BOGOTA – 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 way of fracking, a controversial approach used to extract oil and gasoline from shale rock that has been criticized by environmental teams.
“I would like that operation to be bought, 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 towards fracking, as a result of fracking is the dying of nature, and the dying 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 mean of 95,200 barrels of oil per day within the first 9 months of final 12 months. Operations within the Permian basin made up round 12% of Ecopetol’s whole manufacturing final 12 months.
Ecopetrol, managed by the Colombian authorities but in addition listed on the New York Inventory Trade, noticed its shares rise 2% on Tuesday following the announcement of its cope with 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 participating in fracking ventures abroad.
Environmentalists argue that fracking can pollute water sources and trigger tremors.
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