Juan Carlos Echeverry, CEO of Ecopetrol. Photo: ICP Colombia/Flickr
Ecopetrol will invest to improve its oil recovery methods: Echeverry, CEO of Ecopetrol
“The 2016 budget has been focused on Exploration and production,” the CEO of Colombian state oil company Ecopetrol (BVC: ECOPETROL; NYSE: EC; TSX: ECP), Juan Carlos Echeverry told Latintrade.com. He announced on Monday a $4.8 billion capital expenditure program for the year, a drastic 40 percent slash from 2015.
Close to 40 percent of the new plan – $2.3 billion-, will be dedicated to maintaining current production levels. The goal is to produce 775,000 barrels per day, a challenging task given the reduced amount of resources, some analysts say.
Emphasis will be placed on implementing Enhanced Oil Recovery (EOR) techniques that should be operational in more than 20 fields in Colombia, especially in the Castilla-Chichimene fields, located on the Eastern Plains of the South American country. According to Echeverry, Ecopetrol is currently testing some EOR programs, and those successful should be implemented at a commercial level next year. “That opens a clear opportunity for international investors,” he added.
There will be some $600 million allocated to exploration. This is the only item that shows some increase on next year’s budget. Ecopetrol would like to invest some $1 billion, but given market conditions, that is as close as they can get to the ideal figure, an analyst said.
Exploration money will be concentrated in Colombia and the United States. In Colombia, Ecopetrol …
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