Hidrosogamoso project brings ICT on board for construction role

The massive Hidrosogamoso project being put together by Colombian energy-generation group Isagen has lurched forward another step with the group signing a contract with Grupo ICT for Peso$178.12bil. ICT has been encharged with the construction of works related to the Proyecto Hidroelectrico Sogamoso. Specifically, it will be responsible for the deviation tunnels, the access tunnels, excavation and foundations for certain areas of the plant amongst other things.

Publication: SABI - Business News
Provider: South American Business Information
September 19, 2009

Pacific Rubiales to register on Bolsa this time next month

Pacific Rubiales has set a date on its entry onto the Colombian Bolsa de Valores or rather a period in which it will occur, between September 15 and September 30, 2009. However, the firm is only set to register for now and not emit shares.

A partner of Ecopetrol, Pacific Rubiales had been expected to register last month but has been delayed by the Ministerio de Hacienda and the Bolsa itself, working together on new regulations for foreign values. The firm announced its intention back in February.

Publication: SABI - Business News
Provider: South American Business Information
September 1, 2009

Isagen gets nod from DNP to secure funding for hydropower plant

The National Planning Department in Colombia (DNP) is reported to have given the green light for Colombian electricity generation company Isagen to seek financing at both local and international level in 2009 and 2010. The company will use the funds to finance the construction of its Hidrosogamoso hydroelectric station. Isagen recently opened a tender project for the construction of this power station.

Publication: Esmerk - News monitoring
Provider: Esmerk
June 19, 2009

Gran Tierra Energy oil output hits 15,334 bpd end-Mar '09

Canadian-based oil company Gran Tierra Energy Inc (TSE:GTE) reached an oil output of up to 15,334 barrels per day (bpd), net after royalty, at end-March against some 10,000 bpd on average in the first quarter of 2009.

The increase is due mainly to the development of the Costayaco field in Colombia's Chaza block, operated by Gran Tierra Energy, the company said on Thursday.

Gran Tierra Energy expects to keep its production at roughly 15,000 bpd through the second quarter of 2009, as the Costayaco-5 oil well is about to come on stream in the next days.

The company also announced an asset purchase and sale agreement with Lewis Energy Colombia Inc for Gran Tierra Energy's interests in the Guachiria Norte, Guachiria, and Guachiria Sur blocks in Colombia's Llanos basin. The deal is expected to cut by USD 6.2 million (EUR 4.7m) Gran Tierra Energy's capital spending in 2009. The company will retain a 10% overriding royalty interest in Guachiria Sur in case of a discovery.

Publication: ADP News
Provider: AII Data Processing Ltd.
April 10, 2009

Colombian energy group likely to invest US$400 mln in Peru's energy projects

Colombia's Grupo Energia de Bogota plans to invest over 400 million dollars in Peruvian energy projects, reported today Bogota's mayor and president to Board of Directors of the company, Samuel Moreno.
According to Moreno, over 200 million dollars will be invested only in the construction and operation of the Ica gas pipeline, through Transcogas Perú, where "Empresa de Energía de Bogotá" (EEB) is the majority shareholder.

"Grupo Energia de Bogota owns over 80 percent of EEB, a public company from the Colombian capital that is steadily expanding", he said.

However, he emphasized that Ica gas pipeline will be not the only investment undertaken by Grupo Energía de Bogota in Peru, since it also plans to make significant investments through the Peru Energy Network (REP) and Transmantaro Consortium, both experts on the transmission of electricity.

Publication: Andina - English Newswire
Provider: Andina
March 7, 2009

El Quimbo getting underway

Via investment of roughly US$700mil, Emgesa will this year begin to build the hydroelectric plant El Quimbo. The firm, a filial of Endesa, will give the plant a capacity of 400 MW and thereby meet 5% of current Colombian demand for electricity. Initial investment will focus on building a dam, a dyke and a reservoir on the River Magdalena, Huila. Overall, it will take five years to complete El Quimbo across three stages, explains Lucio Rubio Diaz, director-general of Endesa in Colombia. The Spanish company's partner in the project is Empresa de Energia de Bogota.

Publication: SABI - Business News
Provider: South American Business Information
February 6, 2009

Avantegenera acquires Colombian Petrotesting

Avantegenera, the energy division of the investment firm Inveravante of Spanish businessman Manuel Jove, has acquired the Colombian oil exploration and production company Petrotesting Colombia SA eyeing to merge it with Vetra Energia, Inveravante informed on Tuesday.

The aim is to create an integrated company that complements Vetra Energia's experience and technical know how and has the necessary production to meet big scale business opportunities, it said.

Petrotesting owns 11 hydrocarbon producing fields in Colombia and is involved in oil services contracts for natural gas production in Mexico.

The company, which will result from the merger, will consolidate its position in Latin America, where Vetra is already present, and is targeted to boost its hydrocarbon production and increase its proven reserves to over 100 million barrels of oil equivalent in the next three years.

The operation is part of Vetra Energia's strategic plan which contemplates investments of over USD 300 million (EUR 232.2m) in the next four years.

The merger is subject to the approval of Colombia's anti-trust authorities.

Publication: ADP News
Provider: AII Data Processing Ltd.
December 10, 2008

Chevron Texaco to add 140 million cubic feet of gas per day to output

Natural gas production will rise to 700 million cubic feet per day for its Colombian operation as of February 2009, says Chevron Texaco, a company set to invest US$300mil in doing so. In association with its local state partner Ecopetrol, Chevron Texaco is ready to start a new seismic programme across 300 kilometres; first, it will end 2008 with daily average production of 560 million cubic feet of gas at La Guajira, notes David Bantz, president of Chevron for Colombia.

Publication: SABI - Business News
Provider: South American Business Information
November 11, 2008

Petro Vista acquires 100% of Morichito block

California-based Petro Vista Energy (TSX-V: PTV) has obtained the remaining 47.8% stake in the Morichito block in Colombia's Llanos basin, bringing its interest to 100%, the company said in a statement.

Petro Vista obtained the initial stake in the block in July and the rest was purchased from Eagle Transport.

The company is expecting net production of 2,100b/d from the block.

Around 600b/d could come from the completion of an existing discovery and a new exploration well could yield 1,500b/d, according to the statement.

Geotechnical and engineering analysis has been completed on five exploration prospects on the block, the company said.

Petro Vista says it plans to begin completion of the Morichito-M2 discovery well in November and will spud the Morichito-1N exploration well in 1Q09.

The Canadian company has already started building access roads and is evaluating several options for drilling rigs and services.

Colombian hydrocarbons regulator ANH has granted a 12-month contract extension for the drilling of the exploration well.

"The acquisition of the remaining interest in this block at a low upfront cost consolidates our interest in one of our highest potential assets," Petro Vista CEO Read Taylor said in the statement.

"The cash flow from the well completion and the existing Tartaruga block production in Brazil will allow us to progress our high quality opportunity-rich development and exploration drilling portfolios," he added.

Petro Vista acquired the interest for a US$500,000 cash payment due on November 26 in addition to US$2.5mn to be paid from 40% of net production from the block. Petro Vista will also pay a 1% net production royalty and granted Eagle a waiver for its obligations to repay its working interest commitments, according to the statement.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: October 20, 2008

Pacific Rubiales closes Kappa acquisition

Toronto-based Pacific Rubiales Energy (TSX: PEG) has closed the acquisition of Colombian oil company Kappa Energy for a cash payment of US$168mn, the Canadian company said in a statement.

The deal remains subject to minor post-closing adjustments and regulatory approval in Colombia.

Kappa has holdings in nine blocks in the Catatumbo, Llanos and Lower, Middle and Upper Magdalena basins of Colombia. The total land position is close to 750,000 acres (300,500ha).

As of May 31, Kappa had 10.3Mboe of 2P reserves and 24.2Mboe of 3P reserves. Nearly 166Mboe of further prospective resources have also been identified, according to the statement.

Pacific Rubiales aims to invest US$171mn in Kappa through 2009 to boost the company's production from its current 4,100boe/d to 10,000-12,000boe/d.

Pacific Rubiales, which boasts net production of roughly 22,500boe/d, operates the Rubiales heavy oilfield and La Creciente natural gas block in Colombia in addition to other assets in the country. The company also has operations in Peru.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 8, 2008

Colombia: US$6bn to be invested in power sector through 2019

The hydro projects include Pescadero-Ituango, Isagens 800MW Hidrosogamoso plant, Porce IV, El Quimbo, Miel II, Amoya and Cucuana to be constructed in the departments of Cordoba, Magdalena, Tolima, Caldas, Antioquia, Santander and Huila. Colombia already has added 135MW of capacity to its national grid since 2007. New projects under construction will add 713MW and include the Mayaguez thermo plant and the Anaime, Caruquia and Porce III hydro plants.

The minister highlighted a recent power auction hosted by wholesale power regulator XM and said the countrys power needs were guaranteed until 2019. Colombias government, meanwhile, declared this week the Pescadero-Ituango and Porce IV projects to be in the public interest. Developers now will be able to begin eminent domain procedures to acquire the needed lands, the presidential press office announced. The 2.4GW Pescadero-Ituango project is planned for the north of Antioquia department and will flood 3,800ha. Medellin-based multi-utility EPM has a 44.4% stake in the project. Antioquias development institute IDEA controls 42.4%, with the remaining share divided among other government agencies and shareholders.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: September 1, 2008

Colombia Cartagena Refinery Expansion Seen to Cost over $2.7 Bln

The expansion of Colombia's Cartagena refinery will involve investments of over $2.7 bln (1.835 bln euro), the Colombian Trade, Industry and Tourism Ministry said on August 19, 2008.

Cartagena refinery is considered one of the most important projects among the 36 free zones in the country approved over the last two years.

The expansion will increase by 100 pct its current production capacity to 165,000 barrels a day and will improve the production of high-value products through the implementation of modern technology. The refinery will be capable of producing diesel fuel with a reduced sulphur content of 10 ppm (parts per million) and petrol with a sulphur content of 30 ppm.

The expansion is also expected to create 3,500 jobs during the second half of 2010 and nearly 100 direct new jobs after the launch of the expanded refinery, projected for 2012.

Cartagena refinery is located in the Mamonal Industrial Zone near the coastal city of Cartagena, northern Colombia.

Its expansion is developed by an alliance between the Colombian state-owned oil company Ecopetrol and Swiss-based Glencore International AG.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 20, 2008

Colombia Epsa Develops 300 MW Power Projects

Colombian power company Empresa de Energia del Pacifico SA (Epsa) is developing five electricity projects that will add 300 MW to its installed capacity over the next two years, local daily La Republica reported on August 11, 2008.

The projects include a 20 MW plant on the Amaime river and the 20 MW plants Tulua I and Tulua II.

Epsa also plans to develop the 60 MW Cucuana project in the western department of Tolima, projecting to start its construction in January 2009.

The fifth project is Miel II, on which Epsa is currently conducting environmental studies. The construction is expected to kick off in the first quarter of 2009. Epsa holds 65 pct in this project.

The company targets to boost its present capacity by 500 MW for 2012 and does not exclude the possibility to seek stakes in local power generating companies, which will help it fulfill its targets for growth.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 11, 2008

Ecopetrol, Pacific Rubiales Team Up on Colombia Alicante Block

Colombia's state-owned oil company Ecopetrol on July 31, 2008 signed an accord with Meta Petroleum, a local subsidiary of Canadian-based oil firm Pacific Rubiales, on the joint development of the Alicante hydrocarbons block in Colombia's Llanos Orientales basin, Ecopetrol said.

Under the agreement Ecopetrol will cede to Meta Petroleum a 55 pct participation in the block, which is now wholly developed by Ecopetrol under a contract with the National Hydrocarbons Agency (ANH) from 2006.

The transfer of the 55 pct stake is subject to a approval by ANH.

The accord between Ecopetrol and Meta Petroleum includes acquisition of seismic data in the third quarter of 2008 and drilling an exploration well in the second half of 2009.

Alicante stretches on 38,684 ha, some 29 km east of the town of Villavicencio in Meta department.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 1, 2008

Gran Tierra Energy Provides Mid-Year Update to Costayaco Field Reserves, Colombia

Colombia:
Gran Tierra Energy Inc. a company focused on oil exploration and production in South America, announced the results of a mid-year reserve update for the Costayaco Field in the Chaza Block located in the Putumayo Basin of Colombia. Gran Tierra Energy holds a 50 percent working interest and is the operator of the Costayaco Field and the Chaza Block. Solana Resources Limited holds the remaining 50 percent working interest. An independent reserve evaluation of the Costayaco field conducted by GLJ Petroleum Consultants effective July 1, 2008, using 3-D seismic and drilling results from four wells (Costayaco-1 through -4, not including test results of Costayaco-4 as these test results are not yet available) indicates that the Costayaco field has gross proved reserves of 20.5 million barrels of oil (MMbbl), gross proved plus probable reserves of 34.9 million barrels of oil and gross proved plus probable plus possible reserves of 61.4 million barrels of oil. The following table summarizes gross reserves for the field, in addition to Gran Tierra Energys gross and net reserves.

Publication: Euclid Infotech - Construction News
Provider: Euclid Infotech
Date: July 30, 2008

Colombia Isagen Net Profit Up 21 Pct Y/Y H1 2008

The net profit of Colombian state-run electricity group Isagen rose by 21 pct year-on-year to some 119.164 bln Colombian pesos ($66.2 mln/41.6 mln euro) in the first half of 2008, Isagen reported on July 21, 2008.

The operating profit grew by 12 pct to 186.253 bln pesos ($103.5 mln/65 mln euro), while the revenue stood at 557.35 bln pesos ($309.7 mln/194.6 mln euro). The earnings before interest, tax, depreciation and amortisation (EBITDA) margin stood at 43 pct.

Isagen owns and operates the hydroelectric plants San Carlos, Jaguas, Calderas and Miel I, and the 300 MW thermoelectric plant Termocentro located in the departments of Antioquia, Santander and Caldas, northwestern Colombia.

The company's installed capacity totals 2,132 MW, equal to 16 pct of the capacity of the national interconnection system.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: July 22, 2008

Ecopetrol production up 14% to 451,300b/d

Colombia's state oil company Ecopetrol reported that it produced 451,300boe/d in May 2008, an increase of 14.4% from 394,800boe/d in the same month of 2007.

The company's production for the first five months of the year rose 12.4% to 437,000boe/d compared to 389,000boe/d year-on-year, the company said in a statement.

Ecopetrol said it sold 133Mf3/d (3.77Mm3/d) of natural gas in Venezuela during the five-month period.

The company also said that it had drilled 14 of the 31 exploration wells that it is planning to drill in 2008. Ecopetrol acquired a total of 967km of 2D seismic data in the January-May period.

Crude sales rose 61.3% to 13.1tn pesos (US$7.48bn) in the first five months this year compared to 8.18tn pesos in the same period of 2007, according to the statement.

Net profit rose 218% to 4.04tn pesos from 1.27tn pesos in the first five months of 2007.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: July 4, 2008

Colombian Emgesa Prepares New Hydro, Thermal Power Projects

Colombian electricity generation and distribution company Emgesa prepares a portfolio of new hydroelectric and thermal power projects, the first of which will be El Quimbo hydroelectric power plant, Emgesa's President, Lucio Rubio Diaz, said on June 20, 2008.

According to Rubio Diaz, the projects are still in a preliminary phase of development. The hydroelectric power plants include Chapasias and the 480 MW Guaicaramo, while the thermal projects include an additional turbine at Termozipa thermoelectric power plant (TPP). The other thermal projects will be officially presented when the company completes the feasibility studies and the Colombian Government implements the new energy auction system. The investments in Guaicaramo are not yet defined, but they will be probably higher than the investments in El Quimbo, that might reach $700 mln (449.8 mln euro) or $800 mln (514 mln euro), Rubio Diaz explained. Meanwhile, Emgesa's plans include the construction of small-scale hydroelectric power plants with a combined capacity of 240 MW.

Emgesa (www.emgesa.com.co), which is controlled by Spanish utility Endesa, generated 11,930 GWh of electricity in 2007, which accounted for 22.4 pct of the total national electricity output. In 2007, Emgesa merged with local utility Betania and became Colombia's first electricity producer leaving behind Empresas Publicas de Medellin (EPM).

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: June 20, 2008

Bolivia, Ecuador, Chile, Peru, Colombia To Study Cross-Border Power Grid

The governments of Bolivia, Ecuador, Chile, Peru and Colombia will contract a company to conduct feasibility studies about an electricity interconnection between the five countries, Ecuadorian media reported on June 18, 2008.

The countries' deputy energy ministers met in Quito, Ecuador, on June 17 and 18 to analyse the offers presented by 10 international consultancy companies. One of them will be selected to carry out the study.

The study will take at least a year and should include issues like the regional energy supply and demand and the physical interconnection, the policy management undersecretary to Ecuador's Electricity Ministry, Pablo Cisneros, said.

The results will help to make an advance in the regional energy integration.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: June 19, 2008

Colombia: Maurel Prom signs new exploration contract for the Llanos area

Maurel Prom, through its wholly owned subsidiary Hocol, have signed with the National Hydrocarbon Agency of Colombia (ANH) a new Exploration and Production Contract (Clarinero) in the Eastern Llanos region, approximately 400km east of Bogota. The Clarinero contract covers an area of 2,298 km squared and is operated on 100% basis by HOCOL S.A. with royalties estimated at 8%.

The Clarinero contract strongly reinforces Hocols position in this region of Colombia, where the company already operates, also on a 100% basis, five other EP contracts (Lince, Saltarín, Cocli, Guarrojo and Sabanero) in the proximity of Clarinero. In one of these contracts (Guarrojo, 100%),

Maurel Prom has announced recently the success in the confirmation of the Ocelote discovery, currently producing with the last well Ocelote-4, 3,100 bopd under long term tests. Hocol is currently producing 14,850 bopd (entitlement), which is 22% above a production of 12,237 bopd in 2007. In the Clarinero contract Maurel Prom is committed to acquire 250 km of 2D seismic, 185 km squared of 3D seismic and drill two exploration wells over the next 22 months.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: June 13, 2008