Production in decline
In 2025 Colombia’s oil production continues to show a downward trend. The National Hydrocarbons Agency (ANH) reported that in July the country extracted around 746 thousand barrels per day, a figure slightly higher than the previous month but reflecting a drop of nearly 5 percent compared to 2024. The average between January and April was 746,872 barrels per day, the lowest level in the last four years. Natural gas production shows an even more complex outlook with annual declines of up to 19 percent.
Investment to sustain activity
In this context, companies significantly increased their investment in exploration and production. According to the Colombian Petroleum and Gas Association, about 4.68 billion dollars were allocated in 2025, representing an 8 percent increase over the previous year. The allocation of resources highlights the sector’s priorities:
- 740 million dollars for exploration to secure new reserves
- 3.94 billion dollars for production aimed at maintaining stable levels between 760,000 and 770,000 barrels per day
- Ecopetrol allocated between 5.4 and 6.4 trillion Colombian pesos to projects intended to sustain an average production of 740,000 to 745,000 barrels of oil equivalent per day
The sector faces challenges ranging from the natural depletion of fields to infrastructure attacks as well as delays in environmental licensing and community consultations.
Refining as a pillar of energy security
Refining operations remain an essential component. The Barrancabermeja refinery maintains its capacity of 246,000 barrels per day and continues to be the country’s largest facility.
Oil financial hedging that secures revenues
Financial risk management has consolidated as a key tool. GeoPark secured hedges for 87 percent of its 2025 production with floor prices between 68 and 70 dollars per barrel, generating additional revenues of 4.9 million dollars in the second quarter. The company also extended hedges for part of its expected 2026 production with average price ranges between 50 and 74 dollars per barrel.
Ecopetrol expanded its coverage in regulated market energy contracts from 56 percent in 2024 to 87 percent for the 2025–2029 period, strengthening its financial stability in the face of international market volatility.
Energy policy and transition
The Colombian government continues to push for clean energy sources such as solar and wind, while restricting fracking and the signing of new exploration contracts. This shift has limited private investment and delayed offshore projects. Some recent discoveries proved less promising than expected, raising concerns about the country’s ability to avoid an energy deficit in the coming years.
