Colombia to Drill World's Deepest Offshore Oil Well

Colombia's oil industry is set to push the boundaries of offshore exploration with plans to drill the world's deepest offshore oil well in the coming months.

Occidental Petroleum Corp and Ecopetrol SA are gearing up to explore the depths of the Colombian Caribbean Sea in search of natural gas and oil.

The planned well, named "Komodo-1," is slated to be drilled before the end of this year, reaching an astounding depth of about 3,900 meters (about 13,000 feet).

This depth is equivalent to stacking around ten Empire State Buildings on top of each other and would surpass the current record for the deepest offshore well, held by a site in Angola.

As production growth from North American shale oil fields slows, global oil exploration companies are returning to deep-sea drilling.

SLB, the world's largest oilfield services provider, sees potential commitments exceeding $100 billion for offshore exploration projects in 2024-2025.

James West, an analyst at Evercore ISI, highlighted in a memo to investors that the offshore and deep-water sectors are experiencing a remarkable resurgence.

This revival is driven by energy security needs, regional demands, and the mature, disciplined nature of North American shale oil supplies.

When evaluating wells, offshore drilling companies use two main methods: water depth and true vertical depth (TVD).

The former measures the distance between the floating rig on the surface and the seabed exploration point, while the latter gauges the distance from the rig to the bottom of the well deep within the earth.

Elsa James, head of Ecopetrol’s sea studies division, noted in an interview that breaking the water depth record with the Komodo-1 well is partly due to advancements in marine seismic survey technology, which enables exploration at greater depths and distances.

James emphasized Colombia's significant offshore potential, especially as some onshore reserves are depleting. "With the technology and these vast opportunities, we can greatly enhance our portfolio," she added.

According to industry data firm Enverus, over 40 wells are expected to be drilled this year in seas with depths of at least 1,500 meters, making 2024 the most active year for ultra-deepwater drilling in a decade.