Protests result in major losses for Ecopetrol

BOGATA, May 25, 2017 – Ecopetrol’s La Cira-Infantas field has seen an 80% drop in production since protests broke out there last week, the Colombian NOC announced on Wednesday. The field is now producing just 7,300 bopd.

Ecopetrol says that road blockades constructed by protesters and damage done to field equipment and infrastructure have caused oil spills and the shut in of 697 of the field’s 965 wells. So far, the production dip has resulted in losses estimated at USD 6.8 million.

According to a company statement released last Friday, 120 service contracts and more than 1,100 workers are being affected by the shut in.

Members of nearby communities have been protesting due to disputes regarding hiring practices. Following the Colombian government’s passing of Decree No. 1668 in October 2016, the NOC and other oil and gas operators can no longer use community action boards to hire workers, and must instead use legal third parties. Protesters contend that this policy has reduced work opportunities for locals.

Protests at Ecopetrol’s Castilla field in the Meta province earlier this month have also been attributed to anger over new hiring practices under the decree.

The La Cira-Infantas field, located in the Middle Magdalena Valley, is a major source of oil for Ecopetrol, and is the only of the NOC’s assets to maintain year-on-year production increases.

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