Maximising returns in Colombia’s E&P arena

Colombia

Álvaro Cárdenas, general manager of Datalog Colombia, talks to The Energy Year about supplying high-precision data to support drilling decisions and the company’s expansion into the market for new energy resources. Datalog Colombia is a drilling services company specialising in mudlogging, geoscience, operational intelligence and consultancy services.

What current opportunities lay in the E&P arena despite the current challenges?
By unfreezing E&P licences for new areas, the country wants to send a clear message that there are opportunities to capitalise on. The ANH [National Hydrocarbons Agency] wants private investors to explore but, unfortunately the sector is not convinced that new E&P licences or new areas will be awarded. Our objective in this context is to take advantage of the low-hanging fruit and exploit what we have, the licences that are currently active.
We should of course not lose sight of other important issues that are affecting E&P activities, such as social conflicts and political violence. These are the issues that need to be resolved. Nonetheless, despite the adversities, plenty of opportunities remain to be explored in the E&P scene.

How important is the data you collect for E&P operators?
We are a service company that depends on the activities carried out by operators such as Ecopetrol, Parex or others. We help them succeed in their operations by collecting valuable data while drilling. Good information is essential to understand the true potential that wells or reservoirs hold. We supply this knowledge by processing the data we collect using the latest technologies and various advanced processes.
Colombia’s petroleum industry is in transition. We are re-evaluating the quality of the information we have gathered in the past and focusing on how to incorporate it with future studies. You’re not going to be able to make a good decision if you don’t have good historical data.
Data analytics, the interpretation of raw data to generate operational intelligence, is critical because information is power. However, the essential first step is to understand our clients’ objectives, and the specific problems they may be facing, to offer them the best solution.

To what extent do you cater to clients who are undertaking exploration drilling?
As a company, we do not offer the lowest rates. Pricing is an important criterion for allocating contracts but, despite this, we have participated in all the projects that Ecopetrol considers to be the most risky and difficult. We have supported all their exploratory drilling campaigns in recent years. We do not work on their development wells, which are easier in theory, only on the riskiest projects where performance is more important than price.
Although we have the capabilities to offer up to 15 work fronts, we have been offering them only three or four work fronts, specifically in the wells with the greatest operational risk with Ecopetrol. We are now working with them in the Piedemonte Llanero area.
As for other companies, we are working with Arrow Exploration which aims to drill around 15 wells in Colombia this year, and we have been supporting Parex since they entered the country. We have had up to seven different exploratory fronts with them. SierraCol Energy and Canacol Energy are also our clients.

How open is Datalog to diversifying and adjusting to changes in market conditions?
The energy industry is shifting and we must change with it. One of the areas we plan to diversify into is geothermal because several players have a keen interest in those services.
Every well has its different and geothermal wells present unique challenges and variants that we need to identify and master. If Parex or Ecopetrol decide to spud geothermal wells, we want to be in the best position to obtain data and supply actionable information. We are open to diversifying into new areas and dedicating resources to supporting the needs of operators.

What strategy does Datalog have to expand into other markets in the region?
We have the capability to cover between 20 and 25 working fronts and at the moment we have 10 of our units working in Colombia, two deployed in Ecuador and one in Guatemala. Drilling in Colombia is currently in decline and we expect activity will be subdued in the next couple of years, so we are exploring opportunities in other markets.
Mexico is an interesting possibility. It might be difficult to penetrate because Pemex and other operators already have long-term contracts in place, but it has high potential. We are not yet ready to establish regional offices, so our strategy across the board is to secure business through structured contracts and deploy equipment as needed to different locations.

How are you embracing sustainability in your operations?
Sustainability is fundamental for any company in this business. We have a strategy which implies the implementation of what we call green units, through which we measure our emissions and take steps to decarbonise our operations. We deployed our first unit in January 2024 and have calculated that we can reduce our emissions by up to one half tonne of CO2 per month.

What new solutions is Datalog offering in the geosciences segment?
We are a company that offers mudlogging, geosciences and operational intelligence. The last two are acquiring more importance in our portfolio as we are focusing on data analytics and new equipment to improve our geoscience capabilities. We have invested in geo-navigation which offers us high-precision data in real time, as well as in geomechanics models.
We have also invested in a technology called Acue Lite which is an automated measurement device that gives real-time information on landslide flows. We are patenting it. Instability and cave-ins are major problems for wells as they tend to lead to total collapse.
Our device provides early warnings and a real-time visualisation of changes and trends in wells. It also helps with hole cleaning, and in optimising the circulation of fluids. So far, three different clients are using this solution in Colombia: SierraCol Energy, Hocol and Parex.

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