Felicity Bradstock

Felicity Bradstock is a freelance writer specialising in Energy and Finance. She has a Master’s in International Development from the University of Birmingham, UK.

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• Despite challenges, Colombia plans to develop both onshore and offshore oil and gas resources while simultaneously investing in green energy initiatives.
• Investment in Colombia's fossil fuel sector is expected to increase slightly, aiming to maintain current oil production levels, though gas output is projected to decline.
• Ecopetrol faces criticism for pollution issues, even as Colombia pursues a green transition to reduce reliance on fossil fuels.

In recent years, Colombia’s oil production and reserves have been in decline and interest in investing in the country’s crude seemed limited in the post-pandemic landscape. In addition, President Petro has been vocal about supporting a green transition and restricting investment in new fossil fuel projects. However, in recent months, there has been a renewed interest in developing exploration and production. 

Colombia has long relied on its fossil fuel revenues to support the national economy, with oil and gas contributing around 10 percent of the GDP and 20 percent of exports. State-owned Ecopetrol is responsible for around 64 percent of Colombia’s oil and gas production and owns 100 percent of its refining capacity. In 2021, Colombia produced an average of 736,400 bpd of crude, a figure which grew to 753,750 bpd in 2022, with crude reserves of 1.8 billion barrels as of January 2022. In 2021, Colombia was South America’s second-largest petroleum and other liquids producer after Brazil. 

In 2025, Colombia has plans to develop both its onshore and offshore oil and gas resources, as well as invest in green energy. Ecopetrol and Brazil’s Petrobras are expected to continue exploration and appraisal drilling at the offshore Sirius prospect this year. The companies estimate that the area contains potential gas reserves of 6.1 trillion cubic feet (Tf3), with the first production expected by 2030. Investment in the area is expected to reach up to $5 billion. Ecopetrol is also developing the Papayuela area, which the company says could provide up to 80 percent of Colombia’s gas needs. It is expected to take between five and seven years to develop and could produce up to 800 million f3/d. 

Onshore, Canada’s NG Energy expects gas output to increase to 130 million f3/d by the end of 2025 in Colombia’s Sinu-9 area in Cordoba. The company plans to construct two additional pipelines during the second phase of the project, as well as drill three exploration wells. It also hopes to increase output from its Maria Conchita block in the La Guajira region.   

Plans to improve Colombia’s pipelines are also underway, with a two-way pipeline between Barranquilla and the Ballena gas field being developed. The developer, Promigas, is expected to invest around $75 million in the pipeline, which will transport up to 170 million f3/d from August 2027. The government’s IPAT gas infrastructure expansion programme is also expected to support improvements to the Mariquita-Gualanday, Jamundí-Valle del Cauca and Barrancabermeja-Ballena pipelines. 

In late May, Colombia’s leading industry group, the Colombian Oil and Gas Association (ACP), said that investment in fossil fuel exploration and production could increase by around 8 percent this year, to reach $4.68 billion, compared to $4.33 billion in 2024. This is expected to maintain Colombia’s current crude output, although it is not expected to prevent a fall in gas production. The ACP expects around $740 million to be invested in exploration activities this year, and a further $3.94 billion to go towards production, to keep output at around 760,000 to 770,000 bpd. However, it expects gas output to fall to around 905 million f3/d, compared to 959 million f3/d in 2024. 

ACP President Frank Pearl stated, “Today more investment is required to produce the same amount of oil, due to the natural depletion of the fields and the complexity of the operating environment.” Meanwhile, “For gas, we are not managing to either increase production or replenish reserves, which is double the challenge when it comes to energy self-sufficiency.” 

While it strives to maintain a steady oil and gas output, Ecopetrol has faced widespread criticism for its failure to manage pollution levels effectively. In March, it was widely reported that Ecopetrol had polluted hundreds of sites with oil, including water sources and biodiverse wetlands. A former employee of the oil firm leaked data including over 800 records of polluted sites from 1989 to 2018, which suggested that the company failed to report around a fifth of the sites. The BBC also found that Ecopetrol has spilt oil hundreds of times since these instances. While Ecopetrol says it complies with national standards and follows sustainability practices, fishermen and rural communities have criticised the company for causing widespread pollution in fossil fuel production areas. 

Colombia is also investing heavily in a green transition, which could help it to leave its dirty fossil fuel record in the past. In October, the government launched a new $40-million investment plan for an energy transition, aimed at shifting away from a reliance on fossil fuels. The plan included funding for nature conservation, as well as clean energy projects and plans for the electrification of transport. 

Colombia continues to rely heavily on its oil and gas revenues. However, keeping production levels up has become more challenging in recent years, due to low levels of foreign investment and rapidly depleting oil fields. While Ecopetrol plans to invest heavily in exploration and production in 2025, oil production is expected to remain flat while gas production is likely to fall. Meanwhile, greater investment in green energy projects could help Colombia gradually shift away from a reliance on fossil fuels to shift to renewable alternatives. 

By Felicity Bradstock for Oilprice.com

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