Ecopetrol, Parex ink Colombia Llanos basin alliance

Parex Resources and state-run energy firm Ecopetrol have signed an agreement to jointly explore hydrocarbons in Colombia's Llanos basin, the companies said on Thursday. 

Under terms of the deal, Parex said it "harmonized" the LLA-4-1, LLA-16-1, and LLA-121 blocks to become a 50:50 partner alongside Ecopetrol, with an option to jointly participate in two additional blocks. 

It also acquired a 50% share of exploration rights at the Sirirí acreage – home to the Gibraltar field – while agreeing to participate in an area of mutual interest that includes the Niscota exploration prospect.

In addition, Parex said it would work with Ecopetrol to "jointly unlock" transportation routes, benefiting from changes to regulations that allow existing oil pipelines to be adapted to accommodate gas. 

“We’re very pleased to seal this new alliance with Parex, a strategic partner in the development of the Piedemonte [area], one of the most important basins in the country as a source for gas supply,” Ecopetrol CEO Ricardo Roa said during the Arpel-Naturgas Week conference in Cartagena. 

Parex said the deal meant it was now a joint stakeholder with Ecopetrol in eight blocks spanning 500km with gas and crude oil resources. 

The Canadian company said the assets had already produced over 1.4mn barrels of oil and around 4Tfc (trillion cubic feet) of gas. It added that vast swaths of the area remained "largely unexplored." 

"The agreements signify progress in Parex’s long-term gas strategy to pursue under-explored liquids-rich plays, which are within an area that has existing infrastructure that can be leveraged to accelerate exploration and development following new regulations that have been approved by the Colombian government," the company said in a statement.