The Colombian Minister of Mines and Energy. Mr. Luis Ernesto Mejia, has revealed that several oil companies currently active in the country have expressed interest in extending their contracts because of recent changes in policy following a recent meeting of Conpes, the government's social and economic policy-making body. Such an extension would also be a relief in terms of the financial burden on the state-run Ecopetrol company in terms of operating large oil fields, such as Cano Limon in Arauca, which would revert to the state in 2008. The Minister has not released any of the names of the companies, but sources say that amongst them are Occidental and Hocol. An extension of these contracts will involve the coil companies making certain commitments, ensuring that the state obtains more benefits than those which would accrue to it with the ending of the contracts. The participation of the state would also be linked to the degree of risk associated with any given contract: lower risk projects would have a higher level of state participation. There are currently 144 such contracts active, of which 80% end within 5 to 10 years.
