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Friday, 09 January, 2009, 01:40 GMT | more >>

Colombia fights to keep oil flowing



By Upstream staff 

Colombia expects foreign oil investment to reach $1.2 billion this year as the state races to uncover new oil sources before it is forced to become a net importer, an industry official said today.

Colombia, the sixth-largest Latin American oil producer, reached its exploration target last year of drilling 56 new wells amid reduced violence in the country's long-running civil conflict, said Armando Zamora, director of the state National Hydrocarbons Agency.

President Alvaro Uribe, a US ally, has sent troops to retake areas once controlled by Marxist guerrillas, cutting violence and kidnapping and attracting more foreign investment to the Andean country despite its four-decade rebel insurgency.

"We expect net foreign investment at around $1.2 billion in the petroleum sector, including all the activities of the business," Zamora told reporters.

"More than 20 contracts are in the pipeline ready to be signed and more than 50 wells are set to be drilled," the director said.

Last year, foreign investment in the petroleum industry was also around $1.2 billion.

Eleven of the 56 wells opened in 2006 have so far proved productive, one of those drilled by Russia's Lukoil producing 1,000 barrels per day (bpd), Zamora said.

Uribe's government this year expects to offer several off-shore blocks in the Caribbean for auction.

Colombia last year increased its year-on-year oil output for the first time since 1999 to average output of 530,000 bpd, while its proven reserves rose to 1.5 billion barrels.

The increase in exploration last year was the biggest hike since the 1980s when Colombia discovered Cusiana-Cupiagua with estimated reserves at the time of 1.3 billion barrels. The operation is run by oil major BP .

Zamora, responsible for assigning areas of exploration and geological analysis for block reserves, said the government plans to promote its oil sector heavily overseas.

Colombia plans to budget at least $1.4 billion a year over the next two years to its state oil company Ecopetrol, which produces around 320,000 bpd. Without increasing output, Colombia could become a net importer in five years, Reuters reported.

Wednesday, 24 January, 2007, 19:04 GMT  | last updated: Wednesday, 24 January, 2007, 19:04 GMT

Race against time: to replace production in Colombia
 

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