BOGOTA – Colombian state-controlled oil company Ecopetrol said on Wednesday it had reached an agreement with Canada’s Parex Resources to increase production and reserves at the Aguas Blancas field in the north-central province of Santander.
The deal will enable the recovery of 55 million barrels of light crude and increase the field’s output to 10,000 barrels per day by 2020, Ecopetrol said in a press release.
Under the terms of the agreement, Parex will invest around $61 million over the next three years to drill wells and develop a pilot secondary recovery program aimed at raising their production.
Total investment could rise to $700 million if that initial phase proves successful, with the Canadian company contributing 60 percent and Ecopetrol the remainder.
Located in the Middle Magdalena Basin, Aguas Blancas was discovered in 1962 and thus far has yielded a total of nearly 1 million barrels of light crude, the release said.
Earlier this month, Ecopetrol and Oxy Andina, a unit of Houston-based Occidental Petroleum, agreed to carry out a project aimed at increasing reserves by 200 million barrels at the La Cira-Infantas field, which is located south of Aguas Blancas and Colombia’s oldest.
Ecopetrol posted roughly $508 million in net income in the second quarter, down 42 percent from the same period of last year, a result the company blamed on sharply lower oil prices and guerrilla attacks on its infrastructure.