By OGJ editors
HOUSTON, Mar. 10 -- Colombia's state Ecopetrol is to buy Hocol Petroleum Ltd. from Maurel & Prom, Paris, for $748 million.
The purchase would be retroactive to Jan. 1. Colombia's competition authority has to approve the deal.
Earnouts, one based on the level of proved and probable reserves of the potential Huron field in the Niscota license and another linked to the level of the price of oil, could raise the purchase price, Maurel & Prom said.
Maurel & Prom will retain a number of assets. These include the Muisca, Sabanero, and SN-9 exploration permits, the Block 116 exploration permit in Peru, 50% of Hocol's rights in the Tangara exploration permit in partnership with Ecopetrol and Talisman Energy Inc., Hocol's 26.35% stake in Lagopetrol in Venezuela, and, pending final agreement, Hocol's interests in Brazil.
Maurel & Prom bought Hocol, which has operated in Colombia for more than 50 years, in August 2005. Since then, Maurel & Prom has boosted the exploration side of the company in developing and in enlarging its mining rights. The most important success since 2005 has been the 2007 Ocelote discovery, which went on production in 2008.
Hocol's share of production was 15,358 boe/d in 2008 and 22,000 boe/d on Jan. 30, 2009.
Maurel & Prom will use sale proceeds to pursue its core exploration business.
