Ecopetrol, Colombia's majority state-owned energy company, has announced the signing of five agreements with Parex Resources to enhance oil and gas production in the South American country.

The initial four agreements focus on projects in the Putumayo and Narino provinces, with an expected investment of approximately $350m (1.52trn pesos).

These projects aim to increase crude volumes in existing fields and explore potential resources in adjacent areas.

Reuters quoted Ecopetrol chief executive Ricardo Roa as saying during an energy conference in Cartagena hosted by Colombia's national hydrocarbons agency: "Here we are betting on a potential of about 100 million barrels of oil equivalent."

In the Cundinamarca province, a fifth agreement is set to commence next year, with $60m earmarked for the development of an exploratory well that could yield gas and light crude.

Roa was quoted by the news agency as saying: "There we are looking at an in situ potential of about one billion barrels of oil equivalent, with a technical volume close to 330 million equivalent barrels."

The Colombian Government has prioritised the transition from fossil fuels to sustainable energy sources. However, these new agreements indicate ongoing investment in the country's oil and gas sector.

Earlier in the month, Ecopetrol disclosed plans to invest up to $6.4bn in its operations, primarily to maintain production levels between 740,000 and 745,000 barrels of oil equivalent per day.

Parex Colombia's chief executive, Daniel Ferreiro, conveyed to Reuters: "They are new investments, building new facilities, drilling new wells, making interventions on wells in existing fields."

Ferreiro added: "For us, that is what's attractive, the resource is there, what we have to figure out is the way to get it out efficiently."

This collaboration between Ecopetrol and Parex Resources signifies a significant step in Colombia's oil and gas industry, aiming to bolster production while balancing the country's energy transition goals.