CAPITAL: BOGOTA
MONETARY UNIT: PESO
REFINING CAPACITY: 285,850 B/CD
OIL PRODUCTION: 688,700 B/D
OIL RESERVES: 2.6 BILLION BBL
GAS RESERVES: 6.9 TCF

Columbia's oil production, the chief source of revenue to the government, was declining in 2000 from an all-time high set in 1999. At least one analyst predicted that the country, despite efforts to promote renewed oil and gas exploration, could become an importer within 5 years.

The government wanted to expand gas operations for domestic use and exports, but progress was slow. Production totaled about 675 MMcfd, of which 500 MMcfd was produced in the Guajira basin off the north coast.

Many attributed slumps in oil and gas licensing, field operations, and production to security issues. State Ecopetrol said attacks exceeded 70 in the first 9 months and 700 since they began. The Cano Limon-Covenas oil pipeline was the target of a majority of the attacks.

Figures from Occidental Petroleum Corp. indicated that Cano Limon field production averaged less than 100,000 b/d during 2000, compared with 125,000 b/d in 1999. The field was capable of 110,000 b/d, but guerrilla activities caused production shutdowns during the year.

As Cano Limon output declined, Oxy in November 2000 spudded its Gibraltar-1 wildcat 100 miles to the west in the Llanos Oriental province. The well, to go to 14,000 ft on the Siriri block, is less than 2 miles from a 250,000 b/d export pipeline pumping oil at 40% of capacity.

Oxy believed the structure is on trend with giant Cusiana and Cupiagua fields and large Florena and Pauto fields in the Llanos basin. Florena and Pauto were to begin producing in 2001. Disputes with the U'wa natives delayed Gibraltar drilling several years.

BP Amoco signed an exploration contract covering the rugged, 156,000-acre Niscota block north of Cusiana and Cupiagua fields. Niscota covers 23.8% of the former Piedemonte block. The company relinquished the rest in return for more favorable contract terms.

Ecopetrol classed Niscota and Gibraltar as the country's two most important exploration prospects.

Transportation

Guerilla attacks on the Cano Limon-Covenas oil pipeline brought pumping to a virtual standstill in August and September 2000, and Cano Limon field production was practically nil in August and the first half of September, officials said.

Cano Limon was the country's second most important oil field. Guerrillas of the Cuban revolution-inspired National Liberation Army, known by its Spanish acronym ELN, publicly declared Oxy's facilities as a "military target."

Each day the pipeline was not in service represented more than $2 million in lost revenues, and $3 million more went for repairs in 2000 alone. Environmental damage from leakage was considered irreparable.