The Colombian oil sector has started 2019 with good news in terms of alliances, new contracts and now production. The Colombian Petroleum Association (ACP) said that oil production in the country is growing, surpassing neighboring countries such as Venezuela.
The oil sector has been announcing agreements and alliances in recent weeks with the aim of reactivating the exploratory activity in the country. Ecopetrol (NYSE: EC) and Repsol (MSE: REP) will develop a new offshore project in the Caribean coast.
The implementation of unconventional techniques such as fracking has been one of the main discussion topics in the oil sector this year. Orlando Cabrales Segovia, President of the Colombian Natural Gas Association (Naturgas), spoke about this issue and about the proposal to carry out pilot projects in the country.
The National Hydrocarbons Agency (ANH) announced an agreement between Shell (LON: RDSB) and Noble Energy to operate offshore blocks in the Caribbean Sea. Representatives of the companies and the ANH talked about this important arrangement.
Colombia is not an oil country, but it has great potential to develop in this area, especially in some regions of the country, where the Llanos continue to stand out for contributing a large part of the oil production in the country.
The Ministry of Mines and Energy (MinMinas) reported oil and gas production figures for February 2019. Crude and natural gas production increased during the second month of this year compared to the previous year.
The International Energy Agency (IEA) recently published its global oil report for 2019, which includes its perspectives on oil production. Colombia is included in this analysis and expectations are not very encouraging.
Venezuela is going through a severe political, social and economic crisis, which has deepened due to its poor performance in the oil sector. Colombia getting close to equaling the oil production of the neighboring country.