Shell to join Ecopetrol in developing Colombian Caribbean gas province

Colombian oil and gas company Ecopetrol and Royal Dutch Shell are joining forces to develop the newly discovered offshore Colombian Caribbean gas province.

In this connection, Shell, through its subsidiary, Shell EP Offshore Ventures agreed to acquire a stake of 50% in the Fuerte Sur, Purple Angel, and COL-5 blocks. These Colombian Caribbean deep-water blocks contain the Kronos (2015), Purple Angel and Gorgon (2017) wells.

As per the commercial agreement signed by the parties, Shell will finance Ecopetrol’s investments in the Colombian Caribbean blocks.

Shell will also take up the operatorship of the blocks and will handle the drilling of an appraisal well in the area by the end of next year, and the completion of the first production test, after receipt of approvals from the concerned authorities.

Ecopetrol said that if the activities deliver positive results, then the Colombian Caribbean discoveries can be developed further and subsequently expand the gas supply of Colombia in the medium term, potentially crossing an estimated three tera cubic feet.

The agreement signed by Ecopetrol and Shell is subject to approval from Colombia’s National Hydrocarbon Agency and the meeting of other customary transaction conditions.

Shell to join Ecopetrol in developing Colombian Caribbean gas province. Image courtesy of Clker-Free-Vector-Images from Pixabay.