facebook
linkedin
twitter
About Us
  • BFSI
  • Energy
  • Infocom
  • Mining
  • Venture
  • Industry
  • Travel
  • Civic
  • Food, Health, Ag
  • Real Estate
  • Responsibility
  • Economy
  • Law & Justice
  • Interview
  • Analysis

Ecopetrol to Drill 80 New Wells in the Second Half of 2016

Posted On August 24, 2016
By : Jared Wade
Comment: Off
Tag: castilla oilfield, Cusiana oilfield, ecopetrol, juan carlos echeverry, pacific exploration, rubiales field

Ecopetrol plans to ramp up drilling over the second half of the year, opening up 80 new wells, according to chief executive Juan Carlos Echeverry. In a call with investors last week, Echeverry noted that the state-controlled oil company is now in a position to reverse course after retrenching in recent quarters amid plummeting crude prices.

After prioritizing “capital discipline” thus far in 2016, the oil giant now feels comfortable that, in line with its oil price estimates of between $50 and $55 USD per barrel next year, it can begin increasing output. “We feel now at the company that we can emphasize promoting reserves and production,” said Echeverry, according to Reuters.

The 80 sites will bring the annual total of new wells to 105, with 35 to be drilled in its Rubiales oil field, the nation’s largest. For decades, Ecopetrol had reaped the benefits of the field jointly with Pacific Exploration & Production, formerly known as Pacific Rubiales, but the company took over Pacific’s share in July after opting not to renew its long-time contract with the Canadian energy firm.

Taking full control of Rubiales has added 53,000 barrels per day to Ecopetrol’s production, “partially offsetting the impact of lower investments in other assets and the temporary suspension of some fields,” said Echeverry. With the addition of more output from this field, as well as production from the Cusiana oilfield in Los Llanos, the company has now eclipsed 500,000 barrels per day in output.

The bulk of the other new wells expected this year — another 35 — will be drilled in the Castilla field. In July, Echeverry said that the firm may open up as many as 1,000 new wells in the coming years if oil prices cooperate.

Even with — an albeit short-lived — rally in oil prices this spring, Ecopetrol saw its net profits drop by 48% in the second quarter of 2016, year-over-year, from 2015. It did nearly double its net income in Q2 over the first quarter of 2016, however, recording 787 billion pesos from April through June compared to just 363 billion pesos from January through March. Overall for the first half of 2016, the net profit drop was 31% versus the first six months of 2015.

In July, Ecopetrol also saw Fitch Ratings downgrade its long-term local-currency issuer default rating (IDR) to BBB from BBB+ and put its long-term foreign-currency IDR on negative watch. This followed the rating agency assigning Colombia’s sovereign rating a negative outlook, with similar fallout hitting Bancolombia, the nation’s largest bank.

“April marked my first year leading Ecopetrol, a year characterized by a sharp drop in oil prices, challenging the oil and gas industry,” said Echeverry.

The company is currently reviewing its 2017-2020 medium-term plan and expects to share these results with investors before the end of October. Echeverry noted that Ecopetrol has also restructured its management team over the past 16 months, appointing a new chief operating officer, chief financial officer, and chief transformation officer in addition to changing out executives several vice-president-level positions.

Photo: Ecopetrol’s Cusiana oilfield in Colombia’s Los Llanos region. (Credit: Ecopetrol)

DON'T MISS OUT: The only English-language Colombia news that's strictly business, markets, & investment!
Join global executives & investors by subscribing to our FREE weekly updates
I agree to have my personal information transferred to MailChimp ( more information ) DISCLAIMER: Protección de Datos Personales Artículo 15 de la Constitución Política de Colombia, ley 1581 de 2012 y decreto 1377 de 2013.
We will never spam you or share your email address ¡Nunca Jamás!

Share the news!

  • Facebook
  • Twitter
  • Print
  • WhatsApp
  • LinkedIn
  • Skype

Related

Share your thoughts:

comments

About the Author
Jared Wade is editor in chief of Finance Colombia. He is a Bogotá-based journalist with 15 years of experience covering topics including business, financial services, Latin America, and sports. Email him at jared.wade(at) financecolombia.com or follow him on Twitter at @Jared_Wade.
  • google-share
Previous Story

Isagen Posts Net Loss in First Half of 2016 Following Government Sale

Next Story

Ecopetrol Calls Shareholder Meeting to Elect New Board Members in September

Related Posts

Ecopetrol oil and gas company headquarters in Bogotá, Colombia
0

Amazon AWS, Ecopetrol, Accenture Develop Open Source Smart Water Management Platform

Posted On April 4, 2022
, By Loren Moss
0

S&P Global Ratings Ranks Ecopetrol’s ESG Evaluation As 58, “Preparedness Adequate”

Posted On March 28, 2022
, By Loren Moss
0

What Jumps Out: Fedesarrollo March Survey

Posted On March 24, 2022
, By Rupert Stebbings




Search

RECENT

POPULAR

COMMENTS

The World’s 50 Best Restaurants today reveals Leonor Espinosa of Leo, Bogotá, as the 2022 winner of The World’s Best Female Chef Award, sponsored by Nude Glass

Colombian Leonor Espinosa Named "World's Best Female Chef"

Posted On May 18, 2022
Grand Bahamas photo © Loren Moss

Bahamas Seeks Air Connectivity With Colombia

Posted On May 18, 2022
Roberto Kriete, avianca's main shareholder and chairman of the Board of Directors.

Shareholders Of Viva, Avianca & Gol Announce The Creation Of Abra Group To Dominate South American Skies

Posted On May 11, 2022
Colombia’s attorney general charged Russian national Sergein Vagin and six other people

Alleged Russian Spy Charged…With Running A Gambling Mafia

Posted On April 12, 2022

Viva Launches Nonstop Routes To Buenos Aires, Argentina From Medellín & Bogotá, Colombia

Posted On April 12, 2022

Romanian Cybercriminal Mihai Ionut Paunescu Captured In Colombia

Posted On June 29, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Court Blocks Colombia’s $370 Million USD Emergency Loan To Bankrupt Avianca Airlines

Posted On September 12, 2020

Deadly Riots & Protests Against Police Brutality Break Out Across Colombia

Posted On September 10, 2020

AVIANCA IS BANKRUPT

Posted On May 10, 2020

[…] damn what she said. She and...

Posted On April 4, 2022

[…] by short sellers seeking to...

Posted On March 22, 2022

[…] no longer travel freely...

Posted On March 8, 2022

[…] Duque’s administration will...

Posted On March 8, 2022

[…] See also: 13 Police Injured In...

Posted On March 3, 2022

Watch This!

Consider Advertising With Us

Click here to visit Expat Group's English site

Subscribe Free

don't forget to include "http://"
* = required field
Your Background / Function








unsubscribe from list

RECENT

POPULAR

COMMENTS

The World’s 50 Best Restaurants today reveals Leonor Espinosa of Leo, Bogotá, as the 2022 winner of The World’s Best Female Chef Award, sponsored by Nude Glass

Colombian Leonor Espinosa Named "World's Best Female Chef"

Posted On May 18, 2022
Grand Bahamas photo © Loren Moss

Bahamas Seeks Air Connectivity With Colombia

Posted On May 18, 2022
Roberto Kriete, avianca's main shareholder and chairman of the Board of Directors.

Shareholders Of Viva, Avianca & Gol Announce The Creation Of Abra Group To Dominate South American Skies

Posted On May 11, 2022

Romanian Cybercriminal Mihai Ionut Paunescu Captured In Colombia

Posted On June 29, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Deadly Riots & Protests Against Police Brutality Break Out Across Colombia

Posted On September 10, 2020

[…] damn what she said. She and...

Posted On April 4, 2022

[…] by short sellers seeking to...

Posted On March 22, 2022

[…] no longer travel freely...

Posted On March 8, 2022

Watch This!

Contact Us (Click the image):

Pages

  • About Us
  • Colombia Events, Conferences, Festivals and Important Dates
  • Contact Us
  • main
  • Media Partnerships
  • Privacy Policy
  • Search Results
  • Whatsapp test page
Copyright 2014-2020 Finance Colombia All Rights Reserved. We may earn commissions from qualifying purchases.
Posting....
WhatsApp us