Occidental and Ecopetrol form US$1.5bn joint venture

OCCIDENTAL Petroleum and Colombian state-run oil company Ecopetrol have entered into a US$1.5bn joint venture for development in the Permian Basin.

The JV will see the two companies develop 39,000 net hectares of Occidental’s holdings in the Permian shale field. It will allow Occidental to accelerate its development plans and will allow Ecopetrol to have access to 160m bbl of undeveloped resources.

"We are excited to partner with one of the largest operators in the Permian Basin, especially one we have worked successfully with for so many decades," said Ecopetrol CEO President Felipe Bayon. "This is a key step to enhance our reserve base and production growth whilst we strengthen our capabilities in shale development and bring this technology to Colombia for the economic benefit of the country."

Occidental will own a 51% stake while Ecopetrol will own 49%. The deal is expected to close around the end of the year.

Occidental has also just completed its acquisition of Anadarko in a US$55bn transaction, after approval of the transaction by Anadarko’s shareholders on 8 August.