Photo: Illustration; Photo by: Zoran Tarade (used under permission from photographer)

Shell completes buy of three blocks off Colombia

Oil major Shell has completed a 50 per cent stake acquisition in three Colombian deepwater oil and gas blocks from Ecopetrol.

Shell entered the acquisition deal with Ecopetrol for a 50 per cent stake in Fuerte Sur, Purple Angel, and COL-5 blocks back in February 2020.

Ecopetrol said that the three blocks, located in the Colombian Caribbean deepwater, were bought by Shell’s subsidiary Shell EP Offshore Ventures Limited.

The location of the blocks is considered a new gas province, which includes the Kronos, Purple Angel, and Gorgon wells.

Ecopetrol said that the transaction was closed on 23 December by Shell’s subsidiary Shell EP Offshore Ventures Limited.

The transaction is aligned with the strategic priorities of Ecopetrol’s business plan, focused on reserves and production growth under strict capital discipline.

With the closing of this transaction, the relationship with a strategic partner, highly experienced in the development of offshore areas, such as Shell, is also strengthened”, the company said.

As a result of the acquisition, which includes the financing of Ecopetrol’s investments by Shell, the latter will assume the operation of the blocks.

Once approvals from authorities are received, drilling of an appraisal well in the area will be done by the end of 2021 and the first production test will be completed.

If these activities provided positive results, the discoveries could be further developed and consequently, expand the country’s gas supply in the medium term, potentially exceeding 3 tcf.