IHS Markit - Deepwater Activity in Colombia

The promotion of its Caribbean waters was a key part of Colombia's push for new investment. In February 2004, the ANH assigned Ecopetrol the 35,004 sq km Tayrona Block, and deepwater expert Petrobras was targeted to be a partner. A 3,500 sq km 3D acquisition over the Tayrona Block during the latter half of 2006 prefaced the country’s first deepwater discovery. In December 2014 Petrobras’s Orca 1 new-field wildcat (NFW), which was drilled in 674 m of water, was confirmed as a natural gas discovery on the Tayrona (B) Block. Orca appraisal drilling is planned with the Brama 1 slated for a June 2017 spud date. Current interest holders are operator Petrobras with 40%, Ecopetrol with 30%, Repsol with 20%, and Statoil with 10%.
Shell acquired 3D seismic during 2014 over its offshore COL 3 Block and GUA OFF 3 Block; the latter was awarded to Shell as a technical evaluation agreement (TEA) from the ANH Ronda 2010 bid round. Also in 2014, Repsol acquired 3D data over its GUA OFF 1 Block, another Guajira Basin TEA; it was awarded to the Spanish operator partnered equally with Ecopetrol from Ronda 2012. Repsol acquired additional deepwater acreage from Ronda 2014. With operatorship and a 33.34% interest, Repsol is partnered with ExxonMobil and Statoil at 33.33% each, and an approximate 7,500 sq km 3D program was conducted over the COL 4 Block in 2016. 
The Grand Fuerte offshore area of interest is held equally by Anadarko and Ecopetrol and it includes the COL 5, Fuerte Norte, Fuerte Sur and Purple Angel blocks. Operator Anadarko completed a 5,500 sq km broadseis seismic program across a portion of the area in November 2013. Then in July 2015, the Kronos 1 NFW on the Fuerte Sur Block was drilled in 1,584 m of water and proved successful. This play-opening discovery well encountered gas in the upper objective with a net pay thickness between 40 m and 70 m of gas-bearing Neogene sandstones at a depth of 3,720 m. The nearby Calasu prospect located on the northern end of the complex is a large four-way structure which targeted multiple objectives. In February 2016 Anadarko announced the Calasu 1 NFW encountered non-commercial quantities of gas pay on the offshore Fuerte Norte Block. It was drilled in 2,229 m of water and located some 145 km northeast of the Kronos 1 gas discovery. Appraisal drilling for Kronos commenced near year-end 2016 when the Purple Angel 1 well was spudded in 1,835 m of water on the Purple Angel Block. In early March 2017 partner Ecopetrol announced gas was encountered at different intervals with thicknesses ranging from 21 m to 34 m. When correlated with the Kronos 1 discovery, pay intervals in the Purple Angel 1 suggest that the Kronos field has a gas column of at least 520 m. Still utilizing the “Bolette Dolphin” drillship, Anadarko is currently drilling the Gorgon 1 NFW in some 2,150 m of water. It is also located on the Purple Angel Block and situated some 27 km northeast of the Purple Angel 1 well. Although this deepwater acreage is gas-prone, there are hopes that exploration efforts could lead to liquids.   
Moving northeast in deepwater acreage referred to as the Grand Col area, Anadarko awarded CGG a contract to acquire an approximate 16,000 sq km 3D survey, the largest proprietary marine seismic program in Colombia. Additional seismic was acquired in 2016 for a total of some 30,000 sq km over the Magdalena delta submarine fan system. Anadarko, with 100% interest, shot this Esmeraldas 3D survey in two phases; Phase I commenced in July 2015 covering parts of COL 1 and COL 2 blocks. Phase II commenced seven months later with some 13,000 sq km of 3D data acquired over COL 6 and COL 7 blocks. The operator recently opened a data room to showcase the spectacular data from this unexplored frontier region of Colombia’s deepwaters.
Despite the industry downturn, Colombia’s offshore stayed afloat and activity is on the rise. Ecopetrol is planning deepwater projects over the next five years and the region offers significant potential. Although in its infancy, exploration opportunities in this massive area are high profile and the excitement is just gearing up. Since onshore wells cost a fraction of their deepwater counterpart, the industry awaits a fair offshore contract model. Colombia seems willing to learn from its national oil company Ecopetrol and other international companies with stakes in the game. By providing reasonable deepwater fiscal relief, including tax and royalty relief, Colombia could soon reap the benefits of attracting more investment to join its frontier deepwater play.