EC - Ecopetrol plunges as new CEO struggles to raise production amid restrictions

2023-04-25 12:54:46 ET

Ecopetrol ( NYSE: EC ) will invest in technology to increase oil production, new CEO Ricardo Roa said Tuesday, as the Colombian government sticks to a pledge to ban new drilling contracts.

"From the environmental point of view, what is responsible is to no longer allow for the search of more fossil fuels," Roa reportedly said in an interview . "With the existing contracts we have today, we have to be more successful in the exploration and discovery of oil and gas reserves to guarantee our energy security."

Colombian President Gustavo Petro, who was elected last year, so far has refused to issue any new exploration licenses, leaving drillers with few options other than to try to better exploit the concessions they already have.

Roa held a press conference Monday where he said Ecopetrol ( EC ) will target an increase of two percentage points in its oil recovery factor, which currently is 18%-20%, but he did not elaborate on the technology.

The comments have rattled investors, sending the stock -13.5% in Tuesday's trading.

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