Ecopetrol announces the agreement to purchase Repsol's 45% stake in block CPO 09

Rhea-AI Summary

Ecopetrol (NYSE: EC) has successfully negotiated the acquisition of Repsol's remaining 45% stake in block CPO-09, located in Colombia's Meta department. This strategic transaction makes Ecopetrol the sole owner of the asset, which spans across multiple municipalities in the Piedemonte Llanero region.

The acquisition is expected to add 41 million barrels to Ecopetrol's reserves and increase daily production by 7,000 barrels of oil. The deal, executed under Ecopetrol's right of first refusal within the Joint Operating Agreement, follows Repsol's previously announced transaction with Geopark on November 29. The completion of the transaction requires approval from the National Hydrocarbons Agency and the Superintendency of Industry and Commerce.

Positive

• Acquisition adds 41 million barrels to company's reserves
• Daily production expected to increase by 7,000 barrels of oil
• Becomes sole owner of strategic CPO-09 block
• Strengthens position in Llanos Orientales basin

Negative

• None.

News Market Reaction – EC

+1.72%

1 alert

+1.72% News Effect

On the day this news was published, EC gained 1.72%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

BOGOTA, Colombia, Dec. 30, 2024 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) (the "Company") announces that on Sunday, December 29, 2024, Ecopetrol successfully concluded negotiations with Repsol to acquire the remaining 45% of its stake in block CPO-09, located in the Meta department. With this transaction, Ecopetrol becomes the sole owner of this strategic asset in the Piedemonte Llanero.

This block is located in the municipalities of Villavicencio, Acacías, Guamal, Castilla La Nueva, San Martín, Lejanías, El Dorado, El Castillo, and Granada. The transaction was carried out under the right of first refusal granted to Ecopetrol within the framework of the Joint Operating Agreement (JOA) and is the result of the previously announced transaction between Repsol and Geopark on November 29.

With this acquisition, Ecopetrol expect to add approximately 41 million barrels to its reserves and estimates an increase in its daily production by approximately 7,000 barrels of oil. This operation strengthens Ecopetrol's position in the exploitation of the Llanos Orientales basin and consolidates its presence in the region.

To complete this transaction, it will be necessary to carry out the corresponding procedures before the National Hydrocarbons Agency and the Superintendency of Industry and Commerce, which we expect to undertake in the coming days.

Ecopetrol reaffirms its commitment to the country's energy future, highlighting the importance of hydrocarbons as a key resource for energy sustainability, while steadily advancing towards a fair and responsible energy transition.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.

For more information, please contact:

Head of Corporate Communications
Angela Maria De la Pava Londoño
Email: investors@ecopetrol.com.co 

Head of Press
Juan Pablo Pacavita
Email: juan.pacavita@ecopetrol.com.co

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SOURCE Ecopetrol S.A.

FAQ

How many barrels of reserves will EC gain from the Repsol CPO-09 acquisition?

Ecopetrol (EC) will add approximately 41 million barrels to its reserves through the acquisition of Repsol's 45% stake in block CPO-09.

What is the expected production increase from EC's CPO-09 block acquisition?

The acquisition is expected to increase Ecopetrol's daily production by approximately 7,000 barrels of oil.

What regulatory approvals does EC need for the CPO-09 acquisition?

Ecopetrol needs approvals from the National Hydrocarbons Agency and the Superintendency of Industry and Commerce to complete the transaction.

What percentage stake will EC own in CPO-09 after the Repsol acquisition?

After acquiring Repsol's 45% stake, Ecopetrol will become the sole owner (100%) of block CPO-09.

Where is the CPO-09 block that EC is acquiring located?

The CPO-09 block is located in the Meta department of Colombia, spanning across municipalities including Villavicencio, Acacías, Guamal, and others in the Piedemonte Llanero region.