Latest news with #Ecopetrol
Yahoo
a day ago
- Business
- Yahoo
Ecopetrol Drives Offshore Gas Exploration Despite Shell's Withdrawal
Ecopetrol S.A. EC, the Colombian majority state-owned energy company, has announced its plans to continue with the exploration of natural gas in the Caribbean deepwater even after its partner Shell plc SHEL exited Colombia. The London-listed energy firm confirmed its plans in April 2025 to withdraw from three offshore blocks in Colombia, thus quitting oil and gas exploration in the South American nation. This included the COL-5, Purple Angel, and Fuerte Sur blocks in Colombia, which it jointly operated with Ecopetrol. EC will continue exploratory drilling for natural gas in these offshore blocks, as they are believed to hold significant reserves with potential for commercial exploitation. A company spokesperson confirmed that Ecopetrol will proceed with the development of its gas resources, not only due to the heightened demand for gas in the country but also because these gas projects are expected to yield high returns. Notably, EC is banking on the rise in domestic demand for the commodity to increase production. Ecopetrol is currently focusing on the development of new gas resources, as Colombia's gas reserves are dwindling and the country is becoming more dependent on energy imports to meet its domestic needs. Despite progressing toward the development of new gas reserves, EC believes that the first output from the offshore wells isn't anticipated before 2029. Since taking office in 2022, Colombian president Gustavo Petro's administration has halted the issuance of new oil and gas exploration contracts. This is a setback for the country, as this means that upstream players will be required to utilize their existing assets to drive production and sustain output. Colombia's gas projects have also attracted attention from international players. Per a Bloomberg report, Petrobras had been eyeing possible acquisitions in the region, which also included the blocks that Shell had withdrawn from. EC had previously partnered with Petrobras for the exploration of new gas reserves in the country. The partners had made a breakthrough in 2024 with the drilling of the Sirius-2 well in the Gujaira Basin. The Sirius-2 well could significantly increase natural gas production in Colombia if its reserves are deemed economically viable. Zacks Rank & Key Picks Both EC and SHEL currently carry a Zacks Rank #4 (Sell). Some better-ranked stocks from the energy sector are Energy Transfer ET and RPC, Inc. RES, eachcarrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 130,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company's outlook seems positive. RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to its shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecopetrol S.A. (EC) : Free Stock Analysis Report Energy Transfer LP (ET) : Free Stock Analysis Report RPC, Inc. (RES) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
Colombia's Bicentenario pipeline stops pumping after attack: operator
BOGOTA, May 29 (Reuters) - Pumping on Colombia's Bicentenario pipeline was suspended after an attack with explosives, its operator Cenit, a subsidiary of state-run energy company Ecopetrol ( opens new tab, said on Thursday. The attack, in Arauca province, was committed by an unknown group, Cenit said in a statement. Bombings of pipelines are common in Colombia and are often carried out by rebel groups like the National Liberation Army (ELN). The company did not say exactly when the attack took place, but added it was working with disaster authorities and the army to clean up the area.
Yahoo
2 days ago
- Business
- Yahoo
Ecopetrol to proceed with natural gas drilling in Colombian waters despite Shell's exit
Ecopetrol has announced its intention to proceed with natural gas drilling operations in the Colombian Caribbean, despite the recent withdrawal of Shell from three offshore blocks, according to a Bloomberg report. The Colombian national oil company is focusing on growing demand from the domestic market and the potential of its reserves. After Shell's strategic decision to exit the COL-5, Purple Angel and Fuerte Sur blocks, effectively ending its exploration in Colombia, Ecopetrol is considering either advancing on its own or seeking new partnerships. Ecopetrol vice-president of hydrocarbons Rafael Guzman was quoted as saying: 'Not only is there a need for gas in Colombia but these are projects that have very good returns.' The move comes as Ecopetrol races to develop new gas sources in response to Colombia's diminishing reserves, which have led to increased imports to meet demand from homes and factories. With President Gustavo Petro's administration having halted new exploration contracts since 2022, companies such as Ecopetrol are under pressure to extract value from existing assets. The first gas output from these offshore wells is anticipated no sooner than 2029. However, the Sirius-2 well, which Ecopetrol shares with Petrobras, has the potential to triple Colombia's gas reserves if the find is commercially viable. Currently, Ecopetrol and Petrobras are drilling the Buena Suerte well in the GUA-OFF-1 block, with plans to target the Papayuela prospect next. According to a recent government report, Colombia's proven gas reserves dwindled to just 5.9 years of consumption as of the end of 2024, the lowest level in more than a decade. In contrast, oil reserves have seen a slight increase to 7.2 years of consumption. Recently, Ecopetrol agreed to acquire Statkraft's Colombian renewables portfolio, Enerfín Colombia. This acquisition includes the 130MW Portón del Sol solar plant, the country's first utility-scale solar facility, and is expected to be finalised in the third quarter of 2025. "Ecopetrol to proceed with natural gas drilling in Colombian waters despite Shell's exit" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Bloomberg
3 days ago
- Business
- Bloomberg
Ecopetrol to Push Ahead Colombia Gas Drilling After Shell Exit
Ecopetrol SA plans to continue drilling for natural gas in Colombian Caribbean waters after partner Shell Plc exited three offshore blocks, betting on growing domestic demand and potentially lucrative reserves. Shell said in April it would pull out of the COL-5, Purple Angel and Fuerte Sur blocks as part of a 'strategic' decision, ending its oil and gas exploration in Colombia. Ecopetrol, which jointly operates the areas, will move forward on its own or seek a new partner, according to Rafael Guzman, vice president of hydrocarbons.
Yahoo
5 days ago
- Business
- Yahoo
Statkraft to sell Enerfín Colombia to Ecopetrol
Statkraft has signed an agreement to sell Enerfín Colombia, its renewables portfolio in Colombia, to Ecopetrol.
