Colombian bishop expresses concern about privatizing oil company

Published: 2006-08-17

BOGOTA, Colombia (CNS) -- Bishop Jaime Prieto Amaya of Barrancabermeja has expressed concern that a government decision to privatize up to 20 percent of the state-owned oil firm Ecopetrol could have consequences on regional stability. The diocese, home to the larger of Ecopetrol's two refineries, is located in an area of eastern Colombia with a long history of violence linked to the country's 42-year-old civil conflict. President Alvaro Uribe announced in late July he plans to offer up to 20 percent of Ecopetrol to private investors, although legislators must pass the measure before it is implemented. Government and company officials said the move is Ecopetrol's chance to free itself from government control of its finances and investment decisions so that it can spend more money exploring for oil. Colombia is rapidly running out of oil and needs to find more soon to avoid costly imports. However, the sale of shares "concretely opens the door to the possibility of a progressive privatization," Bishop Prieto said in a statement, noting that Uribe had pledged a few years ago that Ecopetrol would remain in state hands.

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