Colombian Investment in Hydrocarbons Fund (CIHF): USD 350 million of committed resources to invest in hydrocarbon exploration and production projects in association with specialized operators.
The Colombian Investment in Hydrocarbons Fund was the first private equity fund established in the country. The fund consists of three phases: Phase I USD 62 million (began operations in 2005), Phase II USD 67 million (began operations in 2008) and Phase III USD 220 million (began operations in 2010).
The Fund’s investment strategy is to joint venture with specialized operators who have contracts with the National Hydrocarbons Agency and/or with Ecopetrol for national blocks and that are interested in exploring and developing these blocks with a financial partner.
Generally, the Fund has a participation of around 30% in the projects. The investment in projects varies from case to case. In general, the Fund´s resources are used to finance seismic surveys and/or the drilling of an exploratory well in the identified prospect. If it is successful, we continue to drill several delimitation wells and development wells depending on the size of the deposit, as well as, to build the production facilities to obtain the production benefits.
To date, the Fund’s results are higher or in line with the initial proposal.