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16 September 2024

Daily Newsletter

16 September 2024

Colombian court orders Ecopetrol and Petrobras to cease drilling at Uchuva-2 well 

The order came after an indigenous community near Santa Marta sought legal protection. 

Shivam Mishra September 16 2024

A Colombian court has issued an injunction against Ecopetrol and Petrobras, mandating a halt to the drilling of the Uchuva-2 gas well in Caribbean waters, reported Bloomberg.  

The order came after an indigenous community near Santa Marta sought legal protection, arguing that their consent was not obtained prior to the commencement of drilling activities, according to a document published by Caracol Radio

Brazilian state-owned oil and gas company Petrobras, holding a 44.4% stake, operates the Tayrona block, while Ecopetrol owns the remaining 55.6%.  

The Uchuva-1 exploratory well, positioned at a depth of 837m, is roughly 32km from shore and 76km from Santa Marta. 

Ecopetrol is expected to release a statement on the court's decision, while Petrobras is yet to respond to requests for comment, the publication said.  

This legal development comes at a critical time for Colombia, which is facing a potential natural gas deficit at the beginning of the next year. 

In an interview last month, Ecopetrol offshore chief Elsa Jaimes said that Caribbean waters may yield production as soon as 2029, contingent on local community approvals and environmental licensing.  

However, the recent ruling to cease Uchuva-2 drilling, which began in June, is not the only challenge for Ecopetrol.

The country’s environmental licensing authority suspended the approval process for another offshore oil well last month, which would have been a record-setting drilling project.  

Ecopetrol and Occidental Petroleum have plans to initiate drilling of the Komodo-1 well later this year at a depth of approximately 3,900m. 

The Uchuva-2 case also represents a setback for Petrobras in terms of offshore exploration.  

In Brazil, the company has faced prohibitions on drilling in a crucial part of the Equatorial Margin due to environmental concerns. 

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