Oil companies on edge as Colombian guerrillas resume attacks on pipelines after peace talks collapse

Colombia's ELN rebel group has resumed attacks on the country's oil infrastructure, marking a resurgence in its long-standing conflict with the industry.

Since late August, the group has carried out at least 14 attacks on pipelines, spilling crude oil into rivers and igniting fires that have disrupted operations, according to a new Bloomberg report.

These renewed assaults come after peace talks between the rebels and the government of President Gustavo Petro collapsed, escalating tensions in an area that is critical to Colombia's economy. The ELN, Colombia's oldest guerrilla army, ended a ceasefire following the breakdown of negotiations in May, which had initially aimed to disarm the group in exchange for socio-political reforms.

Colombia's oil industry, which accounts for roughly one-third of the nation's exports, has been severely impacted by these attacks. Ecopetrol, the state-controlled oil company, reported that the attacks, combined with labor strikes and protests, have severely disrupted its operations.

The most significant damage has occurred in Arauca province, a stronghold of the ELN, where the Caño Limón-Coveñas pipeline still remains offline. The province produces about 7% of Colombia's crude oil and is a key transit point for oil destined for refineries and export.

In addition to targeting oil pipelines, the rebels have also attacked police bases and ambushed military personnel, resulting in the deaths of five soldiers. The violence has strained government security forces and further complicated Petro's efforts to maintain stability across the country.

The ELN's opposition to the oil industry stems from its belief that the sector undermines national sovereignty by allowing foreign companies to profit from Colombia's natural resources. The group has long relied on extortion networks, targeting businesses operating in its territory. Companies, including major oil firms, are often pressured to pay for infrastructure projects under the guise of social investment, which benefits both local communities and the rebels.

President Petro, who took office in 2022 with a promise of "total peace," faces mounting challenges as his administration struggles to negotiate with various armed groups. Talks with the ELN stalled, partly due to the government's refusal to remove the group from a list of organized crime organizations. Despite the collapse of the ceasefire, the ELN remains entrenched in regions like Arauca, where its influence over local politics and the economy has grown steadily over decades.

The ELN's control of the region, which has historically been free of coca cultivation, the raw material for cocaine, has been bolstered by its lucrative extortion practices. For businesses operating in Arauca, working with the ELN is often unavoidable, although direct payments to the group could result in legal repercussions, including sanctions from the United States.