This piece states that Colombia expects an 8% decline in production in 2001. Probably doesn't take into account the rebel pipeline bombings either.
Colombia Ecopetrol seeks European help to reverse decline
BOGOTA, Colombia, Feb 13 (Reuters) - Colombia's state-owned oil firm Ecopetrol will seek help from investors from Western Europe and Russia including Italy's Agip to reverse the natural decline of its fields, a company publication said.
``During the first few months of 2001 we are going to be in contact with some European companies.... With respect to the Russian companies, there are some which are interested in coming to Colombia to explore,'' Tomas Villamil, Ecopetrol's exploration assistant vice president said in the firm's house magazine Carta Petrolera, which was distributed late Monday.
The government estimates that Colombia could have to import crude from 2007 onward unless new reserves are found to supplement the current 2.3 billion barrels.
``With the Italian company Agip .... we are approaching them to get them interested,'' he said.
Ecopetrol currently has ventures with about 80 companies, including BP Amoco Plc (quote from Yahoo! UK & Ireland: BP.L) and Occidental Petroleum Corp (NYSE:OXY - news).
``Only foreign companies have the economic muscle and the capacity to tolerate risk which you need in the oil business,'' Villamil said.
Oil is Colombia's biggest earner of foreign exchange, bringing in $6.4 billion in 2000, or almost half of total exports.
Ecopetrol estimated at the end of January that the nation's daily oil output would fall by 8 percent in 2001 to 631,700 barrels due to natural decline.
But industry analysts say that regular attacks on oil industry infrastructure -- with foreign-owned firms an especial target -- have also hit production.
``Ninety-five percent of what we have to improve is the security situation. If there weren't any security problems then Colombia's oil story would be pretty different,'' Villamil said.
Colombia's government is trying to negotiate an end to 37 years of war -- pitting leftist guerrillas against the armed forces and outlawed paramilitaries. Some 35,000 civilians have been killed in the past 10 years alone. |
