Colombia’s Ecopetrol Sets Aside $600 Million in 2021 Capex for Permian, Local Shale Plays
Colombia’s state oil company Ecopetrol SA will continue its foray into shale plays in 2021, principally in the prolific Permian Basin in the United States but also in a pilot program at home.
The company will spend more than $600 million in unconventional plays next year, part of an overall capital expenditure (capex) plan of $3.5-4 billion for 2021.
Overall capex is in line with 2020.
The 88.5% state-owned company, whose shares trade on the New York Stock Exchange and the Colombian stock market, earlier this year slashed its 2020 capex by $1.2 billion to a new range of $3.3-4.3 billion, citing plummeting oil prices and the coronavirus pandemic.
Julia Symmes Cobb, Reuters Your browser does not support the audio element.
Colombia s state-run oil company Ecopetrol said on Dec. 14 it expects to invest between $3.5 billion and $4 billion next year.
The plan is meant to reestablish a path of growth, the company said in a statement, and is predicated on a Brent price of $45/bbl.
Close to 80% of investment will be in projects located in Colombia, Ecopetrol said, with the remaining 20% principally earmarked for projects in the U.S. and Brazil. Some 77% of investment will be concentrated on exploration and production projects, focused on assets with the best strategic fit and profitability, the statement said.