for hydrocarbons 1

Contents Colombia Institutional Framework Industry background Open Round Colombia 2010 Conclusions 1

Contents Colombia Institutional Framework Industry background Open Round Colombia 2010 Conclusions 1

Colombia in South America: Oldest democracy 2nd population : 45 million 3rd crude producer: 759,000 b/d 3rd economy : GDP: US$395 billion (2008) 3rd recipient of FDI : US$10.6 billion (2008) in oil & gas : US$ 3.4 billion (2008) 4th Land surface area: 1.2 million Km2

FDI flows in South America Source: UNCTAD

FDI by economic activity (2008) Source: Banco de la República

Historic FDI in oil & gas Investment in hydrocarbons Historic FDI in oil & gas *E = estimated Source: Banco de la República

Contents Colombia Institutional Framework Industry background Open Round Colombia 2010 Conclusions 1

Institutional framework - since 2003 Policy-making and control Administration and promotion of the hydrocarbons resources Explores, produces, refines, transports and markets Ministry of Mines and Energy

Strategic framework The ANH is the agency responsible for promoting Mission The ANH is the agency responsible for promoting the optimal and sustainable exploitation of the country’s hydrocarbons resources; through an integrated administration approach, seeking a balance between the interests of the State, Colombian society and industry Vision The ANH shall be recognized globally as a model government institution by: its knowledge of the Colombian geological potential and the optimization of its exploitation; its efficient and transparent administration of the hydrocarbon resource and coordinated work with both industry and community; and its professional staff, its high technological level and the agility of its process

Contents Colombia Institutional Framework Industry background Open Round Colombia 2010 Conclusions 1

Proved reserves (Billion barrels) Oil in South America Proved reserves (Billion barrels) Venezuela Production Colombia *E 99,4 2,5 (2%) Ecuador 3,8 Brazil 12,6 (*) 2,6 Argentina (12%) Growing (*) Production as of February 2010 Falling *E = reserves estimated Sources: BP Statistical Review 2009; ANH Analysis

Proved reserves (Tera cubic feet) Gas in South America Proved reserves (Tera cubic feet) Trinidad & Tobago 17,0 Production Venezuela Colombia *E 170,9 (2%) 4,1 Bolivia Brazil (*) 11,7 (7%) Argentina 15,5 Growing (*) Production as of January 2010 Falling *E = reserves estimated Sources: BP Statistical Review 2009; ANH Analysis

Increase Oil & Gas proven reserves * E = estimated

Average annual production Average monthly production Growing oil & gas production Average annual production Average monthly production (last 12 months) Oil Gas Oil Gas 1138 759 2009 2010

Exploration activity has increased considerably Million (Ha) Open Round TEA E&P Production

Licensing activity continues to increase and seismic data acquisition activity is high … (80) (230) * TEA: Technical Evaluation Agreement

… the highest number of exploratory wells and high success rates … Plan: 107 56% 78%

Contents Colombia Institutional Framework Industry background Open Round Colombia 2010 Conclusions 1

Location of areas Number of Blocks Area (Ha) 6.055.158 141 8.459.046 31 33.253.683 56 Total 47.767.887 228 Historic activity Number of Wells Seismic (Km) Type 1 E&P Miniround 269 33.174 Type 2 E&P New prospective basins 147 24.041 Type 3 Special TEAS* 50 11.225 Total 465 67.882 *TEA: Technical Evaluation Agreement

Key Milestones Preliminary terms of reference 15th October, 2009 Final terms of reference 16th February, 2010 Pre qualification documents 16th February - 30th April, 2010 Pre qualification list 21st May, 2010 Bidding 22nd June, 2010 1

Contents Colombia Institutional Framework Industry background Open Round Colombia 2010 Conclusions 1

Colombia offers good business opportunities A prolific geology A good business environment An appropriate institutional framework A competitive and fair contract Competitive rounds Stability remains in the sector 1

Book in your agendas Cartagena, 22 - 25 June , 2010 IV Colombia Oil and Gas Investment Conference 1

www.anh.gov.co Thank you! 1