Statoil wades deeper into Colombia

Offshore region considered frontier territory.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |  Sept. 4, 2014 at 9:13 AM
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STAVANGER, Norway, Sept. 4 (UPI) -- Norwegian energy company Statoil said Thursday it agreed with Spain's Repsol to buy an interest in a license area off the coast of Colombia.

"We are gaining access to a vast underexplored frontier area through early access at scale, which is in line with Statoil's exploration strategy," Nick Maden, a senior vice president for Statoil's exploration activities in the Western Hemisphere, said in a statement.

Statoil, for an undisclosed sum, acquired a minority share in two offshore areas in Colombia from Repsol.

Statoil in July made its debut in Colombia in a deal with Repsol and the Colombian subsidiary of Exxon Mobil.

Much of the country's oil is focused inland in the foothills of the Andes and in the Amazonian jungle. Colombia holds an estimated 2.4 billion barrels of crude oil reserves, though offshore is considered frontier territory.

While no reserve potential was available, Repsol has already conducted seismic surveys offshore to get a better understanding of the license area.

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