Ecopetrol farms into Eni's Gulf of Mexico assets

Colombia's state-owned Ecopetrol will acquire a 20-25% stake in Eni SPA's exploration portfolio in the Gulf of Mexico.

Uchenna Izundu
International Editor

LONDON, Nov. 24 -- Colombia's state-owned Ecopetrol will acquire a 20-25% stake in Eni SPA's exploration portfolio in the Gulf of Mexico. It will pay more than $220 million to cover Eni's drilling costs for five wells by Dec. 31, 2012.

Eni described the partnership as a "strategic agreement" that would help it to better manage and diversify its exploration risk.

The company has lease interests in 408 blocks within the gulf, 70% of which are in deep water. Last year it had an 80% exploration success rate and has a daily equity production of more than 100,000 boe.

Both companies also signed a memorandum of understanding to evaluate other farm-in opportunities for Ecopetrol from Eni's exploration portfolio. Ecopetrol will also offer Eni access to opportunities in Colombia and other South American countries.

Contact Uchenna Izundu at uchennai@pennwell.com.

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