May 27, 2013 witnessed the signing ceremony taking place between Sinochem Petroleum Exploration and Production Co., Ltd. and Ecopetrol respect to the joint exploration activities in the three new blocks, namely Nogal, Cardon and Manzano.
Manzano block, Cardon block and Nogal block are located in Caguan basin in Caqueta Province. According to the assignment, Sinochem Group’s subsidiary Emerald Energy PLC will own 50% equity in each block, and act as operator in Nogal block and Manzano block, while Ecopetrol will own the rest of 50% equity in each block, and hold the operatorship in Cardon block. The assignment is still subject to ANH approval.
National Hidrocarbons Agency (ANH) of Colombia has already signed the exploration and development contracts with Emerald Energy PLC.
The aforementioned blocks are located in a key area of Ecopetrol’s exploration strategic region in Caguan-Putumayo basin. At present, Ecopetrol already holds notable working interests of PUT17 block, Samichay A block and Samichay B block within this region, while Emerald Energy PLC, as the operator in Ombu, Durillo and Ceiba blocks, has conducted production and operations in this region since 2006, and has become one important strategic partner to Ecopetrol.
This signing ceremony marked the further cooperation between Sinochem Group and Ecopetrol. In addition, these three blocks under the Agreement have the similar geological conditions with such blocks as Ombu, Durillo and Ceiba, which will facilitate the joint operations and create scale effect in this region, and help Sinochem acquire more development opportunities in Colombia.