Ecopetrol, Colombia’s largest energy company, has decided to withdraw from a strategic oil deal valued at US$3.6 billion with U.S. oil company Occidental Petroleum, better known as OXY. The deal, which was focused on the exploitation of the Permian Basin, one of the most productive regions in terms of oilwas cancelled amid growing challenges in the global energy industry. global energy industry.
Ecopetrol prioritizes zero emissions and withdraws from the oil agreement
Ecopetrol’s divestment marks a significant move in its energy transition strategy. energy transition. The company, which operates under the supervision of Colombia’s Ministry of Mines and Energy, has been increasingly focusing on reducing its carbon footprint and diversifying into sustainable energy sectors.
According to sources close to the negotiation, the decision to abandon the agreement is aligned with the long-term objectives of Ecopetrol to be a net-zero carbon company by 2050.
Occidental PetroleumOccidental Petroleum was seeking to strengthen its position in the Permian Basin, a key area for oil production in the United States. However, Ecopetrol’s exit could force the company to reevaluate its strategies in the region.
This move comes against a backdrop of uncertainty in the energy sector. energy sector, where fluctuations in oil pricesThe move comes against a backdrop of uncertainty in the energy sector, where fluctuations in oil prices and pressures for a transition to cleaner energy are forcing companies to reconsider their investments and strategic alliances.
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Source: Worldoil
Photo: Shutterstock
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