Colombia's state oil company, Ecopetrol SA, announced that natural gas from its Caribbean offshore projects is unlikely to start flowing before 2029, two years later than initially expected. This delay is a significant concern for the country, which anticipates a substantial natural gas shortfall beginning next year. The current supply-demand gap is around 12% and is projected to increase to 30% by 2026, exacerbating the energy crisis.
To address this, Ecopetrol is investing $300 million this year in offshore drilling, marking its highest annual investment in this sector. The company's offshore chief, Elsa Jaimes, emphasized the urgency of accelerating gas production to mitigate the looming shortfall. Typically, it takes 10 to 15 years to bring offshore gas to market, but Ecopetrol is pushing to reduce this timeframe.
One of the promising projects is the Tayrona block, a joint venture with Brazil's Petrobras. This block might be the first to come online as it requires less additional land infrastructure compared to other projects, such as the one partnered with Shell Plc. Currently, Ecopetrol and Petrobras are drilling the Uchuva-2 well in the Tayrona block and expect to have results on its gas potential by the end of the year.
Ecopetrol's CEO, Ricardo Roa, had previously suggested that gas from offshore wells could be available as early as 2027, but this depends heavily on obtaining environmental licenses and local community approvals, which could take up to three years. Jaimes noted, "The timing isn't just up to us. We need everyone's help."
Meanwhile, Colombia's broader energy strategy is facing a dichotomy. Despite President Gustavo Petro's climate-focused agenda, which includes halting new drilling licenses, the government is pushing to increase oil production. The Energy Ministry aims to boost output to 1 million barrels per day by revitalizing underutilized exploration blocks. This effort is crucial as oil and coal account for half of Colombia's total exports.
By Julianne Geiger for Oilprice.com
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