Colombia’s state-run oil company, Ecopetrol, has completed the acquisition of the remaining 45% interest in Block CPO-09 from Repsol Colombia Oil & Gas for $452m (1.89trn pesos).
Through this deal, announced in December, Ecopetrol has secured full ownership of this key asset in the Piedemonte Llanero region.
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Ecopetrol exercised its right of first refusal under the joint operation agreement to acquire the stake.
The CPO-09 block is situated in the Meta department of Colombia, encompassing municipalities such as Villavicencio, Acacías, Guamal and Granada.
It is expected to add around 41 million barrels to Ecopetrol’s reserves and increase its daily production by approximately 7,000 barrels of oil.
Ecopetrol said the deal strengthens its position in hydrocarbon exploration and production within the Llanos Orientales basin, further solidifying its presence in the region.
The deal also strengthens Ecopetrol’s role as the operator of several key fields including Apiay, Akacías, Caño Sur, Castilla, Chichimene, Libertad-Reforma, Pachaquiaro and Suria.
In a separate development, Colombian President Gustavo Petro has ordered Ecopetrol to cancel its joint venture with US-based Occidental Petroleum (Oxy) due to environmental concerns.
This venture, which involved the fracking method of oil extraction, was projected to produce 90,000 barrels of oil per day.
Petro’s directive underscores Colombia’s opposition to fracking, a method that has faced criticism from environmental groups for its potential to cause water pollution and induce seismic activity.
In December, Ecopetrol entered into five agreements with Parex Resources to boost oil and gas production.
The first four agreements target projects in the Putumayo and Nariño provinces, with an anticipated investment of around $350m.
Ecopetrol also announced plans to invest up to $6.4bn in its operations, aiming to sustain production between 740,000 and 745,000 barrels of oil equivalent per day.
