Colombian player weighing options for offshore gas block trio as Shell heads for the exit

Colombia’s state-owned oil and gas company Ecopetrol is evaluating the strategy for gas projects in the Southern Caribbean to continue following the decision by the UK-headquartered energy giant Shell to withdraw from its operated offshore assets.

The Colombian firm said it had initiated a joint plan aiming to ensure the continuity of the Col 5, Purple Angel, and Fuerte Sur blocks containing the Kronos 1, Purple Angel 1, Gorgon 1 and 2, and Glaucus 1 gas discoveries after their operator, Shell, decided to pull out.

While the UK giant has not issued an official statement yet, Ecopetrol claims the decision is linked to reasons related to Shell’s strategy and global portfolio management. 

Since the projects are considered technically and economically viable, the Colombian player intends to treat them as a priority for the company and for the country. Thus, it is looking into ways to develop the resources that ensure the supply of gas in the medium term.

The maturation of the Gorgon development project is said to be ongoing, as well as the plans for its socio-environmental viability. The project is expected to be completed in the first half of 2029, with start of production to follow between 2031 and 2032.

Shell’s subsidiary Shell EP Offshore Ventures Limited closed the acquisition of the 50% stake in the three blocks in December 2020, seven months after the deal was announced. A natural gas discovery was made in the Gorgon-2 exploration well in 2022.

Ecopetrol said it is evaluating connection options with the national transportation system to market gas and meet the national demand. As it considers gas one of the pillars of the energy transition, the company maintains its commitment to the development and maturation of gas resources in the Caribbean Sea.

The Colombian firm also stated that it will continue to be a partner with Shell. Together with TotalEnergies, the two are advancing the development of the Gato Do Mato field in Brazil, for which a final investment decision (FID) was made last month.