State-Backed Ecopetrol Turns to Fracking Without Targets

Colombian government entities own 88.49% of Ecopetrol. The state-controlled oil company’s new recovery plan calls for renewed exploration, new contracts and fracking, but it doesn’t publish production, investment or profit targets for the plan itself.

Who Sets the Direction

At a September 25 ceremony in Santa Marta, President Abelardo de la Espriella said his government “fully reopens the path of exploration and of signing new contracts, including fracking,” subject to “absolutely all criteria of environmental responsibility.” The question of whether fracking can proceed remains unsettled, as the Council of State and the Inspector General’s Office have objected to it.

Joaquín Gutiérrez Caballero took office as chief on September 28, after the board unanimously chose him on September 24. Infobae reported that he managed De la Espriella’s presidential campaign and had no previous hydrocarbons experience. Before his appointment, El Colombiano reported that workers and people close to Ecopetrol questioned his profile.

Ecopetrol said Gutiérrez’s mission includes building “bridges of trust” with the state, workers, regions, communities, investors and partners, and correcting the company’s institutional direction after alleged acts of corruption. De la Espriella called the proposed turnaround a “rebirth.” He also said, “Ecopetrol does not belong to the president, nor to the government, much less to a political party.” Government entities hold nearly nine-tenths of the company’s shares.

Gutiérrez said Ecopetrol would pursue conventional and unconventional projects, “implement responsible fracking” and continue offshore exploration. Infobae reported that he named exploration, adding reserves, gas supply and tax disputes as priorities. Ecopetrol reported proved reserves of 1.944 billion barrels of oil equivalent at the end of 2025. Infobae put average reserve life at 7.8 years and gas reserve life at 6.3 years; Fitch reportedly uses a 7.1-year reserve life. Those figures weren’t independently verified, according to the article.

Workers, Communities and the Costs

Ecopetrol’s second-quarter report said blockades in Meta cost an estimated 1.3 million barrels in the first half of the year. The report also linked a 49.7 mboed year-over-year production decline mainly to a 33.3 mboed drop from the Permian Basin and a 13.7 mboed decline in gas and natural gas liquids. External disruptions and electrical incidents delayed expected growth in domestic oil. Juan Carlos Hurtado Parra, then acting chief executive, signed the report.

Gutiérrez took office two days before the third quarter ended, leaving the second quarter and most of the third quarter under previous management. His first full quarter was expected to be the fourth quarter, ending December 31. Ecopetrol’s preliminary third-quarter update projected production of 740,000 to 750,000 barrels of oil equivalent per day, up from 705.8 mboed in the second quarter. The projection includes all of Brava’s output from the acquisition date; Ecopetrol bought a 51% stake in the Brazilian producer, which produced about 78.8 mboed in the first half of 2026.

The preliminary update projected third-quarter EBITDA of COP 14.0 trillion to COP 16.5 trillion, down from COP 17.7 trillion in the second quarter, and net income of COP 4.0 trillion to COP 5.0 trillion, down from COP 6.1 trillion. The company said the figures could change before it releases final results. No one knew how much of the projected production increase would come from Brava, and the company gave no date for the full third-quarter results.

The New Era, Without a Public Scorecard

On September 30, the board approved three vice presidents: Mónica Jiménez González for legal affairs and secretary-general; Mauricio Gutiérrez for corporate strategy and new businesses; and Camilo Rojas for administration and services, including contracting and procurement. Ecopetrol said the appointments would strengthen key capabilities. The board later named José Eduardo Barreneche Ávila corporate compliance director and Armando José Cuello Navarro executive vice president for energy transition. Cuello Navarro’s remit includes gas supply and energy security under the company’s “Nueva Era” strategy.

At the end of June, Ecopetrol had COP 11.3 trillion in cash and cash equivalents, while gross debt stood at 2.0 times EBITDA, below its 2026 ceiling of 2.5 times. Fitch affirmed the company’s BB rating with a stable outlook. The article noted that BB is below investment grade, while Ecopetrol’s stand-alone profile of bbb- is investment grade.

De la Espriella summoned Gutiérrez to the Casa de Nariño on October 22. The next day, the U.S. Embassy announced its first official meeting with him and discussed American investment opportunities, but neither its post nor Portafolio’s account named an amount, project or financing. The Rio Times said it found no Ecopetrol or ministry document setting production, investment or profit targets for the recovery plan. The hierarchy is clear; the public scorecard isn’t.