The Palagua-Caipal field is located in the middle Magdalena Valley, in the Honsa-La-Dorada sub-basin in the state of Boyaca. Texaco discovered the Palagua field in November 1954 and developed the field for 30 years. In 1986 the concession reverted to Ecopetrol, which operated the field until the consortium of JTI and partners (Two Colombian companies, Ismocol and Parko Services) entered into production contract with Ecopetrol in September, 2000. The estimated Original Oil in Place (OOIP) for the Palagua-Caipal field is about 1.2 Billion barrels of oil. As June 2017 approximately 129.8 million barrels of oil have been produced since the beginning of the production from the field.
As of June 2017, the JTI net share of oil production in Colombia is about 1100 barrels of oil per day.
JTI, along with two Colombian partners, are jointly operating Palagua-Caipal block in Colombia. On 29th September 2000, the joint-venture group was awarded the bid on the Palagua-Caipal block. The joint-venture consortium will operate the currently producing field until 2023. In May 2012, the contract was modified dividing the block into two areas, namely, Area A and Area B. Area A encompasses currently producing field to be operated as per existing contractual terms. Area B is the remaining area of the block with potential new fields and requiring exploration activities.
Since 2013, JTI joint-venture carried out exploration including 3-D seismic and drilling of two exploratory wells, PWT-1 and PO-1 in Area B. Both the wells confirmed commercial discovery and are currently being evaluated. The success of the exploration activities in Area B qualifies the JTI joint-venture to operate Area B until December 2034.
As of June 2017, the Palagua-Caipal field consists of 368 wells, 216 of which are active with an existing gross production of about 6,520 BOPD. Incremental production reached 5,235 barrels per day. JTI's net share is about 1,100 barrels of oil per day.
Structure and Stratigraphy:
The structure of the field consists of a large monocline deepening to the southeast, intercepted by the Velazquez-Palagua main strike fault, which is a wrench type fault running NE-SE. Next to this fault are satellite faults running SW-NE that generates eight separated blocks in the eastern part of the field. Exploration in this basin has been directed at prospecting for structural traps, mainly associated with major asymmetric anticlines, closure against faults and folds in over-thrust areas with Tertiary objectives. Occasionally, fractured limestone and stratigraphic traps associated with the wedging of the section on basement have been noted.