Colombia’s Ecopetrol Bets Big on Brazil’s Forgotten Oil Fields

Colombia’s state oil giant Ecopetrol is quietly positioning itself to capitalize on one of Latin America’s most overlooked energy opportunities: Brazil’s abandoned onshore oil fields that Petrobras no longer wants.

The story began a decade ago when Brazil’s oil champion decided to chase glamorous deepwater pre-salt fields that now produce over three million barrels daily.

In doing so, Petrobras effectively walked away from terrestrial assets that remained profitable for operators willing to work them efficiently. Jorge Martínez, who heads Ecopetrol‘s Brazilian operations, sees this as Colombia’s moment.

Speaking from Rio de Janeiro, he confirmed the company’s interest in Petrobras’s Polo Bahia cluster – 28 onshore fields in Bahia state producing 12,400 barrels daily that Petrobras considers more trouble than they’re worth.

“We believe Brazilian onshore has great potential, especially for natural gas,” Martínez said, outlining a strategy that leverages Ecopetrol’s expertise in Colombian terrestrial fields.

The Numbers Tell the Story

Petrobras sold 204 oil field concessions since 2013, leaving Brazil’s terrestrial production to crash to just 206,792 barrels equivalent daily in 2022.

But more than 50 independent companies now operate where Petrobras once dominated, proving the business model works. Brazilian terrestrial production is projected to grow 29% through 2028.

The economics are straightforward. Petrobras CEO Magda Chambriard admitted these fields need oil prices above $90 per barrel to justify their attention, compared to current levels around $65. But for specialized operators with lower overhead, the math works differently.

Partnership That Works

Ecopetrol and Petrobras already collaborate successfully through their joint Sirius project in Colombian Caribbean waters, which confirmed 6 trillion cubic feet of natural gas reserves worth $4.1 billion in development investment.

The broader story reveals how Latin America’s energy markets are naturally integrating. While multinational giants chase complex deepwater projects, regional players like Ecopetrol find value in assets that others consider beneath their attention.

Brazilian and foreign companies plan approximately $7.74 billion in onshore investments through 2029, proving that sometimes the best opportunities aren’t the biggest or most glamorous – they’re simply the ones that match your capabilities with market needs.