In the Headlines
February 28, 2025
Will Ecopetrol Sell Its Fracking Project in Texas?
Energy Advisor, Inter-American Dialogue
Energy attorneys Claro Cotes and José Vicente Zapata were featured in a Q&A with the Inter-American Dialogue's Energy Advisor about Colombian President Gustavo Petro's proposal for Ecopetrol to divest from its joint venture in Texas’ Permian Basin. They discussed how this move signals a pivotal shift in the country's energy strategy, contrasting Petro's environmental agenda with Ecopetrol's current business necessities. As the Permian assets constitute 12 percent of Ecopetrol’s oil production, selling these assets could significantly impact the company's financial standing. Mr. Cotes and Mr. Zapata explained the complexities involved, considering Colombia's fiscal reliance on oil revenues and the potential need for Ecopetrol to speed up investments in renewable energy.
"While the sale could free up capital for renewable energy projects in line with Colombia’s climate goals, it could also destabilize the company’s production base and put pressure on Colombia’s already strained fiscal balances," they said.
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"While the sale could free up capital for renewable energy projects in line with Colombia’s climate goals, it could also destabilize the company’s production base and put pressure on Colombia’s already strained fiscal balances," they said.
READ: Will Ecopetrol Sell Its Fracking Project in Texas? (Subscription required. Comments begin on page 3 and continue on page 6)