Oxy, Ecopetrol Midland basin JV receives US approval

Oct. 22, 2019

A joint venture of Occidental Petroleum and Ecopetrol has received needed approval from US regulators to move forward with the development of 97,000 net acres of Oxy’s Midland basin properties in the Texas counties of Midland, Martin, and Howard.

OGJ editors

A joint venture of Occidental Petroleum Corp. and Ecopetrol SA has received needed approval from US regulators to move forward with the development of 97,000 net acres of Oxy’s Midland basin properties in the Texas counties of Midland, Martin, and Howard.

The deal, expected close by yearend, was reported July 31 (OGJ Online, Aug. 1, 2019).

The JV allows Oxy to accelerate its development plans in the basin where it currently has minimal activity. The deal enables Ecopetrol to book some 160 million boe of proved undeveloped reserves at closing while strengthening shale development capabilities that could be utilized in Colombia, said Felipe Bayon, Ecopetrol chief executive officer and president.