Background on Ecopetrol and Oxy Partnership
Ecopetrol, Colombia’s state-owned oil company, is considering selling its Permian asset in the United States. However, this potential sale faces significant hurdles due to its partnership with Oxy, which holds a veto power until June 2026. If Ecopetrol proceeds without Oxy’s approval, it risks a penalty of approximately $400 million.
The Proposal and Its Origins
The idea to divest from Permian stems from President Gustavo Petro’s stance against fossil fuels, including oil and gas. Additionally, the Permian basin employs fracking techniques, which the Colombian government strongly opposes.
Production Data and Analysts’ Advice
Analysts have highlighted the significance of Permian’s production data, suggesting that Ecopetrol should reconsider its decision. While Ecopetrol’s overall production has seen minimal increases, Permian’s output has grown by 15.8% from 91,400 barrels per day (oil and gas) to 105,800 barrels per day.
- Permian’s contribution to Ecopetrol’s total production rose from 0.7% in 2020 to 15.3% in Q2 2025.
- Selling Permian could lead to a 30% drop in Ecopetrol’s stock price, affecting its financial sustainability.
Regulatory Scrutiny and Requirements
Colombia’s Comptroller General has requested Ecopetrol to provide information regarding the potential sale, including fiscal impacts, board meeting minutes discussing the proposal, financial risks, and consequences of selling the asset. The Comptroller General emphasized that Permian represents 15% of Ecopetrol’s production and 14% of the upstream segment’s Ebitda, making it one of the company’s most profitable assets.
Media Speculation and Expert Opinions
There are also rumors that Ecopetrol might sell the Cartagena Refinery (Reficar) to settle tax-related issues with the National Directorate of Taxes and Customs (Dian). However, former Minister Amylcar Acosta and energy sector expert Sergio Cabrales believe this is unlikely, as selling strategic assets would not be prudent for covering such amounts.
“Though not legally binding, board members disregarding the Comptroller’s advice could face consequences in potential investigations for asset detriment,” Acosta warned.
Julio César Vera, president of XUA Energy, cautioned that divesting from Permian or reducing its investment rates could negatively impact Ecopetrol’s future capital needs for developing offshore oil fields.
