1. Colombia Oil & Gas Investment Conference
Libertad y Orden
The Colombian hydrocarbons sector Armando Zamora Director General National Hydrocarbons Agency
Colombia Oil & Gas Investment Conference
Cartagena, 20 May 2005

2. Agencia Nacional de Hidrocarburos
It all started 100 years ago…
1905 – De Mares and Barco concessions
1918 – First discoveries: La Cira and Infantas (Tropical Oil Co.)
1951 – Reversion of De Mares Concession – Ecopetrol is established
1953 – Petroleum code
1974 – Crude imports
Chuchupa – Ballena discovery (TPC)
Association contract
Agencia Nacional de Hidrocarburos

3. The 80s witnessed the highest activity
A-3 Wells
WTI Oil price (US$/bl)
Cusiana
Opening of new areas worldwide
Caño Limón
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
Sliding-scale
participation
R Factor
Variable
Royalties
Association Contract
International Prices
War taxes and remittances
70%/30%
Participation
Crude imports
Source: ACP, DOE
Agencia Nacional de Hidrocarburos

4. Production level (000boe / day) Agencia Nacional de Hidrocarburos
The new royalty scheme (2002) is competitive
Royalties
% of production (per field)
25%
20%
10% 8% 5 5
125
125
400
400
600
Production level (000boe / day)
Discount in relation to light crudes
Gas
- 20%
Heavy Crude
- 25%
Offshore Gas (>1000 ft)
- 40%
Agencia Nacional de Hidrocarburos

5. Agencia Nacional de Hidrocarburos
Active areas are located in a few basins
Technical evaluation
E&P
ANH CONTRACTS - D T L E A
Exploration
Production
ECOPETROL CONTRACTS D T A L E -
CHUCHUPA - BALLENA
LA CIRA
INFANTAS
CUSIANA
CUPIAGUA
CAÑO
LIMON
Agencia Nacional de Hidrocarburos

6. Agencia Nacional de Hidrocarburos
The new contractual scheme is attractive
E&P Contract
Taxes + Royalties
Flexible Periods
Automatic extension possible
Materiality + autonomy
Award process
First come, first served
Prompt and transparent
Pre-set negotiation periods
Agencia Nacional de Hidrocarburos

7. Competitiveness map Objective Not very competitive Very competitive
100%
Not very
competitive
Venezuela
Indonesia
90%
Norway
Turkmenistan
Angola
Bolivia
Gabon
China
80%
Colombia (2003)
Australia
70%
Objective
State Take – Economic Fields PEPS
Kazakhstan
India
Brazil
Argentina
60%
Colombia (now)
50%
Peru
Pakistan
Very
competitive
United Kingdom
40% 5 10 15 20 25 30 35 40 45 50
Prospectivity Index
Source: PEPS-USGS

8. Contracts signed since June 2004 with:*
Libertad y Orden
Contracts signed since June 2004 with:*
Alpha Consultores Ltda
Argosy Energy International
BHP Billiton
C&C Energy S.A.
Cel
Consorcio Petrotesting - Colregistros
Drummond Ltd
Ecopetrol
Emerald
Erazo Valencia y Cia
ExxonMobil
Geoproduction Oil&Gas Co.
Harken de Col.
Hocol S.A.
Hupecol LLC
Kappa Resources Ltd.
Mecantile Colombia O&G
Monsa
Occidental Andina LLC
Petrobras
Petrocolombia
Repsol Exploración Colombia S.A.
Petrocol
R3 Exploración y Producción
Solana Petroleum Exploration Colombia Ltd.
Stratus Oil & Gas
Tecnopetrol
PEI
Winchester Oil&Gas
Petrominerales Colombia Ltd. Sucursal Colombia
* New entrants in bold

9. Agencia Nacional de Hidrocarburos
Number of E&P Contracts
39 approved
(27 signed) 35 32
ANH 31 30 30 28 25 25 21 20 21 14 11 15 10 5 7 4
1999
2000
2001
2002
2003
2004
2005(p)*
Ecopetrol
ANH-signed
ANH-for signature
Goal
* Planned
Agencia Nacional de Hidrocarburos

10. Agencia Nacional de Hidrocarburos
Exploration activity is increasing
2D-equivalent
Kms of seismic
Number of
A-3 wells
14000 45 40
12000 35
10000 30
8000 25 20
6000 15
4000 10
2000 5
2000
2001
2002
2003
2004
2005 (P)*
* Planned
Agencia Nacional de Hidrocarburos

11. Agencia Nacional de Hidrocarburos
An unexplored country…
Only 13% of total sedimentary
area has been licensed:
5% by ANH
8% by Ecopetrol
87%
available
Total sedimentary area:
 1 million km2
20%: off-shore basins
80%: on-shore basins
Non-
sedimentary
areas
Agencia Nacional de Hidrocarburos

12. New discoveries scenarios (to 2020) Agencia Nacional de Hidrocarburos
Geological potential (to 2020)
New discoveries scenarios (to 2020)
106bls 12 10 8 ? 6 4 2
Self-sufficiency
ANH
optimistic IHS
Potential
Source: IHS, ANH analysis
Agencia Nacional de Hidrocarburos

13. Agencia Nacional de Hidrocarburos
Production profiles contingent to potential scenarios
Geologic potential
scenarios:
000barrels/day
2.000
1.600
IHS optimistic
1.200
800
ANH
400
Self-sufficiency
Current fields
2005
2010
2015
2020
Sources: UPME, Ecopetrol, IHS
Agencia Nacional de Hidrocarburos

14. Agencia Nacional de Hidrocarburos
Required activity according to scenarios of reserves to be discovered up to 2020
150 75 60 40 30 60 20 10
5-6
Self-sufficiency
ANH
Optimistic IHS
Contracts
A3 Wells
Discoveries (20mmbl)
Agencia Nacional de Hidrocarburos

15. Agencia Nacional de Hidrocarburos
An aggressive campaign of new information acquisition is at the core of the ANH’s strategy
Promotion
Identification of
opportunities
Investor
support
Contract Management
Promotion
Negotiation
ANH´s investments in acquisition
of new geological information:
~ US$70million in 2005
~ US$800million to 2020
New information
Identification of opportunities
Promote them to investors
Agencia Nacional de Hidrocarburos

16. Agencia Nacional de Hidrocarburos
Investment campaign 2005: seismic
SINU
SAN JACINTO
CAYOS 2D
VMM
PACIFICO
OFFSHORE - ONSHORE
LLANOS
Agencia Nacional de Hidrocarburos 3

17. SEQUENCE STRATIGRAPHY Agencia Nacional de Hidrocarburos
Investment campaign: general studies
SINU- SAN JACINTO
SEQUENCE STRATIGRAPHY
EASTERN CORDILLERA
SOAPAGA CARTOGRAPHY
VMM
HEAVY OIL
LLANOS
HEAVY OIL
LLANOS FOOTHILLS
CARTOGRAPHY
Agencia Nacional de Hidrocarburos
Agencia Nacional de Hidrocarburos 5

18. The State will be ‘priming the pump’
Plan 2020: to discover > 4Bn boe
ANH and Ecopetrol to invest ~$15Bn in exploration and development (to 2020)
ANH alone to invest around ~$800m in frontier areas (to 2020)
Activity objective: ~ 30 new E&P contracts / year
ANH flag projects:
Heavy oil
Tayrona
Pacific basin
Sinu-San Jacinto
Tello field

19. Agencia Nacional de Hidrocarburos
Thank you!
Agencia Nacional de Hidrocarburos 5

20. ANH heavy oil project –Llanos Basin
Objective:
To prepare a bidding round in heavy oil prone areas in the Llanos basin
Background:
Heavy Oil is an abundant non-conventional oil resource
Shallow reservoir: ~ 3,000 ft
The existence of a Heavy Oil “Belt” is inferred through the presence of three currently producing fields along a very large triangle in the area: Castilla, Rubiales and El Miedo
Estimated OIP ~ 400mbl
Preliminary studies to be carried out by the ANH – 2005
Calibration & Reprocessing of ~ 10,000 kms of seismic information
Identification of potential plays
Bidding Round Preparation: Early 2006
Planned Bidding Round: Mid 2006