Colombia Presses Ecopetrol to Exit Texas Oil, Despite Strong Profits

Colombia’s government is pressing Ecopetrol, the state oil company, to sell its highly profitable stake in the Permian Basin of Texas.

President Gustavo Petro argues that the company must reduce dependence on hydrocarbons and redirect capital into domestic energy projects.

Ecopetrol’s Permian operation is no minor asset. In the second quarter of 2025, it delivered 116,000 barrels of oil equivalent per day, including 64,000 barrels of crude.

The field accounts for about 11 percent of Ecopetrol’s proven reserves, which totaled 1.89 billion barrels of oil equivalent at the end of 2024.

The company committed nearly $885 million this year to drill 91 new wells in the Midland and Delaware sub-basins, projecting average output of 90,000 barrels per day.

These figures establish the Permian as one of Ecopetrol’s most reliable profit centers. Selling it would generate immediate capital, but at the cost of reserves, future income, and company valuation.

Ecopetrol’s board has already cautioned that a sale without equivalent replacement reserves would weaken the company’s long-term finances.

Petro, however, insists that capital must shift toward alternative energy and regional power integration. He highlights Ecopetrol’s 51.4 percent stake in ISA, Colombia’s electricity transmission leader, as the platform for such a pivot.

For the government, the Permian cash is better spent on reshaping Colombia’s energy matrix. Many analysts question this direction.

They note that liquidating a proven, cash-generating oil field to invest in projects with uncertain returns risks undermining Ecopetrol’s financial strength.

The oil venture is not speculative; it is producing at scale, expanding reserves, and providing steady dollar revenues. By contrast, the alternatives are politically favored but remain commercially unproven at the same level.

The issue therefore extends beyond one Texas field. It reflects the tension between ideological goals and corporate performance. Ecopetrol must balance government pressure with investor expectations, reserve security, and stable cash flow.

The outcome will show whether a state oil firm can be pushed to abandon profitable assets for uncertain ventures without eroding market confidence.

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