May 24, 2024 14:04 GMT
Colombia Plans to Boost Output to 1m b/d: Bloomberg
OIL
Colombia is aiming to produce 1m b/d of oil by increasing drilling activity in underutilised exploratory blocks, the government’s energy authority said, cited by Bloomberg.
- The government is trying to squeeze production out of ‘lazy contracts’ signed 10-15 years ago but which have little exploration activity.
- This could help boost production to around 0.8m b/d by 2024 year-end, compared to 774k b/d in Q1.
- President Gustavo Petro is prioritising climate change and is refusing to sign new drilling licenses. This is despite oil and coal are around 50% of exports.
- “More contracts don’t necessarily mean more exploration,” Energy Minister Andrés Camacho said Thursday in Bogotá. “Our policy is to boost exploration with what’s already there.”
- State oil company Ecopetrol is using enhanced oil recovery to improve volumes that can be extracted from a reservoir, helping to raise output.
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