A strategy of transition for Colombian upstream veteran Innergy

Colombia

Jorge Iván Torres, president of Innergy, talks to The Energy Year about the company’s position in Colombia’s oil and gas sector, its services and how it contributes to enhancing oil and gas production in the country. Innergy is an upstream services company that supports Colombia’s energy transition.

What is Innergy’s position in the Colombian market, and what services do you offer?
We’re proud to be one of the strongest 100% Colombian companies in the sector. With more than 30 years in the market, we compete alongside international giants such as SLB, Halliburton, Baker Hughes and Weatherford.
Our comprehensive service portfolio includes seven integrated services, focusing on both subsurface and surface operations. In the subsurface domain, we specialise in wireline services, which constitute 30-40% of our operations. We perform daily wireline, perforating, coiled tubing, well stimulation and slickline services.
On the surface side, we’re heavily involved in well testing and early-production-facility operations. Currently, we manage two such facilities for Ecopetrol, which collectively handle around 5,000 bopd. These facilities are crucial in remote locations where pipeline infrastructure is not yet established. They allow our clients to monetise their production while permanent solutions are developed.
Regarding market share, we estimate our position at 12-15% depending on the specific service area, which is significant for a local company competing against multinational corporations. Our operations span the entire country, with a strong presence in key oil-producing regions such as the Mid-Magdalena Valley, the Upper Magdalena Valley and the Eastern Plains.
We maintain three strategic operational bases in Barrancabermeja, Villavicencio and Neiva, employing a workforce of around 500 people and operating 15-20 mobile work units across various service lines.

How does Innergy contribute to increasing oil and gas production in Colombia?
One of our key contributions is in the realm of water injection monitoring, which is a critical component of many enhanced oil production projects. We’ve positioned ourselves as the leading company in Colombia for the application of tracer technologies. This technology allows our clients, such as Ecopetrol and SierraCol, to precisely track the movement of injected water within their reservoirs, potentially improving recovery factors.
Another significant contribution we make to production efforts is through our advanced saturation logging services. These logs are instrumental in identifying bypassed pay zones in existing wells, areas that may have been overlooked during initial production but still contain recoverable hydrocarbons.
By pinpointing these zones, we enable our clients to tap into additional reserves without new well drilling, effectively increasing their resource base and improving overall field recovery.
We conduct approximately 2,000 well interventions annually using these technologies, which translates to about six jobs daily across Colombia’s oilfields.
On the production management side, Innergy currently has two ongoing projects around Villavicencio, both with Ecopetrol. Between the two, they safely manage about 5,000 bopd.

What are Innergy’s plans for diversification and sustainability?
At Innergy, we recognise the evolving landscape of the energy sector and are actively pursuing a strategy of diversification, with a particular focus on renewable energy. Our most significant initiative in this regard is our planned entry into the solar energy market for projects with capacities up to 1 MW. We’ve conducted extensive market research, including trips to China to meet with potential suppliers and equipment manufacturers.
Our first solar project, in Villavicencio, is already in advanced stages of development. It requires an investment of approximately USD 1 million and about 10,000 square metres of land. We’ve already secured power purchase agreements for this project, which is a crucial step in ensuring its financial viability.
Our aim is to have at least two operating solar farms of this size within the next three years. We considered this level of investment ideal to start gaining experience while also managing the risk associated with this business.
In terms of broader sustainability efforts, we’re signatories to the Global Pact for the Environment and have undertaken the comprehensive measurement of our CO2 emissions as a first step towards reduction. We’re also working on improving the efficiency of our diesel consumption, which, through the use of additives, we aim to improve fuel efficiency by 5%. Additionally, we’ve engaged in environmental projects, such as planting 400 trees in La Calera last year.
We’re also focusing on “circularity initiatives” which involve improving our waste-management practices. These sustainability efforts are a potential competitive advantage, as environmental performance is increasingly becoming a factor in contract awards, and we want to be at the forefront of this trend in our industry.

How is Innergy’s financial performance, and what are its future projections?
To put our growth into perspective, if we compare our projected 2024 performance to our 2019 figures (considered a good year before the pandemic), we’re looking at a remarkable 50% increase in revenue. This growth is particularly noteworthy given the significant disruptions caused by the Covid-19 pandemic, during which our business temporarily contracted to about 40% of its normal level.
For 2024, we’re projecting yearly revenues to grow a substantial 20% year-over-year. Looking ahead to 2025, we’re optimistic about maintaining this growth rate.
These figures are particularly impressive when you consider the broader context of the oil and gas industry, which has faced numerous challenges, including price volatility, geopolitical tensions and increasing pressure from the energy transition.
As we look to the future, we’re cautiously optimistic. While we recognise the challenges facing the fossil fuel industry, particularly in Colombia, where there’s increasing scrutiny on new exploration, we believe our focus on enhancing production from existing assets and our diversification into renewables will allow us to continue our growth trajectory.
Our financial projections reflect this confidence, but we remain ready to adapt to changing market conditions.

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