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Colombia’s state-controlled oil large Ecopetrol could enhance spending and increase output if elevated oil costs persist amid the escalating Center East battle, the corporate’s chief govt mentioned Thursday.
Benchmark Brent crude has surged to its highest stage in additional than a yr following U.S.-Israel strikes on Iran and disruptions to exports from the Persian Gulf. Brent climbed to greater than $85 per barrel this week, up from roughly $70 earlier than the battle erupted on February 28.
Ecopetrol CEO Ricardo Roa advised analysts throughout the firm’s quarterly earnings name that the agency is carefully watching market developments and will regulate capital spending to benefit from stronger costs.
“We are going to in fact be reviewing the state of affairs,” Roa mentioned. “If we see the potential for larger investments we are going to regulate our capex to be on the upper vary of our steering, with the aptitude of accelerating manufacturing on a brief time period foundation.”
Ecopetrol has budgeted between $5.4 billion and $6.7 billion in capital expenditures this yr. About 57% of that spending is allotted to exploration and manufacturing, whereas energy subsidiary ISA accounts for roughly 25%. Downstream operations symbolize 7%, midstream actions 6%, and power transition initiatives about 5%.
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Ecopetrol beforehand projected barely decrease manufacturing this yr. The corporate expects common output of 730,000 to 740,000 barrels of oil equal per day in 2026, in contrast with 751,000 barrels per day in H1 final yr. As of November 2025, their 2026 manufacturing plans had been primarily based on simply $60 Brent.
Firm executives cautioned that the final word influence of the Center East battle stays unsure.
Chief Monetary Officer Camilo Barco mentioned it was too early to find out how the geopolitical disaster would possibly have an effect on Ecopetrol’s funds, noting that larger crude costs may very well be partially offset by rising transport and transportation prices.
“It depends upon how lengthy the battle will final and the extent to which it impacts exporters in that area,” Barco mentioned.
Stronger crude costs might enhance demand for Colombian barrels and refined merchandise, Barco added, however freight charges have already surged sharply amid the turmoil. Delivery prices are at the moment operating roughly 150% to 160% larger, probably eroding a few of the beneficial properties from larger oil costs.
By Julianne Geiger for Oilprice.com
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