Colombia regulator: Licenses for Petrobras and Ecopetrol offshore projects will be ready by mid-2026

Orlando Velandia of Colombia's hydrocarbons regulatory agency said that by mid-2026 the Brazilian state-run Petrobras, and its Colombian equivalent Ecopetrol, could have all the licenses they need to move forward with a joint offshore project in Colombia.

The project is now commercialized after 6 trillion cubic feet of natural gas reserves were confirmed. The partners are planning to complete drilling a well in this year while also planning its development. Before building infrastructure, an environmental and social license is required.

The project, as well as other areas along Colombia's Caribbean Sea side will be crucial in helping the Andean nation reduce a deficit of gas that required the importation of liquefied gas (LNG), and optimize the use natural gas by its largest consumers.

Velandia, speaking on the sidelines at the CERAWeek Conference in Houston, said: "If we can optimize the prior consultations, we could finish them this year, and get the environmental license by the middle of next, we will have everything we need for the gas pipeline towards the end of 2028, or 2029 and start production." He was referring to the Tayrona Block, operated Petrobras.

Sylvia dos Anjos from Petrobras' exploration and production department said that 13 million cubic metres of gas per day will be delivered to Colombia through the pipeline at the same conference held earlier this week.

Velandia stated that despite the gas shortage, the country did not feel the need to hold a new round of bidding for offshore areas. This is because many offshore and onshore blocks awarded previously are expected to transition from exploration into production in the coming years.

He added that Colombia was working on expanding its capacity to import LNG through floating regasification installations. Reporting by Marianna Paraga; Writing by Julia Symmes Cobb, Editing by David Gregorio

(source: Reuters)