Gran Tierra Energy Inc. and Ecopetrol SA renegotiated the terms of a contract for the Suroriente block in the southern Putamayo region of Colombia, extending the contract by 20 years.
The new terms allow for long-term investment in infrastructure and work programs to enhance oil recovery efficiency in existing fields, and appraisal drilling to potentially prolong the life of the fields, Gran Tierra said in a release Apr. 11.
Gran Tierra will continue as Suroriente operator and will commit capital investment of $123 million over a 3-year period from the agreement's effective date.
Gran Tierra became operator of Suroriente in March 2019 with a 52% working interest. Ecopetrol holds the remaining 48%.
Gran Tierra has increased production to an average 8,167 b/d of oil in first-quarter 2023 from an average 6,203 b/d of oil in February 2019. The company also has expanded the Cohembi EOR project.
Suroriente's first-quarter 2023 average gross production of 8,167 b/d of oil was its second-highest quarterly average production since second-quarter 2015, despite no development wells being drilled since first-quarter 2018.
The agreement is subject to conditions including regulatory approval by the Superintendence of Industry and Commerce of Colombia.
