The agency's head claims that Colombian oil and gas reserves are expected to increase this year.

The head of Colombia's hydrocarbons department said on Tuesday that the country's oil and natural gas reserves are likely to grow in comparison with the previous year.

Colombian oil reserves are expected to reach 2.04 billion barrels in 2024 - enough for 7.2 years' worth of consumption.

Orlando Velandia said the agency was predicting crude prices would close the year around $70 a barrel. He said that if this is the case, then the agency will not have to reduce its reserve estimates. Brent crude closed Tuesday at $68.47 a barrel.

According to Velandia, the estimate of Colombia's reserves could rise even higher.

He said that he could see improvements by using new technology and better technologies to extract more oil.

Velandia stated that social conflict and security concerns have affected oil production by an estimated 6%. Guerrilla groups often damage pipelines to undermine government authority.

Production fell by 4.8% in July, to 746,249 barrels a day on average.

Velandia said it also expects to allocate more than one area to an upcoming offshore project auction. The first round will be held on Oct 14.

Velandia stated, "We hope that a number companies will participate in the process...and that we award multiple areas." "There are very large companies that remain confident."

He said that some firms have "some reservations", are cautious, ask us for more details, and are still evaluating.

The preliminary list of bidders includes companies such as Ecopetrol (Britain), Celsia (Copenhagen Infrastructure Partners), Jan De Nul (Netherlands), DEME, Powerchina and China Three Gorges.

The government has set a goal of awarding at least one gigawatt (GW), or installed capacity, in each round. (Reporting and writing by Nelson Bocanegra)

(source: Reuters)