It is just remarkable to see OGJ spent 7 pages on Colombia and its new plans for attracting E&P investment (OGJ, Nov. 29, 1999, pp. 18-25). We like it, and I hope this becomes a tradition for "new millenium" where OGJ would equally provide such space for other nations with similar problems and opportunties. For an international petroleum explorationist, it was not hard to understand the geoloy and potential of Colombian basins that are being explored for the last 6 decades or so.
Geology of Colombia is challenging, exciting, and at times felt as difficult. But the most serious problems faced by all investors are related to operational security for personnel and properties.
Those who dared to go forward with all such "clouds-over-the heads" were rewarded by discoveries and fair contract terms. In my opinion, ECOPETROL has been the best lighthouse and most friendly "government- owned" company in Latin America for the last 25 years.
Simply put, because of ECOPETROL's down-to-earth and very business-like approach to the oil industry, we find several oil comapnies are still doing E&P activities in Colombia. If such harsh environment would prevail for such a long time in any country, I can guarantee that most oil companies would have folded their tents and gone home.
Dr. Prado, the vice-minister, is right: potential is large enough to attract new exploration efforts. Of course, all future discoveries will not be like OXY's Cano Limon or BP's Cuisiana. So the million dollar question is who will 'bell the cat,' i.e., contain violence and create secure conditions for small-to-medium 'independents' to come to Colombia and do the works." After all there is only one OXY, one Chevron, one BP, and one Exxon-Mobil; and most currently operating-surviving oil companies are independents.
New "contract terms" look good enough for a revisit of Colombian basins.
Kumar Bhattacharjee
President
Sita Oil Exploration House Inc.
Houston
