Ecopetrol, Gran Tierra Agree 20-Year Oil Production Contract Extension

As operator, Gran Tierra Energy will invest $123 million during the first three years, and both companies expect to drill new wells

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Bogotá — Ecopetrol and Canadian company Gran Tierra Energy have agreed to extend for 20 years their incremental hydrocarbon production contract in the Suroriente block, located in the municipality of Puerto Asís, in Putumayo.

The two companies will continue to work together in the 36,000-hectare block, with conditions that, among others, establish a 52% participation for Ecopetrol and 48% for Gran Tierra, which has been the partner-operator of the Suroriente block since March 2019.

The new agreement allows investment in infrastructure and programs to increase the recovery factor in the block, which currently reports total production of 7,327 barrels of oil per day in the Cohembí, Quillacinga and Quinde fields.

During the first three years of the extended contract, Gran Tierra will invest $123 million to execute an activity plan to extend the useful life of the fields, which have a reserve potential of more than 10 million barrels of standard crude, according to Ecopetrol estimates.

“We are making history with our ally Gran Tierra, through this new opportunity to work hand in hand, add more barrels and contribute to the territorial development of the area of influence. We have a rigorous work plan with which, we are sure, we will achieve very positive results in terms of reserves and production,” said Zaring Joemy Ocampo, vice president of subsidiaries and assets with partners of Ecopetrol.

Ecopetrol is Colombia’s largest company and one of the largest integrated energy companies in the Americas, with more than 18,000 employees.

In Colombia, it is responsible for more than 60% of hydrocarbon production, most of the hydrocarbon transportation, logistics, and refining system, and has leading positions in petrochemicals and gas distribution.

With the acquisition of 51.4% of ISA’s shares, it participates in energy transmission, real-time systems management, and the Barranquilla-Cartagena coastal road concession.

Internationally, Ecopetrol has presence in strategic basins in the American continent, with E&P operations in the United States (Permian Basin and Gulf of Mexico), Brazil and Mexico, and through ISA and its subsidiaries has leading positions in the energy transmission business in Brazil, Chile, Peru and Bolivia, road concessions in Chile and telecommunications.