Colombian President Gustavo Petro has directed state-run oil company Ecopetrol to terminate its joint venture with US-owned Occidental Petroleum (Oxy), citing environmental concerns tied to fracking.
The venture, located in the Permian Basin spanning Texas and New Mexico, was expected to produce 90,000 barrels of oil per day.
In a nationally televised address, Petro criticised the deal, which involved fracking—a controversial extraction technique opposed by environmentalists.
“We are against fracking because it represents the death of nature and humanity,” Petro said during a Cabinet meeting livestreamed on social media. He further urged the operation’s sale, suggesting the proceeds be redirected to clean energy initiatives.
Ecopetrol had announced plans to extend its partnership with Oxy on Monday, committing over $880 million to develop 91 oil wells in the Permian Basin. The company reported an average production of 95,200 barrels per day in the region during the first nine months of the previous year, contributing approximately 12% of its total production.
Ecopetrol, which is majority-controlled by the Colombian government but also listed on the New York Stock Exchange, saw its shares rise by 2% after announcing the deal. However, the stock experienced a slight dip following Petro’s call to cancel the agreement.
While Colombia has banned fracking within its borders, it had previously allowed Ecopetrol to engage in fracking projects abroad. Environmentalists argue that the practice poses risks such as water contamination and seismic activity.
Faridah Abdulkadiri
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