Acquired a majority stake held in Cano Sur block in Llanos Orientales basin, covering about 610,000 hectares.
Bogota, Colombia-based Ecopetrol SA (NYSE: EC) has acquired a majority stake held by Shell Exploration and Production Colombia Cano Sur GmbH in the Cano Sur block in the Llanos Orientales basin of Colombia for an undisclosed price.
The block, which covers an area of about 610,000 hectares, is part of the projects included in the Ecopetrol Business Group's Heavy Crude strategy. Cano Sur block, which is covered under the hydrocarbons exploration and exploitation contract signed in 2005 with the ANH, is still in the exploratory phase and results obtained from evidence recorded in the stratigraphic wells Draco-1 and Mago-1 have confirmed the presence of hydrocarbons.
Ecopetrol will retain a 100% stake in the block and continue as operator to carry out anticipated investment programs associated with it. The company will continue to perform intensive exploratory work in order to ascertain the hydrocarbons potential of the eastern region of Meta province, where the Rubiales and Quifa fields are also located.
Ecopetrol is Colombia's largest integrated oil & gas company, where it accounts for 60% of total production. It is one of the top 40 oil companies in the world and the fourth largest oil company in Latin America.