Yesterday, the Colombian Superintendence of Industry & Commerce (SIC) issued resolution 12785 of 2020 authorizing the sale of Chevron’s(NYSE: CVX) interest in the Chuchupa and Ballena petroleum fields in La Guajira, Colombia to Ecopetrol (NYSE: EC) subsidiary Hocol. The fields are currently owned 43% by Chevron and 57% by Ecopetrol, and operational responsibility will now shift from Chevron to Ecopetrol.
“This is an important step in the realization of our strategy to strengthen the company and in our intention to be one of the leading gas companies in northern Colombia. For Hocol, this transaction represents the growth of its offshore operating capacities and the sources of income from a gas production asset. We remain committed to continue generating value for the country and for the environments in which we operate, as well as contributing to the supply of gas for the north of Colombia, ”said Rafael Guzmán, President and CEO of Hocol.
“We received this news with joy and we are aware that we are in the midst of a health emergency that impacts all Colombians. We have been acting with the greatest responsibility, rigorously applying the necessary protocols to safeguard the health of our workers, contractors, and communities in the area of influence, and we ratify our commitment to the development of La Guajira.”
Chevron said in a statement that it will continue evaluating new opportunities for growth in Colombia. The company, through its Texaco unit continues to hold a significant downstream presence in Colombia with over 500 Texaco service stations and a broad line of Chevron, Ursa, Havoline, Delo & Texaco lubricants, fuels and additives in the auto, trucking, aviation, and industrial sectors.
Image courtesy of Hocol