Ecopetrol aims to enhance oil production in Colombia’s eastern CPO-09 block after acquiring Repsol’s stake. Facing challenges like decreasing reserves and government restrictions on exploration, the company prioritizes existing contracts and aims to explore new areas while balancing U.S. operations under scrutiny. Upcoming well drillings like Sirius-2 could significantly impact future reserves.
State-controlled Ecopetrol SA is aiming to enhance oil production in Colombia’s eastern block, a region known for its crude resources. The company has completed a $452 million acquisition of Repsol SA’s 45% stake in the CPO-09 block, now fully owned by Ecopetrol, allowing it to leverage synergies from nearby major fields like Castilla and Chichimene. According to Rafael Guzman, the company’s vice president of hydrocarbons, they are focused on increasing reserves and output in this area.
With dwindling reserves and restrictions on new exploration licenses imposed by President Gustavo Petro, Ecopetrol seeks to maximize contracts from before Petro’s tenure. The company prioritizes production in CPO-09 in central Colombia, natural gas exploration in the Caribbean, and increasing output from international projects. Guzman emphasized the importance of these areas for the company’s future energy needs.
Ecopetrol’s production has benefited from the Permian basin, contributing 14% to total output, countering declines in domestic production. Despite President Petro’s request for the company to divest its U.S. operations, ongoing partnerships in the U.S. will extend their agreement until 2027. This gives them a little leeway as the administration opposes fracing due to environmental concerns.
In a new development, Ecopetrol and Petrobras are drilling the Sirius-2 well off the Caribbean, which could potentially triple Colombia’s gas reserves if proven commercially viable, marking a significant gas discovery. Early production is not expected until 2029. The success of the Sirius-2 well may increase confidence for upcoming drilling at the Papayuela and Buena Suerte wells.
Ecopetrol’s strategic moves focus on enhancing oil and natural gas production despite challenges, including regulatory constraints on exploration licenses and the government’s opposition to fracing. The acquisition of the CPO-09 block positions the company to optimize production in existing fields while maintaining operations in the U.S. Under these circumstances, the outcomes from the Sirius-2 well are pivotal for future growth initiatives.
Original Source: www.worldoil.com
