Wednesday, September 06, 2006

Columbia charms oil and gas investors.

Remember when, from the American perspective, Columbia was the crazy, out of control country down South America way? Well, not anymore. Thanks to a rising tide of socialism in countries like Peru, Venezuela, and Bolivia, Columbia is starting to look a lot more attractive to investors worldwide.

Here's what the Financial Times has to say:

Colombia has become a hot spot for oil and gas exploration in Latin America as energy multinationals face increasingly hostile business conditions elsewhere in the region, industry experts say.

A steep and sustained fall in guerrilla attacks under President Alvaro Uribe, who began a second four-year term this month, and a reduction in tax rates are key attractions.

The favourable investment climate contrasts with those of other countries in the region, such as Venezuela, Bolivia and Ecuador, where governments have as much as doubled the tax and royalty rates levied on foreign-owned operations and, in some cases, expropriated assets.


Western and Eastern companies alike are taking a strong interest in Columbia's oil and gas resources.