SHV Holdings NV, a subsidiary of DYAS of Netherlands, has agreed to acquire from Ireland's Tuskar Resources plc a 10% interest in the privately owned share of Rubiales field in Colombia.
SHV will obtain the interest by spending $7.5 million for appraisal and development of the field through the commerciality process and start of production.
Tuskar expects commerciality to be granted by state owned Empresa Colombiana de Petroleos (Ecopetrol) early next year after drilling and production tests of three more Rubiales wells.
Drilling of the three wells, along with another well on the adjacent Manacacias concession, was scheduled to start late last month and take about 2 months.
A commerciality decision by Ecopetrol means the state company would participate for a 60% interest in the Rubiales block, which covers part of the field, and a 50% interest in the adjacent Piriri block, which covers the remainder. That would leave Tuskar/DYAS with about a 43% interest in a unitized field.
Tuskar Chairman Neil O'Donoghue said Rubiales holds total recoverable reserves of at least 350 million bbl, based on 13% recovery.
DYAS also holds an option to obtain an additional 10% interest in the Rubiales, Piriri, and Manacacias blocks at a cost of $12.5 million.
The option can be exercised within 1 year of a declaration of commerciality.
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