Colombia's Ecopetrol signs agreement with Parex Resources for oil and gas development

Ecopetrol, Colombia's largest state-owned energy firm, announced on Wednesday that it had signed five agreements to enhance the production of oil and natural gas in the Andean nation.

The first four agreements will involve an investment of $350 million. These projects are planned in Colombia's Putumayo Province and Narino Province. Companies hope to increase crude oil volumes to the existing projects, as well as explore potential resources around the area.

Ecopetrol announced that a $60 million investment will be made in the Cundinamarca Province to develop an exploratory well with the goal of producing light crude and gas.

The leftist government of President Gustavo Petro is committed to weaning Colombia from its dependence on fossil fuels - particularly coal and oil - in favor of cleaner energy sources.

Ecopetrol announced earlier this month that it would invest as much as $6.4 billion into its operations. This will be primarily used to produce between 740,000 and 745,00 barrels of oil-equivalent per day.

(source: Reuters)