Ecopetrol Finalizes Agreement to Acquire Repsol's Stake in CPO-09 Block

Ecopetrol Acquires Repsol's Stake in CPO-09 Block

In a significant move for the Colombian oil and gas landscape, on December 29, 2024, Ecopetrol S.A. finalized the acquisition of Repsol’s 45% interest in block CPO-09, situated in the Meta department. This agreement marks a pivotal point for Ecopetrol, as it now exclusively owns this critical asset located in the strategic Piedemonte Llanero region.

Details of the Acquisition

The block encompasses various municipalities, including Villavicencio, Acacías, Guamal, Castilla La Nueva, San Martín, Lejanías, El Dorado, El Castillo, and Granada. The negotiations concluded under the terms of the Joint Operating Agreement (JOA), which afforded Ecopetrol a right of first refusal following a previous arrangement between Repsol and Geopark announced on November 29.

With this acquisition, Ecopetrol anticipates a sizeable addition of approximately 41 million barrels to its reserves and an expected daily production increase of about 7,000 barrels of oil. This move is not only a testament to Ecopetrol’s strategic growth initiatives but also enhances its operational foothold in the Llanos Orientales basin, a prominent oil-producing area in Colombia.

Steps Following Acquisition

In order to finalize the deal, Ecopetrol must navigate through the requisite regulatory processes with the National Hydrocarbons Agency and the Superintendency of Industry and Commerce. The company is poised to initiate these necessary procedures shortly, ensuring that all legalities are properly addressed.

Ecopetrol's Commitment to Energy Sustainability

Ecopetrol’s acquisition reflects its broader commitment to the future of Colombia's energy sector. The company underscores the role of hydrocarbons as a pivotal resource in maintaining energy sustainability while progressing towards a fair and responsible energy transition. This dual focus is essential as the country navigates the complexities of energy demands and environmental responsibilities.

A Leader in the Colombian Energy Sector

As the largest enterprise in Colombia, Ecopetrol stands as a major integrated energy company across the Americas, with a workforce exceeding 19,000 employees. The company plays a crucial role in the country’s hydrocarbon production, contributing over 60% to national outputs, while also leading in transportation, logistics, and refining sectors. Additionally, Ecopetrol’s strategic investments, such as the acquisition of 51.4% of Interconexión Eléctrica S.A. (ISA), extend its influence into energy transmission and other infrastructure support across Colombia and neighboring countries.

International Operations

On an international scale, Ecopetrol's operations showcase drilling and exploration ventures in key regions including the United States—specifically in the Permian Basin and the Gulf of Mexico—as well as Brazil. Moreover, the company has secured significant ground in power transmission across Brazil, Chile, Peru, and Bolivia, alongside notable engagement in the telecommunications sector, further indicating its diverse portfolio and ambitious global strategy.

In conclusion, the acquisition of Repsol's stake in block CPO-09 cements Ecopetrol's leading position in the Colombian energy domain while reinforcing its planning for the future in an energy landscape that increasingly favors sustainable and responsible practices.