ExxonMobil Inks Contract For Oil Exploration In Block COL-4
Zacks Investment Research | Apr 04, 2019 07:59AM ET
Per the Colombian government, Exxon Mobil Corporation (NYSE:XOM) and Columbia’s Ecopetrol S.A. (NYSE:EC) have inked a 50-50 joint contract individually with Spain’s Repsol (MC:REP). The agreements include the exploration of oil and gas in offshore blocks in the Caribbean.
Per Colombia's energy department, the contracts are expected to generate a combined investment in excess of $700 million. Repsol will remain the operator in the blocks — COL-4 block and GUA-OFF-1—alongwith ExxonMobil and Ecopetrol, respectively.
ExxonMobil and Repsol will split participation in the COL-4 block, which is located 60 miles north of Bolivar province. Also, Ecopetrol and Repsol are partners in the GUA-OFF-1 block north of La Guajira province, wherein the participation will be split evenly. The blocks are spread across an area of 400,000 hectares (988,000 acres).
Ecopetrol’s contract for GUA-OFF-1 marks the second offshore deal inked by the company with the Colombian government in 2019. GUA-OFF-1 also represents the company’s fifth offshore block in the country.
Contractual terms for offshore exploration were recently altered by the Andean country that started a permanent bidding process to boost the oil sector, which is languishing. Modifications to the contract have attracted several oil majors like Royal Dutch Shell (LON:RDSa) plc Zacks Investment Research
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