Colombia oil auction disappoints, but Exxon dives in

|By:, SA News Editor

Colombia announces disappointing results from its first oil auction in two years, drawing investment commitments totaling $1.4B which were well short of the $2.6B the government said it was expecting.

Submitted offers did include a few big names, as Exxon Mobil (XOM +0.6%) and Statoil (STO -0.1%) landed the rights to explore a new Caribbean Sea deepwater block in partnership with Repsol (OTCQX:REPYY, OTCPK:REPYF).

Colombia pumps ~1M bbl/day of crude oil, making oil the country's top export and main source of foreign revenue, but reserves are dwindling, and the government needs the money and know-how foreign companies can offer to explore offshore and to dig through shale.