Colombian oil exports plummet as sector struggles mount

Colombian fossil fuel exports fell 18.6% in September amid a deepening oil and gas sector malaise, new figures show.

Revenues from outbound shipments of extractive industry products dipped to US$1.85bn from US$2.27bn a year earlier, according to the latest monthly export bulletin published by government statistics agency Dane. 

"This behavior was mainly explained by the fall in sales of oil, petroleum products and related items (-23.4%) and coal, coke and briquettes (-17.5%) which together contributed 20.7 negative percentage points to the category's variation," Dane said. 

From January 1 to September 30, revenue from fossil fuels and their derivatives totaled US$17.6bn compared to US$19.3bn a year earlier.

The sector accounted for 45% of overall exports in September and 48% of the total from January to September. 

Colombia’s once-thriving oil and gas sector is grappling with one of its worst downturns in decades.

According to industry chamber Campetrol, foreign direct investment from oil and gas reached US$1.24bn between January and June, down from US$1.78bn in the same period last year.

The investment decline coincides with an 11% drop in the number of active rigs over the past year. According to Campetrol, there were 108 rigs in operation in August compared to 121 a year earlier. 

Industry observers have blamed the trend on a series of headwinds, including a government decision to halt new licensing rounds, higher taxes on producers, rising insecurity and legal uncertainty.