Ecopetrol SA’s high supervisor known as for Colombia’s authorities to drop its opposition to new oil exploration, apparently revising his view that the ban was accountable.
Chief government workplace Ricardo Roa advised traders that he hoped extra oil contracts and bidding rounds for exploration blocks can be forthcoming.
“That’s what offers an oil firm long-term stability,” Roa mentioned Wednesday, on a name following the announcement of first-quarter earnings. “With a purpose to improve reserves, it’s essential to have areas to probe for oil and gasoline.”
Shares plunged after Roa took over on the finish of April, signaling he wouldn’t push the Colombian authorities for brand spanking new drilling. Roa is an in depth ally of President Gustavo Petro, who received the 2022 election pledging to section out oil and coal, which account for about half of Colombia’s exports.
Ecopetrol shares fell 0.6% in Bogota buying and selling to 2,075 pesos. The corporate has misplaced a few quarter of its market capitalization since Petro’s victory in June.
Colombia’s oil and gasoline reserves at present stand on the equal of 8.7 years of output. Ecopetrol must speed up its vitality transition with out shedding give attention to its conventional oil enterprise, Roa mentioned Wednesday.
Ecopetrol reported internet revenue of 5.66 trillion pesos, down 14% from a yr in the past amid decrease crude costs and Petro’s tax hike on oil producers.
Roa additionally mentioned he received’t again a change in Colombia’s formulation for setting native gasoline costs if its detrimental to the corporate.
His feedback come after Power and Mines Minister Irene Velez mentioned this month that the federal government will take into account decreasing gasoline costs as an alternative of maintaining parity with worldwide costs.