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Colombia's oil company Ecopetrol announces further cuts in investment

Colombia's national oil and gas company Ecopetrol has reduced its 2020 investment plans for the second time in 2020, to US$2.5-3bn. Planned investment originally reached US$4.5-5.5bn. In March 2020, Ecopetrol reduced its capital expenditures to US$3.3-4.3bn. Consequently, the company cuts its 2020 production target from 750,000 bbl/d to 660,000-710,000 bbl/d.

In September 2019, Ecopetrol released plans to start fracking pilot projects in the second half of 2020, once it secures regulatory approvals. Financing would have come from the US$500m the company has already put aside for development of non-conventional deposits. Ecopetrol’s joint venture with Occidental Petroleum Corp in the Permian Basin (Texas, United States) was expected to allow the company to develop the technical know-how it needs for tapping shale deposits in the future. Ecopetrol planned develop at least four fracking projects, which were expected to bring in US$5bn/year in investment once producing oil.