Chevron has signed an agreement to sell its participation in two natural gas production fields in Colombia to state-run oil company Ecopetrol’s subsidiary Hocol.
As part of the deal, the company will sell its interests in the Ballena and Chuchupa fields.
Located in the Colombian department of La Guajira, these fields are currently operated by Chevron through the Guajira Association Contract.
Ecopetrol already owns 57% of the Chuchupa and Ballena fields while the remainder belongs to Chevron.
Under the deal, Chevron is selling the stake it owns to Ecopetrol’s subsidiary.
As part of the acquisition, Hocol will also take the position as operator of the fields.
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By GlobalDataHocol president and CEO Rafael Guzmán said: “We are committed to continue generating value to the country and the environments where we operate, as well as contribute to the gas supply for the Colombian north coast.”
Both Chevron and Hocol have not disclosed the financial details of the transaction.
The transaction is, however, is subject to approval by the Colombian regulator Superintendency of Industry and Commerce (SIC).
It may also be subject to the current production figures of the Chuchupa and Ballena fields, said Reuters.
In Colombia, Chevron produces natural gas in partnership with Ecopetrol. The company’s production activities in the country are focused on the onshore Ballena field and offshore Chuchupa field.
The Ballena natural gas field is in the province of La Guajira, while Chuchupa is located in the Caribbean Sea.
Government figures revealed that Colombia had gas reserves equivalent to 9.8 years of consumption at the end of last year.