Ecopetrol to Acquire Repsol’s Stake in Colombia E&P Contract

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Ecopetrol to Acquire Repsol’s Stake in Colombia E&P Contract

Colombia’s Ecopetrol S.A. is acquiring Repsol’s interest in the exploration and production contract (E&P contract) for Block CPO-09. The final closing of the acquisition is pending several conditions, including approval by the Superintendence of Industry and Commerce and authorization by the National Hydrocarbons Agency (ANH), Ecopetrol said in a news release. Ecopetrol said it “plans […]

Colombia’s Ecopetrol S.A. is acquiring Repsol’s interest in the exploration and production contract (E&P contract) for Block CPO-09.

The final closing of the acquisition is pending several conditions, including approval by the Superintendence of Industry and Commerce and authorization by the National Hydrocarbons Agency (ANH), Ecopetrol said in a news release.

Ecopetrol said it “plans to provide additional information regarding the closing of the transaction in due time through the legally authorized channels”.

Last month, Ecopetrol confirmed what it called “the largest gas discovery” in Colombia’s history. The company made the discovery through the drilling of the Sirius-2 well in the Colombian Caribbean.

Evaluation activities of the results of the Sirius-2 well drilling confirm in-place gas volumes greater than 6 trillion cubic feet, which could increase the country’s current gas reserves by 200 percent, the company said in an earlier statement.

The expected production is around 470 million cubic feet per day for 10 years, according to the statement. The consortium is estimating an investment of $1.2 billion for exploration phase one and $2.9 billion in the production development phase.

Also in December 2024, Colombia-focused Parex Resources Inc. entered into agreements with Ecopetrol S.A. for a 50 percent working interest in four blocks located in the Putumayo Basin and the Farallones Block in the Llanos Foothills of Colombia.

The Putumayo collaboration agreements “establish a new core area” for Parex, the company said in an earlier news release, adding that over 350 million barrels of oil have been recovered to date in the area through primary recovery methods with limited recent drilling.

Parex said the business collaboration agreements are for the Orito, Area Sur, Occidente, and Nororiente Blocks in the Putumayo Basin of Colombia via an initial work plan commitment with no upfront acquisition cost.

The company noted that the Putumayo Blocks “offer significant upside potential and the ability to meaningfully improve recovery factors” through the application of low-risk infill drilling, re-completions, facility upgrades, and enhanced oil recovery (EOR) implementation.

Parex will assume operatorship of all future drilling and capital activities, while Ecopetrol will retain operatorship of current and future production. Proven reserves (1P) were marked at 10 million barrels.

Parex also acquired a 50 percent working interest and operatorship in the Farallones Block in the Llanos Foothills of Colombia, in exchange for drilling the Farallones exploration well, as well as the further expenditure commitment for carry capital of approximately $30 million on a gross capital program of roughly $60 million.

Ecopetrol describes itself as the largest company in Colombia and one of the main integrated energy companies on the American continent. The company is responsible for more than 60 percent of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems in the country, and holds leading positions in the petrochemicals and gas distribution segments.

Ecopetrol has a stake in strategic basins on the American continent, with drilling and exploration operations in the USA (Permian basin and the Gulf of Mexico) and Brazil.

To contact the author, email [email protected]

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