Ecopetrol Expands Permian Development With Occidental Petroleum: Details

Ecopetrol S.A. EC disclosed that Ecopetrol Permian LLC and Occidental Petroleum Corporation OXY have planned to extend the development plan for Rodeo Midland Basin in the Permian Basin (Texas, USA).

The agreement between Ecopetrol Permian and Occidental Petroleum, under the joint venture formed in July 2019, includes a drilling plan for 34 wells to be executed between April 2025 and June 2026, in addition to the ongoing wells planned for early 2025.

The companies have also left open the possibility of extending the Development Plan in the future, depending on the macroeconomic environment, industry conditions, and the interests of both partners.

Additionally, Ecopetrol and Oxy will maintain an independent contract for developing the Delaware sub-basin, which will remain effective until 2027.

For 2025, Ecopetrol Permian's development plan for the Midland and Delaware sub-basins includes drilling about 91 wells, with an investment of $885 million.

This initiative is expected to generate an average annual output of approximately 90,000 barrels of oil equivalent per day (net to Ecopetrol Permian).

This plan is in line with the Ecopetrol Group's focus on capital discipline and portfolio diversification.

In November, the company’s Board of Directors approved the Ecopetrol Group's annual investment budget for 2025.

Investors can gain exposure to EC via First Trust Indxx Global Natural Resources Income ETF FTRI and Virtus Real Asset Income ETF VRAI.

Price Action: EC shares are down 0.32% at $9.25 at the last check Monday.

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