Despite its ambitious climate agenda, Colombia is intensifying efforts to increase oil production, targeting a daily output of 1 million barrels. The country's energy ministry is motivating drillers to intensify activities in underexplored areas to achieve this goal.

Energy Minister Andrés Camacho outlined the government's plan to revitalize older contracts—signed 10 to 15 years ago but minimally explored—aiming to elevate production to around 800,000 barrels per day by year-end, up from the first quarter average of 774,000 barrels per day.

President Gustavo Petro has committed to combating climate change by halting new drilling licenses and transitioning away from fossil fuels in favor of green energy alternatives. This stance seemingly conflicts with the push to maximize output from existing contracts. However, Camacho clarified that increasing the number of contracts doesn't necessarily lead to more exploration, but rather, boosting activity within existing agreements is the focus. He emphasized this approach in Bogotá, underscoring that enhanced exploration could significantly boost production. Notably, oil and coal make up half of Colombia's total exports.

The National Hydrocarbons Agency has set stringent contract compliance requirements to prevent companies from signing contracts merely to resell them at higher prices without actual exploration, a practice that could hinder future oil production.

State oil company Ecopetrol SA is contributing to this output increase through advanced oil recovery techniques, enhancing extraction volumes from existing reservoirs. Camacho noted that Colombia's current oil recovery rate averages 27 percent.

The National Hydrocarbons Agency will release a report today detailing the country's oil and gas reserves. As of the end of 2022, Colombia's proven oil reserves were sufficient for 7.5 years, with natural gas reserves lasting 7.2 years.

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