By: Staff Writer
January 1, 2020
Shell hails Ecopetrol 50 percent stake as “opportunity” to bring its technical know-how to Colombia to help build the offshore drilling sector.
Cynthia Babski, Shell’s spokesperson, in a statement sent to Caribbean Magazine Plus about the company’s recently signed agreement with Ecopetrol in Colombia to take a 50 percent stake in the latter’s offshore drilling services, said: “Shell has an extensive portfolio of deep water projects around the world including the US, Mexico, Malaysia, Nigeria and Brazil. We see an opportunity to bring technical know-how and expertise into Colombia and hope that along with other operators this would help to further build the industry experience in the offshore sector for Colombia.”
She continued, “This agreement is a testimony to Shell’s confidence in Colombia, where Shell has been for 84 years and is committed to develop Colombia’s energy resources. We believe in its people and the potential of natural resources. Colombia has made important progress in increasing the attractiveness to investment. This position is a significant step in Shell’s aspirations in Colombia and in the region. This agreement brings together Ecopetrol’s regional know-how and Shell’s experience in deep-water and in providing integrated gas solutions. Shell is excited about the opportunity, the potential synergies with our positions in the region, and the possibilities that Colombia offshore holds in providing low-carbon and affordable energy.”
“We constantly review our portfolio to ensure we have the right mix of assets to deliver maximum value to our shareholders.”
Ecopetrol on the other hand was just recently affirmed as investment grade by Fitch Ratings and in their latest investment board plan in early December, it approved an investment outlay of up to US$4bn for 2021.
In a statement sent to the media about their investment plan for 2021, Ecopetrol said: “Approximately to 80 percent of the investment is expected to continue to be allocated to projects in Colombia, and the remaining 20 percent mainly to investments in the United States and Brazil.”
“The plan foresees reliable, clean and safe operation, with a production of hydrocarbons expected between 700 and 710 thousand barrels per day in 2021, a greater joint refining throughput of between 340 and 365 thousand barrels per day, and transported volumes over one million barrels per day.”
“77 percent of investments are expected to be oriented towards exploration and production projects, targeting assets with the highest strategic fit and profitability, with a goal of accelerating the value capture.”
The plan calls for an increase in the allocation of resources to energy transition and sustainability initiatives as 14 percent of investments are expected to be directed at expanding the gas chain and other energy sources, including expected investments of over US$200m in energy efficiency projects and the incorporation of renewable energies. More than US$150m is expected to be allocated to the decarbonisation projects and over US$90mto efficient water management in operations.
The plan also includes resources for the development of Integral Research Pilot Projects (PPII for its acronym in Spanish) in Colombia and continuing of operations in the Permian Basin.
The release also said, “Nearly US$80m is expected to be allocated to investments in technology and innovation, focusing on digital transformation, enhanced recovery, and energy transition.”
