Parex to invest $250M for 50% stake in Ecopetrol’s Magdalena Basin fields
Parex Resources will invest $250 million over five years to acquire a 50% stake in Ecopetrol’s Casabe and Llanito blocks, producing 14,900 bpd and holding three billion barrels of oil in place. No upfront cost is required, with production sharing contingent on completing the capital programme and regulatory approvals.
1. Agreement Overview
Parex Resources will acquire a 50% participating interest in Ecopetrol’s Casabe and Llanito blocks under a joint agreement that requires no upfront payment. The Canadian company commits $250 million over five years, earning production rights once its $125 million carry capital and regulatory approvals are secured.
2. Asset Profile
The Casabe and Llanito concessions currently yield approximately 14,900 barrels per day of medium crude and contain over three billion barrels of oil in place with sub-15% recovery rates. Mature-field status combined with reprocessed 3D seismic data highlights significant upside potential through enhanced recovery.
3. Development Programme
Phase one allocates $125 million as carry capital, with Parex set to drill the first horizontal well in H2 2026. Planned optimisation techniques include reservoir repatterning, waterflood strategies and future polymer or CO₂ injection to improve recovery factors.
4. Operational and Financial Structure
Following phase-one completion and National Hydrocarbons Agency approval, capital expenses will be equally shared. Parex will lead all new drilling and development projects, while Ecopetrol maintains operational control of existing production and infrastructure tied to the Barrancabermeja refinery.