Petrobras and Ecopetrol Set to Secure Licenses for Offshore Gas Project by Mid-2026

Petrobras and Ecopetrol are expected to obtain licenses for their offshore gas project in Colombia by mid-2026. The project, with confirmed reserves of 6 TCF, aims to alleviate Colombia’s gas deficit. A new well is being drilled, and the project requires environmental and social licenses before infrastructure construction. Colombia plans to optimize existing gas supplies without initiating new bidding rounds for offshore areas as it enhances LNG import capacity.

Brazilian state-run oil company Petrobras and Colombian counterpart Ecopetrol are projected to acquire the necessary licenses for their joint offshore gas project in Colombia by mid-2026, according to Orlando Velandia, the head of Colombia’s hydrocarbons regulator. The project is commercially viable due to confirmed reserves of approximately 6 trillion cubic feet (TCF) of natural gas. The partners aim to drill a new well this year and advance towards development, requiring both environmental and social licenses before infrastructure construction begins.

The offshore project, alongside other territories in Colombia’s Caribbean Sea, holds significance for mitigating the country’s gas deficit which has necessitated liquefied natural gas (LNG) imports. Optimizing existing consultations could potentially culminate in an environmental license by mid-2024, allowing for a potential completion of the gas line by late 2028 or 2029, as indicated by Velandia at the CERAWeek conference in Houston. This project pertains to the Tayrona block operated by Petrobras.

According to Sylvia dos Anjos, Petrobras’ head of exploration and production, the pipeline will deliver around 13 million cubic meters of gas output per day to Colombia. Despite the current gas deficit, Velandia noted that Colombia does not regard the opening of a new bidding round for offshore areas as necessary, citing that many previously awarded blocks are expected to transition from exploration to production in the upcoming years, thereby securing supply.

Colombia is also focused on enhancing its capacity for LNG imports, particularly through the establishment of floating regasification facilities, as part of its strategic response to the energy demands.

In summary, Petrobras and Ecopetrol are on track to secure essential licenses for their offshore gas project in Colombia by mid-2026, a move expected to effectively address the nation’s gas deficit. With significant gas reserves confirmed and planned infrastructure developments, the project demonstrates Colombia’s commitment to increasing energy security while expanding LNG import capabilities. These efforts are integral to meet the energy demands of the country’s largest consumers in the years ahead.

Original Source: www.marketscreener.com