Ecopetrol has no plans to sell US shale assets

Colombia's state oil company Ecopetrol does not plan to sell its unconventional shale assets in the US despite moves to ban fracking in the South American country.

Ecopetrol chairman Saul Kattan said on Twitter that the company's US shale operations remained "interesting and profitable," and that they would "continue for now." 

Ecopetrol and joint-venture partner Occidental Petroleum are currently producing around 50,000b/d in the Permian basin, where profits have been boosted over the past 18 months by strong oil prices.

"At the right time, we will have to get out of investments. Sometimes, when investments are very successful or when they do not work, they have to be sold, this is a permanent task in all companies worldwide and Ecopetrol is no exception," Kattan added. 

Colombian lawmakers began debating an anti-fracking law last August and proposed legislation is expected to be put to a congressional vote this year. 

A ban would upend plans by Ecopetrol and ExxonMobil to jointly develop two unconventional pilot projects at Puerto Wilches, in Santander department. 

According to the Colombian Petroleum Association (ACP), the first fracking projects could attract investments of US$5bn a year and guarantee the country's energy security. Opponents, however, have warned the practice – which requires significant amounts of water and chemicals –  poses too great a threat to the environment and human health. 

Outgoing Ecopetrol CEO Felipe Bayón said last week the company would respect the decision of congress and the government. 

"We worked for many years preparing unconventional pilot projects. We have said that if the national government and particularly congress decide that there is no fracking, Ecopetrol will not do fracking," said Bayón.

"We have said that we want to be more gaseous, we have made some very large gas discoveries in the Colombian Caribbean and the country needs more gas, gas is necessary for the transition," added Bayón, who will step down on March 31 after almost six years in the role. 

In addition to its growing focus on gas, Ecopetrol is pushing ahead with plans to lead Colombia's clean energy transition. 

The Bogotá-based firm aims to expand its renewable energy capacity to 900MW by 2025 from around 208MW today. It is also ramping up efforts to produce low-carbon hydrogen and last year began a pilot project with an electrolyzer and 270 solar panels at the Cartagena refinery. 

By 2040, Ecopetrol aims to have a portfolio of hydrogen projects totaling US$2.5bn in investments.