British oil giant Shell is withdrawing from several gas exploration and production contracts in Colombia, marking its exit from natural resource exploration in the country.
As part of this move, Shell is also ending its partnership with Colombia’s state oil company, Ecopetrol, on a joint project to develop what was considered one of the nation’s most significant hydrocarbon reserves. The company announced the sale of its 50 percent stake in the Fuerte Sur, Purple Angel, and COL-5 offshore blocks, all located in Colombia’s southern Caribbean region.
Shell steps away from Colombia
These blocks had previously led to the discovery of substantial natural gas reserves beneath the Colombian Caribbean Sea. In May 2017, then-President Juan Manuel Santos declared this the most important gas discovery in 28 years—since the Cusiana and Cupiagua finds in Casanare back in 1989.
Exploration began in July 2015 with the Kronos well in the Fuerte Sur block. This was followed by Purple Angel in March 2017, which confirmed the presence of gas at Kronos. Two months later, the Gorgon-1 well was discovered and deemed a potential gas cluster by Ecopetrol.
Further appraisal drilling in 2022 confirmed this potential. The Gorgon-2 well, drilled in ultra-deep waters, reinforced the extent of the original Gorgon-1 discovery and validated the long-term potential of the area.
Why is Shell pulling out?
In October 2023, under Shell’s operatorship, drilling at the Glaucus well (COL-5) confirmed additional gas presence, extending the province’s potential. Ecopetrol hailed this as a strategic boost to Colombia’s energy security.
However, the volume of gas ultimately fell short of expectations. According to El Tiempo, Shell concluded that the reserves discovered were insufficient to justify the massive investment needed for full-scale development.
Developing the fields would require significant infrastructure—subsea pipelines and onshore processing plants—mirroring the approach planned by Petrobras and Ecopetrol at the Sirius field, the largest gas deposit in the country. Faced with these costs and a limited upside, Shell opted to redirect its investments toward more promising international assets.
Sale could also include COL-3 block
Shell’s withdrawal could also encompass the COL-3 block, which it co-owns with Noble Energy, a subsidiary of Chevron. If completed, the sale would solidify Shell’s exit from offshore exploration in Colombia.
Over the past five years, several major companies have followed a similar path, scaling back or ending their operations in Colombia. These include ExxonMobil, ConocoPhillips, Chevron, Cepsa, and Repsol—underscoring a broader shift away from fossil fuel exploration in the country.