Ecopetrol will beat its 2025 drilling target and may even best the output target, says executive

Rafael Guzman said that Colombian state energy company Ecopetrol will exceed its goal of drilling 10 oilwells in 2025 by 20% to 40%.

It has been reported that the company drilled six successful wells during the first half of this year.

Guzman said on the sidelines the Acipet Energy Conference in the Caribbean city Barranquilla, "I think we'll do more than 10 times the amount planned. I think that it could be 20-40% more."

Ecopetrol’s daily production, which is 751,000 barrels per day (bpd), is just a little bit above the upper limit of the company's target of 750,000 bpd by 2025.

Guzman stated that "it's going very well" to reach our goal of between 740,000 and 750,000 barrels. "We have had some challenges in areas with limited production but we have largely overcome and shown our potential."

Ecopetrol hopes to also find partners within the next 18-months to operate five oilfields, Guzman said, explaining that the company had been allowing partners with capital to invest under production sharing deals.

Ecopetrol can increase its output and reserves by signing agreements like the one with Parex Resources, Canada last year. This agreement will result in $268 million of investment.

We have received multiple offers. There is interest from companies that offer these schemes. Guzman explained that it's an opportunity to renovate and develop some of the fields we already have.

A source from Ecopetrol said that a joint venture with the Brazilian state-run Petrobras, in Colombia's Caribbean water, will now require 120 approvals from the local communities, up from the previous 116.

It is estimated that the area has 6 billion cubic feet (or gas) and investments could be as high as $5 billion. The area is expected to be operational between 2029 and 3030, although longer consultations may slow down the process.

Ecopetrol hopes that it can replace all of its oil reserves by the end of this year. This means that every barrel Ecopetrol produces will be added to their reserves. Reporting by Nelson Bocanegra, Barranquilla. Writing by Julia Symmes-Cobb Editing by Margueritachoy and Leslie Adler

(source: Reuters)