Ecopetrol unveils US$500mn Huila E&P plans

Colombia's Ecopetrol will allocate US$512mn to a new oil and gas production project in southwestern Huila department amid broader efforts to boost gas supply. 

The project envisages the drilling of 82 wells – 43 production and 39 injection – at the Dina-Terciarios and Palogrande fields in the municipalities of Neiva and Aipe, the state company said in a release. 

In addition, Ecopetrol plans 69 workover wells and the reactivation of 11 existing wells in the areas. Drilling is expected to run from 2025 to 2028. 

"This will contribute to the growth of the country's energy production," Ecopetrol's Andean development and production manager Ronald Morales said.

He added that local and foreign companies could participate in the project. 

"We invite all local actors to be a part of this joint effort for the wellbeing and progress of the department," Morales said. 

Ecopetrol expects the fields to reach peak production of 9,200b of oil and 2mn cubic feet of gas a day by 2030.

Huila currently produces 15,800b of oil equivalent a day, around 2% of Colombia's total. 

Gas fears

Ecopetrol has made natural gas a major focus of its near-term investment budget amid fears of a looming deficit of the fossil fuel. 

According to industry group Naturgas, Colombia faces a natural gas shortfall as soon as December, leading to possible price hikes and rationing. 

Data published by natural gas market administrator BMC shows the country will have a natural gas deficit of 76.5BBTU/d (billion British thermal units a day) in 2025 and 190BBTU/d in 2026.

The situation has been exacerbated by a sharp decline in gas reserves, which fell to 2.37Tf3 (trillion cubic feet) at the end of 2023 from 2.82Tf3 a year earlier, according to official figures.