Friday, March 4, 2016

Ecopetrol's proven reserves plummeted in 2015

Earlier this week, Colombian state-owned oil company Ecopetrol announced that its proven oil and gas reserves had fallen by 11 percent in 2015 to just 1.85 billion barrels equivalent because of the company’s fall in oil and gas exploration. Ecopetrol added that it has 7.4 years worth of reserves, a significant decline from 2014’s level of 8.6 years. The company’s statement continued, “The largest contributions to reserves come from the Castilla and Chichimene fields, both operated directly by Ecopetrol, and the Rubiales field, which will be operated by the company from June 2016.”

That was not the only bad news reported by Ecopetrol, as the Colombian oil company also announced the temporary suspension of oil production at the Akacías oil field, which had been producing 6,700 bpd. The oil company explained that low oil prices had rendered continued operation of the oil field unprofitable. Ecopetrol however insisted that the CPO-9 oil block is still extremely promising and of strategic importance, which the company hopes to develop once market conditions have improved.


In addition to Colombia’s dwindling oil reserves, Colombia’s gas reserves are also running out. According to the Colombian Petroleum Association, Colombia’s proven gas reserves will run out in 2018. As a result, the Association is already readying a plan to import natural gas, and warning the rest of the country about the steep cost that will come with importing gas.

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