Ecopetrol Formalizes Joint-Exploration Contract of Brazilian Santos Basin

Today in Brasila, Felipe Bayón, president of Colombian state-controlled oil company Ecopetrol (NYSE: EC) (BVC: ECOPETROL), signed the firm’s joint exploration contract of the Santos Basin off the coast of Brazil.

The drilling rights give the Bogotá-based company a partial interest in the Pau-Brasil block within this potentially lucrative “pre-salt” zone. The joint bid was won by Ecopetrol along with BP and CNOOC in September in a major auction that saw leading oil companies from across the world gain interest in the basin.

Photo: Felipe Bayón (second from the right) signed the contract today in Brasila. (Photo credit: Ecopetrol)

BP will be the operator of the exploration and has a 50% holding in the block. CNOOC has a 30% interest, with Ecopetrol having rights to 20%

“We are very pleased to enter into one of the most important exploration areas in the world, the Brazilian pre-salt, together with world-class partners,” said Bayón.

Brazilian President Michel Temer was on hand for the contract signing along with the head of Brazilian oil company Petrobras and several other industry officials from both Colombia and Brazil.