COLOMBIA: Oil Companies Should Invest At Least US$ 4.5 Billion In 2018

(RTTNews) - The Colombian Petroleum Association (ACP) estimates that local companies in the sector plan to invest between US$ 4.5 billion and US$ 4.9 billion in exploration and production in 2018, which would represent a 30% to 45% growth compared to 2017.

The projection is based on Brent crude oil prices of more than US$ 50 per barrel during 2018.

Most of the expected investment - between US$ 3.5 billion and US$ 3.8 billion - would be targeted at production projects, which implies an increase between 50% and 60% compared to this year.

According to the study despite the increase, the production forecast remains stable, ranging from 860,000 to 880,000 barrels a day. This is because the largest investment in this area is aimed at sustaining current extraction levels and counteracting the natural decline of mature fields, which represent about 80% of the Colombian production.

The report predicts that investment in exploration in 2018 will maintain at similar levels to those of 2017, between US$ 1 billion and US$ 1.1 billion, of which US$ 130 million should be specifically earmarked for gas projects.