MercoPress. South Atlantic News Agency

Colombian oil and coal reserves attract Latam’s tycoons

Carlos Slim is betting strongly in Colombia’s development

Carlos Slim considered by Forbes Magazine the richest man in the world said he’s seeking to boost his investments in Colombia because of the country’s open policy on oil exploration, its mineral assets and growing middle class.

Slim aims to expand the drilling and oil-platform services he provides Mexico’s Petroleos Mexicanos through exploration opportunities in Colombia, he said in an interview at Bloomberg News headquarters. Slim, whose holdings rose to 70 billion US dollars last year, has stakes in US oil services companies Bronco Drilling Co. and Allis-Chalmers Energy Inc.

“The government is actively looking at the development of the oil industry and is promoting other investments,” he said. “We’re looking at what to do beyond the telecommunications business that we’ve been doing for 10 years in Colombia”,

Colombian foreign direct investment more than quadrupled in the past decade, to 7.2 billion USD in 2009 from 1.5 billion in 1999, after former President Alvaro Uribe repelled guerrilla groups that attacked oil pipelines and assassinated politicians.

Another Latinamerican tycoon, Brazil’s richest man Eike Batista said his companies OGX Petroleo & Gas Participacoes SA may begin producing crude in Colombia in 2012. Batista is also boosting his investments in Colombia joining Anglo American Plc, BHP Billiton Ltd. Xstrata Plc and Drummond Co. in tapping South America’s largest coal reserves.

Colombian President Juan Manuel Santos who took office last August is counting on rising commodity investments to fuel the country’s economy. Oil blocks auctioned last year will draw more than 1 billion USD over three years from companies including Shell Plc, SK Energy Co. and Repsol YPF SA, according to the government.

Colombia attracted about 6.5 billion USD in foreign direct investment through the third quarter of 2010. Foreign direct investment in mining rose to 3 billion USD in 2009, the last year of annual figures available, from 1.8 billion USD in 2008, according to central bank figures.

The central bank expects the Colombian economy to expand around 4.5% this year after growing en estimated 4.1% in 2010.