María Victoria Riaño

President, Equión Energía

There are offshore activities in both the Pacific and the Caribbean region, though resources in the Caribbean are more advanced now. The first site that started producing was Chuchupa, just off the Guajira peninsula, and it was, and continues to be, a Chevron venture. Chevron provides approximately 70% of the gas in Colombia, and it has played an important role in the development of the gas industry since that discovery in the 1970s. From this field, gas is exported to Venezuela. What is happening, however, is that production in this field is declining. That is the first challenge for us in Colombia. On top of that, we at Equion provide 30% of the gas in the country. In terms of private companies, we are the second largest domestic gas supplier. We know how to manage this market, and we know how to manage gas. The two companies that have this experience are Chevron and Equion. For now, the main challenge is to replace this declining field. We are looking along the shore to replace this gas and have two blocks on the Caribbean coast now. In the first exploration area, RC5, we are looking for gas. It is a relief for the country to have another source that can produce gas apart from Chevron. That is our challenge; it is not just an exploration project, it is a project that can help provide Colombia with energy security over the medium to long term.

Alvaro Vargas

President & CEO, Hocol

Hocol started operations in the Magdalena Valley in the South of Colombia. We then moved to the Llanos Basin, where we have very important blocks and a field called Celote. In this field we produce 60% of our total output—19,000 barrels a day (bbl/d) come from this block. We also purchased other blocks during the different auction rounds held by the Agencia Nacional de Hidrocarburos (ANH) in 2008 and 2010. We have established a very good position in the Llanos Basin, where we are a very important player. We also occupy a very important and strong position in the foothills of Los Llanos, where we have two significant blocks: Mundo Nuevo and Niscota. We made a discovery of condensate and natural gas in Niscota in 2009 as a result of the first drilling we did in this block. We are now evaluating wells to confirm the discovery and gather information about the dimensions of the field. After establishing a good position in the Llanos Basin, we moved to the Lower Magdalena Basin in the north of the country. There we have five blocks, with two discoveries in the Saman Block. Bonga 1 revealed natural gas reserves in December 2011, and in January or February 2012 we discovered more gas. We have made seven impressive discoveries over the last 12 months. It is a very impressive record and we are very proud of our work here.

Chris Spaulding

General Manager, Talisman Colombia

Talisman has three centers of operation: Southeast Asia, the North Sea, and North America. The company produces the equivalent of 425,000 bbl/d. Southeast Asia is a mixture of oil and gas, and the pricing of gas there is linked to oil. The business in the North Sea is principally oil with some gas. The business in North America is very much a natural gas business and increasingly non conventional. Talisman is one of the largest players in the non-conventional shale sector in North America. We have substantial positions in Pennsylvania and Texas among others. As for Colombia, we would like to create a fourth center of operations in South America and Colombia. This is where we are starting. Our public objective in the near term is to achieve 50,000 bbl/d by 2015. This is a growth area for us. Right now, we own 49% of Equion, and our share of its production rights now is roughly 17,000 barrels of oil equivalent per day. Now we are producing a little oil ourselves, roughly 500 barrels of oil per day, so we are roughly at 17,500 barrels per day in Colombia. Our goal is to get to 50,000 by 2015. Our plan was to spend in around $120 million on exploration. Our development plan was to spend roughly $300 million overall.