01 July 2010 18:01 [Source: ICIS news]
HOUSTON (ICIS news)--Colombia’s Ecopetrol assumed direct operation of the Cupiagua and Cupiagua Sur petroleum fields just after midnight local time on Thursday, Ecopetrol said in an announcement on Thursday morning following the takeover.
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Ecopetrol assumed sole operation of the fields at the midnight expiration of a 28-year multi-party arrangement under the
BP Exploration Company-Colombia and BP Santiago Oil Company had held 31% and Tepma had held the remaining 19% of the expired contract.
The northern section of the Cusiana field, which also had been governed by the
Current production at the Cupiagua and Cupiagua Sur fields is approximately 26,000 bbl/day, which will help meet Ecopetrol’s goal of increasing production 12% annually and producing 1m bbl/day of oil equivalent (including gas output) by 2015.
Together with Cusiana, the Cupiagua and Cupiagua Sur fields were the largest finds made in
The start-up of sole operations by Ecopetrol calls for a 12-point increase from 20% to 32% in royalty payments from basic production, as set forth in Law 756 of 2002. Also, the province and municipality will increase the amount of resources they receive for development.
About 18 months before expiration of
Ecopetrol and BP will continue as partners, with BP as operator, in the contracts governing the Cusiana, Floreña, Recetor, Volcanera and Pauto fields, the announcement said. The joint operations are scheduled to end between 2016 and 2020.
Ecopetrol expects to invest US$28m (€23m) this year in the drilling of a new well at Cupiagua, the company said.
It also said it will invest an additional $284m in the Gas Cusiana facility to increase the facility’s gas treatment capacity by 70m cubic feet per day (mcfd) and liquefied petroleum gas (LPG) production by 6,900 bbl/day.
($1 = €0.82)
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