Posted on August 6, 2015 by Grace Montealegre
During recent years Colombia has become the fourth biggest oil producer in Latin America, behind Mexico, Venezuela, and Brazil. However, the objective of Colombia's state-owned oil company Ecopetrol, is to ramp up production by concentrating on key fields.
The strategy of the $55-billion and 88% government-owned company is to be very selective on investments to keep cash flow, and although Ecopetrol cut its 2015 investment plan by 26%, to $7.86 billion, it will focus on the company’s key fields, on Colombia’s coast and on the Gulf of Mexico.
Juan Carlos Echeverry, the company's new president, said the company will focus on about 20 oil fields that produce 80% of its onshore crude and have output costs of between $7 and $17/bbl, leaving wells with higher extraction expenses to other companies.
Ecopetrol will continue to partner with companies like Anadarko, Petrobras, Repsol and Statoil in order to boost production and in spite of how oil prices behave, since, as stated by Echeverry, “we would be happier with higher prices but we won’t do anything to change them. If they go up, that’s great news for us but we are planning our future ahead with low prices.”
La Nota Economica - Media Partner