Colombia has a reputation for narcotics, violence, debt, ignorance, and xenophobia.

But recently a more positive image has been created throughout the oil industry by BP Exploration Co. (Colombia) Ltd., which has identified 2 billion bbl of oil in its Cusiana and Cupiagua fields.

Attacks on oil and gas installations had almost become accepted as the price of operation in Colombia. Recent local press reports said guerillas blew up gas and crude oil pipelines near Barrancabermeja and a pipeline over the River Sogamoso. Both are in Santander department, 200 miles north of Bogota.

Guerillas also blew up power stations at Buenos Aires in Cauca department, southeast of Bogota, and at Sabana de Torres in Santander. A Western Geophysical Co. exploration camp near Nunchia, Cusiana, had three compressors blown up. A Colombian company had its camp near the Occidental Petroleum Corp. concession in Tamara region burned to the ground.

BP'S GENERAL

David Harding, chief executive of BP in Latin America, said Colombian reality is different from the popular view, although true to an extent. Colombia has a growing economy, a reputation for paying its debts, and a skilled work force. Its oil industry goes back almost 90 years, and in common with other South American countries, its doors are open to foreign investment.

So, what about the terrorism? Like any successful general, Harding has a strategy. He is leading a "hearts and minds" campaign, placing BP in direct competition with the guerillas for loyalty of local people.

BP had problems protecting seismic crews in early surveys in Cusiana and Cupiagua. As exploration continues, now including the larger Piedemonte block, the company has taken a new tack. Rather than move in foreign contractors to do the work, BP encouraged contractors to set up local joint ventures involving Colombians.

VESTED INTEREST

"This was a good way of getting significant wealth into local communities," said Tony Hayward, BP Colombia exploration manager. "Locals have a vested interest in the work being carried out. Since December we have had no security problems."

About 2,000 people, mainly Colombians, are surveying BP's acreage at any time. Locals are employed on jobs such as cutting a way through the forest, drilling shot holes, and replanting. Trust is not yet complete, however.

"We can't lay dynamite charges in advance," Hayward said. "They are laid immediately prior to shooting lines. Explosives are locked away at an army store each night."

Harding has another sound policy: Take no risks.

He persuaded the government to set up a special battalion of the army to protect BPs work sites. The battalion is made up of 2,000 men, almost 10% of the entire Colombian army.

Copyright 1993 Oil & Gas Journal. All Rights Reserved.

WATCHING THE WORLD BP TARGETS COLOMBIAN HEARTS AND MINDS

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