Oil Colombian to attract the 4 billion as Nation thin prints, Batista

11: 34 Pm EDT by Heather Walsh, 06 April 2011

April 6 (Bloomberg) - Colombia plans to open up unexplored parts of the country to the oil companies at auction that will attract more than 4 billion in investment, mining and Energy Minister Carlos Rodado said.

Third largest producer of South America aims to increase crude production that it attempts to exploit the demand for China and other nations of Asia, growing Rodado said in an interview. Colombia will hold three auction oil rights of exploration and production between 2012 and 2014, regulator of the country's oil, said yesterday.Colombia deposits have already attracted Carlos Slim and Eike Batista billionaires. Slim Grupo KRAs SAC between market Colombia oil for the first time this year, while offers of stocks for companies seeking to exploit coal and Batista plans gold reserves. Mineral and raw projects will contribute to 44 billion dollars for the Government coffers in the five years to 2014, said Rodado frames yesterday at a Conference of oil.Thin and Batista "are already investing in Colombia, which is clearer display of the confidence of major investors and foreign capital," Rodado said yesterday in an interview in Cartagena, Colombia. "Colombia has become a country attractive for foreign investment."Objectives of Colombia to produce 1.7 million barrels of crude oil and natural gas per day in 2020, "close" on the Brazil, second largest producer of South America after the Venezuela, said Rodado. Oil production reached a monthly record in March 884,000 barrels per day, most of which is produced by State - run Ecopetrol SA.Markets 'Niches' While at the United States is the largest export market for Colombian crude oil, the Andean nation looks at how to take advantage of the demand in China and other growing Asian countries, he said. To do this, Colombia a need to improve the infrastructure to transport its crude to the coast of the Pacific of the nation, Rodado said. "The Colombia is taking its first steps to capture niche market in Asia, he said. "Obviously we must improve our pipeline infrastructure".Increased security has opened up new areas of exploration for oil and minerals in Colombia, where guerrilla groups still sabotage pipelines and transmission towers. Belonging to the State-run Ecopetrol pipelines have been sabotaged with explosives, this year, while the Government has declared March 8 that 22 workers of oil removed 23 a day earlier in an Eastern Colombian province were released after a military dragnet.Ecopetrol based in Bogota will sell as a 9.9% share stake this year, according to the investment needs, he said. The Government will sell later stock to raise funds for infrastructure, pending the approval of the Congress, he said.A stronger economy and less violence helped Colombia win last month an investment-grade credit rating of Standard & Poor, who raised a step rating BBB - BB +. Put increased rating the Colombia to the Brazil and Peru.Military strikes reduced attacks on pipelines, roads and bridges to 76 in 2009 of more than 800 in 2002, according to government figures.

-Editors: Jessica Brice, Dale Crofts

To contact the reporter on this story: Heather Walsh in Bogota to hlwalsh@bloomberg.net

To contact the editor responsible for this story: Dale Crofts to the dcrofts@bloomberg.net

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