Licenses for Petrobras and Ecopetrol Offshore Project Expected by 2026

Petrobras and Ecopetrol are expected to receive licenses for their offshore gas project in Colombia by mid-2026, with confirmed reserves of 6 TCF of natural gas. The project aims to enhance Colombia’s energy supply amid existing deficits, with an expected output of 13 million cubic meters per day from late 2028 or early 2029. Additionally, Colombia is expanding its LNG import capacity.

In a recent announcement at the CERAWeek conference in Houston, Orlando Velandia, the head of Colombia’s hydrocarbons regulator, indicated that the Brazilian state-run oil company Petrobras and its Colombian counterpart Ecopetrol are expected to receive the necessary licenses for their joint offshore gas project in Colombia by mid-2026. This project has confirmed approximately 6 trillion cubic feet (TCF) of natural gas reserves, deeming it commercially viable.

The partners intend to complete the drilling of a new well within this year while preparing for further development. Before infrastructure construction can begin, both an environmental license and a social license are essential. Efforts to optimize these consultations this year are crucial, as achieving the environmental license by mid-next year would allow for the strategic timeline to begin gas production around late 2028 or early 2029.

The project is expected to generate approximately 13 million cubic meters per day of gas output, which will be delivered to Colombia via a new pipeline. Sylvia dos Anjos, Petrobras’s head of exploration and production, confirmed this gas output earlier at the conference. Despite the ongoing gas deficit in Colombia, Velandia noted that there are no plans to initiate a new bidding round for offshore areas, as existing onshore and offshore blocks will soon transition from exploration to production, ensuring a stable gas supply.

Lastly, Colombia is also expanding its capabilities for receiving liquefied natural gas (LNG) imports through floating regasification terminals, further enhancing the country’s energy security.

The collaboration between Petrobras and Ecopetrol stands as a critical initiative in addressing Colombia’s gas deficit, which has seen the country reliant on imported LNG. The projected timeline for receiving licenses and beginning production emphasizes a strategic commitment to enhancing local gas supply, particularly with significant reserves in play. Expansion efforts for LNG import capacity also support the nation’s long-term energy strategy, ensuring stability in energy availability for major consumers.

Original Source: www.marketscreener.com