Colombia rig activity set to rebound amid offshore ramp-up

Colombian oil and gas rig activity is expected to rise in the coming months as offshore plans and forecasts of an ongoing price upswing drive new exploration investments. 

Industry chamber Campetrol reported 108 active rigs in the country in March, equaling the 20-month low reported a month earlier. 

The figure is expected to rebound to 110 in April before reaching 112 in May and 113 in June, Campetrol said in its latest upstream report. 

"The consistency in the numbers [for February and March] is explained by the balance between the completion of two [campaigns] in Putumayo and Cesar, and the start of two new operations in Meta," the entity said. 

It added that one of the highlights of coming weeks would be the May drilling of the offshore Uchuva-2 well in the Tayrona block, a joint venture between Colombian state oil company Ecopetrol and Brazil's Petrobras. 

In addition, the companies plan to spud the nearby Buena Suerte exploration well – also in Tayrona – while Ecopetrol and Occidental Petroleum expect to begin drilling the Komodo prospect in their jointly held Col-1 block. 

Meanwhile, Ecopetrol and partner Shell are also ratcheting up plans to develop gas discoveries in the Col-5, Fuerte Sur and Purple Angel offshore blocks.

Earlier this month, the US Energy Information Administration raised its 2024 full-year Brent crude guidance to US$88.55/b, up from US$82.49/b last year. Experts have said the forecast reflects ongoing geopolitical risks and larger oil inventory draws.

Of the 108 active rigs reported in March, 32 were deployed for drilling purposes and 76 for workovers, Campetrol said. It added that one of the drilling units was unable to carry out work as planned due to "public order problems" in central-eastern Meta department. 

Excluding the pandemic, Colombia has not had fewer drilling rigs in operation since June 2017. 

Campetrol, which represents 140 oil equipment and service companies, said Colombia imported 375Mf3/d (million cubic feet a day) of gas in March, up from 232Mf3/d in February.

Imports averaged 276Mf3/d from January to March compared to just 3Mf3/d in the same period last year.

"This increase is mainly due to the need to ensure electricity supply in the face of the expected intensification of the El Niño phenomenon," the Bogotá-based organization said.