OIL GOODS AND SERVICES

COLOMBIAIN THE WORLD

Colombia is one of the top twenty oil-producing countries, with a production of over a million barrels of oil a day. (BP Statistical Review of World Energy 2014 workbook).

The country is established as the third largest oil producer in South America, producing more oil than countries like Argentina, Ecuador, Peru and Chile. (BP Statistical Review of World Energy 2014 workbook).

Ecopetrol estimates the potential Colombian reserves at a total of 47 billion barrels.

GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST

Libertad y Orden

OIL PRODUCTION 2000-2013

COLOMBIA HAS BROAD POSSIBILITIESFOR EXPANDING ITS OIL SECTOR

In 2013, 115 oil wells were drilled in the country. Over the last four years, the number of wells has increased by 13.3% on average.

In 2013, oil accounted for 9.3% of Colombia’s GDP. (DANE, 2014).

Crude oil production has increased by an average of 8.6% over the last three years (2011 - 2013).

Colombia currently has potential reserves calculated at 47 billion barrels of oil, and based on UPME (Unidad Administrativa Especial del orden Nacional [National Special Administrative Unit]) projections for the next 18 years, it is expected that oil reserves in the country will increase via:

In the first half of 2014 the country achieved a total production of 177.6 MBI. (UPME, 2014).

The oil sector in Colombia receives 30% of the FDI in the country (Foreign Direct Investment - data from 2013, Central Bank, 2014).

The oil sector in Colombia receives 30% of the Foreign Direct Investment in the country. (Central Bank, 2014).

VENEZUELAPERUBRAZIL ECUADORARGENTINA COLOMBIA SOURCE: BP ENERGY OUTLOOK 2012, IEA 2013.

Secondary recovery: increase in secondary recovery from 16% to 30%.New findings in heavy crude oil.Improvements in non-conventional fields.

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

3,500

2,500

1,500

3,000

2,000

1,000

500

4,000

The country is preparing to begin exploring offshore deposits with great potential in the Pacific and Atlantic Oceans.

The local market is favorable for the entrance of large, small and medium-sized companies that can satisfy special needs arising across the productive and distributive chain.

In 2013, the Cartagena de Indias refinery started operations with a capacity of 165,000 BPD. Along with the modernization project at the Barrancabermeja refinery, the demand for goods and services related to the industry will increase.

Excellent geographic location with departures on both the Pacific and Atlantic Ocean, covering all global markets.

COLOMBIA OFFERS A VARIETY OF OPPORTUNITIES IN VARIOUS REGIONS

Colombia currently has approximately 8,000 km of oil pipelines. The aim of the new expansion projects is to double the installed capacity (approximately 9,000 km between oil pipelines and multipurpose pipelines and 3,774 km of gas pipelines).

Colombia has the potential to extract non-conventional hydrocarbons.

ANDEAN REGION

ORINOQUIA REGION

AMAZON REGION

CARIBBEAN REGION

• Santander: the fourth largest producer of crude oil in the country in 2013 with 55,167 BCD. It has 9 companies established within it and the most important refinery in the country, Barrancabermeja.

• Huila: in 2013 it was the seventh largest producer of crude oil in Colombia with an average production of 34,559 BCD. Strategically positioned as a regional center of operations for services for neighboring departments such as Caqueta and Valle.

• Cundinamarca: Bogota has been positioning itself as a hub for the oil and gas services industry in the country and in the region.

• Meta: in 2013 it was ranked as the main producer of crude oil in Colombia, with an average production of 510,143 BCD. It has 10 companies established within it, among which Campo Rubiales and Quifa stand out.

• Casanare: in 2013 it was the second highest crude oil producing department in the country with 177,246 BCD produced (the biggest production well is Pauto Sur Piedemonte). The Cusiana - Cupiagua and Rancho Hermoso production wells are especially noteworthy, demanding (maintenance) services throughout the entire productive chain.

• Arauca: the third largest producer of crude oil in the country with 60,334 BCD in 2013. It has one of the oldest production oil wells in the country, Caño-Limón, which has produced over 1 billion barrels of oil since its inception.

• Putumayo: the fifth largest producer of crude oil in the country, with an average of 48,042 BCD produced in 2013. It is strategically positioned as a regional center of operations for services for operations in border zones with Ecuador and Peru.

• Bolivar: in 2013 Bolivar produced 15,689 BCD. The Cartagena refinery is planning to increase its crude oil processing capacity from 80,000 to 165,000 BCD for 2014.

COLOMBIA: A KEY COUNTRY FOR THE EXPANSION OF OIL GOODS AND SERVICES

55% of all Colombian exports during 2013 were accounted for by petroleum and its derivatives.

More than 50% of Colombian territory still has not been explored. There is the possibility of additional discoveries in fields such as Cusiana, Cupiagua, Caño Limón, La Cira-Infantas and Chuchupa-Ballena. All these have proven reserves of more than a million barrels of oil.

The country’s current priority is to increase the level of its proven crude oil reserves. 115 oil wells were drilled in the country in 2013. Over the last four years, the number of wells has increased by 13.3%, on average.In the 2014 Round led by the Agencia Nacional de

Hidrocarburos [National Hydrocarbon Agency] (ANH), 26 blocks were offered for exploration and exploitation with an investment of USD 1.4 billion, counting both off-shore and continental areas. (Portafolio).

Colombia has potential reserves of 19 trillion cubic feet of hydrocarbons in shale deposits, an encouraging figure compared with its conventional reserves for natural gas, which amount to 6 trillion cubic feet.

In 2014, 570 new exploratory wells are expected to be drilled. (Ministry of Mines and Energy).

In 2014, the capacity for pipeline transportation is projected to increase to a total of 1,450,000 BPD, as compared with its current capacity of 980,000 BPD. The goal is to grow the transportation capacity by 35% over the next two years. (CENIT [Ecopetrol subsidiary], 2013).

Colombia has attracted large global oil companies such as:

Additionally, large oil goods and services companies also have a presence, such as:

KERUI GROUP, CHINAWEATHERFORD, U.S.A.SCLUMBERGER, FRANCE

PETROMINERALES, CANADA

SINOPEC, CHINA

PACIFIC RUBIALES, CANADA

PETROBRAS, BRAZIL

OCCIDENTAL PETROLEUM CO,

U.S.A.

HALLIBURTON, U.S.A. BAKER HUGHES, U.S.A.

LARGE TRANSNATIONALS HAVE CHOSEN COLOMBIA FOR THEIR OPERATIONS

ECOPETROL, COLOMBIA.

CANACOL, CANADA

TALISMAN, CANADA

SINOCHEM, CHINA

ONGC, INDIA