Shell, Ecopetrol to develop gas province in Colombian Caribbean

Feb. 7, 2020
Shell expects to drill an appraisal well in the deepwater Caribbean Sea offshore Colombia by the end of 2021 subject to government approval of an agreement to acquire a 50% stake in Fuerte Sur, Purple Angel, and COL-5 blocks from Ecopetrol SA.

Shell, through its subsidiary Shell EP Offshore Ventures Ltd., expects to drill an appraisal well in the deepwater Caribbean Sea offshore Colombia by the end of 2021 subject to government approval of an agreement to acquire a 50% stake in Fuerte Sur, Purple Angel, and COL-5 blocks in Sinu basin from Ecopetrol SA. Shell will assume operatorship.

In 2017, Gorgon-1 and Purple Angel-1 confirmed the extension of the gas reservoir discovered with Kronos-1 in 2015 (OGJ Online, July 30, 2015). The Gorgon discovery proved gas presence on a structure in the same geological trend of Kronos field, in zones with depths of 3,675-4,415 m below average sea level. Gorgon-1 is part of the Purple Angel block, which borders Fuerte Sur blocks (where Kronos-1 was discovered).

The confirmation of gas fields in the area opens the possibility for Colombia to develop a gas production specialized “cluster,” which would allow for sharing facilities and improving projects’ profitability and efficiency, Ecopetrol said at the time.

An April 2019 regulatory filing showed that, by December 2018, Ecopetrol has increased its participation to 100% from 50% in Fuerte Sur and Purple Angel blocks after they were relinquished by Anadarko Petroleum Corp. In Block Col-5, the National Hydrocarbon Agency (ANH) approved the conversion of a Technical Evaluation Agreement to an Exploration and Production Contract, where the company holds 100% interest.

Following the commercial agreement, which includes the financing of Ecopetrol’s investments by Shell, the discoveries could be further developed if the activities provide positive results, expanding the country’s gas supply in the medium term, potentially exceeding 3 tera cu ft, Ecopetrol said.

The agreement is subject to approval by the ANH and fulfillment of customary transaction conditions.