Colombia woos Shell, Petrobras, others with improved deepwater contracts

Royal Dutch Shell (RDS.A, RDS.B), Petrobras (PBR), Anadarko (APC), Ecopetrol (EC), Repsol (REPYF, REPYY), and BG Group (BRGYY, BRGXF) have expressed interest in Colombian deepwater blocks after the country sweetened contract terms, according to the deputy energy minister.

Companies drilling in deep water now will be able to recover 200M barrels before the government begins taking a 30% royalty, with operators in ultra-deep water allowed 300M barrels.

Colombia will auction 13 blocks in this year’s bidding round, three located off the Pacific coast and 10 in the Caribbean.

From other sites
Comments (4)
  • saratogahawk
    , contributor
    Comments (2534) | Send Message
    This is a nice sweetner and should enhance the bidding for the 13 new blocks.
    5 Mar 2014, 12:39 PM Reply Like
  • afali
    , contributor
    Comments (8) | Send Message
    Colombia will be an economic engine surpassing Brazil shortly....
    5 Mar 2014, 02:25 PM Reply Like
  • sweeps63
    , contributor
    Comments (956) | Send Message
    Hopefully this locks in some of SDRLs deepwater rigs being built that are not already under contract.
    5 Mar 2014, 02:42 PM Reply Like
  • Dmarque@
    , contributor
    Comments (42) | Send Message
    That Alabama shelf goes up for auction this month in the Gulf of Mexico. Should be a much bigger deal than Columbia AND in 2015 the west side of the Gulf goes up for auction and that is going to be much bigger than the Alabama Shelf. Majors sitting quietly by ready to pounce on these auctions. Rigs should be in full operation very shortly
    5 Mar 2014, 03:27 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs