Freddy Corredor has never believed in taking the easy way.
The structural geologist, born to a working-class family in Bogotá, learned from an early age that he would need to pave his own way.
His last name, Corredor – translated “runner” in Spanish – is a fitting description for someone who has spent his career racing forward, clearing hurdles in his path. When faced with an apparent lack of options for putting his geologic and oil and gas know-how to use, he created opportunity where none seemingly existed – not just for himself, but for his native country of Colombia.
Discovering His Passions
“Since I was a kid, I enjoyed being outdoors, camping and collecting rocks during vacations and trips,” he said. “I later joined the Boy Scouts and discovered I was good at reading maps. In high school, even though my father wanted me to study civil engineering, I figured that geology was a perfect match for all my interests.”
Corredor enrolled in the National University of Colombia and he dreamed of becoming a paleontologist. When he couldn’t get support for a particular line of research, he accepted another opportunity that shaped his career path.
“I couldn’t find funding for a research project in paleontology at that time. Occidental Oil and Gas offered me an internship and a junior exploration geologist position, as they were interested in exploring in the highly complex foothills of the Eastern Cordillera of Colombia, where BP had recently discovered the giant Cusiana Field,” he said. That role inspired him to pursue a career as a structural geologist and explorationist.
When he started exploring, Corredor knew he’d found his calling.
“I like the idea of searching for new energy resources that can help to guarantee long-term energy security and financial resources for the people that live in the places where those resources are found,” he said. “Oil and gas have been part of our energy mix for over a century, and I think we have the responsibility to find new reserves to feed that energy mix as long as is needed,” he said.
Corredor spent 12 years working for operators and held positions at Oxy, Shell, Vetra E&P Colombia, Amerisur Resources and Sierra Col Energy. While working for those companies he developed an interest in consulting.
“I learned early in my career that the kind of specialized work I was doing was not in high demand on a permanent basis in oil and gas companies. There were few positions available, and it was a highly competitive market,” he said.
“But at the same time companies were willing to hire consultants for short-term projects, offering the opportunity to travel extensively, which is something I love. Despite the instability of the consultancy side of business, I decided then to become a consultant,” he said.
Corredor pursued graduate studies in the United States and he bought a house and started his family in New Orleans while working for Shell.
Plans changed abruptly in 2005 when Hurricane Katrina forced him, his wife and infant son to leave Louisiana and move back to Colombia.
The new start led to new business. Back in his hometown, Corredor founded Geostrap SAS, a consulting firm specialized in geologic studies applied to energy exploration. He has served as director since the company’s inception.
Corredor said consulting allowed him to combine his technical expertise with his growing interest in the business side of industry, particularly in new ventures.
“As part of my work I was able to purchase and obtain freely available data from government agencies. I developed exploration ideas and decided to promote those ideas with operating companies in Colombia, Peru and Brazil and capital investors from Canada. That was a great way to get on the business side of the energy industry,” he said. “Discovering is an important part of being a geologist, and new ventures offer the opportunity to do just that.”
Corredor’s first experience with new ventures on a global level came while serving as exploration manager at Vetra E&P Colombia.
“We participated at NAPE in Houston looking for investors for a couple of E&P blocks, but I realized that the event was focused on doing business in North America. That made me decide that I wanted to organize a similar event focused on E&P opportunities in Colombia and Latin America,” he said.
Corredor set to work designing an oil and gas upstream business expo focused on Colombia, and conceived of what became Explora, the Colombia Oil and Gas Prospects Expo.
Hurdles
Corredor originally planned to launch the event in 2018, but a series of unforeseen circumstances forced him to change course, not least of which was the COVID-19 pandemic a couple years later. He got another company job that allowed him to do some consulting on the side, but organizing events was off limits. His son graduated from high school and announced plans to study abroad.
Perhaps the biggest change came in August 2022 when Gustavo Petro was elected president of Colombia.
The first leftist leader in a country traditionally led by conservative elites had strong words for the oil and gas sector, which he accused of poisoning the world and corrupting society.
In an address to the United Nations, Petro declared society’s “addiction” to oil and coal “worse than addiction to cocaine,” and he announced immediate plans to accelerate the energy transition already in place at state-owned company Ecopetrol.
Colombia’s Ministry of Mines and Energy announced plans to halt new exploration projects and entrained the possibility of importing gas from Venezuela.
The oil and gas sector in and around Colombia was mired in uncertainty.
Running Toward Opportunity
Corredor decided to move forward with his ambitions anyway, determined to turn challenges once again into opportunities. While some companies made plans to leave the country, Corredor refined the concept for a prospects and business expo featuring business opportunities presentations, a commercial exhibition and job fair.
He quit his corporate job and invited his wife to join the business. They started a website, developed a marketing plan, and booked a meeting event space at the center of Bogota’s financial district June 2024.
Some Perspective
The Explora Expo was born. Corredor said it will enable established exploration and production companies, newcomers and investors to review opportunities currently available in the Colombian upstream market and to forge joint ventures that will help increase activity in existing contracts, leading to increased production and reserves.
He reminded those nervous about investing in Colombia to review recent history and take a long-term view.
“Petro’s government has suspended the signing of new E&P contracts in Colombia, and that could affect the long-term E&P activities in the country if things do not change politically in the short term, but remember that during Juan Manuel Santos’ second tenure as president, no new contracts were signed either, yet the national oil production reached a record one million barrels of oil per day,” he said. “Industry is resilient, and Colombia is a democracy where the rule of law works.”
While the Petro administration has forbidden the signing of future oil and gas exploration contracts, the administration has instructed the National Hydrocarbon Agency to support and complete contracts currently in place and to reactivate contracts previously suspended. Many of the active contracts lack investment or partnerships to be completed.
“The current political environment has created the narrative that exploration is over in Colombia and that there are no new investment opportunities in the country,” he said. “Nothing could be further from the truth.”
He described how independent companies like Parex Resources have expanded operations with state-owned Ecopetrol in the Llanos foothills. Geopark continues successfully exploring in the Llanos Basin, while Canacol continues drilling and discovering gas in the Lower Magdalena Basin.
Other companies are taking advantage of ANH policies that allow them to drill exploration wells in areas where they have production contracts. Those wells have resulted in new, small discoveries that have helped to maintain stable national production, and they provide the perfect business case for his expo.
“Despite no new E&P contracts, there are plenty of investment opportunities in the upstream sector in Colombia,” Corredor said.
Finding Allies
Corredor is not alone in his opinion that now is a great time to invest in Colombia.
GeoStrap recently signed endorsing organization agreements with AAPG and with Campetrol, the Colombian chamber comprised of 160 companies that provide goods and services to the exploration, production, transportation, processing and marketing of oil, gas and energy activities.
Nelson Castañeda Barbour, executive president of Campetrol, said June 2024 is “a particularly opportune time” to hold an event like Explora in Colombia.
“Bringing together industry leaders, policymakers and stakeholders will foster dialogue and innovation to address the challenges and opportunities facing the sector,” he said.
In his role with Campetrol, Castañeda is responsible for overseeing the strategic direction and operations of the organization, advocating for the members’ interests and fostering collaboration within the oil and gas sector.
He said Campetrol members, like the Colombia’s overall E&P sector, are characterized by resilience and adaptability.
“Despite market fluctuations and regulatory changes, our members continue to demonstrate their commitment to driving growth and innovation in the exploration and production of oil and gas resources,” he said.
Financing the Energy Transition
Castañeda noted that the Petro administration has brough both challenges and opportunities for the oil and gas activity in Colombia.
“While there have been regulatory changes and shifts in the industry landscape, the administration has also signaled a commitment to sustainable development and energy transition, which presents avenues for innovation and collaboration within the sector,” he said.
“The Petro administration, through the Ministry of Mines and Energy, wants to produce one million barrels in the short term, as does the president of the National Hydrocarbon Agency, who has expressed a desire to increase production to generate the resources that will finance the energy transition.”
In a March 4 interview with Colombian journalist Yamid Amat, Minister of Mines and Energy Andrés Camacho, outlined a production goal of “one million barrels” for state owned company Ecopetrol, which reached peak oil production in 2023.
“Ecopetrol is taking measures through improved recovery and other technologies to increase production. What we are not looking to do is increase the extractive frontier. We want to make the most of what we have so we can use those resources for the energy transition,” he said.
“In 2023 we were at 760,000 barrels. The purpose of Ecopetrol is to go as high as possible to be able to reach one million barrels, make the most of the resources we have and, in this way, finance the transition period that we are proposing to promote not only renewable energies, but also other segments of the economy such as agriculture and tourism.”
Colombia’s E&P Sector
Castañeda and Corredor agreed that Colombia’s oil and gas sector has a fundamental role in advancing new technologies and energy transition activities.
“Some of the E&P opportunities in Colombia that I am most excited about right now include advancements in digitalization and data analytics for improved reservoir management, and the potential for renewable energy integration in the sector,” he said. “Additionally, we are particularly enthusiastic about the offshore investment theme from the chamber, as there is significant anticipation regarding gas exploration in Colombia.”
Corredor agreed, while arguing that onshore gas plays may provide more immediate benefits than the longer-term, costly offshore projects.
“I am very excited about gas exploration on the western margin of the lower Magdalena basin and the highly complex east margin of the middle Magdalena basin. Although the offshore exploration looks promising for gas in northern Colombia, I believe that any discoveries in those two onshore basins could be commercial and brought online in shorter times.”
Addressing Challenges
Castañeda said in any country, the E&P sector in Colombia has its challenges.
“Colombia’s challenges include maintaining self-sufficiency and energy sovereignty, energy security and access to energy at reasonable prices; the replenishment of reserves and generating public policies that encourage investment in incremental projects to reach the million barrels daily, a goal defined by the Ministry of Mines and Energy to increase production and generate the resources that will finance the energy transition.”
He offered some advice for companies seeking to do business in the country.
“To be successful in Colombia’s E&P sector, companies need to keep demonstrating their commitment to responsible resource development, foster strong relationships with local communities and stakeholders, keep prioritizing safety and environmental stewardship, and embrace innovation to enhance operational efficiency and sustainability.”
Castañeda noted that attending events like the Explora Expo can help companies gain the knowledge and connections needed to succeed in these areas.
“We want to extend the invitation to our affiliates, and all the companies of our industry to attend the Explora event to stay abreast of industry trends and developments, explore potential business opportunities, forge valuable connections with industry peers and experts, and contribute to the advancement and sustainability of the Colombian E&P sector,” he said.
Leaving Politics Aside
Corredor encouraged the private sector to leave politics aside and concentrate on new business that can help the country grow.
“If we continue to let the political discussion define what is really happening on the upstream side of business of Colombia, the country will barely find new investments,” he said.
“Colombia and Latin America are full of upstream opportunities, but in many cases is hard to learn where those opportunities are, how to access them and who to talk with to dig into those opportunities,” he said.
“To be successful in Colombia companies need to have a long-term view of the business when investing, and to work closely with regulators and government agencies to be able to obtain licenses and operate with no interruptions in Colombia.
He encouraged companies to build integrated teams where technical, legal, engineering, social, environmental and financial groups work together to make a project successful and shared lessons learned throughout his challenging and rewarding career.
“Patience, intelligence and resilience are key to success,” he said.
The inaugural Explora Expo will be held in Bogota on June 19-20.