13 de November 2012

Bogotá is the business Hub for the Gas and Oil industry in Colombia

Oil and Gas
  • There are about 180 oil and gas companies in the country. 93% of national sales are generated from Bogotá.

  • Even though exploration and extraction (E&P) activities take place at different Colombian regions, it is in the country´s capital where companies with the most added value services to the industry are established.


Bogotá has improved its visibility as the most dynamic city for the oil and gas industry services sector at a national and international level.  Adriana Suárez, Executive Director of Invest in Bogota, explains:  “The O&G services sector in Colombia has grown an average of 31% annually in the last years, and it has reached an income close to US$4,880 million dollars in 2011.  There are about 180 O&G companies in the country and 93% of the national sales are generated in Bogotá”.
Companies in Bogotá benefit from a special regulation created by the national government for companies of the hydrocarbon sector, which allows all foreign societies for the oil industry (exploration and production, and rendering of related services) to bill directly from their headquarters and therefore ease currency exchange issues.
Even though exploration and production operations take place at different regions of the country, it is in Bogota where companies decide to settle and where business deals are closed, where specialized activities are planned and executed, aiming at increasing reservoir volumes and recovery factors, developing offshore  activities and as well as exploration and extraction of non-conventional hydrocarbons.

Companies with added value for this sector are already installed in Bogotá: seismic, geology and geophysics studies, artificial lift, secondary recovery, directional and horizontal drilling services, research and development of chemicals for perforation fluids and new technologies for the discovery and exploitation of non-conventional hydrocarbons.
Adriana Suárez, Executive Director of the agency for the promotion of Investment in Bogotá, concludes: “the main global service companies for this industry are located in Bogotá and Cundinamarca, originally from the United States, Canada, UK, Venezuela or Brazil, among others.

Multinational companies such as Schlumberger, Wood Group, Halliburton, Baker Hughes, Weatherford and Foster Wheeler, among others, are already established in the capital region, since it offers: (i) strong institutional support, (ii) qualified personnel with expertise for this industry and (iii) proximity and access to oil areas and main markets”

Why are hydrocarbon services companies established in Bogotá?

Strong Institutional Support - Bogotá has associations and governmental entities that support this sector, such as the Ministry of Mines and Energy, the National Agency of Hydrocarbons (ANH), the Colombian Chamber of Oil Goods and Services  (Campetrol), the Colombian Oil Association (ACP), the Colombian Association of Petroleum Engineering (ACIPET) and the Mining Energy Planning Unit (UPME).  Being physically close to all these entities makes processes and contracting easier.
Skilled, experienced personnel - Colombia’s main universities  are located in Bogotá, offering careers related to the O&G industry. Bogota´s higher education institutions yearly graduate professionals in mining, metallurgic, chemistry and geology, oil, environmental, sanitary, systems, electronic, electric, civil and mechanical engineering.  Likewise, Bogotá has 235 research centers in the following relevant areas for the O&G industry: geosciences (24), electrical (58), production (51), civil (33), mechanical (20), sanitary (14), chemical (12), materials (5) and others (17).
Proximity and access to exploration and production areas -   Bogotá is geographically located in the center of the country, the same distance from the production areas in Llanos and Valle del Magdalena, which means that regardless of where operations and rig floors are, it is possible in Bogotá and Cundinamarca to concentrate decision making, negotiation and networking with other companies regardless of industry, as well as accessing production fields. 

What do companies settled in Bogotá have to say?

Boaz Nur – INGRAIN Operations Vice President 
“We took Bogota because it’s the capital of Colombia. It’s also a hub for business in the region, specifically for Oil & Gas. We believe it’s a leader in the Andean Region. (…) “The general quality level is pretty high. (…) We’ve had good experience with professionals”.
Álvaro Otero, General Manager, Lupatech OFS
"Lupatech OFS consolidated its presence in Colombia with the acquisition of the local company Hydrocarbon Services, in June 2010. Since then, LOFS has provided multiservices along the national territory, ranging from the drilling to the final completion of wells. This accelerated expansion has been possible thanks to the strategic opening of a commercial center in Bogota, and the support of an operational base in Cota. Thanks to the convenient access to the main roads of the country and its proximity to the El Dorado Airport, LOFS supports its operations and facilitates permanent access to its clients from its main office in Bogota.”
Peter King, General Manager, Energéticos.
“Energeticos is part of the Wood Group multinational company; it went from being a small engineering company of 110 people to employing over 654 people in the past 6 years. It is now one of the major companies providing engineering services, purchasing and projects for the oil sector in Colombia.  With the development of new technologies, procedures and a work culture different to those of other companies, it successfully services markets such as Africa, USA, Ecuador, Peru, Brazil and Colombia from its central office in Bogota.”