Colombian drilling activity is expected to increase over the next three months despite growing concern over the sector’s future under new President Gustavo Petro.
The country’s rig count rose to 149 in July from 143 a month earlier, catapulted by a slew of offshore and onshore exploration projects, according to the latest forecast from industrial chamber Campetrol.
This figure is expected to increase to 150 in August, 152 in September and 153 in October, the Bogotá-based entity said in a report.
The increase in activity comes despite Petro’s pledge, which was sworn in on Aug. 7, to stop issuing licenses for fossil fuel exploration and to prioritize investments in renewable energy.
“There is evidence of an increase in the number of active rigs due to the commissioning of drilling equipment that was previously unavailable due to political uncertainty,” Campetrol said.
“Although a recovery has been observed in this business segment, significant operating risks related to the surrounding conditions have been identified,” he added.
Campetrol, which represents more than 140 companies in Colombia’s oil goods and services segment, said eight exploration wells were drilled in July, up from six in the same period last year.
Wells sprayed were Saturno-1 (CPO 11), Domo Sur-1 (Cabrestero), Uchuva-1 (Tayrona), Domo Sur1 ST1 (Cabrestero), Cante Flamenco-1X (CPO 5), Domo Sur-1 ST2 (Cabrestero , Gaitas-1 (Midas), Kinacu-1 (South Zone).
Meanwhile, crude oil production rose 2.1% year-on-year in July to 746,000 bpd, according to preliminary figures. Export earnings from oil and its derivatives totaled $1.76 billion in June, up 54% year on year amid higher prices.
Campetrol’s concerns about Petro’s energy policies have been echoed by other groups in the oil and gas industry.
Earlier this week, the Colombian Petroleum Association said the government’s tax reform bill – which proposes a 10% levy on crude exports and scraps production-based royalties as a deductible element – would threaten the viability of future projects and drive out private operators.
The entity warned that the reduction in investments could force Colombia to import gas by 2026 and oil by 2028.
