Colombian state-controlled petroleum producer Ecopetrol’s (NYSE: EC, BVC: ECO) US subsidiary Ecopetrol America has reached an agreement with US petroleum supergiant Chevron Texaco (NYSE:CVX) to buy into the Mississippi Canyon Block 726 oil field located in US waters in the Gulf of Mexico. By selling participation to Ecopetrol, Chevron reduces its participation to 21.43%, with Hess keeping its majority 57.14% share and operational responsibility.
Operating partner Hess announced last week a strike in the Esox-1 well.
Last week, experts from Chevron & Ecopetrol announced the find by Hess (NYSE: HES) in waters 1,405 meters (4,609 feet) deep. Drilling shows 58 meters of undersea sands bearing light crude. The find is 10 kilometers away from the Hess owned Tubular Bells deepwater project.
“This transactions that we did with a level one partner like Chevron permits us to strengthen our presence in one of the highest potential sources in the world, the US waters of the Gulf [of Mexico] and to continue our strategy of growth in production and reserves,” said Ecopetrol president Felipe Bayón.
“This acquisition formalizes an exploratory operation that we have ben part of since the beginning, and in which Hess, another world class partner, recently reported a high-quality petroleum discovery that we will have in production in a few months.”
In US waters of The Gulf of Mexico, Ecopetrol says that it participates in 51 blocks. Between January & September of 2019, Ecopetrol America production reached 13,200 barrels per day, representing an increase of 14% over the same period a year before.
Above photo: The Ocean Black Rhino drill ship used to drill the well.