Ecopetrol and Talisman Energy finalize the purchase of BP in Colombia and announce change of company name

abarrelfullabarrelfull wrote on 25 Jan 2011 10:07
Tags: colombia deals ecopetrol s-america talisman

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Once obtained the corresponding authorizations, Ecopetrol S.A. (Ecopetrol) and Talisman Colombia Holdco Limited (Talisman) completed today the acquisition of BP Exploration Company (Colombia) Limited for US$1.750 billion. Ecopetrol will have 51% of the new company and Talisman the remaining 49%.

"This transaction strengthens our operations in Colombia, especially in the Piedemonte Llanero, identified as one the areas with greater potential in Colombia. The most important thing for us is that we incorporate to our group the knowledge and expertise of more than 400 people, who are well known for their capacity to operate in an efficient and safe way and who have received several awards and distinctions for their leadership at BP" said the President of Ecopetrol, Javier Gutiérrez Pemberthy.

John A. Manzoni, President and CEO of Talisman Energy Inc. said: "These assets will be a cornerstone as Talisman looks to build a strong production base in Latin America over the next three to five years. We look forward to deepening our strategic relationship with Ecopetrol. Employees may be assured of our joint commitment as we work together to maximize the value of these assets and help the company grow. Those involved from all three companies should be very proud of their accomplishments in this transaction."

The shareholders also announced the new name of the company: EQUIÓN ENERGÍA LIMITED. The company assumes ownership of all assets and businesses that the BP subsidiary in Colombia held.

The Board of Directors of EQUIÓN in its first session appointed María Victoria Riaño Salgar as President of the company. Her business background includes a Business Administration degree from Universidad Javeriana and a background in the financial sector of the country as well as in Ecopetrol for the last 11 years. Her latest position was directing the mergers and acquisitions activities of Ecopetrol, including the recent acquisition by Ecopetrol of companies such as Savia Perú, Hocol and BP Exploration Company (Colombia) Limited.

Approximately 90 thousand barrels of oil equivalent per day (boe/d) are currently produced and operated, of which they have direct ownership of 27 thousand boe/d. Equión also has 2P reserves (proven and probable) of 94 million barrels before royalties.

The company is among the five largest oil producers in Colombia and among the three main natural gas producers. The operation of the company includes the equity interest that BP had in the partnership contracts Piedemonte, Rio Chitamena, Tauramena and Recetor contracts, which cover the fields of Cusiana, Cupiagua in Recetor, Pauto and Floreña.

Added to the previous assets are the interests in the exploration and production contracts RC4 and RC5, which have been signed with the Agencia Nacional de Hidrocarburos and which are located in the Atlantic coast of Colombia. In addition, the company operates the gas plant in Cusiana, processing more than 200 million cubic feet of gas to meet the demand for natural gas in Colombia.

EQUIÓN also assumes the interest that BP had in Oleoducto Central S.A.-Ocensa (24.8%), Oleoducto de Colombia (14.57%) and Oleoducto del Alto Magdalena (4.25%), as well as the 20% of Transgas de Occidente and the interest in Casanare gas plants.

Within the next few months, EQUIÓN will define its long-term business plan, in line with the strategies of Ecopetrol and Talisman, in which they will take advantage of the capabilities of their highly qualified team with industry-leading levels of industrial safety and environmental protection, backed up by more than two decades of operations in Colombia.

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