By James Wilson in Bogota
Published: September 29 2000 23:45GMT | Last Updated: September 29
2000 23:51GMT



Colombia's oil industry received a shot in the arm on Friday when 13
exploration and production contracts were signed with foreign and
domestic investors.

The contracts will lead to around $620m of investment over the next
six years, according to Alberto Calderon, president of Ecopetrol, the
state-owned oil company, which will take a share of the extra oil
production.

Talisman Energy and Alberta Energy, two Canadian companies, were among
the winning bidders, along with Cepsa of Spain and Texas Star Oil and
Gas of the US.

Colombia has struggled over the past decade to attract fresh
investment in its oil sector, prompting fears that the country would
become a net oil importer by 2003, but has reawakened interest this
year by sweetening contract terms for investors.

Mr Calderon said the fresh investment in production should keep
Colombia self-sufficient until around 2007. He added the bidding
round, over nine months, was the most successful Colombia had carried
out.

Oil is Colombia's largest foreign exchange earner and exports were
worth around $2.2bn in the first half of the year.

Colombia hopes to be producing around 1m barrels a day by 2010, from
the present 730,000 barrels daily. The new contracts are expected to
contribute around 100,000 barrels per day towards the 1m target.

Foreign investors have been wary because the oil sector, whose
companies often operate in isolated areas, is a frequent target of
leftwing guerrillas in long-running conflict with the government. The
pipeline that pumps crude from fields operated by Occidental, the US
company, has been bombed more than 60 times this year.




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