Colombia bucks trend, plans to sell stake in its oil company

by DARCY CROWE
NUEVA CASTILLA, COLOMBIA

Critics to fight move, but nation wants to become new destination for investments

In a region of leftist leaders determined to nationalize their oil industries and extract higher taxes from multinational drillers, Colombia's government is insisting on a privatization plan for its state-run oil company.

By selling off 20 percent of Ecopetrol, Colombia hopes to net up to $5 billion and finance the new exploration it needs to boost the nation's lagging oil production, according to Armando Zamora, president of the National Hydrocarbon agency.

If more crude isn't discovered soon, Colombia will begin importing oil in 2011 — and that could be devastating for the government's finances, which depended on Ecopetrol for 7 percent of last year's $41 billion budget.

Venezuela, Bolivia and Ecuador have taken advantage of record-high oil prices by increasing state control and forcing multinational companies to renegotiate contracts that raise the royalties they must pay.