Colombia ‘cranking 2008 output’
Colombia's oil output is on the rise and could exceed 570,000 barrels of oil
equivalent per day by the end of 2008, Armando Zamora, the head of the
country’s oil and gas agency said.
An increase this year would be the third consecutive annual output rise for
the country.
"The question now is ‘when do we reach 1 million barrels a day?’," said
Zamora, director general of Agencia Nacional de Hidrocarburos (ANH).
Zamora, in Houston for a road show promoting oil and gas leasing opportunities
in Colombia, said in an interview with Reuters the nation plans to spend $60
billion to raise oil and gas production to 700,000 boe per day by 2015.
Arguing the undiscovered potential is great, Zamora said he hopes output will
reach 1 million boe per day by about 2020. Colombia produced 820,000 bpd in
the late 1990s, he said.
Zamora disputed the widespread perception that Colombia is losing output and
could become a net importer. He also disputed lingering concern about the
safety of investing in the country, which has battled rebels for years.
"We are conscious there is a big gap between perception and reality," Zamora
said, arguing there has been significant improvement in business climate,
political stability and personal safety under President Alvaro Uribe.
A lawyer familiar with the country said the situation in Colombia is improved
and investments there are "worth a look". But Larry Pascal of Haynes & Boone
said investors still need to balance risks and benefits.
Pascal said Colombia needs to institutionalise changes under Uribe, who will
not hold office forever.
"That doesn't happen overnight," Pascal said, emphasising he was speaking of
the political climate, not the oil and gas exploration opportunities.
"That's for geologists," he said.
ANH is offering oil companies 43 blocks in four different basins. The road
show started in Bogota on 14 March, continued in Houston this week and ends
in London in early April.
"There has been a lot of interest," Zamora said, listing heavy oil, natural
gas, tight-formation gas and coalbed methane prospects in the blocks
offered. "There is something for everybody."
Bids are due by 5 September, with contracts to be signed in October and
November, officials said.
27 March 2008 00:08 GMT
| last updated:
27 March 2008 00:08 GMT
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