The Prospect Group

The expansion of the energy sector has been a key driver of Colombia’s overall economic development. With further investment being made in infrastructure, exploration, and technology, the Colombian economy looks to be entering a phase of high growth.

Infrastructure remains one of Colombia’s main challenges. However, numerous projects are currently underway to improve Colombia’s network of pipelines, refineries, and ports to facilitate the continued growth and development of the energy sector.

Exploration and production activity in Colombia is currently at an all-time high. With oil production crossing the 1 million barrel per day mark in 2012, Colombia is focusing on implementing new technology and exploring previously unexplored basins.

Colombia’s capital markets have evolved rapidly over the last decade. The markets have been opened to foreign listings and the Colombia stock exchange is a member of MILA, the Integrated Market of Latin America. While most recent growth has been led by domestic investors, the Colombian stock exchange is now aggressively courting foreign investors.

Colombia’s 2012 Bid Round consists of 109 blocks, 31 of which are located in basins with a potential for unconventional resources. To encourage investment in unconventionals, the government is implementing fiscal and contractual incentives.

Colombia is one of Latin America’s fastest growing economies, due in large part to the rapidly expanding energy sector. With further investment in infrastructure, technology, and exploration, the energy sector remains on a positive growth trajectory.