Ecopetrol Submits Top Bids for 12 Blocks in Round Colombia 2012
-- Alliances with oil companies such as ExxonMobil, Anadarko and Repsol.
-- Increases number of blocks for developing unconventional resources.
-- Strengthens strategic position in the Caribbean offshore and heavy crudes.
BOGOTA, Colombia, Oct. 18, 2012
BOGOTA, Colombia, Oct. 18, 2012 /PRNewswire/ -- Ecopetrol S.A. (BVC:
ECOPETROL; NYSE: EC; TSX: ECP) reports that it has submitted the best offers
for 12 exploratory blocks in the Round Colombia 2012, following the opening of
bidding held yesterday by the National Hydrocarbons Agency (Agencia Nacional
de Hidrocarburos, ANH) in Cartagena, Colombia.
(Logo: http://photos.prnewswire.com/prnh/20090209/ARM001LOGO )
Of the 12 blocks, Ecopetrol holds a 100% stake in six of them, and the
remaining six in partnerships with Anadarko, ExxonMobil, Repsol, and Hocol.
The total area of the blocks is approximately 3.1 million hectares and are
located in the following basins: Llanos, Mid Magdalena Valley,
Caguan-Putumayo, Catatumbo, Cordillera, and the Colombian Caribbean offshore.
In this round, the ANH auctioned blocks for exploration and production of
unconventional hydrocarbons. Ecopetrol has carried out activities in this type
of hydrocarbons, and yesterday's bidding should allow it to increase its
strategic position in five new blocks. Ecopetrol holds a 100% stake in three
blocks, and two of the blocks are held in partnership with ExxonMobil.
In conventional hydrocarbons, Ecopetrol submitted the top bid for seven
blocks. In two of them, it holds a 100% interest, and in the other five, it
holds jointly with Anadarko (two blocks), ExxonMobil (one block), Repsol (one
block), and Hocol (one block), the latter a company of the Ecopetrol Corporate
One of the two blocks in the Caribbean Offshore is held in partnership with
Anadarko Colombia Company while the other is held in partnership with Repsol
Exploracion Colombia S.A. These alliances with oil companies that have a broad
experience in offshore exploration and production, are part of Ecopetrol
S.A.'s strategy of strengthening its presence in this basin.
Ecopetrol's investment in these 12 blocks is estimated at US$370 million
during the initial phase of exploration over the next three years, which
includes the minimum mandatory commitments and the additional investment
offered in the round.
Following the verification of documents and analysis of the information
submitted by the companies, the ANH expects to award the blocks on November
26, followed by the signing of contracts between November 27 and December 21
We expect the results obtained in Round Colombia 2012 to strengthen
Ecopetrol's strategic position, and to signal that major oil companies have
confidence in Ecopetrol, which should contribute to our strategy that aims at
increasing reserves and achieving production of 1.3 million by 2020.
The following is a summary of the 12 blocks:
Block Basin Companies Share of Expected Type of Block
ANH (%) Investment
PUT13 PUT Ecopetrol 7% $ 1.6 Type 2 – Conventional
S.A. Continental and
URA4 URA UT Anadarko 3% $ 0.6 Type 2 - Conventional
Ecopetrol Continental and
PUT17 CAG - Ecopetrol 1% $ 31.8 Type 3 - Conventional
PUT S.A. Continental and
COR46 COR UT EM – ECP 1% $ 55.1 Type 3 - Conventional
AMA4 AMA UT Ecopetrol 1% $ 43.7 Type 3 - Conventional
Hocol Continental and
COL5 COL UT Anadarko 1% $ 11.5 Type 3 - Conventional
Ecopetrol Continental and
GUAOFF1 GUA OFF UT Repsol 1% $ 28.5 Type 3 - Conventional
Ecopetrol Continental and
CAT3 CAT Ecopetrol 1% $ 3.0 Type 2 – Unconventional
COR62 COR UT ECP – EM 1% $ 22.1 Type 2 – Unconventional
VMM5 VMM Ecopetrol 1% $ 11.8 Type 2 – Unconventional
VMM16 VMM Ecopetrol 1% $ 6.0 Type 2 – Unconventional
VMM29 VMM UT ECP – EM 1% $ 3.5 Type 2 – Unconventional
Cartagena, Colombia, October 18 of 2012
Ecopetrol is Colombia's largest integrated oil & gas company, where it
accounts for 60% of total production. It is one of the top 50 oil companies in
the world and the fourth largest oil company in Latin America. The Company is
also involved in exploration and production activities in Brazil, Peru and the
United States Gulf Coast, and owns the main refineries in Colombia, most of
the network of oil and multiple purpose pipelines in the country,
petrochemical plants, and is entering into the biofuels business.
This release contains forward-looking statements relating to the prospects of
the business, estimates for operating and financial results, and those related
to growth prospects of Ecopetrol. These are merely projections and, as such,
are based exclusively on the expectations of management concerning the future
of the business and its continued access to capital to fund the Company's
business plan. Such forward-looking statements depend, substantially, on
changes in market conditions, government regulations, competitive pressures,
the performance of the Colombian economy and the industry, among other
factors; therefore, they are subject to change without prior notice.
Contact us for any additional information:
Media Relations (Colombia)
Phone: + 571-2345377
SOURCE Ecopetrol S.A.
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