Colombia’s Ecopetrol Sticking to Natural Gas Strategy Amid Changes in Energy Sector
Colombia’s Ecopetrol SA kept adding oil and gas production in the third quarter.
ecopetrol
In an earnings call last month, CEO Felipe Bayón cited deepwater gas discoveries in the Caribbean in the Gorgon-2 with partner Shell plc, and another find by subsidiary Hocol SA in Cordoba department. He said this reiterates “Colombia’s potential for gas, the hydrocarbon of the energy transition.”
The country has now identified about 17 Tcf of gas resources, executives said. This would amount to about 10 years of supply.
Production at the state firm rose to 720,000 boe/d in the third quarter, compared to 684,000 boe/d in the same period last year. Natural gas along with natural gas liquids and liquefied petroleum gas accounted for 24% of production in the third quarter. This was a 13% jump from the year-ago quarter.
Bayón has previously stated company intentions to up gas supply.
Production figures included the company’s joint venture with Occidental Petroleum Corp. in the Permian Basin’s Midland formation in West Texas. Net production to Ecopetrol was 43,800 boe/d in the third quarter, up 79.2% year/year.
The company is aiming for output of 720-725,000 boe/d for next year.
Despite a directive by new president Gustavo Petro to halt new oil and gas contracts, existing contracts are being respected, executives said. In the first nine months of the year, Ecopetrol completed 407 development wells, up 42% year/year.
Gas Expansions
The company is promoting natural gas throughout the country as part of a strategy to lower emissions. It launched a pilot project for small-scale LNG into the district of Buenaventura to guarantee supply to the city. The liquefied natural gas project is expected to supply 45,000 users.
Another project would finance the purchase of around 4,000 heavy load vehicles powered by natural gas.
