Repsol has signed two E&P contracts in Colombia with ExxonMobil Corp and state-owned oil company Ecopetrol. The two contracts will generate some $700 million in investment, the national hydrocarbons agency (ANH) said in a statement.
“Five and counting. @ANHColombia @ECOPETROL_SA, @exxonmobil, and Repsol sign two new contracts for offshore exploration and production in Colombia”
— ANH Colombia (@ANHColombia) 3 de abril de 2019
Regarding the first contract, Repsol will operate the GUA-OFF-1 block, which it will split evenly with Ecopetrol. This block is located 78 kilometers north of La Guajira province and covers a surface of 400,000 hectares.
Repsol will also operate the second block, COL-4, which covers a surface of 400,000 hectares and is located 100 kilometers off the coast, near the departments of Bolivar. The Spanish oil company will splint it evenly with ExxonMobil, the ANH said.
Great interest in Colombia’s Caribbean
“From Repsol the signing of these contracts shows our interest in continuing exploration activities in the Colombian Caribbean and in contributing to maintaining the energy sustainability of the country,” Giancarlo Ariza Merello, Repsol’s director of exploration for Colombia and the western Caribbean said in a statement.
So far in 2019, the AHN has signed five E&P contracts in Colombia’s offshore blocks in the Caribbean. If these projects are fully developed, it would generate an investment of over $1.6 billion, the organism assured.
Colombia has proven reserves of 1.7 billion barrels, equivalent to 5.7 years of consumption; meanwhile, its gas reserves amount to 3,896 giga cubit feet for 11.7 years of consumption, according to the Ministry of Mines and Energy.
In detail, the country hopes to increase its oil reserves by 1,000 million barrels with the high-potential 20 blocks it auctioned for exploration activities.
The Colombian coast will also be a site for gas extraction
This block is right next to the Tayrona exploration and production site, where Repsol made it first deepwater gas discovery in Colombia.
“The singing of this contract reaffirms our commitment to intensify offshore production in search for new oil and gas reserves for the company and the country with first-rate partners,” Ecopetrol chief executive Felipe Bayon said in the statement.
The Colombian state-owned company performed geological and geophysical surveys, as well as seismic data processing in order to determine the area’s prospectivity.
After the findings, Ecopetrol turned the block into an exploration and production contract, the fifth of its kind in Colombia’s Atlantic coast along with Fuerte Sur, Purple Angel, Tayrona, and COL-5.
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