Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Exclusive-Colombia mulls making Ecopetrol mandatory partner in offshore wind farms

Published 09/11/2023, 11:06 AM
Updated 09/11/2023, 08:40 PM
© Reuters. FILE PHOTO: The logo of Ecopetrol is pictured at its headquarters in Bogota, Colombia July 11, 2023. REUTERS/Luisa Gonzalez/File Photo

By Oliver Griffin

BOGOTA (Reuters) -Colombia's government is considering revising rules to make majority state-run energy company Ecopetrol an obligatory partner in every offshore wind project, three people familiar with the matter told Reuters.

The Ministry of Mines and Energy will consult businesses interested in taking part in Colombia's first-ever offshore wind auction about the proposal, one of the sources said in recent days, adding that feedback so far has been positive.

If approved, the revision would make it "mandatory for Ecopetrol to take part in each offshore project," another source told Reuters.

The government of President Gustavo Petro, Colombia's first leftist leader, has set its sights on weaning the Andean country from its dependence on fossil fuels while ensuring energy self sufficiency.

The Ministry of Mines and Energy did not respond to questions from Reuters.

Ecopetrol Chief Executive Ricardo Roa told Reuters in an interview later on Monday that regulations for renewables have been developing bit by bit to allow the company "to eventually become a big actor in energy generation in the country."

Having Ecopetrol partner with other companies on offshore wind farms would "minimize the risks of new projects," one of the sources said, adding that the size of any given Ecopetrol stake would be "very, very small," without indicating possible percentages.

Ecopetrol's involvement in offshore wind projects would help shore up energy self sufficiency, another of the sources said.

"For energy security, it's the most important (thing)," another said, referring to Ecopetrol's involvement in the projects.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Plans to hold the bidding round to assign maritime blocks for offshore wind farms are running behind.

The ministry last week said it continues to work on readying the necessary tender documents, despite previously saying the paperwork would be published in August.

Processes to change the regulations - which were published in the last week of the previous government - are behind the delays, one of the people said, while another said setbacks were due to changes in the ministry's leadership.

Former Minister of Mines and Energy Irene Velez stood down in July amid investigations into possible influence-peddling, and was replaced by Andres Camacho at the start of August.

"I think it will be difficult for (the auction) to go ahead this year," one of the sources said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.