Ecopetrol and Petrobras must stop drilling the gas well

Ecopetrol and Petrobras must stop drilling an offshore natural gas well, a Colombian judge ordered Friday. The ruling came after an indigenous rebuttal on consent.

The complaint, made by indigenous members of the Taganga community, alleges that the community’s consent was not sought before drilling began.

The well, known as the Uchuva-2 well, is operated by state oil company Petrobras, which holds a 44.4 percent stake. Ecopetrol owns 55.6%,

Colombia’s economy is increasingly dependent on natural gas imports as its own production declines, with LNG imports being three times more expensive than it could produce itself. The country’s oil and gas industry has been on a downward trend, with its natural gas production averaging 1 bcf/d in March this year – a figure that was 6% lower than in the same month of last year.

Its oil industry has been in decline for years as foreign investment in upstream oil and gas operations continues to decline. Furthermore, Colombia’s proven oil reserves can only support 7 years of operation. Natural gas reserves are even less abundant and are only capable of carrying the country for another 6 years. Recent natural gas discoveries in Colombia’s Caribbean waters, including the Uchuva-1, Kronos-1, Gorgon-1, Purple Angel-1, Gorgon-2 and Glaucus-1 exploration wells, which have been heralded as potential game-changers, they proved disappointing.

Colombia’s leftist President Gustavo Petro banned new hydrocarbon exploration contracts last year as part of his commitment to climate change, throwing his entire economic future into question.

Last month, Colombia’s Petroleum Association said investment in the country’s oil and gas production would fall 7 percent to $3.5 billion this year. Still, exploration spending is expected to rise 5 percent this year to $1.1 billion, of which $700 million is expected to go to gas exploration.

By Julianne Geiger for Oilprice.com

More top reads from Oilprice.com