Colombia seeks more oil output, investors - official

By Bruce Nichols

HOUSTON, March 26 (Reuters) - Colombia's oil output is on the rise and could exceed 570,000 barrels of oil equivalent per day by the end of 2008, up for the third consecutive year, a government energy official said Wednesday.

"The question now is when do we reach 1 million barrels a day," said Armando Zamora, director general of Colombia's oil and gas agency, Agencia Nacional de Hidrocarburos (ANH).

Zamora, in Houston for a road show promoting oil and gas leasing opportunities in Colombia, said in an interview the nation plans to spend $60 billion to raise oil and gas production to 700,000 boe/d by 2015.

Arguing the undiscovered potential is great, Zamora said he hopes output will reach 1 million boe/d by about 2020. Colombia produced 820,000 barrels a day in the late 1990s, he said.

Zamora disputed the widespread perception that Colombia is losing output and could become a net importer. He also disputed lingering concern about the safety of investing in the country, which has battled rebels for years.

"We are conscious there is a big gap between perception and reality," Zamora said, arguing there has been significant improvement in business climate, political stability and personal safety under President Alvaro Uribe.

A lawyer familiar with the country said the situation in Colombia is improved and investments there are "worth a look." But Larry Pascal of Haynes & Boone said investors still need to balance risks and benefits.

Pascal said Colombia needs to institutionalize changes under Uribe, who will not hold office forever.