(Bloomberg) – Ecopetrol SA plans to continue drilling for natural gas in Colombian Caribbean waters after partner Shell Plc exited three offshore blocks, betting on growing domestic demand and potentially lucrative reserves.
Shell said in April it would pull out of the COL-5, Purple Angel and Fuerte Sur blocks as part of a “strategic” decision, ending its oil and gas exploration in Colombia. Ecopetrol, which jointly operates the areas, will move forward on its own or seek a new partner, according to Rafael Guzman, vice president of hydrocarbons.
“Not only is there a need for gas in Colombia but these are projects that have very good returns,” Guzman said in an interview from Colombia’s Casanare province, where Ecopetrol has gas blocks that meet half of the nation’s demand.
Petrobras told investors earlier this month it’s evaluating possible acquisitions, including the very blocks Shell is vacating.
See also: Petrobras, Ecopetrol aim to triple Colombia’s gas reserves with offshore discovery
Ecopetrol is racing to develop new gas sources as the nation’s dwindling reserves force increased imports to supply homes and factories. President Gustavo Petro’s administration has halted new exploration contracts since taking office in 2022, which means drillers must squeeze value from existing assets.
First output from the offshore wells isn’t expected until 2029 at the earliest. One key site, the Sirius-2 well shared with Petrobras, could potentially triple Colombia’s gas reserves if the discovery is deemed commercially viable.
The two companies are currently drilling the Buena Suerte well in the GUA-OFF-0 block and plan to move next to the Papayuela prospect. Additional wells in the same block could follow depending on results, Guzman said.
Colombia’s proven gas reserves fell to the equivalent of 5.9 years of consumption at the end of 2024, the lowest level since at least 2007, according to a government report released this week. Oil reserves, meanwhile, edged up to 7.2 years.
