World's richest man Mexico's Carlos Slim is entering into oil sector for the first time by buying a 70 percent stake in an oil exploration and production company in Colombia.
Carlos is investing in Colombia because it has the potential to power the next generation of oil production.
He says it has reached an agreement to take a majority stake in Tabasco Oil Co. LLC, which has an exploration concession on a field in Colombia.
The consortium's statement sent to the Mexican stock exchange Tuesday does not say how much it is paying for the stake.
Carso is a diversified retail, construction and industrial conglomerate. It is controlled by Carlos Slim, who is considered the world's richest man with an estimated fortune of $53.5 billion. Carso stock closed up 0.25 percent before the announcement was made.
There are many signs that highlight Colombia's turnaround from a hostile environment over the last decade. The first is the country's improving economic and political stability. In the middle of last year, Juan Manuel Santos was sworn in as the new Colombian president, and his new policies have generally been investor-friendly.
Colombia's oil sector is largely driving this investment, in part due to government programs to make the country attractive to foreign oil companies. Companies can now have longer exploration licenses, and can also own 100 percent stakes in oil ventures.
