FX.co ★ Ecopetrol, Occidental Extend Joint Venture Of Permian Basin Development

Ecopetrol S.A. (EC) recently announced that its subsidiary, Ecopetrol Permian LLC, along with Occidental Petroleum Corporation, has agreed to extend the development plan for Rodeo Midland Basin LLC in the Permian Basin, Texas. This collaborative venture, initiated in July 2019, now encompasses a new drilling schedule comprising 34 additional wells set to commence from April 2025 and continue through June 2026, supplementing the previously planned drillings slated for early 2025.

The agreement also allows for the potential expansion of the Development Plan based on shifting macroeconomic factors, industry trends, and the alignment of the partners' interests. Concurrently, the existing independent contract for developing the Delaware sub-basin will remain active until 2027, ensuring sustained operations within that area.

For the coming year, Ecopetrol Permian has outlined a strategy for 2025 that involves drilling nearly 91 development wells in both the Midland and Delaware sub-basins, with an anticipated investment of $885 million. This undertaking is projected to achieve an average annual production output of approximately 90,000 barrels of oil equivalent per day.

Ecopetrol's stock is currently valued at $9.61, reflecting an increase of 3.61% or $0.34 on the New York Stock Exchange.