YNC pilot projects would contribute 100 trillion pesos to the country in the next 25 years

Within the framework of Colombia Genera, the president of the Colombian Petroleum Association (ACP), Francisco José Lloreda Mera, presented the economic report “Legacy of Unconventional Reservoirs for Colombia,” highlighting the benefits that the development of these hydrocarbon projects would bring to the country.

• The president of the ACP presented the economic report of the guild that evaluates the impact of developing four pilot YNC projects in the country.
• These projects would contribute US 36,000 in fiscal resources to Colombia over 25 years.
• The YNC could generate up to 68,000 new jobs, both direct and indirect, during the duration of the projects.
• Revitalization of the local, regional, and national industry of goods and services, another of the great benefits.

During his participation in the panel “Unconventional Resources, an opportunity for Colombia,” Lloreda Mera highlighted that the development of the demonstrative or pilot YNC projects would represent, from the beginning of their exploratory phase, an important source of fiscal resources for the country, in addition to a boost to job creation, productive linkages, and regional economic growth.

The economic report, prepared by the Vice Presidency of Economic and Regulatory Affairs of the ACP, highlights, among other aspects, the estimated contribution of the YNC in the next 25 years that would total 36 billion dollars (103 trillion pesos), resources that would allow an increase of between 10% and 15% in the total investment of the Central Government over 25 years (4 trillion pesos per year).

Estimates indicate that in the production phase, the four demonstrative/pilot projects could reach a production of about 450,000 barrels per day. These volumes would be reached gradually, starting from the production of the demonstrative wells during the first years, estimated at 2,800 bpd of crude. In turn, in terms of natural gas, the volume required to meet the growing demand and supply deficit of the internal market would be produced, at least for the next 25 years.

Another of the positive effects evaluated is the boost to job creation and productive linkages in the regions where the operation will take place. According to the report, these projects, in their production phase, would leave 19,000 new stable direct jobs for the country, which combined with indirect and induced jobs would total 68,000 new jobs over 25 years. Likewise, new business opportunities in goods and services to meet the demand required in the development of these resources are highlighted, in sectors such as transportation, commerce, among others.

“Colombia has an open window of opportunity, we do not know for how long. It is important to advance with the exploratory phase and the research pilots recommended by the Expert Commission to confirm the potential of the resource, gather more information that serves to further improve the regulations and institutional capacity; and advance in the development and utilization of these resources and the benefits it would bring for all Colombians,” emphasized Lloreda Mera during his speech.

The report “Legacy of Unconventional Reservoirs for Colombia” is the second study on UCR conducted by the ACP. The first addressed the effects of a single type of unconventional reservoir project, while the report “Legacy of Unconventional Reservoirs for Colombia” evaluated the impact that four demonstration projects in the exploration phase, which would start between 2019 and 2021, would have, and if successful, would continue in 2022 with the development phase for medium and long-term production.

The full report can be consulted at www.acp.com.co.