2024-10-01 18:26:34
The decision, approved by the Board of Directors in its ordinary session, is part of the 2024-2026 investment plan and seeks to guarantee the country’s energy supply.
In an effort to counter current challenges in the energy sector, Ecopetrol has announced a US$1 billion investment aimed at recovering its crude oil and gas reserves. The decision, approved by the Board of Directors in its ordinary session, is part of the 2024-2026 investment plan and seeks to guarantee the country’s energy supply in a scenario of uncertainty due to possible supply problems and the need for imports.
The investment will be divided into two key areas. Firstly, resources will be allocated for exploration and development projects on the territorial platform, with the aim of increasing production and recovery of hydrocarbon reserves. This measure is crucial to bolster domestic production capacity at a time when domestic demand for oil and gas remains high.
The second investment focus will focus on the development of exploratory studies offshore the Caribbean Sea. This effort seeks to increase exploratory activity in this region, with the goal of incorporating prospective reserves of approximately 6 cubic terapies (6 TPC) of gas. This offshore development is considered essential to ensure the country’s energy self-sufficiency in the medium and long term, and could become one of the main sources of natural gas.
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Context of crisis and financial challenges
The approval of these resources occurs in a complicated context for Ecopetrol. The company faces a possible crisis due to the future of gas supply and the need to import energy, in addition to being affected by the fall in oil prices and a significant reduction in its profits. This situation has generated concern in financial markets and investors.
JPMorgan’s latest report offers a bleak outlook for the Colombian oil company, rating its stock with an “Underweight” recommendation and reducing its price target from US$12 to US$8.50 by December 2025, a 30% reduction. Following the publication of the report, Ecopetrol’s ADR on Wall Street fell nearly 5%, reflecting growing distrust in the company’s future.
Added to this situation is the expectation of a labor judge’s resolution on the suspension of drilling activities in the Sirius offshore well, a key operation carried out in conjunction with Petrobras. This asset has the potential to become an important source of gas reserves, and its reactivation is crucial for Ecopetrol’s production projections.
The combination of financial uncertainties and challenges in the energy sector poses a complex future for Ecopetrol, which seeks to maintain its competitiveness amid a volatile environment in both local and international markets.
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