Colombian President Gustavo Petro has directed state-run oil company Ecopetrol to terminate its joint venture with U.S.-owned Occidental Petroleum (Oxy), citing environmental concerns related to fracking.
The venture, located in the Permian Basin, which stretches across Texas and New Mexico, was projected to produce 90,000 barrels of oil per day.
In a nationally televised address, Petro sharply criticized the fracking-based deal, aligning with environmentalists who have long opposed the controversial extraction technique.
“We are against fracking because it represents the death of nature and humanity,” Petro declared during a Cabinet meeting streamed live on social media.
He also called for the venture’s sale, proposing that proceeds from the deal be redirected into clean energy initiatives.
Ecopetrol had announced plans to extend its partnership with Oxy earlier in the week, committing over $880 million to develop 91 oil wells in the Permian Basin. The company reported an average production of 95,200 barrels per day in the region during the first nine months of the previous year, accounting for 12% of its total output.
Following the partnership announcement, Ecopetrol’s stock rose by 2%. However, after Petro’s directive to cancel the deal, shares experienced a slight dip.
Colombia has banned fracking within its borders, but previously allowed Ecopetrol to participate in fracking projects abroad.
Environmental activists argue that fracking poses significant risks, including water contamination and seismic activity. Petro’s latest move reinforces his administration’s strong anti-fracking stance and signals a push toward renewable energy development.
As Ecopetrol evaluates its next steps, the decision is likely to have broader implications for Colombia’s energy strategy, international investments, and relations with the U.S. oil sector.