Bogota has a wide range of multinational players... Service Companies
Invest in Bogota We are the investment promotion agency for Bogota and Cundinamarca, a public-private
Numerous multinational oil and gas services companies are located in Bogota; there is also a critical mass of experienced local companies.
partnership between the Bogota Chamber of Commerce, the Bogota City Government and the Government of Cundinamarca. Our mission is to support investors that are exploring opportunities in Bogota and Cundinamarca. In 2009 we were ranked as the top non- OECD investment promotion agency in the World by the World Bank. We have a multidisciplinary team with sector-specific expertise, which allows us to provide prospective investors with value added advice and information.
Operating Companies In addition to Ecopetrol, which produces 60% of the country’s oil, there is a large number of multinational operating companies that require services.
We offer, free of charge, and in absolute confidentiality, services for investors during each stage of their investment process.
Exploratory Phase General, sector and company specific information. Coordination of fact-finding visits. Meetings with government and regulatory authorities. Visits to existing investors. Meetings with professional service firms. Meetings with educational and training institutions.
...and strong institutional support for the
Start-Up Phase Advice during start-up.
industry.
Support with permits and regulations. Contacts with potential suppliers, clients or partners. Development of tailor made training programs, including Talk to the World, the city’s
Main Sector Entities
English language training program.
Operational Phase Follow up of your company’s development. Support in reinvestment-related activities. Networking with other companies.
www.minminas.gov.co
www.anh.gov.co
Continuous monitoring and improvement of business climate.
Please contact us at:
www.campetrol.org
www.acipet.com
Email: info@investinbogota.org Phone: +57 (1) 742-3030 Fax: +57 (1) 742-3050 Address: Carrera 7 N.° 71-21, Torre B, Of. 901 Bogota, Colombia www.investinbogota.org
The large oil potential in Colombia and an attractive contractual regime have spurred exploration and production activities and generated a significant demand for oil and gas services.
The city has abundant skilled and experienced human resource for new oil and gas service operations. Engineering Graduates in Colombia (2001-2009)
Engineering Graduates in Selected Cities (2008)
Colombia has a large oil potential…
30
Plan
80
76
75
28%
annual
Skilled and available human resources: Bogota has skilled personnel with experience for this industry.
11
5
3.3
0
35
San Jose
Buenos Aires
Bogota
Bogota is becoming a major center for this industry:
There are more than 300 companies operating in the city.
3.1
3.0 US$ Billions
86% of oil and gas service companies in Colombia are located in Bogota.
3.5
2.9
2.5 2.1 2.0
1.6
1.0
1.0
2003
2004
2005
2006
2007
2008
2009
*Data as of July 2010. Source: Agencia Nacional de Hidrocarburos
2005
2006
2007
2008
2009
60
70
80
90
100
3.9 42.4
4.2
Other Cities
Competitive Costs
Income tax deduction of up to 30% of the value of investments in fixed productive assets Legal stability contracts
The cost structure in Bogota for oil and gas services is one of the most competitive in the region.
Position
Years of experience
Monthly average wage (2010) US$
Field Engineer
7-9
$4,380
Oil or Production Engineer
7-9
$2,816
Hydrocarbons Business Developer
5
Geological Engineer
2-5
$2,227
Specialized Machine Operator
0.5
$863
$2,723
45 40
3.6
35 30
20 15
1.5 16.3
1.6 16.9
Lima
San Jose
2.3 25.3
2.2 24.1
25 1.7 19
3.0
2.7 29.5
2.4 1.8 1.2
10 0.6
5
0
0
Source: Legis, Encuesta Salarial y Tendencias en Gestión Humana 2009-2010
Santiago
Bogota
Mexico City
Buenos Aires
São Paulo
Source: Colliers International, Real Estate Review Latin America Region 2008-2009
New Exploration and Production Companies Operating in Bogota (2005-2009) 50
In Bogota there are more than 240 companies involved in exploration and production, most of which are from abroad. The number of exploration and production companies located in Bogota has doubled in the past 5 years.
43
45
44
An Attractive Business Environment Colombia has been recognized for improving its business environment.
40
Ease of Doing Business (2010)
35 27
30
Colombia
25 20
37 49
Chile
21 18
Mexico
15
Colombia is the country with the best environment
Peru
10
to do business in Latin America, according to the
Panama
2010 World Bank Doing Business Report.
51 56 77
Argentina
118 129
Brazil
2006
2007
2008
2009
Source: Cámara de Comercio de Bogota, Registro de compañías. Invest in Bogota calculations
Note: Constant exchange rate of US$1 = COP$2,000 Source: Superintendencia de Sociedades (2005-2009). Invest in Bogota calculations
50
Rentals for Type A Offices (2009) Competitive, flexible government take (45 to 75%) Tiered royalties for operating companies (8 to 25%) 33% income tax Deductible local taxes No remittance tax
2005
0
40
Bogota
2010*
…and a flexible and competitive regime for exploration, production and service companies.
5
0.5
30
Thousands
0
The number of new companies has grown 40% since 2005, with a majority of companies from abroad.
20
Source: Ministerio de Educación Nacional, Observatorio Laboral
2002
In 2010, 78 blocks were awarded to 37 operating companies, of which 12 were newcomers.
1.5
10
0
Services for the oil and gas industry have grown by an annual average compounded rate of 31% in the past five years. Total sales in 2009 were approximately US$3 billion. Oil and Gas Services Revenues in Colombia (2005-2009)
0
São Paulo Santiago Monterrey Guadalajara
Source: Everest Research Institute
10
In recent years a growing number of local and international operating companies have established operations in Bogota.
A Dynamic Oil and Gas Services Industry
4.4
Ecuador
138 0
20
40
60
80
100
120
140
Ranking Index which compares 183 economies worldwide and measures regulation regarding business and the protection of ownership rights. A lower value indicates greater ease of doing business. Source: World Bank, Doing Business Report 2010
US$/Ft 2
new investors.
17.1 10.8
Electrical
21 20
the region.
institutional support to the oil and gas sector have generated a favorable environment for the arrival of
18
Mining and Metallurgy
Competitive costs: The cost benefit ratio in wages and infrastructure is one of the most competitive in
Attractive business environment: Stable economic performance, consistent policies and strong
38.9 30.6
Civil
10
56
40
Growing demand for services: Exploration and production activities and the arrival of new production and exploration companies have stimulated demand for services for the oil and gas industry.
38.9
Electronics and Telecommunications
15
Enviromental
60
28
Dynamic exploratory activities: increase rate of wildcats
54.6
Others
19
17
20
91.8
Industrial
Mechanical
70
Current production of 770 thousand barrels daily and a goal of 1,300 thousand barrels of oil equivalents per day in 2015
25
22
110 99
100
Bogota is becoming a new hub for services to the oil and gas industry in northern South America thanks to:
24
25
3,100 million barrels of certified oil reserve and 47,000 million barrels in unexplored territories
Bogota, the capital of Colombia, is a dynamic and cosmopolitan city of more than seven million inhabitants. Thanks to its economic performance, pro-investment environment and excellent quality of life, it is one of the best destinations to do business in Latin America.
Computer Science
Wildcats (2002-2010) Thousands
everything you need for a successful oil and gas services operation
US$/Mts2
Bogota has
Skilled and Available Human Resources
Growing Demand for Oil and Gas Services
The large oil potential in Colombia and an attractive contractual regime have spurred exploration and production activities and generated a significant demand for oil and gas services.
The city has abundant skilled and experienced human resource for new oil and gas service operations. Engineering Graduates in Colombia (2001-2009)
Engineering Graduates in Selected Cities (2008)
Colombia has a large oil potential…
30
Plan
80
76
75
28%
annual
Skilled and available human resources: Bogota has skilled personnel with experience for this industry.
11
5
3.3
0
35
San Jose
Buenos Aires
Bogota
Bogota is becoming a major center for this industry:
There are more than 300 companies operating in the city.
3.1
3.0 US$ Billions
86% of oil and gas service companies in Colombia are located in Bogota.
3.5
2.9
2.5 2.1 2.0
1.6
1.0
1.0
2003
2004
2005
2006
2007
2008
2009
*Data as of July 2010. Source: Agencia Nacional de Hidrocarburos
2005
2006
2007
2008
2009
60
70
80
90
100
3.9 42.4
4.2
Other Cities
Competitive Costs
Income tax deduction of up to 30% of the value of investments in fixed productive assets Legal stability contracts
The cost structure in Bogota for oil and gas services is one of the most competitive in the region.
Position
Years of experience
Monthly average wage (2010) US$
Field Engineer
7-9
$4,380
Oil or Production Engineer
7-9
$2,816
Hydrocarbons Business Developer
5
Geological Engineer
2-5
$2,227
Specialized Machine Operator
0.5
$863
$2,723
45 40
3.6
35 30
20 15
1.5 16.3
1.6 16.9
Lima
San Jose
2.3 25.3
2.2 24.1
25 1.7 19
3.0
2.7 29.5
2.4 1.8 1.2
10 0.6
5
0
0
Source: Legis, Encuesta Salarial y Tendencias en Gestión Humana 2009-2010
Santiago
Bogota
Mexico City
Buenos Aires
São Paulo
Source: Colliers International, Real Estate Review Latin America Region 2008-2009
New Exploration and Production Companies Operating in Bogota (2005-2009) 50
In Bogota there are more than 240 companies involved in exploration and production, most of which are from abroad. The number of exploration and production companies located in Bogota has doubled in the past 5 years.
43
45
44
An Attractive Business Environment Colombia has been recognized for improving its business environment.
40
Ease of Doing Business (2010)
35 27
30
Colombia
25 20
37 49
Chile
21 18
Mexico
15
Colombia is the country with the best environment
Peru
10
to do business in Latin America, according to the
Panama
2010 World Bank Doing Business Report.
51 56 77
Argentina
118 129
Brazil
2006
2007
2008
2009
Source: Cámara de Comercio de Bogota, Registro de compañías. Invest in Bogota calculations
Note: Constant exchange rate of US$1 = COP$2,000 Source: Superintendencia de Sociedades (2005-2009). Invest in Bogota calculations
50
Rentals for Type A Offices (2009) Competitive, flexible government take (45 to 75%) Tiered royalties for operating companies (8 to 25%) 33% income tax Deductible local taxes No remittance tax
2005
0
40
Bogota
2010*
…and a flexible and competitive regime for exploration, production and service companies.
5
0.5
30
Thousands
0
The number of new companies has grown 40% since 2005, with a majority of companies from abroad.
20
Source: Ministerio de Educación Nacional, Observatorio Laboral
2002
In 2010, 78 blocks were awarded to 37 operating companies, of which 12 were newcomers.
1.5
10
0
Services for the oil and gas industry have grown by an annual average compounded rate of 31% in the past five years. Total sales in 2009 were approximately US$3 billion. Oil and Gas Services Revenues in Colombia (2005-2009)
0
São Paulo Santiago Monterrey Guadalajara
Source: Everest Research Institute
10
In recent years a growing number of local and international operating companies have established operations in Bogota.
A Dynamic Oil and Gas Services Industry
4.4
Ecuador
138 0
20
40
60
80
100
120
140
Ranking Index which compares 183 economies worldwide and measures regulation regarding business and the protection of ownership rights. A lower value indicates greater ease of doing business. Source: World Bank, Doing Business Report 2010
US$/Ft 2
new investors.
17.1 10.8
Electrical
21 20
the region.
institutional support to the oil and gas sector have generated a favorable environment for the arrival of
18
Mining and Metallurgy
Competitive costs: The cost benefit ratio in wages and infrastructure is one of the most competitive in
Attractive business environment: Stable economic performance, consistent policies and strong
38.9 30.6
Civil
10
56
40
Growing demand for services: Exploration and production activities and the arrival of new production and exploration companies have stimulated demand for services for the oil and gas industry.
38.9
Electronics and Telecommunications
15
Enviromental
60
28
Dynamic exploratory activities: increase rate of wildcats
54.6
Others
19
17
20
91.8
Industrial
Mechanical
70
Current production of 770 thousand barrels daily and a goal of 1,300 thousand barrels of oil equivalents per day in 2015
25
22
110 99
100
Bogota is becoming a new hub for services to the oil and gas industry in northern South America thanks to:
24
25
3,100 million barrels of certified oil reserve and 47,000 million barrels in unexplored territories
Bogota, the capital of Colombia, is a dynamic and cosmopolitan city of more than seven million inhabitants. Thanks to its economic performance, pro-investment environment and excellent quality of life, it is one of the best destinations to do business in Latin America.
Computer Science
Wildcats (2002-2010) Thousands
everything you need for a successful oil and gas services operation
US$/Mts2
Bogota has
Skilled and Available Human Resources
Growing Demand for Oil and Gas Services
The large oil potential in Colombia and an attractive contractual regime have spurred exploration and production activities and generated a significant demand for oil and gas services.
The city has abundant skilled and experienced human resource for new oil and gas service operations. Engineering Graduates in Colombia (2001-2009)
Engineering Graduates in Selected Cities (2008)
Colombia has a large oil potential…
30
Plan
80
76
75
28%
annual
Skilled and available human resources: Bogota has skilled personnel with experience for this industry.
11
5
3.3
0
35
San Jose
Buenos Aires
Bogota
Bogota is becoming a major center for this industry:
There are more than 300 companies operating in the city.
3.1
3.0 US$ Billions
86% of oil and gas service companies in Colombia are located in Bogota.
3.5
2.9
2.5 2.1 2.0
1.6
1.0
1.0
2003
2004
2005
2006
2007
2008
2009
*Data as of July 2010. Source: Agencia Nacional de Hidrocarburos
2005
2006
2007
2008
2009
60
70
80
90
100
3.9 42.4
4.2
Other Cities
Competitive Costs
Income tax deduction of up to 30% of the value of investments in fixed productive assets Legal stability contracts
The cost structure in Bogota for oil and gas services is one of the most competitive in the region.
Position
Years of experience
Monthly average wage (2010) US$
Field Engineer
7-9
$4,380
Oil or Production Engineer
7-9
$2,816
Hydrocarbons Business Developer
5
Geological Engineer
2-5
$2,227
Specialized Machine Operator
0.5
$863
$2,723
45 40
3.6
35 30
20 15
1.5 16.3
1.6 16.9
Lima
San Jose
2.3 25.3
2.2 24.1
25 1.7 19
3.0
2.7 29.5
2.4 1.8 1.2
10 0.6
5
0
0
Source: Legis, Encuesta Salarial y Tendencias en Gestión Humana 2009-2010
Santiago
Bogota
Mexico City
Buenos Aires
São Paulo
Source: Colliers International, Real Estate Review Latin America Region 2008-2009
New Exploration and Production Companies Operating in Bogota (2005-2009) 50
In Bogota there are more than 240 companies involved in exploration and production, most of which are from abroad. The number of exploration and production companies located in Bogota has doubled in the past 5 years.
43
45
44
An Attractive Business Environment Colombia has been recognized for improving its business environment.
40
Ease of Doing Business (2010)
35 27
30
Colombia
25 20
37 49
Chile
21 18
Mexico
15
Colombia is the country with the best environment
Peru
10
to do business in Latin America, according to the
Panama
2010 World Bank Doing Business Report.
51 56 77
Argentina
118 129
Brazil
2006
2007
2008
2009
Source: Cámara de Comercio de Bogota, Registro de compañías. Invest in Bogota calculations
Note: Constant exchange rate of US$1 = COP$2,000 Source: Superintendencia de Sociedades (2005-2009). Invest in Bogota calculations
50
Rentals for Type A Offices (2009) Competitive, flexible government take (45 to 75%) Tiered royalties for operating companies (8 to 25%) 33% income tax Deductible local taxes No remittance tax
2005
0
40
Bogota
2010*
…and a flexible and competitive regime for exploration, production and service companies.
5
0.5
30
Thousands
0
The number of new companies has grown 40% since 2005, with a majority of companies from abroad.
20
Source: Ministerio de Educación Nacional, Observatorio Laboral
2002
In 2010, 78 blocks were awarded to 37 operating companies, of which 12 were newcomers.
1.5
10
0
Services for the oil and gas industry have grown by an annual average compounded rate of 31% in the past five years. Total sales in 2009 were approximately US$3 billion. Oil and Gas Services Revenues in Colombia (2005-2009)
0
São Paulo Santiago Monterrey Guadalajara
Source: Everest Research Institute
10
In recent years a growing number of local and international operating companies have established operations in Bogota.
A Dynamic Oil and Gas Services Industry
4.4
Ecuador
138 0
20
40
60
80
100
120
140
Ranking Index which compares 183 economies worldwide and measures regulation regarding business and the protection of ownership rights. A lower value indicates greater ease of doing business. Source: World Bank, Doing Business Report 2010
US$/Ft 2
new investors.
17.1 10.8
Electrical
21 20
the region.
institutional support to the oil and gas sector have generated a favorable environment for the arrival of
18
Mining and Metallurgy
Competitive costs: The cost benefit ratio in wages and infrastructure is one of the most competitive in
Attractive business environment: Stable economic performance, consistent policies and strong
38.9 30.6
Civil
10
56
40
Growing demand for services: Exploration and production activities and the arrival of new production and exploration companies have stimulated demand for services for the oil and gas industry.
38.9
Electronics and Telecommunications
15
Enviromental
60
28
Dynamic exploratory activities: increase rate of wildcats
54.6
Others
19
17
20
91.8
Industrial
Mechanical
70
Current production of 770 thousand barrels daily and a goal of 1,300 thousand barrels of oil equivalents per day in 2015
25
22
110 99
100
Bogota is becoming a new hub for services to the oil and gas industry in northern South America thanks to:
24
25
3,100 million barrels of certified oil reserve and 47,000 million barrels in unexplored territories
Bogota, the capital of Colombia, is a dynamic and cosmopolitan city of more than seven million inhabitants. Thanks to its economic performance, pro-investment environment and excellent quality of life, it is one of the best destinations to do business in Latin America.
Computer Science
Wildcats (2002-2010) Thousands
everything you need for a successful oil and gas services operation
US$/Mts2
Bogota has
Skilled and Available Human Resources
Growing Demand for Oil and Gas Services
Bogota has a wide range of multinational players... Service Companies
Invest in Bogota We are the investment promotion agency for Bogota and Cundinamarca, a public-private
Numerous multinational oil and gas services companies are located in Bogota; there is also a critical mass of experienced local companies.
partnership between the Bogota Chamber of Commerce, the Bogota City Government and the Government of Cundinamarca. Our mission is to support investors that are exploring opportunities in Bogota and Cundinamarca. In 2009 we were ranked as the top non- OECD investment promotion agency in the World by the World Bank. We have a multidisciplinary team with sector-specific expertise, which allows us to provide prospective investors with value added advice and information.
Operating Companies In addition to Ecopetrol, which produces 60% of the country’s oil, there is a large number of multinational operating companies that require services.
We offer, free of charge, and in absolute confidentiality, services for investors during each stage of their investment process.
Exploratory Phase General, sector and company specific information. Coordination of fact-finding visits. Meetings with government and regulatory authorities. Visits to existing investors. Meetings with professional service firms. Meetings with educational and training institutions.
...and strong institutional support for the
Start-Up Phase Advice during start-up.
industry.
Support with permits and regulations. Contacts with potential suppliers, clients or partners. Development of tailor made training programs, including Talk to the World, the city’s
Main Sector Entities
English language training program.
Operational Phase Follow up of your company’s development. Support in reinvestment-related activities. Networking with other companies.
www.minminas.gov.co
www.anh.gov.co
Continuous monitoring and improvement of business climate.
Please contact us at:
www.campetrol.org
www.acipet.com
Email: info@investinbogota.org Phone: +57 (1) 742-3030 Fax: +57 (1) 742-3050 Address: Carrera 7 N.° 71-21, Torre B, Of. 901 Bogota, Colombia www.investinbogota.org
Bogota has a wide range of multinational players... Service Companies
Invest in Bogota We are the investment promotion agency for Bogota and Cundinamarca, a public-private
Numerous multinational oil and gas services companies are located in Bogota; there is also a critical mass of experienced local companies.
partnership between the Bogota Chamber of Commerce, the Bogota City Government and the Government of Cundinamarca. Our mission is to support investors that are exploring opportunities in Bogota and Cundinamarca. In 2009 we were ranked as the top non- OECD investment promotion agency in the World by the World Bank. We have a multidisciplinary team with sector-specific expertise, which allows us to provide prospective investors with value added advice and information.
Operating Companies In addition to Ecopetrol, which produces 60% of the country’s oil, there is a large number of multinational operating companies that require services.
We offer, free of charge, and in absolute confidentiality, services for investors during each stage of their investment process.
Exploratory Phase General, sector and company specific information. Coordination of fact-finding visits. Meetings with government and regulatory authorities. Visits to existing investors. Meetings with professional service firms. Meetings with educational and training institutions.
...and strong institutional support for the
Start-Up Phase Advice during start-up.
industry.
Support with permits and regulations. Contacts with potential suppliers, clients or partners. Development of tailor made training programs, including Talk to the World, the city’s
Main Sector Entities
English language training program.
Operational Phase Follow up of your company’s development. Support in reinvestment-related activities. Networking with other companies.
www.minminas.gov.co
www.anh.gov.co
Continuous monitoring and improvement of business climate.
Please contact us at:
www.campetrol.org
www.acipet.com
Email: info@investinbogota.org Phone: +57 (1) 742-3030 Fax: +57 (1) 742-3050 Address: Carrera 7 N.° 71-21, Torre B, Of. 901 Bogota, Colombia www.investinbogota.org