President Petro of Colombia Directs Ecopetrol to Terminate Partnership with US-Owned Occidental Petroleum Due to Fracking Issues

Petro of Colombia has ordered Ecopetrol to end its partnership with Occidental Petroleum because of fracking-related environmental issues.

President Gustavo Petro of Colombia has ordered state-owned oil company Ecopetrol to end its partnership with US-owned Occidental Petroleum (Oxy), citing fracking-related environmental issues.

90,000 barrels of oil a day were anticipated from the project, which was situated in the Permian Basin that includes both Texas and New Mexico.

Petro attacked the arrangement in a nationally televised speech, pointing out that it entailed fracking, a contentious extraction method that environmentalists hate.

“We oppose hydraulic fracturing because it symbolizes the demise of both the environment and people,” Petro stated at a Cabinet meeting that was aired live on social media. The revenues of the operation’s sale, he added, should be used for sustainable energy projects.

On Monday, Ecopetrol revealed intentions to expand its collaboration with Oxy, investing more than $880 million to construct 91 oil wells in the Permian Basin. According to the corporation, during the first nine months of the previous year, the region produced an average of 95,200 barrels per day, which accounted for around 12% of its entire output.

The Colombian government owns the majority of Ecopetrol, which is listed on the New York Stock Exchange. Following the announcement of the acquisition, the company’s shares increased by 2%. The stock did, however, slightly decline after Petro called to terminate the contract.

Colombia had previously let Ecopetrol to participate in fracking operations overseas, despite the fact that fracking is prohibited within its boundaries. Environmentalists contend that the method presents hazards including seismic activity and water pollution.