By OGJ editors
HOUSTON, Apr. 23 -- Occidental Petroleum Corp. signed an agreement with Colombia's national oil company, Ecopetrol, to extend Oxy interest in the Cravo Norte association contract for operation of Colombia's second largest oil field at Caño Limón.
The contract, which was to expire in 2008, was amended to extend through the economic life of the field, currently estimated at least through 2018. Oxy will remain operator of the Caño Limón field, and Ecopetrol will continue to operate the Caño Limón-Covenas export pipeline.
Under the amended terms, Oxy will undertake a 2004-2007 program that includes drilling some 40 additional development wells, shooting a 3-D seismic survey, expansion of water handling facilities and new power generation facilities at Caño Limón. In addition, Oxy agreed to invest in new exploration projects during the same period.
Gross production from Caño Limón averages 95,000 b/d. Oxy's net share after partner and royalty interests is approximately 33,000 b/d.