The Colombian government has pre-selected 11 companies to bid for oil and gas exploration rights in 13 offshore areas in the Caribbean coast, the National Hydrocarbon Association, the government’s oil-licensing agency, said in an emailed statement Monday.

The Colombian government fully pre-selected state-owned Ecopetrol SA, U.S.- based Chevron Corp. (CVX) and Japan-based Teikoku Oil Co. These companies will be able to participate in the auction to be held on Sept. 18.

Another eight companies still need to hand over additional information to be fully pre-selected. These include Brazilian state-run Petroleo Brasileiro SA ( PBR), BP PLC (BP), Spanish-Argentine Repsol YPF SA (REP), BHP Billiton PLC (BHP) , Hess Corp. (HES), Seep SA, ONGC Videsh Ltd. and Vinccler Oil & Gas.

The Colombian government plans to hand over exploration rights in the Caribbean coast to those companies offering to transfer the biggest share of oil or gas production to the government if they make a commercial discovery.

The winning companies will have 10 years to explore in the area and the rights to produce oil or gas until the field is depleted.

Three years after winning the rights, the companies will have to hand back 50% of the area to the government, a standard procedure in such auctions.

The Colombian government has made strong efforts to attract oil companies to the country to boost oil reserves and output in order to remain oil self- sufficient. If current consumption and production trends continue, the country will become a net oil importer in 2014.

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Posted: 08|28|07 at 11:04 am. Filed under: Auction News.