ChevronTexaco and Ecopetrol sign extension agreement for the Guajira
Area A Association contract in Colombia
Posted: 16 December 2003
Agreement allows for further development of natural gas
reserves
ChevronTexaco's Colombia subsidiary, ChevronTexaco Petroleum Company,
and Ecopetrol, the Colombian national oil company, today signed
an agreement to extend their existing Guajira Area A Association
contract and continue natural gas production activities in the northeastern
coastal region of the country.
The two companies each own a 50 per cent interest in the existing
contract, which is set to expire at the end of 2004.
The extension agreement allows ChevronTexaco to continue its equity
participation beyond 2004. Under the new contract, ChevronTexaco
will hold a 43 per cent interest in exchange for financial and technical
benefits to Ecopetrol, which will hold the remaining 57 per cent
interest.
"ChevronTexaco is committed to Colombia and is pleased to
have the opportunity to continue a relationship that has existed
for more than 75 years," said George Kirkland, president of
ChevronTexaco Overseas Petroleum.
"We are proud of our history and contribution to the country
through the production of energy, creation of jobs and the development
we have brought to the Guajira region. This agreement allows us
to maximize, and potentially grow, the value of our base natural
gas business in Colombia for ChevronTexaco and our partner, Ecopetrol."
The extension agreement is for the commercial life of the fields
and provides the framework for further investment to develop and
produce the remaining natural gas reserves in the contract area.
ChevronTexaco Petroleum Company and Ecopetrol currently produce
more than 80 percent of the natural gas consumed in Colombia. The
gas comes from Chuchupa, the country's only offshore field, and
Ballena, an onshore field located in Guajira State.
Together these fields produce approximately 500 million cubic feet
of gas a day.
The Guajira Extension contract replaces the Incremental Catalina
Contract signed between ChevronTexaco and Ecopetrol on 8 February
2003.
The Guajira Extension contract was developed in conjunction with
Ecopetrol in response to the Government of Colombia's determination
that contract extensions are the correct approach for the type of
activities contemplated for the contract area.
ChevronTexaco's history in Colombia dates back to the late 1920s,
when the company began exploration activities. Today, ChevronTexaco
operates the Ballena and Chuchupa fields. ChevronTexaco is active
in the retail gasoline marketing industry in Colombia where there
are 310 Texaco-branded service stations. In addition, through a
joint venture, ChevronTexaco provides jet fuel to Colombia's major
airports.
About ChevronTexaco
Based in San Ramon, Calif., ChevronTexaco is the second-largest
U.S.-based energy company and the fifth largest in the world, based
on market capitalization. More than 53,000 ChevronTexaco employees
work in approximately 180 countries around the world, producing
oil and natural gas and marketing fuels and other energy products.
For more information see www.chevrontexaco.com.
Posted by Richard Price,
Editor Pipeline Magazine
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