Petrobras and Ecopetrol expect to obtain licenses for their offshore gas project by mid-2026. The project, confirmed to have 6 TCF of natural gas reserves, will help Colombia address its gas deficit. Development includes drilling a new well this year and will require environmental and social licenses before construction. Production is projected to start by 2028 or 2029.
In a recent announcement, Orlando Velandia, head of Colombia’s hydrocarbons regulator, indicated that Petrobras, Brazil’s state-owned oil company, and Colombia’s Ecopetrol are projected to receive the necessary licenses for their joint offshore gas project by mid-2026. This development is significant as it confirms approximately 6 trillion cubic feet (TCF) of natural gas reserves, which validate the project’s commercial viability.
The partners have plans to complete drilling a new well within the current year and are preparing for the project’s subsequent development stages. Prior to construction of the infrastructure, obtaining both environmental and social licenses will be essential. Velandia emphasized that the project will play a crucial role in alleviating Colombia’s gas deficit, which has led to increased liquefied natural gas (LNG) imports and efforts to optimize natural gas usage among the largest consumers in the country.
During the CERAWeek conference in Houston, Velandia stated, “If we are able to optimize the prior consultations that we may finish this year and obtain the environmental license in the middle of next year, that gives us a final horizon to have everything for the gas line toward the end of 2028 or 2029, and begin production.” This specifically refers to the Tayrona block, under Petrobras’s operation.
Petrobras’ head of exploration and production, Sylvia dos Anjos, mentioned that the project is anticipated to provide Colombia with approximately 13 million cubic meters of gas per day through the pipeline. Despite the existing gas deficit, Velandia noted there is no current plan to initiate a new bidding round for offshore areas, as several onshore and offshore blocks anticipated to transition from exploration to production in the near future should ensure gas supply.
Additionally, work is underway in Colombia to enhance its capacity to take in LNG imports through floating regasification facilities, in order to further secure energy supply.
In summary, Petrobras and Ecopetrol are on track to receive essential licenses for their offshore gas project in Colombia by mid-2026. This partnership is critical for addressing Colombia’s natural gas deficit and stabilizing energy supply. The project aims to produce 13 million cubic meters of gas per day, with construction anticipated to commence by 2028 or 2029. Colombia is also enhancing its LNG import capacity to support energy needs.
Original Source: www.marketscreener.com
