Ecopetrol to invest $760 million to increase gas production

Colombia’s Ecopetrol SA plans to invest $760 million to increase natural gas production this year, with $350 million of that total earmarked for offshore operations in the Caribbean Sea.

The operator’s company's president, Ricardo Roa, told press that the plan is to develop “at least 20% of the potential found in La Guajira, which approaches 75 tcf of natural gas.”

Roa confirmed that Ecopetrol will continue evaluating the Orca Norte-1 well, will start drilling the Uchuva-2 well in May, and will initiate the Buenasuerte-1 well in November.

By November, the oil company also expects to start drilling the Komodo-1 exploration well. A third well is expected to be drilled in the Tayrona block by February 2025.

A final investment decision (FID) on development of the Uchuva and Gorgon discoveries is expected between 2026 and 2028, Roa said. If developed, the company could reach first gas between 2027 and 2029.

The “worst-case” scenario, Roa said, is to reach an additional 4 tcf of natural gas in 2029. The “best-case” would be for the company to reach 12 tcf of proven reserves by end-2027, he said.

In addition to offshore activities, the company will invest another $360 million for onshore exploration in the Llanos region with an expected cost per well drilled of $70-90 million. 

Parex alliance 

In early April, Ecopetrol and Parex Resources Inc. agreed to work jointly on exploration activities mainly focused on natural gas in the northern part of Casanare.

The agreement, which includes blocks Llanos-4-1, Llanos 16-1, Llanos-121, and Sirirí, contemplates a 50-50 partnership with the option to incorporate additional blocks.

In the short term, the companies plan to expand the gas supply in Gibraltar field.

Historical production of fields developed in the Piedemonte basin area is estimated at 2 billion bbl of crude oil and over 7 tcf of natural gas.