IAHL Corporation (IAHL)

[energybuyer]

BOGOTA, Dec 17 (Reuters) - Colombia is targeting a 15% increase in crude oil output by using "enhanced recovery" technologies to take advantage of higher energy prices, even as it pushes towards decarbonization, Minister for Mines and Energy Irene Velez said in an interview.

The government of President Gustavo Petro, the first leftist to lead Colombia, hopes to wean the Andean country off its dependence on extractive industries like mining and oil in favor of agriculture and renewable energies, among other sectors.

Yet the energy and mining sectors are major sources of income for Colombia.

Oil and gas generated 6.4 trillion pesos ($1.3 billion) in royalties in 2021, according to industry group the Colombian Petroleum Association (ACP), while the Colombian Mining Association (ACM) forecasts mining will bring in 4.84 trillion pesos in royalties this year.

While the government deliberates over whether or not to grant new exploration and production contracts, Colombia could use enhanced oil recovery technology to boost output from existing wells to some 862,500 barrels per day (bpd) while prices remain high, Velez told Reuters on Friday.