Colombia Taps New Head of Oil and Natural Gas Agency as Reserves Drop

(Bloomberg) -- Colombia appointed a new leader of its national oil and gas agency as President Gustavo Petro seeks to shift the country away from fossil fuels.

Most Read from Bloomberg

• Saudi Arabia Offers Iran Investment to Blunt Gaza War

• Charlie Munger, Who Helped Buffett Build Berkshire, Dies at 99

• Bill Ackman Bets Fed Will Cut Interest Rates as Soon as First Quarter

• Henry Kissinger, Secretary of State in 1970s Crises, Dies at 100

• Bond Yields Fall on Signs Fed Is in ‘Sweet Spot’: Markets Wrap

Orlando Velandia will take over as head of the National Hydrocarbons Agency, known as ANH, from Clara Guatame. He is a geologist engineer and previously held the position from 2016 to 2018 under the administration of Juan Manuel Santos, according to his resume on Colombia’s presidential website.

Colombia has only about seven years of oil and natural gas left in its proven reserves, according to a report in May from ANH. While Petro’s administration is refusing to issue new licenses for companies to explore for more, the ANH recently announced it was offering extensions of up to three years for existing contracts.

Read more: Colombia’s Oil and Gas Reserves Drop Amid Petro Clean Energy Push

Velandia also has studied environmental management as well as mining and energy law. Investors will welcome Velandia’s naming given his technical knowledge and work experience, said Sergio Cabrales, a professor at Bogota’s Los Andes University.

Cabrales doesn’t expect though any changes to Petro’s energy policy.

“The bet is to try to add reserves with the current contracts and with enhanced oil recovery, but not allocation rounds of new exploration and production contracts, which would be ideal,” said Cabrales.

--With assistance from Oscar Medina.

Most Read from Bloomberg Businessweek

• No Laws Protect People From Deepfake Porn. These Victims Fought Back

• Scientists and Farmers Race to Save the World’s Banana Supply

• Chinese Car Companies Cracked North America by Going to Mexico

• Facing a Shortage of Luxury Artisans, LVMH Seeks Apprentices in the US

• A $30 Billion Meltdown in Clean Energy Puts Biden’s Climate Goals at Risk

©2023 Bloomberg L.P.