Colombian E&Ps face bleak upstream outlook

Political backbiting and slumping drilling activity point to further declines ahead of next year’s election

This year is already looking likely to be another tough one for Colombia’s hydrocarbons sector. Political turmoil, a government hostile to upstream growth and threats to sell off a chunk of NOC Ecopetrol’s most profitable fracking business highlight the chaotic operating environment firms are having to navigate. Gas production, in particular, suffered last year as the government refused to award any new E&P contracts. Total volumes fell by almost 8% on an annual basis as Colombian President Gustavo Petro maintained his anti-hydrocarbons stance. By December, crude was down by 4% year-on-year and gas by 9.7%. In early February, Petro also caused Ecopetrol’s share price to tank after promis