Colombia Captures Mining and Oil Investments from Venezuela and Ecuador

Colombia is watching its foreign mining and oil investments boom as security gains and capitalist friendly investment rules come in to play.

The third largest oil producing nation in South America after Brazil and Venezuela seems to be on its way to the bank.

The state owned Ecopetrol is currently producing 90% of the crude oil today. There is a great scope for private players and many of them are entering the Colombian market. The target of 1 million barrels of crude a day by 2012 is pushing up direct foreign investment.

Last year alone saw $7.2 billion being invested in petroleum and mining. The mining sector foreign investments are doubling as companies look for the next big thing in unexplored markets. As per Patrick Esteruelas an analyst with the Eurasia Group, Colombia keeps popping up on the radar.

Venezuela and Ecuador have alienated many energy investors by rewriting oil contracts and increasing royalties and taxes so much that many multinationals pulled out. In contrast Colombia's outgoing president, Alvaro Uribe, offered strong incentives for investment. These are paying rich dividends to the country today.

Historically an agrarian economy, Colombia urbanised rapidly in the twentieth century, by the end of which just 22.7% of the workforce were employed in agriculture, generating just 11.5% of GDP. 18.7% of the workforce are employed in industry and 58.5% in services, responsible for 36% and 52.5% of GDP respectively.

Colombia is rich in natural resources, and its main exports include petroleum, coal, coffee and other agricultural produce, and gold. Colombia is also known as the world's leading source of emeralds.

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.

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