Colombia's Ecopetrol signs fresh deal with Parex for hydrocarbon exploration (updated)

Parex Resources

05/12/2025 13:07

Add details from agreement and context on prior deals

BOGOTA, Dec 5 (Reuters) - Colombian state-run energy firm Ecopetrol ECO.CN said on Friday it has signed a new agreement with Parex Resources PXT.TO for hydrocarbon exploration and production in the Piedemonte Llanero region.

Operations will take place in areas of existing contracts in the departments of Boyaca and Casanare, Ecopetrol added in a statement.

DEAL DETAILS

• The new deal adds to five others Ecopetrol signed in December 2024 with Parex for hydrocarbon development in two of Colombia's major basins.

• The agreement includes drilling the Florena Huron well, which is expected to increase the country's domestic natural gas supply.

• Civil works and drilling for the Florena Huron well are scheduled to begin in 2026.

KEY CONTEXT

• The five previous agreements projected investments of just over $400 million.

• Ecopetrol did not provide further details on the investment linked to the new agreement.

• In 2026, the companies will also begin drilling the Farallones exploratory well, which is part of a separate agreement announced last year.

• Ecopetrol plans to invest between $5.85 billion and $7.18 billion in 2026, including drilling 8 to 10 exploratory wells.

 (Reporting by Nelson Bocanegra; Editing by Aida Pelaez-Fernandez)

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