Colombia's new right-wing government under President Abelardo de la Espriella is moving to reverse a four-year ban on oil and gas exploration, with up to $4 billion in new investment reportedly on the table. A divided Congress, permitting bottlenecks and persistent security threats could slow the rollback even as the country tries to court foreign capital.
New government eyes $4 billion in fresh investment
President Abelardo de la Espriella's administration wants to open Colombia's oil and gas reserves to foreign investors, reversing a four-year exploration freeze imposed under former leftist president Gustavo Petro. Fossil fuel companies could inject up to $4 billion into the sector over the next four years, but the government still needs to clear regulatory hurdles and address security concerns before that money arrives.
As of 2024, Colombia still derived 75% of its energy from fossil fuels, even as the previous administration pushed decarbonization policies including a full ban on hydraulic fracturing. Voters have since swung the other way, electing a president who campaigned on allowing as much fracking as possible.
A divided Congress complicates a fast rollback
Colombia's Congress remains divided, which threatens to stall legislative changes to fracking rules, royalties, tax structures and permitting. De la Espriella may try to bypass lawmakers by governing through decrees to speed up permitting, though that path carries the risk of legal challenge. Naturgas president Luz Stella Murgas says the government needs to clear bottlenecks tied to prior consultations and environmental licensing delays.
There is no guarantee investors will actually commit once the exploration ban lifts. Political risk analyst Sergio Guzmán told Semafor: "it's not an on and off button," adding that investors want long-term fiscal certainty before deploying capital.
Security risks threaten to scare off investors
Beyond politics, security remains a serious obstacle. Colombia's oil infrastructure suffered 580 attacks and blockades in 2025 alone, carried out by armed groups that have long targeted the industry. A government crackdown on local conflict under de la Espriella could trigger a fresh flare-up in attacks on that infrastructure.
Colombian Petroleum Association president Frank Pearl said the government's measures must be comprehensive, aggressive and swift, warning that missing any single key variable could make the investment environment unattractive.
Source: Oilprice.com
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