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Investment in Colombia oil and gas production to fall 7% in 2024, market group says

Investment in Colombia's oil and gas production is forecast to decline by 7% to $3.5 billion in 2024, the Colombian Petroleum Association (ACP) said in a. press conference in Colombia's capital Bogota on Thursday.

The government of leftist President Gustavo Petro has actually made a. priority of weaning Colombia away from dependence on fossil. fuels, particularly oil and coal, in spite of market cautions about. effects to the Andean country's energy self sufficiency.

Earlier this year, the federal government's National Hydrocarbons. Agency (ANH) reported that Colombia's tested oil and gas. reserves decreased at the end of 2023 to the equivalent of 7.1. years of consumption and 6.1 years of intake respectively.

The federal government needs to offer incentives to improve. exploration and increase production, the ACP said, requiring. lower pipeline tariffs and guarantees to provide security in the. nation's conflict-ridden countryside where many energy. companies run, to name a few procedures.

We have a very, really tight amount of time, ACP president Frank. Pearl told journalists. We need to do this now.

While production costs is set to drop, the ACP. projections financial investment in exploration will grow 5% throughout the year. to $1.1 billion, some $700 million of which will go into. exploration for gas, the industry group stated in a presentation.

The ACP also forecast Colombia's oil production would. average between 780,000 and 790,000 barrels each day, while. prospective gas production was anticipated at 1.02 billion cubic feet. each day.

The ANH told Reuters previously this year that oil. production would surround 800,000 bpd in 2024.

(source: Reuters)