Colombia’s President Gustavo Petro has instructed state-run oil company Ecopetrol to cancel its joint venture with the US-based Occidental Petroleum (Oxy) due to environmental concerns.
The venture, which involves the fracking method of oil extraction, was expected to produce 90,000 barrels of oil per day.
Petro’s decision reflects Colombia’s stance against fracking. The method has been criticised by environmental groups due to concerns that it can lead to water pollution and induce seismic activity, as reported by Associated Press.
In a speech broadcast nationally, Petro expressed his opposition to the extension of the deal between Ecopetrol and Oxy, highlighting the environmental risks associated with fracking.
“We are against fracking, because fracking is the death of nature and the death of humanity,” Petro stated during a Cabinet meeting streamed on social media.
Ecopetrol signed an agreement with Oxy to renew its operations in the Permian Basin, spanning Texas and New Mexico. The plan involved the development of 91 oil wells with an investment exceeding $880m.
The company’s projects in the Permian Basin produced an average of 95,200 barrels of oil per day (bop/d) in the first nine months of 2024, accounting for 12% of Ecopetrol’s total production.
Following the announcement of the deal with Oxy, Ecopetrol’s shares rose by 2% on Tuesday 4 February 2025.
They then experienced a slight decline after President Petro called for the cancellation of the agreement.
Although Colombia has consistently rejected fracking projects within its borders, it has not previously imposed any restrictions on Ecopetrol’s participation in fracking operations outside the country.
Meanwhile, Ecopetrol had pursued other ventures, announcing five agreements with Parex Resources in December 2024, to boost oil and gas production in Colombia.
The initial four agreements focus on projects in the Putumayo and Narino provinces, with an expected investment of $350m (1.52tn pesos).
