Ecopetrol strike follows Parex deal triggering potential $25m payment
EC•Parex Resources’ $500m acquisition of Frontera E&P assets includes assumption of a Quifa contract with Ecopetrol, triggering a possible $25m contingent payment if extended within a year. Colombia’s state-run Ecopetrol faces a 24-hour strike called by its main union USO over stalled collective bargaining negotiations.
1. Quifa Contract Contingent Payment
Parex’s $500m acquisition of Frontera E&P assets includes assumption of the Quifa contract with Ecopetrol and may trigger a $25m cash payment if that contract is extended within the first anniversary of closing.
2. Union Strike at Ecopetrol
Colombia’s main oil-sector union USO initiated a 24-hour walkout at Ecopetrol facilities over a deadlock in collective bargaining talks, risking short-term disruptions at refineries and production sites.
