Privately held Saudi Arabian company Nimir Petroleum Co. Ltd. has agreed to buy two Colombian units of Shell International Petroleum Co. Ltd.
The two units, Hocol SA and Homcol Inc., hold extensive exploration acreage and producing assets in Colombias Upper Magdalena Valley and Central Llanos basin as well as interests in two Colombian oil pipelines.
Shell, which invited offers for the two units early this year (OGJ, Jan. 16, Newsletter), expects to close the sale this month.
Terms of the sale were not disclosed.
Shell will retain a 25% interest in the Cravo Norte association contract in the northern Llanos area through Cia. Shell de Colombia. Cravo Norte is where Occidental Petroleum Corp. discovered and developed giant Cano Limon oil field, regarded as the turning point in Colombias bid to become a significant crude oil exporter.
Shell de Colombia also holds a 37.5% in the Samore association contract, currently under exploration.
Oxy operates both association contracts.
The deal with Nimir will not affect Hocol/Homcol operations or current and planned investments, Shell said.
The company also holds petroleum marketing and distribution interests in Colombia. Copyright 1995 Oil & Gas Journal. All Rights Reserved.