BOGOTA, Colombia (AP) — Colombian President Gustavo Petro on Tuesday ordered the state-run oil firm Ecopetrol to cancel a three way partnership with a U.S.-owned firm that was anticipated to supply round 90,000 barrels of oil per day, citing environmental considerations.
In a nationally televised speech, Petro mentioned he opposed the current extension of a deal between Ecopetrol and Occidental Petroleum, or Oxy, as a result of it concerned extracting oil by fracking, a controversial method used to extract oil and fuel from shale rock that has been criticized by environmental teams.
“I would like that operation to be offered, and for the cash to be invested in clear energies,” Petro mentioned in a gathering along with his Cupboard that was livestreamed on social media. “We’re in opposition to fracking, as a result of fracking is the demise of nature, and the demise of humanity.”
Ecopetrol had introduced on Monday it will renew its operations with Oxy within the Permian basin, an oil producing area that spans Texas and New Mexico, to develop 91 oil wells, investing over $880 million.
Ecopetrol mentioned its initiatives within the Permian basin produced a median of 95,200 barrels of oil per day within the first 9 months of final yr. Operations within the Permian basin made up round 12% of Ecopetol’s complete manufacturing final yr.
Ecopetrol, managed by the Colombian authorities but additionally listed on the New York Inventory Trade, noticed its shares rise 2% on Tuesday following the announcement of its take care of Occidental. Nevertheless, they fell barely after Petro referred to as for the settlement’s cancellation.
Colombia has refused to approve fracking initiatives on its territory, although it had not beforehand blocked Ecopetrol from collaborating in fracking ventures abroad.
Environmentalists argue that fracking can pollute water sources and trigger tremors.
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Observe AP’s protection of Latin America and the Caribbean at https://apnews.com/hub/latin-america
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