BOGOTA – Colombian President Gustavo Petro instructed the state-owned oil company Ecopetrol to terminate a partnership with a U.S.-based firm which was anticipated to yield roughly 90,000 barrels of oil daily, citing environmental apprehensions.
During a nationally broadcasted address, Petro voiced his objection to the recent renewal of a contract between Ecopetrol and Occidental Petroleum, also known as Oxy, due to its implementation of fracking, a contentious method employed to extract oil and gas from shale formations that has faced backlash from environmental organizations.
“I want to see that project divested, with the proceeds redirected towards sustainable energy resources,” Petro declared during a session with his cabinet members that was streamed live on social platforms. “We stand in opposition to fracking because it heralds the demise of nature and humanity.”
Ecopetrol had announced on Monday it would renew its operations with Oxy in the Permian basin, an oil producing region that spans Texas and New Mexico, to develop 91 oil wells, investing over $880 million.
Ecopetrol said its projects in the Permian basin produced an average of 95,200 barrels of oil per day in the first nine months of last year. Operations in the Permian basin made up around 12% of Ecopetol’s total production last year.
Ecopetrol, controlled by the Colombian government but also listed on the New York Stock Exchange, saw its shares rise 2% on Tuesday following the announcement of its deal with Occidental. However, they fell slightly after Petro called for the agreement’s cancellation.
Colombia has refused to approve fracking projects on its territory, though it had not previously blocked Ecopetrol from taking part in fracking ventures overseas.
Environmentalists argue that fracking can pollute water sources and cause tremors.
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