeta U,
depending on test results.
Exploration Activity In Putumayo Basin Blocks
A 3D seismic survey in the Alea 1848A block (in which the corporation holds a 50% working
interest) has been completed, with good quality data results and is now being interpreted in order
to define several exploration leads that have been identified on previously acquired 2D infill
seismic. Once a prospect has been matured for drilling, an exploration well is expected to be
drilled in this block in the second half of 2011.
A 3D seismic survey in the northern part of the Suroriente block (in which the corporation holds a
15.8% working interest) has been completed, with good quality data results and is now being
interpreted. The objective of the program is to define exploration drilling opportunities along a
structural trend that includes the Quinde oil pool, where there is a suspended oil well. If results are
positive, it is anticipated that exploration and stepout drilling could occur in this area of the
Suroriente block in late 2011.

4.6.3 Apr 25, 2011: Ecopetrol Finds Hydrocarbons At Nunda-1 Well In Huila Province
Ecopetrol S.A. (Ecopetrol) has found the presence of hydrocarbons in the Nunda-1 well, located in
the municipality of Tello in Huila province. The well is part of the Cuisinde Exploration and
Exploitation agreement of 2006 between Ecopetrol and the National Hydrocarbons Agency, ANH

Page (40)

in which the company holds a 100% stake. Drilling at the well began on J anuary 27, 2011,
reaching a total depth of 7,371ft three weeks later, the equivalent of 2.25km from the surface.
Preliminary testing on the Honda formation showed a flow volume of 318 barrels, with a 71% water
cut, yielding an average of 92bopd. The quality of the crude is 30 degrees API.
Ecopetrol will begin appraising the find in the weeks ahead, with extensive tests planned in order
to determine the production potential of the Honda formation and the volume of recoverable
hydrocarbons.
The discovery opens up a new era for Ecopetrol by branching out to new types of exploration
activities involving stratigraphic traps (those in which hydrocarbons accumulate due to variations in
the deposit environment) in the Valle Superior del Magdalena and helps increase reserve
inventories in this area of the country.

4.6.4 Feb 28, 2011: Pacific Rubiales Energy Discovers Gas At Apamate-1X Well In La
Creciente Block, Colombia
Pacific Rubiales Energy Corp. (Pacific Rubiales Energy) has announced the successful results of
the Apamate-1X exploration well in the La Creciente block, lower Magdalena basin, Colombia. The
Apamate-1X well was drilled in the LCA - South prospect, located south of La Creciente A and La
Creciente D gas fields.
The well targeted gas in the Cienaga de Oro formation and was spudded on December 1, 2010,
reaching total depth (TD) of 12,012ft of measured depth (MD) in the pre-Oligocene basement on
February 3, 2011.
Ronald Pantin, CEO of Pacific Rubiales Energy, said, "The positive results of this well not only will
add to our natural gas reserve base, but also reinforce the potential of the La Creciente block,
opening the window to further exploration in the area."
The well found what was initially correlated as Cienaga de Oro at 11,135ft MD (10,611ft TVDSS)
in an 8 1/2" hole, which showed 53ft of a sandstone package with some interlayered siltstones that
gas-kicked while conditioning for logging, which required gas flare. Open hole logs could not be
run due to the hole instability and high pressure from the offending basal units.
The prospective interval is defined in what is now interpreted to be a sequence of on-lapping, gas-
bearing sands, at the base of the lower Porquero formation. The petrophysical evaluation based
on cased-hole logs, LWD, ditch cuttings and mud-logging data, shows average porosity and water
saturation of 17% and 23% respectively, in a gross interval of 53ft with a net-to-gross ratio around
70%.
During the initial test the well achieved a gas production in excess of 24 MMscfd with a well head
flowing pressure of 3,730psig, restricted by the flow capacity of the test facilities.
The results are very similar to the behavior of the La Creciente A and D reservoirs and indicate
that the size of the reservoir is very promising. Preparations are now being conducted to perform
the extended test of the well. At the same time, the company is making all the arrangements to
begin the production facilities and the connecting line to the central facilities at La Creciente.
These findings at the well also confirm the stratigraphic nature of the prospect, and the post-drill
maps associated with the gas sandstones from the seismic inversion show an acreage that goes
from 1,124 acres as a minimum to a maximum upside around 5,266 acres and a gas-water contact

Page (41)

that is yet to be established. During 2011, Pacific Rubiales Energy plans to drill two additional
appraisal wells 500ft downdip of the Apamate-1 well where the seismic inversion exhibited the
strongest anomalies.
Pacific Rubiales Energy has already begun the work to expand the facilities at La Creciente to
process up to 150 MMscfd in three modules of 50 MMscfd each, with a total investment for these
expansion facilities of $42m. The company is also well advanced in the gas-export project to the
Caribbean where a potential market of 330380 MMscfd has been identified. For that, two different
transport technologies are being analyzed: small scale LNG and CNG.

4.6.5 Feb 07, 2011: Ecopetrol Discovers Hydrocarbons At Tinkhana-1 Well In Colombia
Ecopetrol S.A. (Ecopetrol) said that it has proven the presence of hydrocarbons at the exploratory
well Tinkhana-1, located in the block known as western area (Area Occidental) in Putumayo. The
well is part of exploratory work being carried out pursuant to the western area production
agreement entered into with the National Hydrocarbon Agency, in which Ecopetrol holds a 100%
interest.
The well is located within the jurisdiction of the municipality of Orito, 4.8km northeast of the
Quriyana field, where on April 6, 2009 Ecopetrol announced the presence of hydrocarbons at
another well.
Tinkhana-1 commenced drilling operations on November 17, 2010, reaching a final depth of
6,812ft, the equivalent of more than 2km. Ecopetrol is currently moving ahead with initial well
testing on the lower Caballos formation, which, with original discovery pressure at a thickness of
16ft, is producing an average oil flow of 140 bopd of 25 degree API gravity.
J avier Gutierrez Pemberthy, CEO of Ecopetrol, said: "It is satisfying to have this first find of 2011
recorded in the Putumayo basin, an area of major hydrocarbon potential. In our favor also is the
production and transport infrastructure already in place, which could allow Tinkhana-1's production
to move at a faster pace, as well as that of other projects which have proven successful in that
region of the country."
Ecopetrol will continue running tests on the Caballos formation in the weeks to come. A following
evaluation will be used to determine the well's size and production potential.

4.7 Colombia Exploration and Production Sector, Drilling and Production Updates
4.7.1 May 11, 2011: InterOil Produces 5,813bopd In April 2011
InterOil Exploration & Production ASA (InterOil) has produced 5,813bopd in April 2011, compared
to 6,361bopd in the previous month. During April 2011, production from Peru and Colombia was
4,191bopd and 1,622bopd respectively. Production for March 2011 from Peru and Colombia was
4,669bopd and 1,692bopd respectively.
InterOil has experienced high depletion on the San Luis field in Peru during April 2011. The
company is working actively to reduce the depletion and plans to start the drilling on the San Luis
field during third week of May 2011. The Altair-1 well in Colombia was re-completed and put in
production last week. The drilling campaign in Colombia is expected to start in late J une 2011.

Page (42)

Oil has been sold at average sales price of $118.52 in Peru and $116.27 in Colombia per barrel
during April 2011.

4.7.2 May 09, 2011: Brownstone Energy Puts Canaguay #1 Well On Production In
Colombia
Brownstone Energy Inc. (Brownstone Energy) has provided an update on operations in Colombia.
The company has been advised by the operator of the Canaguaro block that installation of long
term production testing equipment at the Canaguay #1 well has been completed and that long
term production testing of the well has commenced.
During commissioning, the well produced oil at various rates, and most recently, the Canaguay #1
well produced from the Mirador formation through the new facilities at a rate in excess of
2,000bopd with a 0.2% water cut. The optimal production rate for the Mirador reservoir and
facilities will be determined by the results of the long term production test. Long term trucking and
sale agreements have been signed for oil produced at Canaguay #1.
Brownstone Energy has met its obligations to earn its 25% working interest in the Canaguaro
block.
Block 27
Brownstone Energy and its partners have defined drilling locations on the first two of five separate
structures, based on the interpretation of the previously completed 3D seismic survey. An
additional follow-up development location has been selected on one of the structures dependant
on success. Brownstone Energy and its partners continue to wait on required environmental
permits before construction of the locations can commenceand anticipates commencing
construction and drilling in the third quarter of 2011.
The wells have a planned depth of approximately 10,000ft and will test prospective oil bearing
intervals in the Carbonera, Mirador and Une formations.

A follow-up 54sq km 3D seismic acquisition program has commenced in the south eastern portion
of the block to further define additional potential drilling locations. The 3D seismic acquisition
program is expected to be completed in the second quarter of 2011, with the drilling of an
additional 10,000 foot well before year-end, dependent on the results of the follow-up 3D seismic.
Brownstone Energy has a 50% paying interest (45.275% working interest before pay out, 34.25%
working interest after payout) in block 27.
Block 21
Brownstone Energy and its partners have also completed 75% of the 83sq km 3D seismic survey
on block 21. After processing and interpretation, the partners plan to drill two wells by the first
quarter of 2012.
Brownstone Energy is the operator of the block and has a 50% paying interest (45.5% working
interest before pay out, 35% working interest after payout) in block 21.

Page (43)

Block 36
The acquisition of 109sq km of 3D seismic on block 36 is approximately 75% completethis
program was delayed by weather and environmental difficulties. Drilling of one 15,000 foot well
remains scheduled to occur by the end of 2011.
Brownstone Energy has a 20% paying interest (18.2% working interest before pay out, 14%
working interest after payout) in block 36.

4.7.3 Apr 29, 2011: Petroamerica Oil Commences Drilling At Las Maracas-2 Exploration
Well In Llanos Basin, Colombia
Petroamerica Oil Corp. (Petroamerica Oil) has spud the Las Maracas-2 exploration well in the Los
Ocarros block, situated in the Llanos basin of Colombia. The Las Maracas-2 well which was spud
on April 27, 2011, is targeting the Carbonera C7, Mirador and Une reservoir formations in a fault
trap defined by 3D seismic. The well will be directionally drilled by the Parker 268 drilling rig and is
expected to reach its total depth of 13,100ft (measured depth) by end J une, 2011.
Petroamerica Oil, pursuant to a farmin agreement with Talisman Oil & Gas Colombia Limited, is
entitled to a 50% participating interest in the Los Ocarros block, subject to the approval of the
National Hydrocarbon Agency (ANH) and the operator of the block, Cepsa Colombia S.A., a
subsidiary of the Cepsa Group.

4.7.4 Apr 28, 2011: Canacol Energy Provides Production Update
Canacol Energy Ltd. (Canacol Energy) has provided an update on production and an upward
revision in production guidance for 2011. The corporation operates the Rancho Hermoso and
Entrerrios fields in Colombia, and has a non-operated interest in the Capella field in Colombia and
four producing oil fields in Brazil.
Net corporate production for the period J anuary 1, 2011 through to March 31, 2011 averaged
10,187bopd, which consisted of 3,164bopd of net production after royalties, and 7,023bopd of tariff
production. Net corporate production for the period April 125, 2011 averaged 11,512bopd, which
consisted of 3,850bopd of net production after royalty, and 7,662bopd of tariff production.
Canacol Energy is revising its production guidance for calendar 2011 upwards from the previously
disclosed yearly average of 10,00011,000bopd to a new target of 10,50011,500bopd based
primarily on stronger than anticipated performance from the recently drilled wells at its operated
Rancho Hermoso field in Colombia. Gross production from the Rancho Hermoso field averaged
23,639bopd for the period April 1April 25, 2011.

4.7.5 Apr 14, 2011: PetroLatina Energy Provides Q1 2011 Production Update
PetroLatina Energy Plc (PetroLatina Energy) has provided an update on its first quarter of 2011
production.
PetroLatina Energy achieved total gross production from its Tisquirama, La Paloma and Midas
licence blocks located in the Middle Magdelana Valley, Colombia, in the three months to March 31,
2011 of 193,790bbls (2010 equivalent period: 155,323bbls) and total net production of 90,536bbls
(2010 equivalent period: 72,465bbls) at an average gross production rate of 2,154bopd (2010

Page (44)

equivalent period: 1,726bopd) and an average net production rate of 1,006bopd (2010 equivalent
period: 805bopd).
As announced previously, the Serafin-1 gas well located in the company's Tisquirama licence
block is currently on an extended six month production test at a flow rate of 5.5 MMscf/d of gas
and a well pressure of 1,850 pounds per square inch (psi). The well has, during the test period to
date, achieved total gross production of 95.98 MMscf of gas (15,997boe) and total net production
of 44.15 MMscf (7,359boe). Gas produced during the six month extended test period is being sold
to Ecopetrol S.A. at 90% of the regulated price for Texaco for Barranca-Ballena's gas (as
regulated by CREG, the Regulatory Commission of Energy and Gas of Colombia). The regulated
price is currently $4.2562/million British thermal unit (BTU). The Serafin-1 well is jointly owned by
PetroLatina Energy (50%) and PetroSantander Corporation (50%).

The Company expects to release the results of an updated independent reserves report
commissioned from Ryder Scott Company, L.P. and various geological and petrophysical studies
during the current quarter.
J uan Carlos Rodriguez, Chief Executive of PetroLatina, commented:
"Our first quarter average production rates and the initial results to date from the Serafin-1 gas well
have been very encouraging and in line with our expectations. We continue to pursue our strategy
of seeking to increase production and reserves and expect to resume our development drilling in a
more effective and low risk manner later this year."
Mr Menno Wiebe, a Non-executive director of the Company, has reviewed and approved the
technical information contained within this announcement in his capacity as a qualified person, as
required under the AIM rules. Mr Wiebe is a Petroleum Geologist and has been a Member of the
American Association of Petroleum Geologists for more than 30 years and a Member of the
Geological Society for more than 7 years.

Page (45)

5 Col ombi a Pi peli ne Sector
5.1 Colombia Pipeline Sector, Key Data

Table 20: Colombia, Pipeline Key Statistics, May 2011

Number of Active Natural Gas Pipelines 8
Number of Planned Natural Gas Pipelines Nil
Total Length of Natural Gas Pipelines (including planned pipelines) in Km 3,231.8
Company with Longest Natural Gas Pipelines Network Promigas S.A. E.S.P

Source: GlobalData

5.2 Colombia Pipeline Sector, An Overview

The total length of crude oil and natural gas pipeline network in Colombia (including planned
pipelines) in May 2011 was 11,786.3 Km, of which, crude oil pipelines constitute 4,985.9 Km,
petroleum product pipelines constitute 3,568.6 Km and natural gas pipelines constitute 3,231.9
Km. Colombia's contribution to South and Central Americas total pipeline length is 9.8%.
Major pipelines in the country include Ecopetrol Product Pipeline System, Ecopetrol Oil Pipeline
System and Centro- Oriente Pipeline. These pipelines have lengths of 3,568.6 Km, 2,074.9 Km
and 1,005.0 Km respectively.
The top three companies operating in Colombia oil and gas pipeline industry are Ecopetrol, Total
S.A. and Promigas S.A. E.S.P.

5.3 Colombia Pipeline Sector, Compari son of Key Natural Gas Pipeline
Companies

Table 21: Colombia, Natural Gas Pipeline Length by Company (Km), May 2011

Company Name Length (Km)
Promigas S.A. E.S.P 1,251.3
TGI S.A ESP 1,228.0
Transgas de Occidente S.A. 340.0
Consorcio TGC Ltda. 310.0
Ecopetrol 88.5

Source: GlobalData

Page (46)

Figure 16: Colombia, Natural Gas Pipeline Length by Company (Km), May 2011
0
200
400
600
800
1,000
1,200
1,400
Promigas S.A.
E.S.P
TGI S.A ESP Transgas de
Occidente S.A.
Consorcio TGC
Ltda.
Ecopetrol
L
e
n
g
t
h

(
K
m
)

Source: GlobalData
Note The length of the pipelines indicated in the graph above includes the entire lengths
of pipelines in which the companies have equity stakes.

Page (47)

5.4 Colombia Pipeline Sector, Natural Gas Pipelines

Table 22: Colombia, Natural Gas Pipelines, May 2011

Pi peline
/Pipeli ne
System Name
Pi pelines in the
System Operat or
Start
Year Start Point End Point
Asset
Status
Onshore/
Off shore/
Both
Pi peline
Length
(Km)
Pi peline
Di amet er
(Inches)
Pi peline
Capacity
(Bcf)

Centro- Oriente
Pipeline
CentroOriente
S.A 1996 Active Onshore 1,005.0 6.0-22.0 27.7

Barrancabermeja-
Neiva Pipeline Barrancabermeja Neiva Active Onshore 630.0

Vasconia- Cogua
Pipeline Vasconia Cogua Active Onshore 208.7

Dina- Tello- Los
Pinos Pipeline Dina Los Pinos Active Onshore 19.9 6.0-12.0 1.5

Montanuelo-
Gualanday
Pipeline Montanuelo Gualanday Active Onshore 38.0 4.0-6.0 1.5
Promigas
Colombia Gas
Pipeline
Promigas
S.A. E.S.P 1960 Active Onshore 673.3

Ballen-
Cartagena
Pipeline Ballena Cartagena Active Onshore 193.0

Cartagena- J abo
Pipeline Cartagena J abo Active Onshore 480.3
Ballena-
Barrancabermeja
Pipeline
Promigas
S.A. E.S.P 1996 Ballena Barrancabermeja Active Onshore 578.0 18.0 25.6
Mariquita- Cali
Pipeline
Transgas de
Occidente
S.A. 1997 Mariquita Cali Active Onshore 340.0 20.0 20.0
Cusiana- Bogota
Pipeline
Consorcio
TGC Ltda. 1995 Cusiana Bogota Active Onshore 310.0 6.0/12.0 3.5
Cusiana- La
Belleza Pipeline TGI S.A ESP 2003 Cusiana La Belleza Active Onshore 223.0 20.0 54.8
Colombia-
Venezuela Gas
Pipeline
"Colombia
Section"
Petroleos De
Venezuela
S.A. 2007 Ballena
Carreta
"BoderPoint",
Venezuela Active Onshore 88.5 26.0 54.8
Morichal- Yopal
Pipeline
Coinobras
Ltda 1994 Morichal Yopal Active Onshore 14.0 4.0 0.4

Source: GlobalData

The total length of natural gas pipelines in Colombia in May 2011 is 3,231.8 Km. Centro- Oriente
Pipeline is the longest natural gas pipeline in the country. It has a length of 1,005.0 Km and a
design capacity of 27.7 Bcf.

Page (48)

6 Profile of ECOPETROL S.A.
6.1 ECOPETROL S.A., Key Information

Table 23: ECOPETROL S.A., Key Facts
Corporate Address Carrera 7 No. 37 - 69, Bogota,
Colombia
Ticker Symbol, Exchange ECOPETROL [Colombia Stock
Exchange]
Telephone +57 1 2344000 No. of Employees 6,695
Fax +57 1 2344099 Fiscal Year End December
URL www.ecopetrol.com.coenglish Revenue (in USD Million) 17,313.70
Industry Chemicals, Energy and Utilities Revenue (in COP Million) 30,404,390
Locations Brazil, Colombia, Peru, United States
Source: GlobalData

6.2 ECOPETROL S.A., Company Overview
Ecopetrol S.A. (Ecopetrol) is one of the largest petroleum companies in Colombia. It is engaged in
the exploration, production, transportation, supply and marketing of crude oil and natural gas. The
company is amongst the top 40 largest petroleum companies in the world as well as the four major
oil companies in Latin America. The company operates through four business units: Exploration
and Production; Refining and Petrochemicals; Transportation; and Market and Supply. The
company through its subsidiary, Ecodiesel Colombia S.A. is increasing its presence in alternative
energy market with expanding operations in biofuel and ethanol. It is headquartered in Bogota,
Colombia.

6.3 ECOPETROL S.A., Business Description
6.3.1 Business Overview
Ecopetrol is Colombia's largest integrated oil company. The company engages in the exploration
and production of oil and gas; refining, transportation, marketing and supply of petrochemicals. It
carries out its operations through four reportable business segments, namely, Exploration and
Production; Refining and Petrochemicals; Transportation; and Market and Supply.
Production
For the fiscal year ended 2010, the companys average daily production of hydrocarbons stood at
579,249 equivalent barrels on average per day, of which 481,812 barrels of crude and 97,438
equivalent barrels of gas. Ecopetrols production of heavy crudes reached 210.4 thousand bpd in
2010, a 43.2% increase over 2009. This was primarily due to the development of the Rubiales,
and Castilla fields, in the San Fernando Region.
Financials
In the fiscal year ended 2010, the total revenues from E&P activities amounted to COP22, 703.9
billion. The company reported a net income of COP8,362.5 billion in 2010, which resulted from
higher volumes produced and better prices of the product basket compared to the previous year.

Page (49)

Market View
Unconventional oil and gas projects such as oil sands or tar sands, heavy oil, coal bed methane
are attracting increased attention in the wake of the inevitable production decline in the
conventional oil and gas resources. There has been renewed interest in recent times due to the
advancement in extraction and processing technologies and a significant rise in the price of oil and
gas. Following this there has been considerable investments in the production of oil and gas from
unconventional sources.

6.3.2 Marketing and Supply
Overview
The company under Marketing and Supply segment, markets refined and feed stock products
including high-octane gasoline, diesel fuel, jet fuel, natural gas, and petrochemical products.
Domestically it sells regular gasoline, LPG, jet fuel, diesel fuel and natural gas and exports crude
oil, LPG, butane, high-octane gasoline, naphtha, jet fuel natural gas and fuel oil. It is the sole
producer and supplier of refined products in Colombia.The company witnessed increase in the
volume of exports delivered at client facilities by the companys ships chartered. During 2010, the
company focused on the development of the production infrastructure to increase the gas supply
in Colombia. The company built the LTOII Plant in Cusiana, which expected begin by 2011 that
can provide 70 million cubic feet per day (MCFD). The company also developed a project and
added about 1.5 MCFD of gas to the domestic transport system from the Dina Field in Neiva.
Financials
The segment recorded revenues of COP7,849 billion for the fiscal year ended 2010. It recorded
operating income of COP509.1 billion and net income of COP224.4 billion in 2010.

6.3.3 Refining and Petrochemicals
Overview
Ecopetrol through its Refining and Petrochemicals segment is engaged in the refining of crude oil
and produces a full range of refined products including gasoline, diesel, LPG, and heavy fuel oils
among others. The company owns and operates two refineries in Colombia, namely, the
Barrancabermeja and Cartagena. It also owns two minor refineries, namely, Orito and Apiay. The
installed capacity of these refineries totals to 335 thousand barrels per day (mbpd). The company
produces aromatics, cyclohexane, paraffin waxes, lube base oils and solvents from these
facilities.In 2010, the company commenced the new diesel and gasoline hydro-treatment units.
The company advanced its Petrochemical Infrastructure Project to increase the production of
Ecopetrols petrochemical products to 2.7 million tons per year (MTPY).
Production
During 2010, the utilization factor of the Barrancabermeja refinery was 81.8%, as compared to
80.7% in 2009. Its through-put increased 3.8% that driven by the opening of the hydro-treatment
plant in August. The utilization factor of the refinery of Reficar S.A was 77.4% in 2010, as
compared to 92.3% in 2009. Its throughput dropped 15% due to maintenance of the crude and
visbreaker units in October as well as the technical stoppage of cracking unit in November.

Page (50)

Financials
The total sales of the Refining segment were COP15,070 billion for the fiscal year ended 2010.
The refining segment reported a net loss of COP783.1 billion in 2010 due to the high cost of raw
materials as compared to the revenues as well as non-operating losses regarding subsidiary
companies, provisions and taxes.

6.3.4 Transportation
Overview
The company through its Transportation segment engages in the transportation and supply of
crude oil, motor fuels, fuel oil, and other refined products, excluding natural gas. At December 31,
2009, its crude oil and multi-purpose pipelines network was of length approximately 9,164 km. The
transportation network consisted of about 5,128 km of main crude oil pipeline networks,
connecting fields to the Barrancabermeja refinery and Reficar, and to export facilities. Ecopetrol
established Oleoducto Bicentenario de Colombia S.A.S., where it holds 55% interest in it. The
company constructed 80 km of a total of 134 km of the Andean Multipurpose Pipeline. In 2010, the
company transported 1035.8 KBOD, which include 264.9 KBOD of refined products and 770.9
KBOD of crude.

Financials
In the fiscal year ended 2010, the total sales of the Transportation segment amounted to
COP3,019.3 billion. The transportation segment reported net income of COP542.3 billion in 2010,
which resulted from higher crude volumes transported by both pipeline as well as tank cars.

6.4 ECOPETROL S.A., SWOT Analysis
6.4.1 Overview

Ecopetrol is one of the largest petroleum companies in Colombia. Its key operations include the
exploration, production, refining, transportation of crude oil and natural gas. The business
integration of the company enables it maintain its market positions. The company's debt burden
accompanied by legal issues may hamper its growth. Strategic expansion accompanied by the
developing upstream sector in Colombia will provide an opportunity to gain high market share in
near future. However, the company faces challenges due to competition and the fluctuating oil and
gas market.

Page (51)

Table 24: ECOPETROL S.A., SWOT Analysis
Strengths Weakness

Focus on Research and Development

Increase in Reserves and Production

Vertically Integrated Operations

Efficient Use of Resources

Substantial Debt Burden

Limited Liquidity Position

Legal Issues
Opportunities Threats

Colombian Upstream Sector

Brazilian Offshore Pre-Salt Region

Expansion Activities

Regulatory Controls on Pre-salt areas

Fluctuating Oil Market

Intense competition

Stringent Regulations

Source: GlobalData

6.4.2 ECOPETROL S.A. Strengths
Focus on Research and Development
The companys focus on research and development (R&D) activities enables it to develop superior
offerings. The R&D activities are conducted through Instituto Colombiano del Petroleo (ICP) which
focuses on technological development beneficial for the company and the Columbian oil and gas
industry as a whole. Every year, the company presents its research and development projects to
Instituto Colombiano para el Desarrollo de la Ciencia y la Tecnologia for certification of the
research conducted. In 2009 the company developed 24 projects amounting to COP136,696m, as
against 19 projects amounting to COP86,695m in the previous year. ICP has 25 demo locations
and 20 R&D laboratories. During 2009 the R&D laboratories provided services to other companies
as well including Shell, British Petroleum, Exxon Mobil as well as the ANH. Currently Ecopetrol
owns 19 patents in Colombia, Venezuela, Brazil, Ecuador Nigeria and the US. In addition, 39 new
patents were filed by the company in 2009. One such patent known as the an anti-theft patent
enabled the company to reduce fuel oil and crude oil theft by 50% in 2009 compared to the
previous year.
Increase in Reserves and Production
An increase in reserves and production ensures consistent cash flow and hence higher profitability
for the company. Consolidated production for 2010 was 615.9 Mboed, as against 520.6 Mboed in
2009, increasing by 18.3%. Ecopetrols production was 579.5mboed, an increase of 16.2%
compared to the previous year. During the fiscal year 2010, hydrocarbons were discovered in 10
exploratory wells in Columbia and one in Brazil.
The reserve replacement ratio was 193% in 2010 while reserves to production ratio was 9.1 years.
72% of proved reserves correspond to crude and 28% to natural gas. The proved net reserves of
hydrocarbons for the company at the end of 2010 totaled to 1,714 MMboe, an increase of 11.4%
compared to 1,538 MMboe at the end of 2009. There was an increase of 365 MMboe of proved

Page (52)

reserves and net production was 189 MMboe in 2010 which means that 1.93 barrels were added
to proven reserves for each barrel of oil equivalent produced. The net reserves increased by 42%
from 1,210 MMboe in 2007 to 1,714 MMboe in 2010. The net production grew by 56% from 121
MMBOE in 2007 to 189 MMBOE in 2010. The reserve replacement ratio for the 3 year period was
197% with an average reserve life of 9 years. Improving reserves ensure higher productivity for the
company.

Vertically Integrated Operations
Ecopetrol is a vertically integrated oil and gas energy company. It is one of the four principal
petroleum companies in Latin America and ranks amongst the 40 largest petroleum companies in
the world. The company operates across all the areas of the energy value chain including the
exploration and production, transportation, refining, and sales and marketing. It is the only
vertically integrated crude oil and natural gas company in Columbia operating in Peru, Brazil and
the U.S. Gulf Coast as well. Besides, it also holds the largest share in the transportation and
refining infrastructure in Colombia. The oil producing fields of the company are present in central,
south, west and north of Colombia. It also has two refineries and ports to aid fuel import and export
on the coasts and 8,124 km of pipelines and polyducts in Colombia. Strong integration along the
value chain bestows significant advantages to the company.
Efficient Use of Resources
The company's return on equity (ROE) was 19.7% for fiscal year 2010. This was above the
Integrated Oil & Gas sector average* of 16.1%. A higher than sector average* ROE may indicate
that the company is efficiently using the shareholders' money and that it is generating high returns
for its shareholders compared to other companies in the sector. Also, in fiscal year 2010, its
Return on Assets, Return on Fixed Assets, and Return on Working Capital were 11.8%, 22.9%,
and 497%, respectively, compared to 9.2%, 18.1%, and 169%, respectively, in fiscal year 2009.
Additionally, in 2011, Standard & Poor's increased the company's corporate credit and debt rating
to BBB- from BB+, with a stable outlook. With this new rating the company reached investment
grade.

6.4.3 ECOPETROL S.A. Weaknesses
Substantial Debt Burden
The companys huge debt could have a major impact on its operational performance since a major
portion of the earnings would have to be diverted to service its debt obligations. This could
concern the investors as well as make it difficult for the company to raise funds on favorable terms
from the market. For fiscal year ended 2008, 2009 and 2010, the companys debt to equity ratio
was 0.80%, 18.8% and 21.5%, respectively. The huge amount of debt to equity ratio could result in
volatile earnings as the company has to bear additional interest expense. Ecopetrol reported huge
total debt component in the past, COP286,499m in fiscal year ended 2008, followed by
COP6,151,435m in fiscal year ended 2009 increased to COP8,912,884m in fiscal year ended
2010. This substantial amount of debt requires the company to dedicate a significant portion of its
cash flow from operations to service interest and principal payments on debt. Any reduction in
revenue and operating cash flow could hinder the companys ability to repay interest and principal,

Page (53)

resulting in defaults. With such huge debt burden, Ecopetrol could face credit crunch in future and
that would affect the financial health of the company.

Limited Liquidity Position
The company's current ratio was 1.2 at the end of fiscal year 2010, as compared to 1.6 in 2009.
The current ration in 2010 was below the Integrated Oil & Gas sector average* of 1.45. A lower
than sector average* current ratio indicates that the company is in a weaker financial position than
other companies in the sector. Further, the company's quick ratio and cash ratio were 1.2 and 0.4,
respectively in 2009, compared to 1.3 and 0.5, respectively in the fiscal year 2008. A decrease in
liquidity position of the company implies limitations for meeting short term liquidations. This could
affect the operational functioning of the company and that hampers the performance of the
company in terms of generating revenues and also cost effectiveness, as the company could
depend more on external sources to fuel its operational flow.
Legal Issues
A lawsuit was filed against Ecopetrol in The Hague (Netherlands) by Llanos Oil Exploration Ltd. as
a consequence of the termination of the Guatapuri partnership contract on J uly 23, 2003. The
Court of The Hague has issued a court order in J uly 2010 granting Llanos Oil to attach up to seven
billion Euros on any assets of Ecopetrol that fall under Dutch jurisdiction.
The company is a part of 2,428 legal proceedings relating to civil, administrative, environmental,
tax and labor claims filed against it in the Colombian courts and arbitration tribunals. It is subject to
labor-related lawsuits filed by the existing and former employees in connection with pension plans
and retirement benefits affecting the plaintiffs. A former employee association by name Foncoeco
has brought an action against the company in connection with the profit-sharing plan offered in
1962 that expired in 1975, which required the company to pay COP541,833m. The company had
appealed the decision by the first instance judge to the Bogota Higher Tribunal. As of December
31, 2009, the company has increased its provision for legal proceedings by 24.12% over 2008.
Legal issues like this can affect the company's goodwill and image hence its profitability.

6.4.4 ECOPETROL S.A. Opportunities
Colombian Upstream Sector
Colombia has emerged as one of the most attractive upstream investment destinations with the
largest number of discoveries in the first half of 2010. The company can expand and strengthen its
operations in the region to take advantage of the current scenario. Colombia is rich in hydrocarbon
reserves with proven reserves of 1.4 billion barrels of oil and 4.4 Tcf of gas. The Majority of
Colombia's crude oil production comes from the Andes foothills and the eastern Amazonian
jungles. The Meta department in central Colombia is also emerging as an important production
area. Colombias natural gas deposits are spread across 18 basins. Only seven of the 18 basins
account for 100% of the current gas production. Though the majority of the current natural gas
production comes from Guajira and the Guajira Offshore basin, a large chunk of reserves are
located in the Llanos basin.
The continuous efforts of the Colombian Government to explore the offshore and onshore basins
have resulted in a growing number of oil and gas discoveries. The number of new oil and gas

Page (54)

discoveries in Colombia increased from 12 in 2006 to 28 in 2009. Such strong growth in
discoveries is mainly due to the increasing investments from foreign investors and Colombias
national oil company, Ecopetrol S.A. Between 2003 and 2010, more than 200 million hectares
were explored and another 47 million hectares of land is open in 2010. Of the 200 million hectares
of exploration area, production area is around 12 million hectares; 130 million hectares are under
an E&P license and the remaining 60 million hectares are under a TEA (Technical Evaluation
Agreements) license.
The deepwater exploration and production market in Brazil offers a unique opportunity for the
growth of oilfield services companies such as this. With easily accessible areas for oil finds
becoming scarce, the ultra-deep, Brazilian pre-salt area has emerged as one of the global oil and
gas industry's few areas of growth. Pre-salt discoveries in Brazil have transformed the country into
one of the highest potential investment acreages globally. Service companies that provide
deepwater drilling rigs, subsea production systems, directional drilling and offshore engineering
and construction services will benefit from spending on pre-salt development. According to in-
house research, the total number of rigs required in the Brazilian offshore area during 20092018
is expected to be 58, of which 30 rigs have been contracted and 28 more are to be leased up to
2018.
Oil and gas reserves in Brazil are expected to increase from 14.2 billion barrels of oil equivalent
(boe) in 2009 to 30-35 billion boe over the next few years. According to Brazils ANP (Agencia
Nacional do Petroleo), in total, Brazil's pre-salt oil area could hold between 50 billion boe and 80
billion boe of high-quality light crude. The announced recoverable pre-salt reserves in the Santos
and Campos basin are expected to more than double Brazils reserves in the coming years.
Expansion Activities
In 2011, Ecopetrol and Talisman Energy finalized an agreement to acquire BP Exploration
Company (Colombia) Limited. The new company would be called Equion Energia Limited, in which
Ecopetrol will hold 51% while Talisman will hold 49%. This acquisition would strengthen the
companys operations in Colombia especially in the Piedemonte Llanero region. Currently, 90
thousand boed are currently being produced in the region of which 27 thousand boed are under
direct operation.
In 2011, the company also incorporated Ecopetrol Global Capital SL in Madrid, Spain, in which it
owns 100% interest. Ecopetrol Capital AG was also established in Switzerland, as a wholly owned
subsidiary in order to improve the utilization of financial resources of the company. These strategic
expansion activities provide strong growth prospects for the company in the coming years.

6.4.5 ECOPETROL S.A. Threats
Huge oil and gas finds in the pre-salt areas have made the Brazilian Government evaluate
necessary changes in the regulatory framework for the region. The government aims to develop a
new petroleum regime for the pre-salt basins. According to the proposed legislation, Brazil will
adopt a production-sharing model for the unlicensed pre-salt blocks and other "strategic" areas as
defined by the National Energy Policy Council (CNPE). Thus, the new regime will abandon the
concession system, which was more lucrative for international contractors. Instead of royalty

Page (55)

payments, the government reportedly wants a minimum of a 50% share of the profit oil, which is
the oil produced after discounting expenses from the development of a field. Through the new
legislation, Petrobras will be granted full ownership of some pre-salt acreage and will be
guaranteed a minimum 30% share of any pre-salt areas that the government decides to tender in
licensing rounds.
In all cases, the state-controlled oil company will be the sole operator overseen by a newly created
regulator for the pre-salt areas, Petro-sal (the ANP will continue to oversee other parts of the
upstream sector). These legislative changes will diminish the attractiveness of Brazil's upstream
sector for international oil companies. For companies without pre-salt acreage, the changes to the
law significantly diminish chances of entering the region, especially in areas that the government
decides have a high chance of exploration success or that might produce large discoveries.

Fluctuating Oil Market
The company faces the threat of operating in volatile market environment. Volatile market
environment coupled with concerns from geopolitical environment and demand for oil in emerging
economies including China, India and other non-OECD countries have resulted in tighter oil
supplies. Further, events in Egypt, Libya, Venezuela, Iran and Iraq have resulted in uncertainty of
crude oil supply in recent times. Lack of balance between OPEC and non-OPEC production
discipline has resulted in the volatility. Prices of crude oil and natural gas are dependent on a
number of factors including, supply and demand for crude oil, natural gas, and natural gas liquids,
weather conditions, political and economical stability, costs of exploring, developing, producing,
and transporting crude oil, natural gas and natural gas liquids, domestic and foreign government
regulations and taxes and a host of other factors. Major changes in the environmental aspects
would impact the companys operations.
Intense competition
Ecopetrol faces intense competition from various energy players. Some of the competitors of the
company include only downstream players while some are present all across the energy value
chain and have significant LNG handling capacity. Even though the company is an integrated oil
company, it does not have a significant share in the international markets. The companys retail
activities are very weak in comparison with the global integrated companies. The intense
competition poses a threat to the company's existing market share. The high competition level
could limit the companys market share and shows negative impact on the companys operations
as well as financial position.
Stringent Regulations
Ecopetrol's business operations are subject to environmental regulation and its costs to comply
are significant. Any changes in existing environmental regulation could affect the results of
operations and financial condition. Its current costs to comply with these laws and regulations are
significant to results of operations and financial condition. Failure to comply with these laws and
regulations would adversely impact its business.

Page (56)

7 Profile of Occi dental Petroleum Corporati on
7.1 Occidental Petroleum Corporation, Key Information

Table 25: Occidental Petroleum Corporation, Key Facts
Corporate Address 10889 Wilshire Boulevard, Los
Angeles, CA, 90024, United States
Ticker Symbol, Exchange OXY [New York Stock Exchange]
URL www.oxy.comPagesdefault.aspx Revenue (in USD Million) 19,157
Industry Chemicals, Energy and Utilities
Locations Argentina, Bolivia, Brazil, Canada, Chile, Colombia, Libyan Arab J amahiriya, Oman, Qatar, United Arab
Emirates, United States, Yemen
Source: GlobalData

7.2 Occidental Petroleum Corporation, Company Overview

Occidental Petroleum Corporation (Oxy) is a US-based upstream energy company. It engages in
the exploration, production and marketing of crude oil, natural gas, natural gas liquids (NGLs),
power and carbon dioxide (CO2). The company also involved in the manufacturing of polyvinyl
chloride (PVC) resins, caustic soda and niche specialty chemicals. The company focuses on long
lived oil and gas assets in California and the Permian Basin. Oxy carries out business activities
through three business segments, namely, Oil and Gas, Chemical and Midstream, Marketing and
Other. Occidental operates in three regions: Middle East/North Africa, the US and Latin America.
The company is headquartered at Los Angeles, California, the US.

7.3 Occidental Petroleum Corporation, Business Description
Occidental Petroleum (Oxy) is one of the leading players in the exploration and production of oil
and natural gas in the world. It is one of the major manufactures of chemicals in North America.
The company carries out its exploration and production activities in the US, Middle East/ North
Africa and Latin America. It engages in gathering, treating, processing, transporting, storing,
trading and marketing oil, gas, natural gas liquids, condensate and CO2. In addition, the company
generates and markets power. Occidental Petroleum manufactures and markets basic and niche
specialty chemicals. It conducts its businesses through three business segments, namely, Oil and
Gas; Chemical and Midstream, Marketing and Other.In J anuary 2011, the company entered into
an agreement with the Abu Dhabi National Oil Company (ADNOC) to develop Shah sour gas field
in the emirate. In which the company owns 40% interest. China Petrochemical Corporation
(Sinopec) agreed to acquire 100% interest in Occidental Argentina Exploration & Production Inc., a
subsidiary of of the company and certain affiliates.

Page (57)

7.3.2 Chemical
Overview
The company, through its chemical segment, engages in the manufacture and marketing of basic
chemicals, vinyl and other chemicals. Occidental Chemical Corporation (OxyChem), a subsidiary
of Oxy, manufactures several petrochemicals; basic chemicals such as chlorine, caustic soda and
ethylene dichloride; vinyls and specialty chemicals. These chemicals are used as raw materials in
the manufacture of industrial chemicals, pharmaceuticals, detergents and bleaching agents.
The company is also one of the major producers of polyvinyl chloride (PVC) worldwide. Oxy Vinyl,
another subsidiary of the company, engages in the manufacture of vinyl derivatives, polyvinyl
chloride resins and vinyl chloride monomers. In the US, OxyChem owns and operates chemical
manufacturing plants at 22 sites in Alabama, Georgia, Illinois, Kansas, Louisiana, Michigan, New
J ersey, New York, Ohio, Pennsylvania and Texas. IN addition, the company has two
manufacturing sites in Canada and Chile, and has certain interests in a Brazilian joint
venture.OxyChem established two joint ventures, Armand Products Company and Carbocloro
S.A. along with Church & Dwight Co., Inc. and UNIPAR, respectively. Armand Products sells
potassium carbonate and potassium bicarbonate. Carbocloro involves in manufacturing and selling
of chlor-alkali and other products in Brazil.
Production
Occidental Petroleum manufactures and markets basic chemicals, vinyls and other chemicals. Its
basic chemicals consist of chlorine and caustic soda, chlorinated organics, potassium chemicals
and ethylene dichloride (EDC), with an annual capacity of 4.0 million tons, 4.2 million tons, 0.9
billion pounds, 0.4 million tons and 2.4 billion pounds, respectively. The company's Vinyls include
VCM and PVC, with an annual capacity of 6.2 billion pounds and 3.7 billion pounds, respectively.
Other chemicals include chlorinated isocyanurates, resorcinol, sodium silicates and calcium
chloride, with an annual capacity of 131 million pounds, 50 million pounds, 0.6 million tons and 0.7
million tons, respectively. For the fiscal year 2010, the Vinyls exports increased 125% as
compared to 2009.
Financials
For the fiscal year ended 2010, this segment accounted for revenues of $4,016m, an increase of
24.52% over that in 2009. Furthermore, the segment earnings totaled $438m in 2010, an increase
of 12.6% as compared to previous year.
Capital Expenditure
During 2010, the company's capital expenditure totaled $237m,as compared to $205m in 2009.

Market View
The performance of the Chemical segment will depend on the global economic activities, the
competitiveness of the US, recovery of the domestic housing and construction markets, and the
direction of the unprecedented high levels of feedstock and energy prices along with their impact
on margins. Occidental Petroleum anticipates demand for basic chemicals to improve in 2010.
Furthermore, the company expects industry-wide PVC operating rates to be higher in 2010 as a
result of global economic recovery.

Page (58)

7.3.3 Midstream, Marketing and Other
Overview
The Midstream, Marketing and Other segment engages in gathering, processing, transporting,
storing and marketing crude oil, natural gas, natural gas liquids and carbon dioxide. Its
transportation and storage systems mainly serve US operations, which covers the Permian Basin
of southwest Texas and southeast New Mexico to Cushing, Oklahoma. The company has gas
plants in California, Colorado and Permian Basin.
The company's pipeline in the Permian basin and Oklahoma has a capacity of 365,000 boe per
day and 5.8 MMbbl of oil storage. Its CO2 pipelines in Colorado, New Mexico and Texas has a
capacity of 1.625 bcf per day. Occidental Petroleums Dolphin Pipeline in Qatar has a capacity of
3.2 bcf of natural gas per day. Its Western and Southern United States and Canada pipelines
holds 16,000 miles of pipeline and gathering systems and 85 MMbbl of liquid storage. Its power
generation plant holds a capacity of 1,800MW per hour and 1.6 million pounds of steam per
hour.Occidental Petroleum signed an agreement to purchase Phibro LLC (Phibro) from Citigroup
Inc. Phibro is active mainly in the trading of oil and gas. After the acquisition, Phibro will become a
part of the company's midstream segment.
Financials
In 2010, the Midstream, Marketing and Other segment reported revenue of $1,471m, an increase
of 44.7% over $1,471m in 2009. Furthermore, the segment earnings amounted to $472m in2010,
which increased from $235m in 2009.
Capital Expenditure
For the fiscal year ended 2010, the capital expenditure for this segment was $501m, as compared
to $554m in 2009.
Market View
The company anticipates pipeline transportation and power generation businesses to remain
stable. It expects gas processing plant operations to have volatile results on the basis of NGL
prices. In addition, the trading and marketing business is inherently volatile. However, Occidental
Petroleum expects the volatility to be insignificant in the company's business.

7.3.4 Oil and Gas
Overview
The company, through its Oil and Gas segment, engages in the acquisition, exploration,
production and marketing of crude oil, natural gas, natural gas liquids (NGLs) and condensate.
Oxy carries out oil and gas operations in the US, Middle East/North Africa and Latin America. In
the US region, Oxy is engaged in increasing production through strategic acquisitions and
additional development in its key US business areas. The company's key business areas are
California, California Shales, Elk Hills, Long Beach, Mid-Continent, North Dakota, Permian, South
Texas and Vintage. North Dakota and South Texas are two new core producing areas for the
company.
Under Middle East/North Africa (MENA) region, the company carries energy operations in Bahrain,
Dolphin Project, Iraq, Libya, Oman, Qatar and Yemen. In 2010, the company's 38% production of

Page (59)

its worldwide production came from its energy operations in Bahrain, Iraq, Libya, Oman, Qatar and
Yemen. During 2010, the company won a deep gas contract for the Bahrain Field in Behrain. in
Oman, Oxy drilled over 1,020 new wells and implemented a major pattern steam flood project for
enhanced oil recovery at Mukhaizna Field.
In Latin America, Oxy has operational presence in Colombia and Bolivia. The company operates
operate five prominent oilfields in Colombia, which includes the Cano Limon Field in the Llanos
Norte Basin of the Arauca province; and La Cira-Infantas fField in the Middle-Magdalena Basin of
the Santander province. Oxys has working interests at the Tarija, Chuquisaca and Santa Cruz
regions in the southern and eastern areas in Bolivia. In 2011, the company sold its Argentine oil
and gas operations to Sinopec, a subsidiary of China Petrochemical Corporation due to unable to
reach the company's financial expectations.In the year 2010, the company's total proved reserves
stood at 3,363 millions barrels of oil equivalent (MMboe), out of which, 2,476 million barrels
(MMbbl) of oil and 5,320 billion of cubic feet (bcf) of gas. The company's US asset base reported
as 2.2 billion boe (barrels of oil equivalent) in proved reserves, represents 66% of the company's
total proved reserve base followed by 26% from Middle East/North Africa region and the rest from
Latin America.
In December 2010, the company entered into an agreement with Sinopec to sell its Argentine oil
and gas operations for $2.6 billion.
Recently, the company entered into an agreement to purchase oil and gas properties in South
Texas and North Dakota for about $3.2 billion. Additionally, it signed an agreement to increase its
ownership in Plains All-American to 35%; and it acquired the remaining 50% joint venture interest
in the Elk Hills Power Plant for $179m.
Production
In 2010, Occidental Petroleums total production stood at 753 thousand barrels of oil equivalent
(Mboe), as compared to 718 Mboe in 2009. In 2010, the company's total production from
continuing operations recorded as 711 Mboe, as compared to 677 Mboe in 2009. The increase in
total production volume attributed to the new production in Bahrain and higher production in the
Mukhaizna field in Oman, and gas production from domestic assets.
In 2010, total sales volume of oil and gas from continuing operations stood at 705 Mboe, as
compared to 678 Mboe in 2009.
Financials
For the fiscal year ended 2010, the Oil and Gas segment generated revenue of $14,276m, an
increase of 29.68% over that in 2009. Furthermore, the segment earnings totaled $7,151m in
2010, an increase of 40.3% over previous year.
Capital Expenditure
During 2010, the company's capital expenditure for this segment totaled $3,166m, as compared to
$2,448m in 2009.
Market View
The company views that the petroleum industry will remain highly competitive in the future and is
subject to significant volatility due to market forces affecting supply and demand. Occidental
anticipates that continued global economic slowdown could have a depressing effect on oil and
gas prices.

Page (60)

7.4 Occidental Petroleum Corporation, SWOT Analysis
7.4.1 Overview
Occidental Petroleum is an oil and gas exploration and production company. The company is one
of the leading North American manufacturers of basic chemicals, vinyl and performance
chemicals. Occidental's strong oil and gas reserves provide a platform for growth in future.
Furthermore, the company's expanding operating margin allows the company to pursue growth
plans. J oint Venture with ADNOC, Mubadala Development and NOGA and expansion through
inorganic growth will enable the company to expand its business. However, intense competition
and the US energy policy may pose a threat to the company's operations.
Table 26: Occidental Petroleum Corporation, SWOT Analysis
Strengths Weakness

Leading Market Position
Increased Profitability
Operational Performance

Declining Market Share in Sector
Trade Receivables


Opportunities in Iraq
Strategic J oint Venture
Expansion through Inorganic Growth

Environmental Laws
Highly Competitive Environment
US Energy Policy

Source: GlobalData

7.4.2 Occidental Petroleum Corporation Strengths
Leading Market Position
Occidental is a leading international oil and gas exploration and production company. It is the
fourth largest US oil and gas companies based on market capitalization. The company is an
industry leader in applying advanced technology to increase production from mature fields and
access hard to reach reserves. Furthermore, it is the largest oil producer in Permian Basin of
southwest Texas and southeast New Mexico, and the largest natural gas producer and third
largest oil producer in California. It is also one of the leading non-government owned oil
companies in Latin America. In Oman and offshore Qatar, the company is the second largest oil
producer. Besides, it is a leading holder of exploration acreage in Libya. Additionally, it is a major
North American chemical manufacturer. The company's leading market position help it to improve
its market base.
Increased Profitability
Improving profitability ratios indicate the company's operational excellence, besides delivering
value as expected by its shareholders. The company reported an operating profit of $7,359m

Page (61)

during the fiscal year ended 2010, an increase of 46.07% over 2009. The increase in operating
profit resulted in the increased net profit levels. It reported net profit of $4,530m during the fiscal
year 2010, an increase of 55.40% over 2009. The increased top, operating and bottom line levels
resulted in increased profitability ratios. The company reported PBT (profit before tax) margin of
38.41% in 2010, as compared to 33.41% in 2009, followed by return on equity 13.94% (10.02%),
return on capital employed 16.49% (13.35%), return on assets 8.64% (6.59%) and return on fixed
assets 18.69% (14.98%). Furthermore, the company's operating margin was 38.41% for the fiscal
year 2010. This was above the Independent Exploration & Production sector average of 9.41%. A
higher than sector average operating margin may indicate efficient cost management or a strong
pricing strategy by the company. The operating margin has increased 469 basis points (bps) over
2009 which may indicate management's high focus on improving profitability.

Operational Performance
Occidental, during 2010, delivered strong financial performance. The companys total revenue
reached $19,157m, an increase of 28.21% as compared to $14,942m in 2009. The Chemical
segment contributed $4,016m of the total revenue in 2010, an increase of 24.52% over 2009; The
Midstream, Marketing and Other segment recorded revenue of $1,471m, reflecting an increase of
44.7% over 2009 and Oil and Gas segment reported revenue of $14,276m, an increase of 29.6%
over 2009. The companys operational performance improved mainly due to enhanced results
from all the three segments and its geographical presence. Strong financial performance and
healthy asset growth reflect the companys operational efficiency. Hence, a healthy financial result
enables the company to explore investment opportunities and expand its operations efficiently.

7.4.3 Occidental Petroleum Corporation Weaknesses
Declining Market Share in Sector
The companys declining market share indicates its weak performance over the period, which
would affect its market share in the sector. The company's compound annual growth rate (CAGR)
for revenue was 2.03% during 2006-2010. This was below the Independent Exploration &
Production sector average of 33.15%. A lower than sector average revenue CAGR may indicate
that the company has underperformed the average sector growth and lost market share over the
last four years. The company's underperformance could be attributed to a weak competitive
position or inferior products and services offering or lack of innovative products and services.

Trade Receivables
The company reported increase in revenues from $14,814m in 2009 to $19,045m in 2010. Further,
inventories have gone up from $998m in 2009 to $1,041m in 2010. Inventory turnover has
increased from 5.11 in 2009 to 5.87 in 2010, indicating adequate supplies for improvement in
sales. However, trade receivables have increased from $5,167m to $5,932m, indicating possible
credit sales. The company's working capital growth stood at 27.16%, compared to 296.53% in
2009 therefore, it could look forward to cash sales for improvements in cash from operations.

Page (62)

7.4.4 Occidental Petroleum Corporation Opportunities
Opportunities in Iraq
Iraq has the worlds third largest proven petroleum reserves, a vast majority of which are yet to be
exploited. Positive response to Iraqs second licensing round paves the way for its leading role in
the global oil industry. Iraqs oil ministry offered 15 oil fields for development in the second
licensing round and the combined oil reserves in these 15 fields were estimated at about 41 billion
barrels. The second licensing round witnessed a better response than the first one in seven of the
15 fields being awarded. The newly awarded fields in the second round, once developed, will add
significant production capacity to the total oil production in Iraq. In 2010, Eni S.p.A, Korea Gas
Corporation (KOGAS) and Occidental Petroleum signed a technical service contract with South Oil
Company and Missan Oil Company, to redevelop Zubair field, located near Basra in southern Iraq.
The consortium intends to increase production by over one million barrels of oil per day
(MMBOE/d), totaling to 1.2 MMBOE/d. The consortium comprises Eni with 32.81% interest,
followed by Occidental with 23.44%, KOGAS with 18.75% and the Missan Oil Company with 25%.
As a result of the redevelopment, the consortium will earn $2 per barrel on the increased
production after an initial increase of 10%. Redevelopment of the field will contribute to Iraq
becoming one of the major players in the world oil markets.

Strategic Joint Venture
In J anuary 2011, the company was selected by the Government of Abu Dhabi for participating in
the development of Abu Dhabis Shah gas field, one of the largest gas fields in the Middle East.
The company will have a 40% interest in the 30 year contract and Abu Dhabi National Oil
Company (ADNOC) will have remaining 60% interest. Besides, in December 2010, the company
aquired 50% interest in the Elk Hills Power generation facility from Sempra Generation, a
subsidiary of Sempra Energy, for a cash purchase price plus year-end cash distribution totaling
$179m. The 550-megawatt natural gas-fueled power plant, located near Bakersfield, Calif., has
been owned by Sempra Generation and Occidental Petroleum through a joint venture since 2003.
In November 2009, the company entered into a joint venture agreement with Mubadala
Development Company (Mubadala), government company of Abu Dhabi and National Oil and Gas
Authority of Bahrain (NOGA) for the development of the Bahrain field. This joint venture will enable
Occidental Petroleum to further expand its presence in the Middle East region. As a result,
Tatweer Petroleum-Bahrain Field Development Company, a new joint operating company, has
been created, which will serve as the operator of the field. Pursuant to the terms of the agreement,
the company holds a 48% stake in the field, followed by Mubadala with 32% and NOGA with 20%.
Expansion through Inorganic Growth
Occidental Petroleum focuses on long-lived oil and gas assets with long-term potential for growth
in its core geographical regions such as California and the Permian Basin, to enhance production.
In addition, the company plans to add new oil and gas reserves, while keeping its development
costs low. Due to the global economic crisis, the valuations of assets and companies have
decreased significantly and these are becoming available for acquisitions. To cash in on this
opportunity,in december 2010, Royal Dutch Shell Plc signed an agreement to sell its gas fields in
South Texas to OXY USA, Inc., a subsidiary of Occidental Petroleum Corporation, for $1.8 billion.
Furthermore, the company acquired Phibro LLC (Phibro) for $250m. Phibro is primarily a trader in

Page (63)

oil and gas. Phibro became a part of Occidental's midstream segment, which includes natural gas
liquids, pipeline, power and its existing trading business.

7.4.5 Occidental Petroleum Corporation Threats
Environmental Laws
Occidental's energy operations are subject to rules and regulations imposed by the US, and other
national governmental authorities. The company and its subsidiaries are expected to follow the
federal and state laws and regulations adopted for the protection of environment and the health
and safety of employees and users of the companys products. The company planned programs
for the operation and design of its facilities to achieve compliance with applicable environmental
regulations. There is always a possibility of changes in the policies of the government related to IT,
renewable energy and other sectors. Any change in the policies may lead to the company
incurring high expenses; such high expenses could adversely affect the profitability and the results
of operations of the company and pose a threat to its operations.

Highly Competitive Environment
A highly competitive environment could affect the company's results of operations and its ability to
increase production and replace reserves. Occidentals oil and gas business operates in a highly
competitive environment. Its oil and gas production and results of operations depend on its ability
to acquire, develop or find additional reserves profitably. It replaces significant amounts of its
reserves through acquisitions and large development projects. The companys competitors have
better financial resources, staff and other facilities than those of the company. Also, they may be
able to develop and acquire more and better prospects and productive properties than the
company. Some of the competitors of the company include Apache Corporation, EOG Resources,
Inc., Forest Oil Corporation, Murphy Oil Corporation and Anadarko Petroleum Corporation.
Inability to compete successfully may reduce its market share.
US Energy Policy
The governments proposed increase in taxes, and new oil and gas leasing policy may affect the
earnings and growth of oil and gas companies such as Occidental Petroleum. The US energy
policy highlights a considerable shift from the fossil fuel driven economy to an economy fuelled by
renewable energy. By 2019 these measures will increase the expenses of the US oil and gas
companies to approximately $31 billion, according to in-house forecasts. The Obama
administration has proposed various measures for increasing taxes on the US oil and gas industry.
The key measures include elimination of tax breaks such as the intangible drilling and
development costs, percentage depletion and manufacturing deduction. Moreover, in J anuary
2010, the US interior secretary Ken Salazar has announced amendments in existing oil and gas
leasing policy. The leasing policy might make the domestic oil and gas explorations incompetent.
As per the new regulations, the leasing process will undergo internal and external scrutiny,
verification of conformance to Resource Management Plan; have greater public participation and
industry participation and comprise larger environmental review procedures.


Page (64)

8 Profile of Petrol eo Brasi leiro S.A.
8.1 Petroleo Brasileiro S.A., Key Information

Table 27: Petroleo Brasileiro S.A., Key Facts
Corporate Address Avenida Republica do Chile 65, 24s
Andar, Centro, Rio de J aneiro, Rio
de J aneiro, 20031-912, Brazil
Ticker Symbol, Exchange PETR3 [Sao Paulo Stock
Exchange]
URL www.petrobras.com.bren Revenue (in USD Million) 120,493.60
Industry Chemicals, Energy and Utilities Revenue (in BRL Million) 213,273.67
Locations Angola, Argentina, Brazil, Chile, China, Colombia, Ecuador, India, Iran (Islamic Republic of Iran), J apan,
Libyan Arab J amahiriya, Mexico, Mozambique, Nigeria, Pakistan, Paraguay, Peru, Portugal, Senegal,
Singapore, Turkey, United Kingdom, United Republic Of Tanzania, United States, Uruguay, Venezuela
Source: GlobalData

8.2 Petroleo Brasileiro S.A., Company Overview

Petroleo Brasileiro S.A (Petrobras) is a Brazilian national oil company. It is an integrated energy
company. The company engages in the exploration and production, refining, transport and trading
of oil, natural gas and other fluid hydrocarbons. The company also performs other energy related
activities. In addition, it produces biofuels. Petrobras operates through five reportable business
segments, namely, Exploration and Production; Refining, Transportation and Marketing; Gas and
Power; Distribution and International. The company also generates electricity through
thermoelectric, hydroelectric, and eolian plants. Petrobras operates in 27 countries through
subsidiaries, joint ventures and affiliated companies. Petrobras is headquartered in Rio de J aneiro,
Brazil.

8.3 Petroleo Brasileiro S.A., Business Description
Petrobras has presence across the energy value chain. Petrobrass major activities include
exploration and production of oil and natural gas, refining, transportation and distribution of oil
products, natural gas, producing biofuels and electricity, and petrochemicals. The company also
promotes research, development, production, transport, distribution, and marketing of oil, gas and
renewable energy products, as well as other related or similar activities. Petrobras is one of the top
10 largest energy companies of the world as of J anuary 2010. Presently, the company operates in
27 countries across the world. The company operates through subsidiaries, joint ventures, and
associate companies.The company operates through five reportable business segments, namely,
Exploration and Production; Refining, Transportation and Marketing; Distribution; Gas and Power;
and International. The company, through its subsidiary Petrobras Biocombustivel S.A., invested
BRL150m for a 40.4% stake in Total Agroindustria Canavieira S.A., an ethanol company.

Page (65)

Aker Solutions ASA signed a three-year contract, worth BRL30m with the company for
maintenance of subsea control systems for the Brazilian national oil company. In the second
quarter of 2010, the company entered into an agreement with Tereos International, a Brazilian
subsidiary of the Tereos Group. As per the agreement, the company will invest $909m over five
years to acquire a 45.7% stake in Acucar Guarani S.A.
As of December 2010, the companys total proved reserves were 15.986 billion boe and its total oil
and natural gas production was 2,583,000 bopd, an increase of 2% over 2009.
Recently, Petrobras acquired 100% of the capital of Innova S.A., at an expense of $332m, from
Petrobras Energia Internacional S.A. The company entered into an agreement with Companhia
Energetica Minas Gerais and the Government of of the State of Minas Gerais to study the
construction of a gas pipeline connecting Sao Paulo to Uberaba. Also, the company plans to build
a fertilizer plant and natural gas pipeline in Minas Gerais state to reduce imports. Further, it
announced the completion of the drilling of the well 1-SPS-80, located in the block BM-S-76, in the
shallow waters of Santos Basin, at water depth of 189 meters and 215 kilometers away from the
shore.

8.3.2 Distribution
Overview
The Distribution segment of Petrobras is engaged in selling of oil products produced by its
refineries and participating in expanding the domestic market for oil products and other liquid and
transportation fuels. This segment's business operations are carried out by Petrobras Distribuidora
S.A., a subsidiary of Petrobras, which represents 38% of the total Brazilian distribution market. It
distributes oil products and vehicular natural gas to retail, commercial and industrial customers.
Petrobras Distribuidora has 7,221 service stations as of December 2009, including 759 stations in
Northern, Northeastern and Northwestern Brazil.
The company invested R$ 895 million on the distribution segment which accounted to 1.28% of
the total investment made by the company.
In addition, the company also distributes oil products and biofuels under the BR brand to
commercial and industrial customers. The company's major customers are aviation, transportation
and industrial companies, as well as utilities and government entities. Besides, it also sells oil
products produced through its refineries to other retailers and wholesalers.

8.3.3 Gas and Power
Overview
The company through Gas and Power segment is active in the purchase, sale, transportation and
distribution of natural gas and bio-fuels in Brazil. The company also participates in electricity
production. Further, the company invests in several Brazilian natural gas transportation
companies, state-owned natural gas distributors, wind power, solar power, and small hydroelectric
companies.
In Brazil, the company operates two main pipeline networks for natural gas transportation, namely,
the Malha Sudeste (Southeast Network) of 5,030 km, and Malha Nordeste (Northeast Network)
with the 1,968 km length. The companys pipeline networks are presently linked by the Southeast

Page (66)

Northeast Interconnection Gas Pipeline During 2010, the company increased the pipeline system
by 1,696 km to 9,506 km.
The company invested R$ 4,884 million on the Gas and Power division which accounted for 6.97%
of the total investment made by the company.The Gas and Power segment is also involved in
developing and operating gas-fired thermoelectric power generation plants. Currently, it owns
stakes in 23 thermoelectric power plants, where 14 of them operated by the company.
The company operates gas-fired power plants with 5,965.9 gross MW of installed capacity,
represents 5% of Brazils total power grid. Further, it also controls an oil-fired thermoelectric power
plant with 31.8 gross MW of installed capacity.
Apart from this, the company invested in a number of renewable power generation sources in
Brazil including wind, solar and small hydroelectric plants.
The company produces biodiesel through two of its pilot plants in Guararema, in the state of Rio
Grande do Norte. It is also constructing three industrial scale biodiesel plants for production,
commercialization, and transportation and distribution of biodiesel. The plants are located in
Candeias, Montes Claros, and Quixada.
Petrobras has already signed contracts with family farming cooperatives to purchase castor beans,
sunflower seeds, and oil from the oil palm fruit to produce 18 thousand tons of vegetable oil
annually. Petrobras Distribuidora, a subsidiary of Petrobras, distributes biodiesel and Transpetro,
is in charge of pipeline and marine logistics. Recently, the company acquired a refinery, terminal,
and three piers to handle very large crude carriers. It is expected that this terminal would increase
the commercialization of biofuels in Asia. The company has also setup partnerships internationally
with ENI in Italy, Petroecuador, Bharat Petroleum Corporation Limited, Statoil, and Enap.
Market View
The company believes that natural gas is a promising new frontier, which is opening possibilities in
the Brazilian energy sector. Further, the natural gas is expected to rise in the Brazilian energy mix
from its current 8.9% share to 12% by 2015.
Petrobras believes that the gas and energy area would play a major role in developing alternative
energy sources, and invests in conserving energy and renewable energy to create additional value
for the business. The company plans to invest $112.4 billion ($97.4 billion in Brazil). About $1.5
billion of these investments is set aside for biofuels with 46% towards ethanol pipelines and 29%
into biodiesel. Petrobras targets to produce 63.6 mbblpd by 2013.

8.3.4 International
Overview
The companys international segment represents the overseas operations related to exploration
and production, supply, distribution and gas and energy. These activities are carried out in 27
countries outside Brazil. The company operated international business locations include Angola,
Argentina, Bolivia, Colombia, Kazakhstan, the US, Equatorial Guinea, Nigeria, and Trinidad &
Tobago. The company is expanding its participation in projects in North America, Africa and Asia.
Petrobras is also expanding its business in Europe and the Middle East. In 2009, the company
conducted exploration and production activities in 21 countries outside Brazil.

Page (67)

The company invested R$ 4771 million on the International segment which accounted for 6.81% of
the total investment made by the company.
The Argentina market is the largest operating region outside Brazil, which represented 94% of its
international production in 2009 along with Bolivia. In Colombia, the company is involved in
exploration, production and distribution activities. Presently, it has four exploration and one
development projects in Colombia.
In Ecuador, it has a 30% interest in Block 18 and holds 11.42% stake in the 500 km Oleoducto de
Crudos Pesados (OCP) crude oil pipeline with capacity of 450 mbbl/d. As on December 31, 2009,
the company held interests in 211 offshore blocks in the US. In Nigeria, it owned interests in two
development blocks. The company has three exploration and one development projects in Nigeria.
The company has downstream operations in Chile which include 227 service stations, fuel sale
and distribution centers in 11 airports and six fuel distribution terminals. Petrobras also has 89
service stations in Uruguay. In addition, the company also has 87.5% interest in a refinery in
J apan.
Market View
The companys production goals for its international oil, LNG, and natural gas division are 436,000
barrels of oil equivalent per day (boepd) by 2012 and 698,000 boepd by 2015. It plans to focus on
operations in Gulf of Mexico and Nigeria.

8.3.5 Refining, Transportation and Marketing
Overview
The companys Refining, Transportation and Marketing segment comprises all the activities
related to refining, logistics, transportation and export of oil and oil products, purchase of crude oil
and commercialization of oil, oil products and fuel alcohol. The segment also operates
petrochemicals and the fertilizers businesses, including investments in domestic petrochemicals
companies and fertilizer plants. The company has two domestic fertilizer plants.
As on December 31, 2009, the company operated 92% of Brazils total refining capacity.
Petrobras owns and operates eleven refineries in Brazil, with a total net distillation capacity of
1,942 mbbl. The company operates through a large and complex infrastructure pipelines and
terminals and a shipping fleet, which is involved in transporting oil products and crude oil to
domestic and export markets.
In the fiscal year ended on 2010, the company invested R$ 28,007 million, which accounted for
39.96% of the total investment made by the company.
The petrochemicals business is operated by the companys subsidiary, Petrobras Quimica, which
has ownership interests in all the petrochemical complexes in Brazil and a few companies that
manufacture resins and other products. The transportation and storage activities of oil, oil products
and gas are operated by the Transpetro. Transpetro is among the largest shipping companies in
South America. The company has a new refinery under construction in Northeastern Brazil in a
proposed partnership with PDVSA. The new refinery named as Abreu e Lima (RNE) will have a
capacity of 230 mbbl/d after completion. The company scheduled to commence operation of the
new refinery by 2012.

Page (68)

Production
As on December 31, 2010, the company's refining capacity of its facilities in Brazil is 1,798,000
bpd of crude oil.
Market View
The company expects the total oil products consumption in Brazil to increase in the coming days
since Brazilian economy is growing continuously. However, decreasing refinery margins and
surplus refining capacity internationally have a combined negative effect on profitability from
refining operations.

8.4 Petroleo Brasileiro S.A., SWOT Analysis
8.4.1 Overview
Petrobras is an integrated oil company. It is the national oil company of Brazil. Principal business
operations of the company are exploration and production of oil and gas, refining, transportation
and distribution of petroleum products. The companys diversified revenue stream and focus on
technology provide it with a significant competitive advantage in the global oil and gas industry.
The company's poor resource management may affect the companys financial condition. Its
global presence led the company to cater to broader markets and reduce the risks associated with
adverse economic and political developments in any particular region. However, geopolitical
issues could be detrimental to its operations, if the company fails to evaluate them properly.

Table 28: Petroleo Brasileiro S.A., SWOT Analysis
Strengths Weakness
Significant Asset Base
Diversified Revenue Stream
Focus on Research and Development (R&D)

Litigations
Trade Receivables
Poor Resource Management


West African Prospects

Strategic Combination


Opportunity in Emerging Economies

Fleet Expansion

Geopolitical Issues

SCA Refining Industry Costs


Source: GlobalData

Page (69)

8.4.2 Petroleo Brasileiro S.A. Strengths
Significant Asset Base
Petrobras is one of the leading energy companies of the world. The companys significant asset
base helps in maintaining its position as one of the top energy companies. Petrobras is one of the
top 10 energy companies as of December 2010. It operates most of the producing oil and gas
fields in Brazil, an oil and gas reach country. As of December 2010, the companys total proved
reserves were 15.986 billion boe. The company's reserve replacement ratio was 229% for the
fiscal 2010. It had 15,283 million boe of proved reserves in Brazil, which includes 2.37 billion
natural gas and 12.91 billion oil and condensate at the end of 2010. Besides, the company had
112 production platform, 16 refineries; 12 in Brazil, one each in J apan and the US and two in
Argentina; and 23 thermoelectric plants as of December 2010. Petrobras operated 81.8% of
Brazils total refining capacity as in December 2010. The company has around 7,306 gas stations
and approximately 11,000 direct consumers. In 2010, the company produced 2,583,000 bopd,
reflecting an increase of 2% over 2009. Besides, the company had exploration and production
assets in Argentina, Bolivia, Chile, Colombia, Cuba, Curacao, Ecuador, the US, Mexico, Paraguay,
Peru, Uruguay and Venezuela, which produced oil and natural gas totaling 185,100 boed in 2010.
This diversified asset base reduces the over all risk of the company.

Diversified Revenue Stream
The company is focused on diversification strategy by both geography and business operations.
Diversification further strengthens its potential for sustainable earnings growth in each of its
business lines. The business activities of the company include exploration and production of oil
and natural gas; refining, transportation and supply of refined products and natural gas, biofuels;
and renewable energy. The company distributes oil products to wholesalers and through its own
network of retailers. Furthermore, Petrobras also has dispersed its business risks across a wide
geography. The company operates in 29 countries. Petrobras has exploration and production to
refining, marketing and retail services businesses in North America, and natural gas pipelines
business in Latin America. In Africa, the company produces oil in Angola and Nigeria and it has
refining operations in J apan, Asia. The company has representative offices in New York, London,
Tokyo, Beijing, Singapore, Lisbon and Tehran. The company's focus on a diverse business
strategy hepled to improve its topline growth.
Focus on Research and Development (R&D)
To maintain a competitive edge, Petrobras emphasizes on R&D activities. The company allocates
1.0% of its gross sales to support and develop latest and cutting edge technologies. Petrobras is a
leader in innovation and research in deep and ultra-deep water exploration and production. At the
Leopoldo Americo Miguez de Mello Research & Development Center (Cenpes), the company is
currently executing a research on submarine robotics; fuel oil and in renewable energy. The
company's new R&D office in London enables it to execute research in cutting-edge exploration
and production technologies. The company has spend BRL5,536.12m, BRL5344.40m and
BRL5199.83m in 2010, 2009 and 2008 for research & development. The company's strong focus
on R&D activities enables it to introduce various breakthrough technologies and products and
thereby provide a source of future revenues to the company.

Page (70)

8.4.3 Petroleo Brasileiro S.A. Weaknesses
Litigations
Petrobras is involved in lawsuits and litigations, and this have a detrimental effect on its goodwill
and reputation. In November 2010, a lawsuit was filed aganist the company by Rio de J aneiro. In
September, the company issued $70 billion in shares and used some of shares to buy rights to
develop deep water offshore reserves. Due to this, Rio de J aneiro authorities argued that the
operation, in which Petrobras used company shares to buy oil development rights from the
government and this arrangement would deny tax revenues to the state. Regarding this, Rio de
J aneiro authorities argued that the arrangement violated the constitution by exempting the
company from paying a "special participation" tax. Thus Rio de J aneiro authorities seeks tax
payments from offshore fields of the company. Petrobrass expenditure in defending itself in such
legal cases filed against it increases its operating costs. It has an adverse impact on its revenue,
and subsequently its operating profit margins also decrease.
Trade Receivables
The company reported increase in revenues from BRL182833.79m in 2009 to BRL213273.67m in
2010. Further, inventories have gone up from BRL19447.69m in 2009 to BRL19815.68m in 2010.
Inventory turnover has increased from 5.590 in 2009 to 6.866 in 2010, indicating adequate
supplies for improvement in sales. However, trade receivables have increased from BRL21084.89
to BRL26268.77, indicating possible credit sales. Petrobras reported decline in working capital
turnover from 9.517 to 4.278, and its changes in working capital stood at negative BRL6759.21 in
2010, as compared to BRL611.06 in 2009. Therefore, it could look forward to cash sales for
improvements in cash from operations.
Poor Resource Management
Petrobras's return on equity decreased to 11.47% in 2010, from 18.28% and 23.43% in 2009 and
2008, respectively. Its return on capital employed also decreased to 10.39% in 2010, from 14.99%
and 20.02% in 2009 and 2008, respectively. Further, the company's return on assets decreased to
6.76% in 2010 from 8.57% and 11.28% in 2009 and 2008, respectively. Further, it return on
working capital decreased to 96.56% in 2010 from 230.45% and 1252% in 2009 and 2008. This
trend indicates the inability of the company to allocate its resources profitably in 2010 as compared
to 2009 and 2008.

8.4.4 Petroleo Brasileiro S.A. Opportunities
West African Prospects
New discoveries and asset acquisition in West Africa will enable Petrobras to increase oil and gas
reserves and in turn production. In late 2010, Petrobras discovered new oil resources in Block
15/06, offshore, Angola. The country has huge investment opportunities for oil and gas. Major
investments are expected to be made in Angola, where the country expects to invest
approximately $50 billion in its upstream and downstream industry during 20102013. A number of
companies across sectors are investing huge sums into the countrys oil and gas industry. With a
number of planned projects, especially in Angola, and the start of production from major fields
such as J ubilee, Ghana, the offshore production in the West African region will continue to
increase during the period 20102015. Currently, a large amount of natural gas is being flared in
West African nations, however with the coming of new LNG plants in the region during 20102015

Page (71)

the natural gas production in the region is also expected to increase significantly. The company
acquired a 50% interest in Block 4, located off the coast of Benin in February 2011. Petrobrass
investment in the region will enable the company to record high growth.
Strategic Combination
Strategic Combination offer a strong growth opportunity for the company. In February 2011, the
company acquired 50% working interest in Block 4, located on the coast of Benin from Compagnie
Beninoise des Hydrocarbures (CBH), a subsidiary of Lusitania Petroleum. In J anuary 2011, the
company signed a cooperation agreement with MesoCoat, Inc., a portfolio company, to develop
and qualify MesoCoat's CermaClad process for the application of CRA (corrosion resistant alloys)
to the internal and external surfaces of pipes using proprietary High Density InfraRed (HDIR) lamp
technology. In December 2010, the company through its subsidiary Downstream Participacoes
Ltda, signed a contract with Repsol YPF SA for the acquisition of 30% stake in Refineria Alberto
Pasqualini SA (Refap), for $850m. Petrobras will indirectly hold 100% stake in Refap after the
acqusition. In November 2010, the company signed a contract with Toyota Tsusho Corporation
(TTC) for the provision of hydrated ethanol for a period of 10 years. In October 2010, the
company's subsidiaries Petrobas Distribuidora and Petrobas Biocombustivel signed a contract to
supply up to 2.2 billion of ethanol liters over four years with Acucar Guarani SA (Guarani), with a
total estimated value of BRL 2.1 billion. This strategic moves would help the company to improve
its financial performance in the future.
The deepwater exploration and production market in Brazil offers a unique opportunity for the
growth of Petrobras, Brazils national oil company. With easily accessible areas for oil finds
becoming scarce, the ultra-deep, Brazilian pre-salt area has emerged as one of the few areas of
growth in global oil and gas industry. Pre-salt discoveries in Brazil have transformed the country
into one of the highest potential investment acreages globally. Oil and gas reserves in Brazil are
expected to increase from 14.2 billion barrels boe in 2009 to 30-35 billion boe over the next few
years. According to Brazils ANP (Agencia Nacional do Petroleo), in total, Brazil's pre-salt oil area
could hold between 50 billion boe and 80 billion boe of high-quality light crude. The announced
recoverable pre-salt reserves in the Santos and Campos basin are expected to more than double
Brazils reserves in the coming years.
Opportunity in Emerging Economies
Petrobras has found new opportunity in China and J apan for its products and services. The
company secured funds for its investment program by signing a funding agreement with the China
Development Bank (CDB). The loan includes funding for the purchase of goods and services from
Chinese companies. Furthermore, the loan includes an increase in the current oil exports from
Brazil to China. In addition, Petrobras anticipated a long-term export agreement with Unipec Asia,
a China Petroleum & Chemical Corporation (Sinopec) subsidiary. These will help the company in
the expansion of its business and strengthen its relationship with an emerging economy like China.
J apan is bound by the Kyoto Protocol's guidelines to reduce the greenhouse gas emissions by
5.2% each year during 2008-2012. Therefore, the government is encouraging the use of
environmentally-friendly fuels such as Ethanol. Through the Brazil-J apan Ethanol Company,
formed as a result of the joint venture between J apan and Brazil, Petrobras has won an exclusive
franchise for selling Ethanol in J apan. Petrobras has an opportunity to capitalize on the growing
demand for Ethanol in J apan.

Page (72)

Fleet Expansion
Expansion of the fleet will help the company to be more efficient and to reduce the dependence on
third party Chartered vessels. Petrobras is focusing on expanding its fleet of vessels. According to
the companys expansion strategy, Petrobras will contract with Brazilian shipyards to construct 49
new vessels by 2015. The company signed contracts with three shipyards for 23 of these vessels
for delivery by 2014 which include ten Suezmax and five Aframax ships to be constructed by the
Atlantico Sul shipyard, in Suape, Pernambuco; four Panamax ships to be constructed by the EISA
shipyard in Rio de J aneiro; and four tankers to be constructed by the Maua shipyard in Niteroi.

8.4.5 Petroleo Brasileiro S.A. Threats
Geopolitical Issues
Pipeline projects, Petrobras is involved in Latin America can be hit by growing political differences,
border disputes and tariff disputes. The need to transport oil and gas from the remotest locations
to major processing and consuming centers across regions has mandated the construction and
development of long-distance, cross-country oil and gas pipelines. These pipeline projects are
generally developed by a consortium of companies from different countries through which the
pipelines pass. Transnational pipelines, which supply oil and natural gas to various countries
across the region, encounter challenges in terms of political instability, transit tariff rates, border
issues and route selection.
SCA Refining Industry Costs
South and Central Americas refining capacity is expected to grow at an AAGR of 5.3%, from
427.02 million tons in 2010 to 556.02 million tons in 2015. Brazil, Mexico, Venezuela, Argentina
and Virgin Islands would be the leading refining countries with a contribution of 72.64% to South
and Central America's total refining capacity in 2015. The crude oil available for most South and
Central American countries is heavy and sour. Impurities and high sulfur content in crude oil
makes processing difficult and also leads to greater yield of heavy products that need to be
processed further. In addition, as the demand for lighter petroleum products is increasing, refining
companies have to invest in secondary conversion units to yield the final light products.
Furthermore, with the structure of petroleum products demand shifting towards cleaner products,
environmental concerns have resulted in the enactment of strict regulatory frameworks and
emission norms across the world. This mandates a reduction in the sulfur content of the products,
apart from improving other quality parameters, which in turn calls for heavy investments for
installing adequate conversion and desulfurization facilities.
Huge oil and gas finds in the pre-salt areas have made the Brazilian Government evaluate
necessary changes in the regulatory framework for the region. The government aims to develop a
new petroleum regime for the pre-salt basins. According to the proposed legislation, Brazil will
adopt a production-sharing model for the unlicensed pre-salt blocks and other "strategic" areas as
defined by the National Energy Policy Council (CNPE). Thus, the new regime will abandon the
concession system, which was more lucrative for international contractors. Instead of royalty
payments, the government reportedly wants a minimum of a 50% share of the profit oil, which is
the oil produced after discounting expenses from the development of a field. Through the new
legislation, Petrobras will be granted full ownership of some pre-salt acreage and will be

Page (73)

guaranteed a minimum 30% share of any pre-salt areas that the government decides to tender in
licensing rounds.
In all cases, the state-controlled oil company will be the sole operator overseen by a newly created
regulator for the pre-salt areas, Petro-sal (the ANP will continue to oversee other parts of the
upstream sector). These legislative changes will diminish the attractiveness of Brazil's upstream
sector for international oil companies. For companies without pre-salt acreage, the changes to the
law significantly diminish chances of entering the region, especially in areas that the government
decides have a high chance of exploration success or that might produce large discoveries.
Petrobras is dominant in most of the old concessions, with junior partners that include the
ExxonMobil Corporation, BG Group plc, Royal Dutch Shell plc and Repsol YPF, S.A., although
these contracts will remain unchanged. This move is part of the domestic governments strategy to
keep the majority of the pre-salt reserves under its own control.

Page (74)

9 Financi al Deal s Landscape
9.1 Detailed Deal Summary
9.1.1 Acquisition
9.1.1.1 West Isle Energy To Acquire Reto Petroleum In Reverse Takeover Transaction
Table 29: West Isle Energy To Acquire Reto Petroleum In Reverse Takeover Transaction
Deal Type Acquisition Deal Sub Type Reverse Acquisition
Deal in Brief
West Isle Energy Inc., an oil and gas company, entered into an agreement to acquire all of the issued and outstanding shares of Reto
Petroleum Limited, an energy company, for a purchase consideration of CAD2.5m ($2.62m), in reverse takeover transaction.
As part of the consideration, West Isle will issue 12,500,000 common shares at a price of CAD0.2 per share ($0.21 per share).
The transaction is conditional on the completion of a concurrent financing in the amount of CAD7m ($7.32m).
Deal Inf ormati on
Deal St atus Announced
Announced Dat e 12-Apr-2011
Companies Informati on
Acquirer Company Information
Company Name Reto Petroleum Limited
Busi ness Descri ption
Reto Petroleum Limited is an energy and utilities company that is engaged in developing and producing oil and gas. The company is
based in Columbia, Canada.
Target Company Information
Company Name West Isle Energy Inc.
West Isle Energy Inc. (West Isle), formerly known as Mera Petroleums is a junior oil and gas company. The company is actively
engaged in exploration, production and development of oil and natural gas properties in Saskatchewan, Alberta and Northeastern British
Columbia. West Isle operates producing properties in Drayton Valley; Provost and Sylvan Lake areas of Alberta region. In addition, the
company has non-operated working interests in producing oil and gas wells in Evi; Enchant; Crystal/Pembina, all in Alberta and interests
in oil wells in Manitou, Saskatchewan. The companys projects are spread across north central Alberta and in northeast British
Colombia. It is headquartered in Calgary, Canada.

Deal Fi nanci al s
Deal Value (CAD Mn) 2.50
Deal Value ($ milli on) 2.62
Source: GlobalData

9.1.1.2 Alange Energy Acquires Jaguar E&P CPR Consultants
Table 30: Alange Energy Acquires Jaguar E&P CPR Consultants
Deal Type Acquisition Deal Sub Type 100% Acquisition
Deal in Brief
Alange Energy, an oil and gas exploration and production company, completed the acquisition of J aguar E&P CPR Consultants, S.A.,
an oil and gas company, from Columbus Energy Ltd., an oil and gas company, for a purchase consideration of $25m. Alange funded the
purchase price of the acquisition from its existing cash balances.
J aguar E&P CPR Consultants holds 32.14% participating interest in block C of the Cubiro exploration and production contract located in
the Llanos basin, a 10% participating interest over the entire block and a 15% participating interest in the Yamu 1 and Mapuro/Picure 1
exploration prospects on the Yamu E&PC, located in the Llanos basin, and overriding royalties of 4% and 3% in the A and B Sectors,
respectively, of the Arrendajo E&PC.
The Copa wells in the eastern block C of Cubiro are currently producing approximately 1,800 barrels of oil per day, while the current
gross production from the Yamu block is approximately 900 barrels of oil per day.

Page (75)

Alange Energy currently holds 25% participating interest in Cubiro block. Pursuant to the acquisition, the company's share of gross
production in the Cubiro will be increased by almost 600 barrels per day and will have a share of approximately 90 barrels per day in the
Yamu block.
The transaction implies deal value of $37,396.04 per boe of daily production.
Deal history
Completed: On April 18, 2011, Alange Energy completed the acquisition of J aguar E&P CPR Consultants, from Columbus Energy, for
$25m.
Announced: On April 7, 2011, Alange Energy entered into an agreement to acquire J aguar E&P CPR Consultants, from Columbus
Energy, for $25m.
Deal Inf ormati on
Deal St atus Completed
Complet ed Dat e 18-Apr-2011
Company Name Alange Energy Corp.
Alange Energy Corp. (formerly known as Cierra Pacific Ventures, Ltd.) is engaged in the acquisition, exploration and production of oil
and gas properties in Colombia.
Vendor Company Informat ion
Company Name Columbus Energy Limited
Columbus Energy Limited (Columbus) is a development stage oil and gas company. It is principally engaged in the business of oil and
gas exploration, acquisition and development. The company's properties are located in Australia and Tunisia. The company is
performing operations in Italy with the help of its wholly owned subsidiary GDR Italia S.r.l. The company has explored a number of
opportunities to rebuild its business, including two licence applications for acreage in Italys Po Valley and a failed attempt to buy a
Spanish coal bed methane firm. In fiscal year 2008, the company acquired 100% interest of Hidrocarburos del Cantabrico S.L. (HDC)
from Energy (CG) Ltd. In April 2009, the company sold 2% interest in the Blina oil field in northwest Australia, and Columbus also
acquired Columbus Oil & Gas Inc. Columbus is headquartered in British Columbia, Canada.
Company Name
J aguar E&P CPR Consultants,
S.A. (Inactive)

J aguar E&P CPR Consultants, S.A. (J aguar), a subsidiary of Columbus Energy Limited, is an energy and utilities company that is
engaged in developing and producing oil and gas. J aguar owns participating interest in oil and gas reserves in Llanos basin. The
company is based in Bogota, Columbia.

Deal Fi nanci al s
Deal Value ($ milli on) 25
Valuation Multiples Information
Commodity Daily Production
Total (boe/d) 668.52
Source: GlobalData

Page (76)

9.1.1.3 AEI Services To Sell Its Interest In Operating Companies
Table 31: AEI Services To Sell Its Interest In Operating Companies
Deal Type Acquisition Deal Sub Type Majority Acquisition
Deal in Brief
AEI Services LLC (formerly Ashmore Energy International Limited), an energy company, entered into an agreement, to sell its equity
interest in operating companies.
Under the terms of the agreement, AEI will sell its 52.13% stake in Promigas S.A. E.S.P., a natural gas transmission and distribution
company in Columbia, to Corporacion Financiera Colombiana S.A., a financial services company, 60% stake in Calidda, a natural gas
distribution company in Peru, to EEB, 51% stake in Elektra Noreste, S.A., a power distribution company and 86.41% stake in
Distribuidora de Electricidad del Sur SA de CV (DelSur), an electric utility company, to Empresas Pblicas de Medellin E.S.P., a
convergent utilities service provider, and 100% interest in ENS in Poland, to Kulczyk Investment House International S.a.r.l., an
insurance company.
Goldman, Sachs, & Co. and Banco Itau are acting as financial advisors to AEI with respect to the transaction.
AEI intends to use the fund from the transaction to repay its financial debt and PIK notes.
J im Hughes, CEO of AEI, said: "With these transactions and the value retained in the continuing business, the shareholders stand to
realize total value for the company which is a significant increase over the proposed offering price for the unsuccessful initial public
offering a year ago."
Deal Rat ional e
AEI intends to use the fund from the transaction to repay its financial debt and PIK notes.
Deal Inf ormati on
Announced Dat e 19-J an-2011
Company Name
Corporacion Financiera
Colombiana Sa

Corporacion Financiera Colombiana S.A. (Corficolombiana) is a Colombian financial institution. Its services are structured in five
business areas: investment banking, treasury, private banking, portfolio investment and capital investment.
Company Name Empresas Publicas de Medellin
Empresas Publicas De Medellin E.S.P. (EPM) is a decentralized body, operational under the ownership of Medellin municipality. The
company through its affiliates operates as a Group, mainly engaged in the business of electricity, water and telecommunications
services. It is engaged in the electricity generation, transmission, and distribution services as well as gas distribution, wastewater
treatment, and telecommunications services across the regions of the Antioquia, Bogota, Manizales, Armenia, Pereira, Bucaramanga,
Cucuta, Barranquilla, Cartagena, Cali and Quibdo. It operates as a convergent utilities service provider and telecommunications
company. Additionally, the company is also investing in electric generation within the Panama, and is participating in the sale of
electricity to Ecuador. In addition, EPM also renders technical consulting services across several Latin American countries. Further, the
group under its telecommunications service caters through EPM Telecomunicaciones UNE to the regions of the Colombia, the United
States and Spain. The company is headquartered in Medelln, Colombia.
Company Name
Kulczyk Investment House
International S.a.r.l.

Kulczyk Investment House International S.a.r.l. (formerly known as Kulczyk Group International S.a.r.l) is a holding company. The
company operates as the insurance company.
Company Name
Empresa De Energia De Bogota
S.A. E.S.P.

Empresa De Energia De Bogota S.A. E.S.P., is an electricity company engaged in the distribution and transmission of power.
Company Name AEI Services LLC
AEI Services LLC (AEI) is a Houston based energy company. It is engaged in developing and operating its owned energy infrastructure
business across the energy value chain in Latin America, Europe and Asia. In addition, it also provides natural gas transportation and
related services to the residentials. AEI has the capacity to generate Electric power of 2,276 MW. It provides 4,900 miles of gas and
liquids transportation and distribution pipelines and 21,800 miles of natural gas distribution pipeline networks . The company also has
121,000 miles of power distribution and transmission lines. Through its subsidiary companies GNC and SIE, AEI is also involved in the

Page (77)

fuel retail activities. The company is headquartered at Houston in Texas, the US.

During 2010, the company entered into an agreement with Pampa Energia SA, to sell their 100% stake in Aeseba S.A., for a purchase
consideration of $50 million. It also entered into an agreement to sell its equity interest of 52.13% stake in Promigas S.A. E.S.P. The
company entered into an agreement with Iberdrola, S.A., to sell off its 99.68% stake in Elektro Eletricidade E Servicos SA (Elektro), a
power generation, distribution and transmission company.
Company Name Promigas S.A. E.S.P. Parent AEI Services LLC
Promigas S.A. E.S.P. is a natural gas transmission and distribution company, engaged in the distribution and transportation of gas
through a pipeline system owned by the company, from the fields of La Guajira to the terminus J obo in the department of Sucre, with a
maximum carrying capacity of 475 MPCD. The company designs, builds, operates and maintains transport and distribution
infrastructure and also has a portfolio of investments in transmission and distribution companies, natural gas, fuel and
telecommunications. It also provides natural gas in the vehicle sector through compressed natural gas vehicle and Metrology laboratory
services. Promigas is headquartered in Barranquilla, Colombia.
Company Name Calidda
Calidda is a company that owns a natural gas distribution concession in Lima and Callao, in Peru.
Company Name Elektra Noreste, S.A. Parent Panama Distribution Group, S.A.
Elektra Noreste, S.A. is a private company that is engaged in distribition of power and also owns substations. The company also offers
voltage transformation, delivers the power to end consumers, meter reading, billing and collection services. The company is a 51%-
owned subsidiary of Panama Distribution Group, S.A.
Company Name
Distribuidora de Electricidad del
Sur SA de CV

Distribuidora De Electricidad Del Sur Sa De Cv (Delsur) is a El Salvador based electric utility company. The company is principally
engaged in the processing, distribution and marketing of electricity. Delsur is a subsidiary of Aei. The company distributes electricity
over 5,296 miles distribution lines. Delsur through its New Business Elektra is engaged in the provision of construction and maintenance
of substations and equipment, construction and maintenance of lines and low voltage, design and construction of electrical installations
for interiors, studies of power quality problems, supply and installation of capacitor banks. The Company is Headquartered In san
Salvador, El Salvador

Deal Fi nanci al s
Source: GlobalData

Page (78)

9.1.1.4 Houston American Completes The Sale Of Hupecol Llanos and Hupecol Dorotea
Table 32: Houston American Completes The Sale Of Hupecol Llanos and Hupecol Dorotea
Deal Type Acquisition Deal Sub Type Majority Acquisition
Deal in Brief
Houston American Energy Corp., an energy company, completed the sale of an oil and gas companies, Hupecol Dorotea and Cabiona,
LLC and Hupecol Llanos, LLC, for a total consideration of $281 million. Of the total consideration, the company received approximatly
$200 million for Hupecol Dorotea and approximatly $81 million for Hupecol Llanos.
The two companies hold interests in the Dorotea, Cabiona, Leona and Las Garzas blocks and related assets in Colombia.
The sale represents only a partial sale of Houston American Energy's assets in Colombia, as the company will retain seven of its eleven
concessions which are located in Colombia.
Deal Inf ormati on
Announced Dat e 19-Aug-2010
Complet ed Dat e 02-Dec-2010
Company Name Houston American Energy Corp.
Houston American Energy Corp. (Houston American Energy) is an independent energy company. The company is engaged in the
exploration, development and production of oil and natural gas resources. At present, the company carries out its operations under two
categories namely, domestic and international region. Under its domestic region it operates in Louisiana and Texas, both these
properties are located on the onshore Gulf coast region of the US. While the companys international projects are in Colombia, South
America. The company is headquartered in Texas, the US.
Company Name
Hupecol Dorotea and Cabiona,
LLC

Hupecol Dorotea and Cabiona, LLC (Hupecol Dorotea and Cabiona) is a Colombia based oil and gas exploration company. It is
principally engaged in operating Dorotea and Cabiona oil and gas blocks that are involved in oil and gas exploration. Hupecol Dorotea
and Cabiona is headquartered in Colombia.
Company Name Hupecol Llanos, LLC
Hupecol Llanos, LLC (Hupecol Llanos) is a Colombia based oil and gas exploration and production company. It is principally engaged in
operating and Las Garzas blocks that are involved in oil and gas exploration and production. Hupecol Llanos is headquartered in

Deal Fi nanci al s
Source: GlobalData

Page (79)

9.1.1.5 Talisman Energy And Ecopetrol Acquires BP Exploration Company Colombia
Table 33: Talisman Energy And Ecopetrol Acquires BP Exploration Company Colombia
Deal Type Acquisition Deal Sub Type 100% Acquisition
Deal in Brief
Talisman Energy Inc., an oil and gas exploration and production company, and Ecopetrol S.A., a Colombia based national oil company,
completed the acquisition of all of the issued and the outstanding shares of BP Exploration Company Colombia Limited (BPXC), an oil
and gas company, from BP p.l.c., an energy company, for a purchase consideration of $1,750 million in cash.
Under the terms of the agreement, Talisman acquired a 49% interest in BPXC, while Ecopetrol acquired the remaining 51% interest.
Following the transaction, BPXC was renamed as Equion Energia Limited. Equion Energia assumes ownership of all assets and
businesses that the BP subsidiary held in Colombia. Additionally, Equion Energia also assumes the interest that BP had in Oleoducto
Central S.A.-Ocensa (24.8%), Oleoducto de Colombia (14.57%) and Oleoducto del Alto Magdalena (4.25%), as well as the 20% of
Transgas de Occidente and the interest in Casanare gas plants. Pursuant to the transaction, Maria Victoria Riano Salgar will assume
the role as president of Equion.
BPXCs assets include interests in five producing fields in four association contracts: Tauramena (31%), Rio Chitamena (31%), Recetor
(50%) and Piedemonte (50%). The company also holds a 40.56% interest in the RC4 and RC5 exploration blocks which are located in
offshore Cartagena; 24.8% interest in the OCENSA crude oil pipeline; and has interests in four pipelines and the Cusiana gas
processing facility, totaling approximately 1,600 kilometers of crude and 400 kilometers of gas pipelines.
Goldman, Sachs & Co. oHG, acted as financial advisor, while Slaughter and May,Gamboa & Chalela, Osler, Hoskin & Harcourt LLP,
Shearman & Sterling LLP and Maples & Calder acted as legal advisors to Talisman Energy. Barclays Capital acted as financial advisor
to BP. Slaughter and May,Gamboa & Chalela, Osler, Hoskin & Harcourt LLP and Shearman & Sterling acted as legal advisor and
Goldman Sachs and Citigroup, Inc., acted as financial advisors to Ecopetrol with respect to the transaction.
J avier Gutierrez Pemberthy, president of Ecopetrol, said: This transaction strengthens our operations in Colombia, especially in the
Piedemonte Llanero, identified as one the areas with greater potential in Colombia. The most important thing for us is that we
incorporate to our group the knowledge and expertise of more than 400 people, who are well known for their capacity to operate in an
efficient and safe way and who have received several awards and distinctions for their leadership at BP.
J ohn A. Manzoni, president and CEO of Talisman Energy, said: These assets will be a cornerstone as Talisman looks to build a strong
production base in Latin America over the next three to five years. We look forward to deepening our strategic relationship with
Ecopetrol. Employees may be assured of our joint commitment as we work together to maximize the value of these assets and help the
company grow . Those involved from all three companies should be very proud of their accomplishments in this transaction.
The transaction implies deal values of $40,000 per boe of daily production, $13.33 per boe of proved reserves and $10.2 per boe of 2P
reserves.
Deal history
Completed: On J anuary 24, 2011, Talisman Energy and Ecopetrol completed the acquisition of all of the issued and the outstanding
shares of BP Exploration Company Colombia from BP, for a purchase consideration of $1,750 million.
Announced: On August 3, 2010, Talisman Energy and Ecopetrol agreed to acquire all of the issued and the outstanding shares of BP
Exploration Company Colombia from BP, for a purchase consideration of $1,900 million.
Deal Rat ional e
The acquisition enables both Talisman Energy and Ecopetrol to increase their reserves and production and strengthen their transport
and natural gas businesses and strengthens their position in Colombia.
Deal Inf ormati on
Announced Dat e 03-Aug-2010
Complet ed Dat e 24-J an-2011
Company Name Talisman Energy Inc.
Talisman Energy Inc. (Talisman Energy) is a Canada-based independent upstream energy company. Talisman Energy is one of the
leading independent oil and gas producers in Canada. It engages in the exploration, development, production, transportation and
marketing of crude oil, natural gas and natural gas liquids. The company and its subsidiaries operate primarily in North America, the UK,
Southeast Asia, Scandinavia and Other areas, including Colombia, Peru, Algeria, Tunisia and Kurdistan region of Northern Iraq. The
company produced 417,000 boe/d in fiscal 2010 and as at December 31, 2010, it held total proved reserves of gross 1,383 MMboe.
Talisman Energy is headquartered in Calgary, Canada.
Company Name ECOPETROL S.A.
Ecopetrol S.A. (Ecopetrol) is one of the largest petroleum companies in Colombia. It is engaged in the exploration, production,
transportation, supply and marketing of crude oil and natural gas. The company is amongst the top 40 largest petroleum companies in
the world as well as the four major oil companies in Latin America. The company operates through four business units: Exploration and
Production; Refining and Petrochemicals; Transportation; and Market and Supply. The company through its subsidiary, Ecodiesel

Page (80)

Colombia S.A. is increasing its presence in alternative energy market with expanding operations in biofuel and ethanol. It is
headquartered in Bogota, Colombia
Company Name BP p.l.c.
BP p.l.c. (BP) is one of the largest vertically integrated oil and gas companies in the world. Its business activities include the exploration
and production of natural gas and crude oil; refining crude oil; manufacturing petroleum products; marketing refined products;
construction and mining; and transportation of crude oil. The company also involves in the marketing and trading of gas and power,
marketing of liquefied natural gas (LNG), natural gas liquids (NGLs) and low-carbon power generation. The companys major brands
include ARAL, ARCO, Castrol, ampm and Wild Bean Cafe. It has operations in more than 100 countries across six continents. BP is
headquartered in London, the UK.
Company Name
BP Exploration Company
(Colombia) Limited

Advisor Information
Company Being Advised Legal Advisor
BP Exploration Company (Colombia)
Limited
Macleod Dixon LLP
ECOPETROL S.A. Shearman & Sterling LLP
Talisman Energy Inc. Osler, Hoskin & Harcourt LLP
Slaughter and May
Slaughter and May
Osler, Hoskin & Harcourt LLP
Maples & Calder
Company Being Advised Financial Advisor
BP p.l.c. Barclays Capital Inc.
ECOPETROL S.A. Goldman, Sachs & Co. oHG
Talisman Energy Inc. Citigroup Inc.
Goldman, Sachs & Co. oHG

Deal Financials
Deal Value ($ million) 1,750
Deal Payment
Cash ($ million) 892.50
Cash ($ million) 857.50
Natural Gas (MMcf/d) 52.50
Total (boe/d) 25,000
Commodity 1P Reserves 2P Reserves Annual Production Reserve Life (Years)
Natural Gas (Bcf) 180 235.20 0 9.39
Total (MMBoe) 75 98 0 8.22
Source: GlobalData

Page (81)

9.1.2 Equity Offerings
9.1.2.1 Ecopetrol Plans To Issue Shares
Table 34: Ecopetrol Plans To Issue Shares
Deal Type Equity Offerings Deal Sub Type Secondary Offering
Deal in Brief
ECOPETROL S.A., an oil and gas company, intends to sell 10% of its shares, in a public offering.
The company intends to use the proceeds from the offering to pay for recovery from torrential rains and floods.
J uan Carlos Echeverry, finance minister of Colombia, said, The proposal will be resubmitted to Congress soon and said the plan has
the majority support of lawmakers. While the share issue could be for as much as 10% of Ecopetrol, the sale would likely take place in
tranches as small as 1% at a time. The plan has to proceed through the legal steps and this will allow for the beginning of the sales
toward the end of the year.
Deal Rat ional e
The company intends to use the proceeds from the offering to pay for recovery from torrential rains and floods.
Deal Inf ormati on
Deal St atus Planned
Announced Dat e 17-May-2011

Source: GlobalData

9.1.3 Debt Offerings
9.1.3.1 Ecopetrol Announces Public Offering Of Bonds For $18,094 Million
Table 35: Ecopetrol Announces Public Offering Of Bonds For $18,094 Million
Deal Type Debt Offerings Deal Sub Type Public Offering
Deal in Brief
Ecopetrol S.A., an integrated oil company, agreed to issue bonds in a public offering for gross proceeds of PHP800,000 million
($18,093.8 million).The company intends to use the proceeds from the offering to finance its 2010 Investment Plan.
Ecopetrol expects to issue bonds in three series which includes Series A Peso-denominated variable IPC rate bonds, Series B Peso-
denominated variable DTF rate bonds and Series C Peso-denominated fixed rate bonds. The nominal value for each series is PHP50
million ($1.13 million).
The maturity date for the bonds are 5 years, 7 years, 10 years and 30 years and interest will be paid semiannually.
Deal Rat ional e
Ecopetrol intends to use the proceeds from the offering to finance its 2010 Investment Plan.
Deal Inf ormati on
Announced Dat e 01-Dec-2010

Page (82)


Deal Fi nanci al s
Deal Value (PHP Mn) 800,000 Deal Value ($ milli on) 18,093.80
Securities Type Offered Bonds
Source: GlobalData

9.1.4 Partnerships
9.1.4.1 Ecopetrol To Form Joint Venture With Six Partners
Table 36: Ecopetrol To Form Joint Venture With Six Partners
Deal Type Partnerships Deal Sub Type J oint Venture
Deal in Brief
ECOPETROL S.A., a petroleum company, entered into an agreement to form joint venture with Pacific Rubiales Energy Corp., an oil
and gas exploration and production company, Petrominerales Colombia Ltd., an oil and natural gas energy company, HOCOL S.A., a
hydrocarbon exploration and production company, Grupo C&C Energia (Barbados) Ltd., a subsidiary of C&C Energia Ltd., Rancho
Hermoso S.A., a privately held Colombia-based oil production company, and Vetra Exploracion & Produccion Colombia S.A., an oil and
gas company. The joint venture is named as Oleoducto Bicentenario de Colombia (OBC), under which Ecopetrol will hold a 55% stake
and the other partners Pacific Rubiales, Petrominerales, Hocol, Grupo C&C Energia Barbados, Rancho Hermoso, and Vetra
Exploracion & Produccion Colombia will hold 32.8%, 9.6%, 0.96%, 0.5%, 0.5% and 0.5% respectively.
The new joint venture company will build and operate a 450,000 b/d oil pipeline system that will transport crude from Araguaney, in the
Casanare Department of central Colombia, to the Covenas Export Terminal on the Caribbean Sea.
The first phase includes a 40,000 b/d truck off-loading facility now under construction in Banadia, due for start up this month. The
remaining phases include construction of the 120,000 b/d Araguaney-to-Banadia line and the 330,000 b/d Banadia-to-Coveas line.
Ecopetrols six partners paid a total of $139.5 million for their combined stakes. They will also put up $700 million for the $1.03 billion for
the pipelines first phase, with 70% coming from loans and 30% from direct capital contributions.
Deal Inf ormati on
Announced Dat e 15-Nov-2010
Partner Company Informat ion
Company Name Pacific Rubiales Energy Corp.
Pacific Rubiales Energy Corp. (Pacific Rubiales) is the largest independent oil and gas exploration and production company. The
company is principally focusing on the exploration and production of heavy crude oil and natural gas. Pacific Rubiales is principally
focusing on identifying opportunities within the Eastern Llanos Basin as well as in other areas in Colombia and northern Peru. The
company's keys operating areas include Llanos basin of Colombia, Lower Magdalena Valley Basin of northwest Columbia, Upper and
Middle Magdalena Valley Basins, Putumayo Basin at Southwest border of Columbia and Maranon Basin at Peru. The company also
operates pipeline to transport crude oil from Rubiales to Monterrey Stations. The company is headquartered in Bogota D.C. in
Columbia.
Company Name HOCOL S.A. Parent ECOPETROL S.A.
HOCOL S.A. operates as a hydrocarbon exploration and production company. It has exploration and oil operations in the upper and
middle Magdalena valleys, including the San Francisco field, and Central Plains (Llanos) regions of Colombia, as well as in Lake

Page (83)

Maracaibo, Venezuela.
Company Name Rancho Hermoso S.A.
Rancho Hermoso S.A. is a privately held Colombia-based oil production company and is engaged in operating two oil fields located in
the Casanare department of Colombia.
Company Name Petrominerales Colombia Ltd
Petrominerales Colombia Ltd (Petrominerales) is a oil and natural gas energy company. Petrominerales is engaged in exploration and
production of oil and natural gas. The company has operations in western Canada and Colombia. Petrominerales Colombia is wholly
owned subsidiary of Petrobank Energy and Resources Ltd. Currently, the company is operating through 12 active blocks. In fiscal year
2007, the company produced 1.74 million Boe (barrels of oil equivalent) of crude oil. The operating fields of the company include Corcel,
Neiva, OPON-6 (P.E), and Orito, which are located in South and Central American region. The company is headquartered in Bogota,
Colombia.
Company Name C&C Energia Ltd
Company Name
Vetra Exploracion & Produccion
Colombia S.A.

Source: GlobalData

9.1.5 Asset Transactions
9.1.5.1 Parex Resources To Acquire Remaining 50% Interest In Four Blocks In Llanos Basin
Table 37: Parex Resources To Acquire Remaining 50% Interest In Four Blocks In Llanos Basin
Deal Type Asset Transactions Deal Sub Type
Deal in Brief
Parex Resources Inc., an oil and gas exploration company, through its subsidiary, entered into an agreement to acquire remaining
50% interest in four blocks in Llanos basin of Colombia, including block LLA-16 and the Kona discovery, from Remora Energy
International LP, a Bermuda based oil and gas exploration and production company, for a purchase consideration of CAD245m
($254.78m).
The four blocks include LLA-16 (78,772 net acres), LLA-20 (72,105 net acres), LLA-29 (34,943 net acres) and LLA-30 (58,636 net
acres) in Llanos basin.
Following the completion of the acquisition, Parex will have 100% working interest in all the four blocks and will be the operator of
the blocks. The acquisition will enable Parex to double its production and operating income.
The acquisition is expected to close no later than J une 29, 2011.
The transaction implies deal values of $219,637.93 per boe of daily production, $49 per boe of 1P reserves, $26.54 per boe of 2P
reserves, and $1,042.23 per net acre of land.
Deal Rat ional e
The acquisition will enable Parex to double its production and operating income.
Deal Inf ormati on
Expect ed Closing Date 29-J un-2011
% Acquired 50
Company Name Parex Resources Inc.
Company Name
Remora Energy
International, L.P.

Remora Energy International, L.P. (Remora Energy) is an international exploration and production company. It is engaged in
exploring, developing, drilling and producing oil and gas in 30 countries on 6 continents. Remora Energy is a joint venture of First
Reserve Corporation, which is a private equity firm focused exclusively in the energy industry; and Nabors Industries. It is capable
to partner with operators and national oil companies to invest in exploration and exploitation opportunities worldwide. It has

Page (84)

exploration and production operations in Colombia and is currently pursuing additional projects in South America and North Africa.
Remora Energy is headquartered in Hamilton, Bermuda
In 2008, the company had drilled 11 wells in which resulting in a 91% success rate and the addition of over 2,800 Bbl/d of net
production.
Deal Fi nanci al s
Deal Value (CAD Mn) 245
Deal Value ($
mill ion)
254.78
Target Asset Information
Asset Name Four Blocks - Columbia
Asset Description
The four blocks include LLA-16 (78,772 net acres), LLA-20 (72,105 net acres), LLA-29 (34,943 net acres) and LLA-30 (58,636 net acres) in Llanos
basin of Columbia.
Total (boe/d) 1,160
Commodity Total (MMBoe) 0 5.20 0 0
Acreage Valuation Multiple
Land (Acres) Transaction Implied Value ($ / Acre )
Source: GlobalData

9.1.5.2 Sagres Energy Acquires 90% Participating Interest In Llanos 11 Block
Table 38: Sagres Energy Acquires 90% Participating Interest In Llanos 11 Block
Deal in Brief
Sagres Energy Inc., an oil and gas exploration company, through its wholly-owned subsidiary, completed the acquisition of 90%
participating interest in the Llanos 11 block, from Stetson Oil & Gas Ltd. an oil and gas company.
Under the terms, Sagres will be responsible for 100% of all costs required to be incurred by the operators under their respective
exploration and production contracts with the Agencia Nacional de Hydrocarburos of Colombia for the duration of the first exploration
phases. In addition, Sagres will be entitled to 98.5% of the net revenue from the block until it has recovered the cost of the 10% carried
interest held by the operator.
Pursuant to the transaction, Stetson retained the remaining 10% interest of Llanos 11, which consists of $9.5m of costs over a 36-month
period. In addition, Mr. Stan Bharti has been appointed to the board of directors of Sagres as chairman replacing Mr. Gerold Fong.
The Llanos 11 block covers an area of 51,190 gross hectares and is located in the Llanos basin of Colombia.
Deal history
Completed: On May 17, 2011, Sagres Energy completed the acquisition of 90% participating interest in the Llanos 11, from Stetson Oil
& Gas.
Announced: On April 20, 2011, Sagres Energy entered into an agreement to acquire 90% participating interest in the Llanos 11, from
Stetson Oil & Gas.
Deal Inf ormati on
Complet ed Dat e 17-May-2011
% Acquired 90
Company Name Sagres Energy Inc.
Sagres Energy Inc. is an oil and gas company. It holds interest in the Takutu Basin Petroleum Prospecting Licence in Guyana.
Company Name Stetson Oil & Gas Ltd.
Stetson Oil & Gas Ltd. (Stetson) is a Canada based upstream oil and gas company. The company was formerly known as Arctos

Page (85)

Petroleum Corp and was founded in 2004. The company is engaged in the exploration and production of oil and gas properties in
western Canada. The lands acquired by Stetson are in close proximity to very successful drilling for light oil in the Bakken Formation. In
2008, Stetson acquired interests in oil and gas mineral rights on the Fort Berthold Reservation in North Dakota. The company is
headquartered at Calgary in Alberta, Canada.
Asset Name Llanos 11 Block - Columbia
Asset Description
The block covers an area of 51,190 gross hectares and is located in the Llanos basin of Colombia.
Source: GlobalData

9.1.5.3 Sagres Energy Acquires 90% Participating Interest In Putumayo 3 Block
Table 39: Sagres Energy Acquires 90% Participating Interest In Putumayo 3 Block
Deal in Brief
Sagres Energy Inc., an oil and gas exploration company, through its wholly-owned subsidiary, completed the acquisition of 90%
participating interest in the Putumayo 3 block (PUT-03), from Vast Exploration Inc., an oil and gas company.
Under the terms, Sagres will be responsible for 100% of all costs required to be incurred by the operators under their respective
exploration and production contracts with the Agencia Nacional de Hydrocarburos of Colombia for the duration of the first exploration
phases. In addition, Sagres will be entitled to 98.5% of the net revenue from the block until it has recovered the cost of the 10% carried
interest held by the operator.
Pursuant to the transaction, Vast retained the remaining 10% of PUT-03 during the first exploration phase, which consists of $12.9m of
costs over a 36-month period. In connection with the transaction, Mr. Stan Bharti has been appointed to the board of directors of
Sagres as chairman replacing Mr. Gerold Fong.
The Putumayo 3 block covers an area of 148,000 gross acres and is located in the Putumayo basin of Columbia.
Deal history
Completed: On May 17, 2011, Sagres Energy completed the acquisition of 90% participating interest in the Putumayo 3 block (PUT-03),
from Vast Exploration.
Announced: On April 20, 2011, Sagres Energy entered into an agreement to acquire 90% participating interest in the Putumayo 3 block
(PUT-03), from Vast Exploration.
Deal Inf ormati on
Complet ed Dat e 17-May-2011
% Acquired 90
Company Name Sagres Energy Inc.
Sagres Energy Inc. is an oil and gas company. It holds interest in the Takutu Basin Petroleum Prospecting Licence in Guyana.
Company Name Vast Exploration Inc.
Vast Exploration Inc. (Vast) is an independent upstream oil and gas company. It is engaged in the exploration, development, and
production of conventional and non-conventional oil and gas reserves in Canada. The company started its ten well drilling program on
the Paddle prairie Metis Settlement in Boyer, Alberta. The company is joint ventured with Samson Oil and Gas Inc. The company
focuses on the principal asset, the Qara Dagh Block, in the Kurdistan refion of Iraq with partner Niko Resources Ltd. The Qara Dagh
Block lies on trend with existing discoveries and is located in the prolific Zagros Fold Belt of Northern Iraq, which contains several large
fields, including the Kirkuk field. The company is headquartered in Calgary, Canada.
Asset Name Putumayo 3 Block - Colombia
Asset Description
The block covers an area of 148,000 gross acres and is located in the Putumayo basin of Columbia.
Source: GlobalData


Page (86)

9.1.5.4 Reto Petroleum To Acquire 30% Undivided Working Interest In Fenix Exploration And Production
Contract
Table 40: Reto Petroleum To Acquire 30% Undivided Working Interest In Fenix Exploration And
Production Contract
Deal in Brief
Reto Petroleum Limited, a private Cayman Island company, entered into an agreement to acquire 30% undivided working interest in the
Fenix Exploration and Production contract, from Amerisur Resources plc, an oil and gas exploration and development company.
Under the terms, Reto will fund the drilling, acquisition and processing program of the project in two phases. In the phase 1, Reto will
fund the drilling of 10 wells on the projects Isabel structure in exchange for a 20% undivided working interest in the contract. The phase
1 is subject to regulatory approvals and must be completed within 18 months.
Upon satisfactory completion of Phase 1, Reto has an option to earn an additional 10% undivided working interest in the Fenix contract
in exchange for the funding of 100% of the acquisition and processing of a seismic program of at least 75 line kilometers within the
Fenix contract area. In the event that Reto does not exercise this right, it will fund 20% of this seismic program.
Amerisur Exploracion Colombia, the Colombian branch of Amerisur Resources, will remain the operator of the contract.
J ohn Wardle, CEO of Amerisur Resources, said, "I am very pleased to welcome Reto, whose principals have enjoyed great success in
the Colombian E&P sector in the past and who bring a wealth of experience and background understanding to the Fenix contract. Your
board believes this is a strong win-win deal for both parties, which will expose us to significant activity in the Fenix block without
impacting upon progress or taking our focus away from our principal challenge this year, the development of the Platanillo asset. The
terms of the agreement may also cover off our exploration commitments in the Fenix contract for the next two phases, which begin on
22nd April. Naturally this agreement also demonstrates the level of industry interest in Fenix, which we continue to believe has very
significant potential. These work programmes will go a long way to defining and accessing that potential."
Deal Inf ormati on
% Acquired 30
Company Name Reto Petroleum Limited
Reto Petroleum Limited is an energy and utilities company that is engaged in developing and producing oil and gas. The company is
based in Columbia, Canada.
Company Name Amerisur Resources Plc
Amerisur Resources plc (Amerisur Resources) is an an oil and gas exploration and development company. It is engaged in the
exploration, development and production of oil and natural gas in onshore South America, principally Colombia and Paraguay. In
Colombia, Amerisur is operating in two projects namely, Platanillo (100% working interest ) and Fenix (100% working interest ). In
addition, Amerisur is also operating two oil and gas permits in the Paraguayan part of the Chaco and Parana basins, which are San
Pedro Block (100% owned), and Curupayty Block (100% owned). The company is headquartered in Cardiff, the UK.
Asset Name Fenix Exploration And Production Contract - Columbia
Asset Description
The assets consist of 30% interest in Fenix Exploration and Production contract loacted in the Middle Magdalena basin of Columbia.
Source: GlobalData

Page (87)

9.1.5.5 Repsol To Acquire 50% Stake In Two Caribbean Offshore Blocks From Ecopetrol
Table 41: Repsol To Acquire 50% Stake In Two Caribbean Offshore Blocks From Ecopetrol
Deal in Brief
Repsol YPF, S.A., an energy company, entered into an agreement to acquire 50% stake in RC-11 and RC-12 exploration blocks located
off Caribbean coast from Ecopetrol S.A., a petroleum company.
The RC-11 and RC-12 blocks cover an area of approximately 185,000 hectares (456,800 acres) and 135,000 hectares (333,590 acres),
respectively.
The agreement is subject to approval by ANH energy sector regulator of Colombia.
Deal Inf ormati on
% Acquired 50
Company Name Repsol YPF, S.A.
Repsol YPF, S.A. (Repsol) is an integrated international oil and gas company. It engages in the exploration, development, and
production of crude oil and natural gas; transportation of petroleum products namely, LPG and natural gas; and petroleum refining and
production of petrochemical products. The company is also involved in the marketing of petroleum products, petroleum derivatives,
petrochemicals, and natural gas for power generation. Geographically, the company operates in more than 30 countries and its major
operational regions include Spain, Argentina, Bolivia, and Brazil. Repsol is headquartered in Madrid, Spain.

Asset Name RC-11 And RC-12 Exploration Blocks - Columbia
Asset Description
The RC-11 and RC-12 blocks cover an area of approximately 185,000 hectares (456,800 acres) and 135,000 hectares (333,590 acres), respectively, and
are located off Caribbean coast of Columbia.
Source: GlobalData

Page (88)

9.1.5.6 Bolivar Energy To Acquire Additional 17.5% Interest In LLA-24 Block In Colombia
Table 42: Bolivar Energy To Acquire Additional 17.5% Interest In LLA-24 Block In Colombia
Deal in Brief
Bolivar Energy Corp., an oil and gas exploration company, entered into an agreement to acquire an additional 17.5% interest in the LLA-
24 Block, Llanos Basin Colombia.
Under the terms of the agreement, combined with the terms of its initial 17.5% farm-in, Bolivar agreed to pay 70% of the initial 3D
seismic program and the first exploration well to earn a total 35% interest in the block.
The LLA-24 Block is located in the central Llanos Basin and comprises of 147,000 gross acres (51,450 net).Following the completion of
transaction, Bolivar will hold a total of 35% interest in the block.
The completion of the transaction is subject to approval by the Agencia Nacional de Hidrocarburos.
Deal Inf ormati on
Announced Dat e 21-Mar-2011
% Acquired 17.50
Company Name Bolivar Energy Corp.
Bolivar Energy Corp. (formerly known as Benchmark Energy Corporation) is an energy company engaged in exploration of oil and gas.
The company is focused on exploiting marginal oil fields. Benchmark Energy provides drilling services using Radial Drilling Technology.
Benchmark Energy's strategy is to identify proven reserves that have the potential for increased production through technology and
expertise. It carries out its operation in South America and North Africa. Bolivar Energy is headquartered in Calgary, Canada.

Bolivar Energy, an oil and gas company, has sold 33.33% interest including 1.66% carried interest held by another party, in the offshore
Cosmos concession in Tunisia, to a wholly owned subsidiary of Storm Ventures International, Inc. (SVI), an oil and gas company, for a
cash consideration of $5.65 million.

Asset Name LLA-24 Block - Colombia
Asset Description
The LLA-24 Block is located in the central Llanos Basin, Colombia. The block comprises of 147,000 gross acres (51,450 net).
Source: GlobalData

Page (89)

9.1.5.7 Azabache Energy To Acquire 30% Working Interest In Antares Block From Petromar
Table 43: Azabache Energy To Acquire 30% Working Interest In Antares Block From Petromar
Deal in Brief
Azabache Energy Inc., an oil and gas resource company, entered into an agreement to acquire 30% working interest in the Antares
block and the E&P Contract, located in the Upper Magdalena basin, Colombia, from Petroleos Del Mar (Petromar).
As part of the consideration, Azabache Energy will pay $1m in cash and will issue $1.1m of its common share upon completion of
drilling operations in the first of two exploratory wells in the block. In addition, the company agreed to fund the drilling, completion and
well testing of the exploratory wells, with an expected cost of $5m, and to issue $1m of its common shares to Petromar as a success fee
upon commercial discovery in one of the exploratory wells.
The block covers an area of more than 41,731 gross acres (169 square kilometres) and 12,500 net acres (50 square kilometres), and
surrounds the Andalucia field, which has proved recoverable reserves of more than 12 mmbl of oil. Azabache expects to drill an initial
two well on the Block before the end of 2011.
Following the completion of the agreement, the block will continue to be operated by Petromar.
The acquisition is subject to the completion of a due diligence process by each of Azabache Energy and Petromar, the execution of a
definitive agreement and the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange Inc.
The transaction implies deal value of $248 per acre of land.
Deal Inf ormati on
Announced Dat e 21-Mar-2011
% Acquired 30
Company Name AZABACHE ENERGY INC
Azabache Energy Inc (Azabache) is a junior energy company. The company is engaged in exploration, production of oil and natural gas
properties. The company has its properties in South America and the Caribbean, with its initial focus on Argentina and Colombia. The
company acquired an 89.5% of Argenta Oil and Gas T & T Limited. In the fiscal year 2008, the company also acquired working interests
in three onshore blocks in Argentina referred to as Loma El Divisadero, Covunco, and El Corte.The company was formerly known as
Argenta oil and gas. The company is headquartered at Toronto in Ontario, Canada.

Deal Fi nanci al s
Deal Value - Esti mated
Minimum Value ($ million) 2.10 Maximum Value ($ million) 3.10
Deal Payment
Cash ($ million) 1
Others ($ million) 1.10
Asset Name Antares Block - Colombia
Asset Description
The block covers an area of more than 41,731 gross acres (169 square kilometres) and 12,500 net acres (50 square kilometres) and is located in the Upper
Magdalena basin, Colombia.
Source: GlobalData

Page (90)

9.1.5.8 Assam Company To Acquire 70% Interest In Colombian Oil Block
Table 44: Assam Company To Acquire 70% Interest In Colombian Oil Block
Deal in Brief
Assam Company India Limited (ACIL), a company engaged in tea plantation, oil and gas exploration, production and supply, and road
transportation, entered in to an agreement to acquire 70% working interest in the oil block called ANH EL Triunfo, located at Casanare
in Colombia, from Sismopetrol S.A., a petroleum company and R3, a company that operates and manages the oil blocks, in exchange
for ACIL drilling one well.
The oil block consists of 10,200 hectares and contains one discovery well (La Cabana), which is located in Llanos basin. The work at
the block is expected to commence by early J uly, 2011 and production of oil will commence from November 2011.
ACIL will be the operator of the block, subject to the ANH approval, where in the company will pay 100% of the drilling and initial testing
costs of the phase 5 commitment well in the block.
L.B. Kondradoff, COO of ACIL-oil and gas project, said, "Growth in our oil gas division is anticipated to be significant in 2011. This entry
into Columbian market is an exciting opportunity which fits well into our overall objective and strategy for the future."
Deal Inf ormati on
Announced Dat e 24-Feb-2011
% Acquired 70
Company Name Assam Company India Limited
Assam Company India Limited, formerly known as Assam Company Limited is a conglomerate group. The company through its
subsidiaries is engaged in various business activities, such as oil and gas exploration, tea plantation and infrastructure. The company
has one exploration block and four fields for development of Hydrocarbon in Assam and Nagaland. ACL conducts its business
operations under three business areas, namely, Oil & Gas, Tea Plantation and Infrastructure and Development. Its tea plantation
business carries through operating 16 factories, 19 tea estates and gardens. The company's Infrastructure and Development division
focuses on development of Special Economic Zone (SEZ) to offer products and related services for Oil & Gas, Energy and
Petrochemical in Gujarat. The company is headquartered in Kolkata, India.
Company Name Sismopetrol S.A.
Company Name R3

Asset Name Oil Block - Colombia
Asset Description
The ANH EL Triunfo consists of 10,200 hectares and contains one discovery well (La Cabana), which is located in Llanos basin, Colombia.
Source: GlobalData

Page (91)

9.1.5.9 Ecopetrol To Acquire 100% Stake In Cano Sur Block From Shell Exploration
Table 45: Ecopetrol To Acquire 100% Stake In Cano Sur Block From Shell Exploration
Deal in Brief
Ecopetrol S.A., an integrated oil company, entered into an agreement to acquire the entire stake in the exploration of Cano Sur block,
located in the Llanos Orientales basin, from Shell Exploration and Production Colombia Cano Sur GmbH.
Upon completion of the transaction, Ecopetrol will retain 100% stake in the block and continue as operator to carry out anticipated
investment programs associated with Cano Sur block.
Cano Sur block covers an area of about 610,000 hectares, which is covered under the hydrocarbons exploration and exploitation
contract signed in 2005 with the ANH.
Deal Inf ormati on
Announced Dat e 14-Feb-2011
% Acquired 100
Company Name
Shell Exploration and Production
Colombia Cano Sur GmbH

Asset Name Cano Sur Block - Colombia
Asset Description
The Cano Sur block is located in the Llanos Orientales basin which covers an area of about 610,000 hectares.
Source: GlobalData

Page (92)

9.1.5.10 Life Sciences To Acquire 35% Interest In Exploration Block, Colombia
Table 46: Life Sciences To Acquire 35% Interest In Exploration Block, Colombia
Deal in Brief
Life Sciences Institute, Inc., a provider of post secondary massage therapy training and oil and gas exploration and development
company, entered into a non-binding letter of intent to acquire 35% interest in an exploration block, located in the Eastern Cordillera
region of Colombia, from a private Colombian corporation.
The exploration block covers an area of approximately 77,574 hectares and is located in the Eastern Cordillera basin, Southwest of
Bogota, Colombia.
The transaction is subject to due diligence towards the execution of a definitive binding agreement.
Rob Thomas, president and chief executive officer of LSN, said: "Upon the successful conclusion of our due diligence related to the
Colombian acquisition and completion of our obligations under the earn-in. We will have added a complimentary asset to our core
project in the Williston Basin of Saskatchewan. The two areas could represent a compelling mix of opportunities for our shareholders.
We look forward to the completion of the previously announced change of business, as well as the proposed name change to Quattro
Exploration and Production Ltd. These events, in conjunction with the proposed drilling program in Saskatchewan, if successful, are
believed to be the beginning of a foundation for the Company's strategic growth."
Deal Inf ormati on
% Acquired 35
Company Name Life Sciences Institute, Inc.
Life Sciences Institute, Inc. provides educational courses in massage therapy and sports training under the name Professional Institute
of Massage Therapy. The company is headquartered in Alberta, Canada.

Asset Name Exploration Block - Colombia
Asset Description
The exploration block covers an area of approximately 77,574 hectares and is located in the Eastern Cordillera basin, Southwest of Bogota, Colombia.
Source: GlobalData

Page (93)

9.1.5.11 Bolivar Energy To Acquire 32.5% Interest In Arrendajo Block, Colombia
Table 47: Bolivar Energy To Acquire 32.5% Interest In Arrendajo Block, Colombia
Deal in Brief
Bolivar Energy Corp. (formerly known as Benchmark Energy Corporation), an exploration company, agreed to acquire 32.5% interest in
Arrendajo block, located in the Llanos basin, Colombia, from Pacific Rubiales Energy Corp., an producer of oil and natural gas, for a
consideration of $9.94 million. Under the terms, Bolivar will pay $6.5 million cash in addition to reimbursing Pacific Rubiales
approximately $3.44 million for its share of phase 5 and 6 costs already incurred.
The Arrendajo block comprises 31,606 gross hectares (10,272 net) and offers multi-zone stacked potential. The block is located close to
numerous producing fields in the Central Llanos basin which include: Las Abejas, Chaparrito, Los Toros, Palmarito, Sirenas, Corocora
and Dorotea.
The transaction is subject to subject to regulatory approval by the Agencia Nacional de Hidrocarburos (ANH) and by partners in the
block.
J ohn Moreland, president and CEO of Bolivar states: Bolivar is very excited at the prospect of assuming a material ownership stake in
the Arrendajo Block. We are encouraged by the technical merit and potential of the Block and look forward to near-term news flow from
the expected Q1/2011 drilling of a well. We are pleased to have concluded this initial deal with Pacific Rubiales and look forward to a
long and prosperous relationship with them in the future.
The transaction implies deal values of $391.62 per acre of land.
Deal Inf ormati on
% Acquired 32.50
Company Name Bolivar Energy Corp.
Bolivar Energy Corp. (formerly known as Benchmark Energy Corporation) is an energy company engaged in exploration of oil and gas.
The company is focused on exploiting marginal oil fields. Benchmark Energy provides drilling services using Radial Drilling Technology.
Benchmark Energy's strategy is to identify proven reserves that have the potential for increased production through technology and
expertise. It carries out its operation in South America and North Africa. Bolivar Energy is headquartered in Calgary, Canada.
Bolivar Energy, an oil and gas company, has sold 33.33% interest including 1.66% carried interest held by another party, in the offshore
Cosmos concession in Tunisia, to a wholly owned subsidiary of Storm Ventures International, Inc. (SVI), an oil and gas company, for a
cash consideration of $5.65 million.
Company Name Pacific Rubiales Energy Corp.
Pacific Rubiales Energy Corp. (Pacific Rubiales) is the largest independent oil and gas exploration and production company. The
company is principally focusing on the exploration and production of heavy crude oil and natural gas. Pacific Rubiales is principally
focusing on identifying opportunities within the Eastern Llanos Basin as well as in other areas in Colombia and northern Peru. The
company's keys operating areas include Llanos basin of Colombia, Lower Magdalena Valley Basin of northwest Columbia, Upper and
Middle Magdalena Valley Basins, Putumayo Basin at Southwest border of Columbia and Maranon Basin at Peru. The company also
operates pipeline to transport crude oil from Rubiales to Monterrey Stations. The company is headquartered in Bogota D.C. in
Columbia.
Deal Fi nanci al s
Deal Value ($ milli on) 9.94
Asset Name Arrendajo Block - Colombia
Asset Description
The Arrendajo block comprises 31,606 gross hectares (10,272 net) and offers multi-zone stacked potential. The block is located close to numerous
producing fields in the Central Llanos basin which include: Las Abejas, Chaparrito, Los Toros, Palmarito, Sirenas, Corocora and Dorotea.
Source: GlobalData

Page (94)

9.1.5.12 Repsol Exploracion To Acquire 30% Stake In Tayrona Block
Table 48: Repsol Exploracion To Acquire 30% Stake In Tayrona Block
Deal in Brief
Repsol Exploracion Colombia S.A., an oil company and a subsidiary of Repsol YPF, S.A., signed an agreement to acquire 30% stake in
the Tayrona block from Ecopetrol S.A., an integrated oil and gas company, and Petrobras Colombia Limited, an oil and gas exploration
company.
Tayrona block is located in the Caribbean coast of Colombia, and has an area of approximately 1,657,900 hectares. The block is
covered by a hydrocarbon exploration and exploitation contract signed with the agency in mid-2004.
Following the transaction, Ecopetrol will retain 30% stake and Petrobras will hold the remaining 40% stake in the block. This transaction
is subject to authorization of the assignment of interests by the National Agency of Hydrocarbons.
Deal Inf ormati on
Company Name
Repsol Exploracion Colombia
S.A.

Company Name Petrobras Colombia Limited Parent Petroleo Brasileiro S.A.
Petrobras Colombia Limited is an oil and gas extraction company.

Asset Name Tayrona Block- Colombia
Asset Description
Tayrona block is located in the Caribbean coast of Colombia, and has an area of approximately 1,657,900 hectares.
Source: GlobalData

Page (95)

10 Recent Devel opments
10.1 License Awards
10.1.1 May 18, 2011: InterOil Signs Two New Exploration Blocks In Colombia
InterOil Exploration & Production ASA (InterOil) said that InterOil Colombia has signed the
exploration blocks LLA 47 and COR 6 with the Colombian Hydrocarbon Agency (ANH) awarded in
the Colombian licensing round 2010. The LLA 47 license is located in the prolific Llanos basin and
covers an area of 447sq km. COR 6 is located in the Middle Magdalena Valley close to its existing
producing licenses and covers an area of 399sq km.
Two wells have been drilled in the COR-6 block in the Middle Magdalene Valley. Tijeras-1 well
discovered oil in the upper Guadalupe formation and was abandoned after testing of 127bopd. A
second well, Aleli-1, was stopped and abandoned prior to reaching the target. InterOil is committed
to acquire 150sq km of 3D seismic and to drill two exploration wells during the initial exploration
phase of 36 months.
Two wells were drilled in the southernmost part of the LLA-47 block testing a structural closure at
the C7 level. The Lince-2 well was a re-drill of Lince-1 and tested some 90bopd after experiencing
technical difficulties. InterOil is committed to acquire 350sq km of 3D seismic and to drill eight
exploration wells before September 2014.
InterOil will use the next nine months to do more technical work in order to optimize the position of
the 3D seismic surveys. The preliminary plan is to acquire the 3D seismic during early 2012 in
order to start drilling late 2012.
InterOil is the operator of the two blocks with 100% working interest. The company will consider
farming-out part of the licenses. The company was initially offered three blocks in the 2010 ANH
license round.

10.1.2 Apr 20, 2011: Vast Exploration Wins Oil And Gas Block In Colombia
Vast Exploration Inc. (Vast Exploration) has signed a hydrocarbon exploration and production
contract (E&P contract) with the Agencia Nacional de Hidrocarburos of Colombia (ANH) for oil and
gas exploration block PUT-03 (block). The block was successfully won by the company during a
bid round held on J une 22, 2010, in Cartagena, Colombia (bid).
Vast Exploration has also agreed to farm-out a 90% interest in the block to wholly-owned
subsidiary of Sagres in consideration for the company retaining a 10% carried interest during the
first exploration phase (carried interest), which phase shall consist of a minimum expenditure of
$12.9m over a 36 month period.
The block has an area of 148,000 acres (gross) and is located in the Putumayo basin of Columbia.
The block offers exploration upside on a structural trend with existing discoveries, and is situated
strategically between two blocks (CAG-6 and PUT-09) awarded to Pacific Rubiales and Talisman
Energy, respectively.
The block carries a royalty of 7% payable to the government of Colombia in addition to the basic
royalty scheme established under Colombia Law, being 8% for up to 5,000bopd and increasing to
25% for a 600,000bopd field. All other terms of the contract are standard to the model Colombian

Page (96)

E&P Contract. Sagres will have an option to acquire the company's carried interest in the block
over the next twelve months at a price to be mutually agreed.
In 2010, Vast Exploration entered into a letter of intent with a private company (Ontario Co.),
whereby it would be granted a 90% interest in the block in consideration for paying to Vast
Exploration a fee of $50,000, taking responsibility for 100% of the costs of the first exploration
phase and reimbursing Vast Exploration for all expenses of the bid and granting Vast Exploration
the carried interest (LoI). Ontario Co. was subsequently acquired by Sagres.
Ahmed Said, president and CEO of Vast Exploration, said, "We are pleased with the successful
award in Colombia. The Carried Interest provides our shareholders with additional upside
potential, without committing additional capital and while keeping our strategic focus on our
primary asset in Kurdistan."

10.1.3 Apr 08, 2011: Ecopetrol Signs Eight E&P Contracts Resulting From Colombia Round
2010
Ecopetrol S.A. (Ecopetrol) has signed eight exploration and production (E&P) contracts with the
National Hydrocarbons Agency (ANH), corresponding to blocks awarded to the company in the
Colombia Open Round 2010.
The eight blocks cover a total area of more than 840,000 hectares and are located in the Llanos
(provinces of Arauca, Casanare and Meta), Valle Medio del Magdalena (Cundinamarca and
Caldas) and Sinu-San J acinto (Antioquia and Cordoba) basins, and the Pacific offshore.
Ecopetrol has a 100% stake in six of the contracts. In the SSJ S 1 contract, its stake is 70%, with
the other 30% belonging to SK Innovation Co. Ltd. In the VMM 32 contract, it holds a 51% stake,
with the other 49% belonging to the CPVEN S.A.
As for the other two blocks awarded to Ecopetrol in the Colombia Open Round 2010 (Cayos 1 and
Cayos 5), the contracts will be signed once the ANH reinitiates the corresponding process, which
requires a prior determination by environmental officials regarding the necessary conditions for
carrying out exploratory activities in the areas where the blocks are located. Ecopetrol has a 50%
stake in these blocks, in partnership with the Repsol and YPF.

10.2 Strategy and Business Expansion
10.2.1 Mar 31, 2011: Ecopetrol And Pacific Rubiales Energy Announce Agreement To Start
Pilot Project Of Star Technology
Ecopetrol S.A. (Ecopetrol) and Pacific Rubiales Energy have agreed to carry out a pilot project of
the Synchronized Thermal Additional Recovery (STAR) technology, provided by Pacific Rubiales
Energy, in the Quifa field in los Llanos Orientales, Colombia.
The two companies, after a period of studies and tests in the research laboratories at the
University of Calgary, have reached the conclusion that the implementation of in-situ combustion
based technologies, such as STAR, is one of the best options to increase the recovery factor in
the heavy oil fields of Colombia.
Considering the above, the two companies acknowledge the importance of starting as soon as
possible a pilot project under field conditions. This pilot project will be carried out in the Quifa field,

Page (97)

under the terms, conditions and obligations established in the existing Quifa association contract
between the two companies.
The reservoir characteristics in the Quifa field are similar to those of the neighboring Rubiales field.
The companies agree that the technology could be extended to the Rubiales field, provided that
both the pilot project in Quifa is judged to be successful, and the two parties reach satisfactory
commercial terms in addition to all the aspects necessary to its commercial application in the
Rubiales field.
The STAR pilot project in Quifa aims to test the efficiency of the technology, to fine-tune the
necessary operational parameters, and to establish the increase in the recovery factor that will
lead to the commercial implementation of the technology.
As part of this agreement, the two companies will proceed in the shortest possible time, to the
definition of the required parameters for the implementation of the pilot project, as well as the basis
for the following phases, including:
The design, duration and scope of the pilot project, and other tests to be carried out in the Quifa
field.
The technical conditions under which the pilot project will be judged to be successful as well as
other conditions that are deemed necessary to proceed to the implementation of STAR at
commercial scale in the Quifa field.
Metapetroleum, Pacific Rubiales Energy's 100% owned affiliate, and the operator in the Quifa
field, will start the construction of the production facilities, drilling of wells and equipment
movements necessary to put the pilot project into operation.
Ecopetrol and Pacific Rubiales Energy have agreed to subscribe all the necessary documentation
to commence the STAR pilot project.

10.2.2 Mar 07, 2011: Petroamerica Oil Withdraws From Two Colombian Blocks
Petroamerica Oil Corp. (Petroamerica Oil) said that it is withdrawing from the eastern Cordillera
blocks, COR-12 and COR-14, in Colombia. This divestment reflects part of an ongoing portfolio
restructuring plan by the company to focus on its lower to medium risk exploration properties, and
on the Llanos basin in particular.
Petroamerica Oil entered into a farmout agreement for the subject blocks with Green Power
Corporation S.A. Colombia (Green Power) and Petrolera Monterrico S.A. Colombia, through Imore
S.A., which later on became Petroamerica. The original farmout terms required Petroamerica Oil
to carry 100% of the first exploration phase commitments for seismic and drilling up to a cap of
$18,547,620 to earn a 50% participating interest in both blocks.
By way of consideration for the withdrawal, the company will surrender to Green Power
guarantees of $2.3m and will pay an additional sum of $5.5m to Green Power. The cost of
withdrawing from these blocks is significantly less than the potential exposure the company could
face to execute the required work programs. Furthermore, Petroamerica Oil's senior management
does not see the cost and risk profile of these blocks as being a particularly good fit with the
company's present size and strategy.

Page (98)

10.3 Other Significant Developments
10.3.1 May 15, 2011: Ecopetrol To Modernize Barrancabermeja Refinery In Colombia
Ecopetrol S.A. (Ecopetrol) said that its board gave the green light to Phase 3 of the modernization
project of the Barrancabermeja refinery (PMRB), for a total investment of $3,386m. As a result,
operations will officially begin on the construction phase of the project, which is scheduled to
commence operations in 2016.
The project will enable the country's refinery to increase the conversion factor from 7695%, which
means that it will be possible to obtain more products, such as gasoline and diesel, and a greater
quantity of heavy crudes will be processed, whose production has been increasing in Colombia in
recent years.
This project is expected to improve the refinery's profitability and supply the entire Colombian
market without the need for any imports.
The modernized refinery is expected to produce fuels of higher quality, which will help reduce
pollution and lead to better air quality in Colombia, and place the country among the group of
leaders in Latin America in the use of cutting edge technology, with operations that are reliable,
safe, efficient and environmentally friendly, the company said.
It is expected that the execution of this project will generate great benefits for Barrancabermeja,
the region and the country in the form of training of skilled local labor, employment and contracting
of goods and services, as well as greater tax revenues and transfers to the national, departmental
and municipal governments.
The Barrancabermeja refinery, which supplies nearly 80% of the fuels consumed in Colombia, is
located in the department of Santander and has a crude processing capacity of 250,000bpd.

10.3.2 May 11, 2011: InterOil Re-Completes Altair-1 Well In Llanos Basin, Colombia
InterOil Exploration & Production ASA (InterOil) has re-completed the Altair-1 production well in
the Llanos basin, Colombia last week. Initial production during the first four days was 1,290bopd
wide open. The well is now producing 610bopd with a 14/64" choke.
InterOil decided to close in the Altair-1 well on J anuary 2, 2011. Originally Altair-1 was produced
from two separate reservoir zones within the upper part of the main reservoir (C7). The water-cut
increased during the first two months of operation up to a level of 85%. The well was therefore
shut in. The re-completion of the well is now designed to isolate the lower zone and produce only
the upper reservoir. Presently the well is producing 610bopd through a 14/64" choke, with a water
cut of less than 1%. The company expects the production to decline over time and stabilize at
250300bopd.

10.3.3 May 09, 2011: Petroamerica Oil Announces Balay-2 ST1 Well Test Results Confirming
Significance Of Balay Discovery, Llanos Basin, Colombia
Petroamerica Oil Corp. (Petroamerica Oil) announced that the Balay-2 ST1 appraisal well flowed
from two perforated intervals in the Upper Mirador, 2,620 barrels of 26 degree API oil per day with
9.3% bulk sediment and water (BS&W) that is probably mainly completion fluid, under electro-
submersible pump. The Balay-2 ST1 well also defined a deeper oil-down-to in the Upper Mirador
reservoir.

Page (99)

Additionally, 145 barrels of heavy oil (13 degree API, waiting on laboratory confirmation) and water
(10-16% BS&W) was recovered from the Barco Formation. No hydrocarbons were recovered from
tests carried out in the Une and Gacheta reservoirs.
Nelson Navarrete, president and CEO, said, this is significant in terms of proving up recoverable
oil volumes in the Balay structure, and more importantly, moving the project one step closer
towards a commercial development.
The Balay discovery was announced on March 11, 2010 and the Balay-1 discovery well has been
on long-term production test since J uly 14, 2010, producing more than 285,000 barrels of 28
degree API oil from the Upper Mirador Formation, with no measurable water (0.22% BS&W). The
forward plan is to put the Balay-2 ST1 well on long-term test together with the Balay-1 well. A third
well, Balay-3, is planned for the fourth quarter 2011 to appraise the northern extent of the Balay
discovery.

10.3.4 Apr 19, 2011: Global Energy Plans New 3D Seismic Acquisition At Bolivar
Association Contract Area
Global Energy Development PLC (Global Energy) has begun planning the acquisition of 100sq km
of new 3D seismic over the company's Bolivar association contract area. The company has
previously reprocessed existing seismic over the contract area and made an exhaustive
interpretation.
The acquisition and interpretation of the new seismic data will enable the company to validate the
previous interpretation and establish the optimum position of the future wells scheduled to be
drilled on the contract area.
Although the major structural elements of the block have been delineated using older vintage 2D
seismic, the much higher resolution data gained from a 3D survey will identify the smaller features
and ensure proper placement of lateral wellbores in the fractured reservoirs. Using the current
"fairway" concept, it is necessary to locate the exact position of the various faults in order to
identify areas of maximum natural fracture density. A portion of the 3D will be designed to image
the Crisol gas cap, in order to determine the continuity and limits of that reservoir should the
injection of associated gas become necessary in the future.
The company has engaged Third Coast Enterpises, Inc. to aid in the design of an approximately
100sq km 3D survey and is currently in the process of soliciting bids for selection of an acquisition
company.
Once the design phase is finished and an acquisition company is selected, the company plans to
move to the permitting and acquisition phase of the projects which is expected to take
approximately one to two months.

10.3.5 Apr 18, 2011: Loon Energy Updates On Tuqueque-1X Well At Buganviles Block In
Upper Magdalena Valley Basin, Colombia
Loon Energy Corporation (Loon Energy) has provided an update on the status of the Tuqueque-1X
well located in the Buganviles block, Upper Magdalena Valley basin, Colombia. Loon Energy has a
10% interest in the well and in the Buganviles block.
Tuqueque-1X

Page (100)

The petrophysical evaluation of the upper part of the well indicated three prospective intervals in
the Olini formation with aggregate potential hydrocarbon pay of 34ft and a prospective interval in
the Montserrate Formation with potential hydrocarbon pay of 31ft.Three intervals, two in the Olini
formation and one in the Montserrate formation, were perforated without any appreciable amounts
of hydrocarbons flowing into the well. The rig has been released and the well has been suspended
pending analysis of the testing results and a decision by the joint venture partners on further
activity on the well.

10.3.6 Apr 15, 2011: Parex Resources Provides Update On Colombia Operations
Parex Resources Inc. (Parex Resources) has provided an update on its operations activities in
Colombia. Parex Resources's average working interest is 50% in its properties in Colombia.
Light oil production from the Kona-1 well during March 2011 has averaged approximately
2,520bopd (company working interest before royalty (net) 1,260bopd) with a water cut of
approximately 5% on natural flow. For the first three months of 2011, Parex Resources's sales and
production volumes averaged approximately 1,145 and 1,160bopd net respectively. Cumulative
Kona-1 production from December 2010 to March 31, 2011 is approximately 264,000 barrels of
light oil (132,000 barrels net). The company's operating netback has increased along with the
increase in world oil prices. During March 2011 the company estimates its operating netback,
defined as net revenue less field operating costs on a per barrel basis, was approximately $64 per
barrel, compared to $56 per barrel reported for the fourth quarter of 2010.
In May 2011, Parex Resources expects to complete the construction of the Kona oil treatment
plant with a capacity of 25,000bfpd located on the Kona-1 lease. Clean oil from the oil treatment
plant will be piped 7km to the oil loading facility located on the region's main paved road allowing
for all-season tanker truck access. After commissioning of the oil treatment plant and drilling a
shallow zone water disposal well on the Kona-Norte location, the company will temporarily shut-in
Kona-1 which is producing on natural flow and install an electric submersible pump to maintain
production at an expected level of approximately 2,000bopd (net 1,000bopd).
The commissioning of the Kona oil treatment plant and water disposal well is also expected to
allow for the production start-up of other Kona wells that exhibit poor cement isolation from water
bearing zones thereby prohibiting dry oil production, but which are capable of production and are
currently shut-in.
Southwest of the Kona field on block LLA-16 along a separate fault trend the Supremo-1 well is
expected to commence oil production in early May 2011 following the completion of a water
disposal well and associated handling facilities. This well had previously tested approximately
2,500bfpd from the Mirador formation, with a 31 degree API oil rate of 500bopd (net 250bopd).
Based on test results or log analysis of Kona-1, Kona-2, Kona-3, Kona-4 and Supremo-1 and upon
the commissioning of the Kona oil treatment plant and the water disposal wells, Parex expects
production of approximately gross 4,000-6,000bopd (net 2,000-3,000bopd).
Kona Field Drilling Update
In March 2011 a drilling rig re-entered the Kona-2 well to drill out below the existing casing to
redrill the Gacheta formation potential oil pay and prepare to complete this deeper zone.
Depending on the Gacheta formation testing results the company may move up hole to remediate,
complete and test the Mirador formation. The Mirador was initially tested in the Kona-2 well and

Page (101)

flowed naturally up to a rate of approximately 3,000bfpd, comprising 1,600bopd (net 800bopd) of
35 degree API oil plus 1,400 barrels of water per day.
The Kona-3 well was drilled in J anuary 2011 and was designed to evaluate the northern extent of
the Kona field. Initial evaluation of well logs indicates potential net oil pay, measured as true
vertical depth, of 20ft in the C7 formation and 40ft in the Mirador formation, which was consistent
with the company's pre-drill expectations. During March 2011 the Mirador formation was tested
and the recovered fluid was on average 40% oil of a quality consistent with oil recovered in Kona-1
and Kona-2 wells. Cement bond logs indicated that there was poor cement across the pay zone
and therefore the 40ft of prospective oil pay section was not isolated from the underlying wet
reservoir. Remediation attempts were unsuccessful and the company suspended the zone and
moved up hole to the C7 formation. The C7 formation was completed and tested at approximately
750bfpd, with a 42% light oil cut. An electrical submersible pump will be installed to produce the
C7 formation. The company is of the opinion that the initial water production from the C7 formation
may be caused by poor cement isolation from water bearing zones.
On March 1, 2011, the Kona-4 well was spud. Kona-4, located approximately 420m south of Kona-
2, was drilled to a total measured depth of 12,827ft and evaluated the C7, Mirador, and Gacheta
formations. Logging-while-drilling tools indicated potential net oil pay of 20ft and 30ft in the C7 and
Mirador formations respectively, consistent with the company's pre-drill expectations, while the
Gacheta formation was evaluated as wet. The well has been cased and the Mirador formation will
be completed.
Parex Resources has skid a drilling rig and has spud Kona-6, which is being drilled as an appraisal
well for the C7 formation which has not yet been tested in either of the Kona-1 or Kona-2 wells.
Log analysis of the C7 formation has indicated 35ft and 50ft of potential net oil pay in the C7 on
Kona-1 and Kona-2 respectively.
Colombia Exploration Update
On J anuary 19, 2011 the Kopi-1 well was spud and was drilled to a depth of 10,993ft. The Mirador
formation tested wet and the C7 tested low swab rates of 31 degree API oil. Due to the low flow
rates the well was acidized and subsequently produced 100 percent water. As Parex Resources
believes the testing results were inconclusive, the well has been suspended. Parex is currently
evaluating the potential to drill an exploratory sidetrack well up-dip from Kopi-1.
The company's next new exploration drilling prospects on block LLA-16 are Sulawesi-1 and J ava-
1. Both these prospects are defined by 3D seismic and are programmed to test multi-zone targets
with drilling depths of 11,000ft and 12,000ft respectively. Both these prospects are located on the
same fault trend as the Kona discovery. Lease construction is complete on the Sulawesi prospect.
As previously disclosed, Parex Resources intends to drill an exploratory well, Supremo-2 to test
the potential up-dip of the Supremo-1 well. This well is expected to spud mid year 2011. For the
remainder of 2011, Parex Resources's drilling strategy is to utilize two to three drilling rigs and a
service rig to allow for continuous operations on the Kona discovery and on additional block LLA-
16 and LLA-20 drilling prospects.
Reserves Update For Colombia Kona Discovery
Notwithstanding the Kona-4 well has been deemed successful with internal log analysis calculating
approximately 50ft of potential oil pay in the C7 and Mirador formations, the company's
independent engineer GLJ Petroleum Consultants Ltd. (GLJ ) had ascribed probable reserves in

Page (102)

the company's December 31, 2010 oil and gas reserve report (December 31, 2010 Evaluation)
that projected thicker potential pay zones in the C7 and Mirador and anticipated oil pay in the
Gacheta formation.

10.3.7 Apr 13, 2011: Petro Vista Energy To Test Morichito-5b Exploration/Appraisal Well In
Llanos Basin, Colombia
Petro Vista Energy Corp. (Petro Vista Energy) has announced that the Morichito-5B well in
Colombia has reached total depth and production casing is being run to evaluate oil and gas
shows encountered in the Tertiary Carbonera and Mirador and Cretaceous Guadalupe, Gacheta,
and Ubaque formations.
This Morichito-5B was drilled from the company's original M-5 (2010 discovery) drilling pad and
deviated approximately 1,200ft to the southwest of the original well. The well was drilled to a total
depth of 6,855ft in the Paleozoic. During drilling mud-log shows were encountered in the
Carbonera C7, Mirador, Guadalupe, Gacheta, and Ubaque formations. Subsequent petrophysical
analysis of electric logs indicated multiple potential pay zones.
The Carbonera C7 zone is equivalent to and 6ft structurally high to the 5,900 foot zone in the
Morichito M-5 well which swabbed at a rate of 375bopd of 23 degree API oil with no water cut (see
news release dated March 25, 2010).
A decision has been taken with partners Green Power Corporation and Golden Oil Corp. to run 7"
production casing and test at least two zones. Petro Vista Energy expects testing to commence
approximately May 1, 2011 and take 15-20 days to complete. Assuming success and the receipt of
necessary permits, this well will be placed on a long-term production test along with the existing
M5 discovery well on which a work-over rig is being mobilized with testing to commence
approximately April 28, 2011.
The Morichito-5B well was drilled as a deeper pool wildcat and fulfills the company's Phase V
contract commitment with the Colombian National Hydrocarbon Agency (ANH).

Appendix
Page (103)

11 Appendi x
11.1 Abbreviations
BCM- Billion cubic meters
Bcf- Billion Cubic Feet
BOPD- Barrels of oil per day
MBoe- Million Barrels of Oil Equivalent
Mcf- Thousand cubic feet
MMcf- Million Cubic Feet
MMbbls- Million Barrels of Oil
MMBTU- Million British thermal units
MMTPA- Million Metric Tonnes per Annum
(1 MMTPA =20081.55 BOPD)
Tcf- Trillion cubic feet

11.2 Methodology
GlobalDatas dedicated research and analysis teams consist of experienced professionals with
marketing, market research and consulting backgrounds in the energy industry, and advanced
statistical expertise.
GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and
the Society of Competitive Intelligence Professionals (www.scip.org).
All GlobalData databases are continuously updated and revised.

11.2.1 Coverage
The objective of updating GlobalDatas coverage is to ensure that it represents the most up-to-
date vision of the industry possible.
Changes to the industry taxonomy are built on the basis of extensive research of company,
association and competitor sources.
Company coverage is based on three key factors: market capitalization, revenues and media
attention/innovation/market potential.
An exhaustive search of 56 member exchanges is conducted and companies are
prioritized on the basis of their market capitalization
The estimated revenues of all major companies, including private and governmental, are
gathered and used to prioritize coverage
Companies which are making the news, or which are of particular interest due to their
innovative approach, are prioritized

Appendix
Page (104)

GlobalData aims to cover all major news events and deals in the energy industry, updated on a
daily basis.
The coverage is further streamlined and strengthened with additional inputs from GlobalDatas
expert panel (see below).

11.2.2 Secondary Research
The research process begins with exhaustive secondary research on internal and external sources
being carried out to source qualitative and quantitative information relating to each market.
The secondary research sources that are typically referred to include, but are not limited to:
Company websites, annual reports, financial reports, broker reports, investor presentations
and SEC filings
Industry trade journals and other literature
Internal and external proprietary databases
National government documents, statistical databases and market reports
News articles, press releases and web-casts specific to the companies operating in the
market.
11.2.3 Primary Research
GlobalData conducts hundreds of primary interviews each year with industry participants and
commentators in order to validate its data and analysis. A typical research interview fulfills the
following functions:
It provides first-hand information on the market size, market trends, growth trends, competitive
landscape, and future outlook
It helps in validating and strengthening the secondary research findings
It further develops the analysis teams expertise and market understanding
Primary research involves email interactions and telephone interviews, as well as face-to-face
interviews for each market, category, segment and sub-segment across geographies
The participants who typically take part in such a process include, but are not limited to:
Industry participants: CEOs, VPs, business development managers, market intelligence
managers and national sales managers
Outside experts: investment bankers, valuation experts, research analysts and key opinion
leaders specializing in oil and gas markets.
11.2.4 Expert Panel Validation
GlobalData uses a panel of experts to cross-verify research and forecast methodologies and drive
its analytical content.
The GlobalData expert panel comprises marketing managers, product specialists, international
sales managers from energy companies, academics and geologists from research universities,
consultants from venture capital funds and distributors/suppliers of oil and gas goods and services.
Details of the makeup of the expert panel can be viewed through our website, and are available to
clients on request.

Appendix
Page (105)

11.3 Contact Us
If you have any queries about this report or would like further information, please contact us using
the following telephone numbers or email address.
North America: +1 646 395 5460
Europe: +44 207 406 6653 (or)
+44 1204 543 523
Asia-Pacific: +91 40 6616 6700
Email: info@globaldata.com

11.4 Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form by any means; electronic, mechanical, photocopying, recording or otherwise, without the prior
permission of the publisher, GlobalData.
The facts of this report are believed to be correct at the time of publication but cannot be
guaranteed. Please note that the findings, conclusions and recommendations that GlobalData
delivers will be based on information gathered in good faith from both primary and secondary
sources, whose accuracy we are not always in a position to guarantee. As such, GlobalData can
accept no liability whatsoever for actions taken based on any information that may subsequently
prove to be incorrect.

2011 Global Data Colombia Gas Markets

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

2011 Global Data Colombia Gas Markets

Enviado por

Direitos autorais:

Formatos disponíveis

Col ombia Gas Markets, 2011

Você também pode gostar