Under the transaction, Ecopetrol gets 30% interest, while Shell divests its stake from 80% to 50% and Total retains the remaining 20%


Image: Ecopetrol acquires 30% of the Gato do Mato discovery in Brazil's Pre-Salt. Photo: Courtesy of rawpixel from Pixabay.

Colombian integrated oil company Ecopetrol, through its subsidiary Ecopetrol Óleo e Gás do Brasil, has signed an agreement with Shell Brasil Petróleo to acquire 30% interests, rights and obligations for two blocks in Pre-Salt, Brazil.

The blocks included in the acquisition are associated with the BM-S-54 Concession Agreement and the Sul de Gato do Mato Shared Production Agreement, located offshore in Santos basin, Pre-Salt, Brazil.

Ecopetrol president Felipe Bayon said: “Joining this discovery in the Brazilian Pre-Salt with world-class companies is part of our growth and internationalization strategy, focused on high potential basins such as Santos in Brazil.

“This acquisition balances our production portfolio by adding light hydrocarbons. In 2018 we announced the entrance into the Pre-Salt, an area with one of the greatest potential in the continent. Today we strengthen our presence by being part of a discovery that will give us production in a few years.”

Three wells drilled in the two blocks have discovered light hydrocarbons

Under the transaction agreement, the company is entitled to 30% interest, while Shell divests its stake from 80% to 50% and continues as an operator, and Total retains the remaining 20%.

Ecopetrol said that the Brazilian government would also participate in the Shared Production Agreement through Pré-Sal Petróleo (PPSA), while the oil companies proportionally maintain their respective percentages following the discounting of the share.

In addition, the company estimates that under its share, it could produce a total of approximately 20,000barrels per day of crude in 2025.

The transaction agreement between Ecopetrol Óleo e Gás do Brasil and Shell Brasil Petróleo is subject to the approval of assignment to Ecopetrol by Brazil’s Ministry of Mines and Energy, National Agency of Petroleum, Natural Gas and Biofuels and other customary transaction conditions.

The company said that the agreement complements its strategy of capital discipline and sustainable growth in reserves and production and is expected to strengthen its position in the Santos basin in Brazil.