Multi-Basin Oil Portfolio - Focused, High Working Interest Assets
Asset Overview
Favourable business landscape and a favourable political outlook (pro-business government)
Oil & Gas Industry Dynamics
- World commodity pricing exposure to higher Brent oil prices (v. WTI)
- Good access to infrastructure with spare pipeline capacity – no bottlenecks
- Two port facilities in Caribbean provide ample export capacity
- Oil a very important contribution to the country’s exports (30%+) and a government that is very supportive of the oil and gas industry
- Excellent fiscal terms (royalty/tax regime) introduced in 2003/2004 resulted in production nearly doubling to approximately 1.0 MMbbls/d by 2012
- Royalties remain very attractive (8-14% on Arrow properties)
- Recent protests do not change the long-term, stable outlook for Colombia, one of South America’s most fiscally responsible countries