NDR10 - Country Report Colombia - Carolynna Arce Hernandez Deputy Director Rio de Janeiro, Brazil 2011

1. NDR10 - Country Report Colombia - Carolynna Arce Hernandez Deputy Director Rio de Janeiro, Brazil 2011

2. Contents Colombia Institutional Framework Industry background EPIS - Exploration & Production Exploration Service

3. Colombia in South America: • Oldest democracy • 2nd population : 45 million • 3rdcrude producer: 861,000 b/d (2010) • 3rd economy : GDP: USD 395 billion • 3rd recipient of FDI : USD 9.9 billion (2010) • - in oil & gas : USD 4.0 billion (2010) (E) • 4th Land surface area: 1.2 million sq km

4. Institutional framework Ministry of Mines and Energy

5. Exploration activity is intense Million (Ha) Open Round Colombia 2010 Technical Evaluation Agreement Exploration Production 5

6. Licensing activity and seismic data acquisition at record levels … 6

7. … the highest number of exploratory wells and high success rates … 7

8. The production keeps growing… Average annual production Average monthly production Oil Gas Oil Gas 2010 2011 8

9. EPIS - Exploration & Production Exploration Service Purpose • To maintain the exploration & production information. • To help on the delivery of technical information for tenders and for the exploration & production activities. • To review the commitments execution of the licenses. • To promote exploration opportunities to attract investment for the hydrocarbons sector. 14

10. Exploration & Production Exploration Service Legislation 7/Data release • All operators must submit the exploration & production information to the NDR • The latest exploration contracts provide 5 years of confidentiality. • The ANH releases data to support of tenders. • Public data is available to everyone. 8

11. Exploration & Production Exploration Service History Before 2003 • Before the ANH´s creation, the technical information was report and deliver to Ecopetrol and managed by Schlumberger.- • The ANH was create in 2003 and it received the database and tapes/documents from Ecopetrol. The EPIS was manage in all its components by Schlumberger between 2003 and 2007. 2003 - 2007 • During 2007 & 2008 an IT service company was managing the hardware platforms of the NDR, and Schlumberger still was operating and providing the software 2007 - 2008 7

12. Exploration & Production Exploration Service History • In 2009, the ANH continued with the new business model definition. • -Decentralized operational model: Each component is manage by a different company, allowing the ANH to have better control, removing the “black-box” effect- 2009 • Since the end of 2009, the NDR data was migrate from Schlumberger applications to a new EPIS system, based on Whereoil by Kadme. The system is operate by a local company, and the IT infrastructure is operate by an IT local provider. 2009 - 2011 7

13. Exploration & Production Exploration Service Current Model Oil Company ANH Everyone Oil Company Reception QC / QA Archiving SUBMISSION EPIS DELIVERY Public Data Entitled Data DATA CENTER NDR OPERATOR IT SERVICE PROVIDER INFRASTRUCTURE – HARDWARE & SOFTWARE

14. Exploration & Production Exploration Service Data Types and Volumes 12

15. Exploration & Production Exploration Service The NDR is growing 6

16. Exploration & Production Exploration Service …. and the cost is diminishing 6

17. Exploration & Production Exploration Service What´s next? • To improve some system functionalities. • To select a new operator through a tender in the next months under concession model. • To develop the new functionality to load magnetic & gravimetric information. • Historical data quality control. 9

18. www.anh.gov.co Thank you! 18