By OGJ editors
HOUSTON, Dec. 22 -- ChevronTexaco Corp. subsidiary ChevronTexaco Petroleum Co. and Colombian national oil company Ecopetrol signed an agreement in mid-December extending their existing Guajira Area A Association contract and continuing natural gas production in Colombia's northeastern coastal region.
Under the existing contract, which will expire at yearend 2004, the two companies each own 50%. The extension agreement allows ChevronTexaco to continue its equity participation beyond 2004 but with a 43% interest in exchange for financial and technical benefits to Ecopetrol, which will hold the remaining 57% interest.
The extension agreement, which is for the commercial life of the fields, provides the framework for further investment to develop and produce remaining natural gas reserves in the contract area.
ChevronTexaco operates Chuchupa field offshore and Ballena field onshore in Guajira State. These fields together produce 500 MMcfd of gasmore than 80% of the natural gas consumed in Colombia, ChevronTexaco said.