Colombia sees offshore gas production starting in 2029

BOGOTá, July 31, 2024 – Colombia’s state-owned Ecopetrol sees the country’s offshore gas production coming on line as early as 2029, Bloomberg reported on Tuesday.

Gas production from Colombia’s Caribbean waters was initially expected to begin as early as 2027.

The report cited company officials as saying the delay is due to seeking environmental approvals and permission from local communities.

Colombia is seeking to exploit gas from its deepwater deposits to address a shortfall in local supply. The country’s fuel gap stands at around 12%, Bloomberg said, and is expected to rise to close to 30% in 2026.

The shortage has primed the country for steep rises in gas prices, which could run as high as three times the cost of local gas, the report said.

In February, Ecopetrol announced the discovery of two new offshore gas deposits while working to assess the size of the Orca-1 discovery. The two new discoveries, found in separate reservoirs, have raised hopes that additional finds can be made in the Colombian deepwater.

Although the country’s current administration has halted the award of new oil and gas licences in a shift away from fossil fuels, Ecopetrol is striving to maximise the yield of existing licences to forestall a potential loss of gas self-sufficiency.

This year, the company plans USD 300 million in spending on offshore drilling.

Ecopetrol is the largest company in Colombia, responsible for 60% of hydrocarbons production in the country.

The company estimates Colombia’s offshore gas resources at up to 2.83 tcm (100 tcf). As of late 2023, the country had 12 active exploration contracts off its northern Caribbean coast.

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