MercoPress. South Atlantic News Agency

Petrobras finds gas in the Colombian Caribbean and sets eyes on Namibia's potential

The consortium made up of Petrobras and Ecopetrol will continue operations to complete the project and carry out a formation test by the end of 2024.

Brazil's oil giant has reported the discovery of a significant gas resource from a well drilled off shore Colombia in the Caribbean. The Uchuva 2 well is some 32 kilometers from the coast at a depth of 804 meters. This new drill is considered an extension of a natural gas field drilled at the Uchuva 1 well back in 2022, at a depth of 830 meters.

“This well adds relevant information for the development of a new frontier of exploration and production in Colombia, reinforcing the volumetric potential for natural gas in the region”, said Petrobras in a Tuesday report .

“The well is in progress, with five phases, and the gas-bearing interval was verified at phase 4 through wireline logging, which will be further characterized through laboratory analyses”.

The consortium, constituted by Petrobras as operator (working interest 44.44%), in partnership with Ecopetrol (working interest 55.56%), will continue operations to complete the project to drill the well to the expected depth and characterize the conditions of the reservoirs found, with the prediction of carrying out a formation test by the end of 2024.

Petrobras' operations in the Tayrona Block are in line with the company's long-term strategy, aimed at replenishing oil and gas reserves through the exploration of new frontiers and acting in partnership, ensuring that global energy demand is met during the energy transition.

Petrobras has also set its eyes at the Mopane oil prospect in Namibia where Portugal's GALP is offering a 40% stake. Petrobras' bid comes as it seeks to boost its reserves, but has faced challenges in obtaining environmental licenses to move forward with exploration in Brazil.

The southwest African nation Namibia has come into the spotlight as a new oil and gas exploration hotspot following several major discoveries in recent years along its coast

Galp wants to sell half of its 80% stake in the field, where estimates show at least 10 billion barrels of oil equivalent, according to the firm.

“It's a competitive process in a sought-after area, with potential to be confirmed. The natural thing in a bid like that is to dilute the risk with partners,” said sources from Petrobras.

Assuming an oil recovery factor of 25% of the block's oil reserves, the 40% stake in Mopane could cost around US$ 4 billion, BTG Pactual analysts estimated in a note last week, warning that the investment, along with possible purchases of two refineries in Brazil, could raise risks for dividend payments by Petrobras.