Ecopetrol SA shares dropped after President Gustavo Petro urged the sale of its U.S. operations, citing environmental concerns over fracking. Despite extending a joint venture with Occidental Petroleum, Petro’s request could impact the company’s strategic direction and investment plans in cleaner energy initiatives.
Ecopetrol SA’s shares fell significantly after Colombian President Gustavo Petro urged the company to divest its U.S. operations due to concerns about the environmental impacts of fracking. This appeal follows the Colombian government’s stance against fracking, which Petro labels as harmful to both nature and humanity. The company’s stock declined by up to 2.4% during trading in Bogotá despite having extended its joint venture with Occidental Petroleum Corp. in the Permian Basin until June 2026.
Ecopetrol is Colombia’s majority state-owned oil producer, which has been a significant player in the U.S. shale market, particularly in the Permian Basin. President Petro, leading a leftist administration, has pledged to prioritize climate change and has expressed intentions to shift investments towards cleaner energy sources. With a backdrop of declining domestic oil production, Petro’s administration is demanding a reevaluation of the company’s commitments to fossil fuels.
The pressure from President Petro on Ecopetrol to sell its U.S. shale operations underscores a significant shift in Colombia’s energy policies towards sustainability. The uncertainty surrounding this pressure could affect Ecopetrol’s future strategies as it navigates balancing government mandates with its existing business commitments and market conditions.
Original Source: www.worldoil.com
