BY DAN MOLINSKI
Colombia announced disappointing results Wednesday from its first oil auction in two years, which sought to attract investment dollars from major foreign oil companies that have the money and the know-how to explore offshore and to dig through shale.
Latin America’s fourth-largest oil producer drew investment commitments totaling $1.4 billion, well short of the $2.6 billion the government said it was hoping for. Of the 95 oil blocks spread out over 50 million acres that were up for bid, 26 of them, or 27%, received offers, compared with expectations for a 40% success rate.
While the total investment dollars didn’t achieve the government’s target, the submitted offers did include a few big names, including those in a bid for the “Colombia Block 4″ area in the Caribbean Sea. A temporary joint venture among Exxon Mobil XOM +0.19%Corp, Norway’s Statoil STL.OS -0.16% and Spain’s Repsol REP.MC +2.14% made the only bid for that block.