Ecopetrol and Shell join forces to work in the gas-producing province of the Colombian Caribbean

Ecopetrol and Shell EP Offshore Ventures Limited (“Shell”) signed an agreement whereby Shell will acquire a 50% interest in the Fuerte Sur, Purple Angel, and COL-5 blocks, located in the deep waters of the Colombian Caribbean, where the discovery of a new gas province was made with the Kronos (2015), Purple Angel, and Gorgon (2017) wells.

• Shell, a global leader in ultra-deepwater operations, gas development, and marketing, will participate with a 50% interest in three Ecopetrol blocks and will be the operating company.
• Gas discoveries of Kronos, Purple Angel, and Gorgon were made in the three blocks.
• The companies also aim to drill a new delineation well in the area of these discoveries.

Following the agreement, Shell will assume the operation of the blocks. The parties intend to drill a delineation well in the area by the end of 2021, once the respective approvals from the authorities are obtained, and conduct the first production test. If these activities are positive, the discoveries could be developed, thus expanding the gas supply for the country in the medium term.

“This agreement we have made with a top-tier partner like Shell, recognized for its experience in ultra-deepwater operations and in the development and marketing of high-impact gas projects, will allow us to verify the production capacity of these reservoirs and their potential future development. We are very pleased with this alliance that will lead us to increase reserves and production of an environmentally friendly fuel, key in the energy transition, and strengthen the strategic relationship with Shell, with whom we are already working in Brazil's Pre-salt and in the Gulf of Mexico (United States),” said Felipe Bayón, president of Ecopetrol.

“This position is a significant step for Shell in Colombia and South America. The agreement combines Ecopetrol's regional knowledge with Shell's experience in deep waters and comprehensive Natural Gas solutions. We have collaborated with Ecopetrol on multiple occasions since its inception, and we are very pleased to continue demonstrating our commitment of over 84 years working with Colombia on its energy resources,” said Ana María Duque, president of Shell in Colombia. 

Since 2019, Ecopetrol had begun the search for a new world-class operator partner for these blocks, after the previous operator relinquished its participation.

The agreement signed by Ecopetrol and Shell is subject to the respective approvals from the National Hydrocarbons Agency and other conditions typical of transactions of this nature.

Ecopetrol is the largest company in Colombia and is an integrated oil company, ranked among the 40 largest oil companies in the world and among the top four in Latin America. In addition to Colombia, where it generates more than 60% of national production, it has a presence in exploration and production activities in Brazil, Peru, and the United States (Gulf of Mexico). Ecopetrol has the largest refinery in Colombia, most of the country's pipeline and multiproduct pipeline network, and is significantly increasing its participation in biofuels.

This statement contains forward-looking statements related to business prospects, estimates for operational and financial results, and statements related to Ecopetrol's growth outlook. All of these are projections and, as such, are based solely on the expectations of management regarding the future of the company and its continued access to capital to finance the company's business plan. The realization of such estimates in the future depends on market conditions, regulations, competition, performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.

See the statement on the official Shell page

For more information, you can contact:

Ecopetrol:
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
Fax: +571-234-4480
Email: mauricio.tellez@ecopetrol.com.co

Shell:
Media Relations
Americas: +1 832 337 435
International: +44 207 934 5550