Occidental, BP will drill for oil in Colombia

HOUSTON CHRONICLE
Sunday, 19 March 2000

BOGOTA - Occidental Petroleum Corp. and BP Amoco plan to explore for crude in tracts that could rival Colombia's largest oil fields, bolstering the country's chances of remaining an oil exporter throughout this decade.

Occidental will sign a contract to explore in the Samore block, which has potential reserves of 1.4 billion barrels, said the Mines and Energy Ministry.

BP Amoco will sign a contract to explore the Niscota field in the Piedemonte block, which has potential reserves of 1 billion barrels.

Oil is Colombia's biggest export, accounting for $ 2 billion in revenues last year.

Colombia is seeking to ramp up exploration to counter dwindling reserves so it can continue to be an oil exporter after the middle of the decade.

Mines and Energy Minister Carlos Caballero said the contracts will have terms that will give the companies a larger share of output than previous contracts. He said there was about a 20 percent chance that commercial volumes of oil would be found in the two fields. If oil is found, each field may produce more than the largest producing field at Cupiagua- Cusiana in northeastern Colombia.

The government of President Andres Pastrana has pulled out the stops to attract new oil investment, particularly in exploration. Last year Colombia revised contract terms to lower the state's take - production sharing, royalties and taxes - from an average of 84 percent to about 70 percent.

The new contracts, along with oil prices that are at nine-year highs, have helped renew interest in Colombia.