Colombia's Ecopetrol unveils US$1bn investment plan to boost reserves

The board of Colombian state-run oil company Ecopetrol has approved a US$1 billion investment plan aimed at replenishing dwindling oil and gas reserves. 

In a statement, Ecopetrol said the funds will be disbursed over three years with the aim of jumpstarting onshore E&P activity and incorporating around 6Tf3 of offshore gas reserves in the Caribbean sea.  

"These investments are based on the progress of studies and analyses that will allow Ecopetrol to boost its reserves, thus ensuring the availability of the energy necessary to meet national demand in the medium and long term," Ecopetrol said in a statement. 

According to a report by gas market operator BMC, Colombia faces a natural gas deficit of more than 120,000MMBTU/d (million British thermal units a day) next year as local production and LNG imports fail to keep up with surging demand.

Ecopetrol CEO Ricardo Roa responded to the report by calling for urgent action to avoid rationing of the fossil fuel and warned that household gas bills could rise by up to 12%. 

Concerns have been exacerbated by uncertainty surrounding the Sirius 2 (ex-Uchuva 2) offshore gas project, which is the subject of a legal challenge from indigenous communities. 

The joint venture between Ecopetrol and Brazilian federal oil company Petrobras has the potential to multiply Colombia's current reserves by 2.5, according to natural gas industry association Naturgas.