MercoPress. South Atlantic News Agency

Colombian oil output declining.

Colombian oil output dropped almost 6% in the first quarter of 2004 compared to the same period last year reported this Tuesday state-owned oil company Ecopetrol.

Average daily production during the first three months of this year was 520,441 barrels, compared with 553,552 barrels in the first quarter of 2003.

Production in March reached 516,154 barrels per day (bpd) that is 6.59% below the 552,583 bpd of March 2003.

Colombia's oil production has been steadily decreasing after reaching a record 846,484 bpd in early 1999. Production is now 40% below that level.

However despite lower production higher prices on the international market, --where Colombia exports a significant amount of crude--, as well as higher domestic oil prices has meant sustained revenues both for Ecopetrol and the Colombian government.

In spite of vast potential energy resources, the ongoing internal armed strife and guerrilla control of areas of the country has kept investors away from the Colombian hydrocarbons industry.