Wednesday, July 16, 2014

Global Impact: Royal Dutch Shell, Canada's Nexen, Colombia's Ecopetrol to Share 100 Million Barels of Oil Deep in Gulf

According to The Latin American Tribune, Colombia's state-controlled oil company, Ecopetrol, on Wednesday (July 16) announced a crude discovery at a well in the US component of the Gulf of México that it has been exploring in partnership with operator Royal Dutch Shell and Canada’s Nexen.

The Rydberg well is located 75 miles (120 kilometers) offshore in the Mississippi Canyon Block 525 and is expected to yield 100 million barrels of oil equivalent, Ecopetrol said in a press release.

The well is located in 7,479 feet (2,280 meters) of water and was drilled to a total depth of 26,371 feet (8,038 meters).

COMMENT: Shell has a 57% stake in the Shell Offshore Inc. partnership that made the discovery, while Ecopetrol America Inc. has a 28.5% interest and Nexen has the remaining 14.3% stake.

Ecopetrol said it is continuing to assess the results from this well, noting that in March 2014 it was awarded seven blocks near the find at Rydberg in the Central Lease Sale and plans to explore those areas in the near future.

The Gulf of México, where Ecopetrol earlier found crude at the Dalmatian and South Dalmatian fields and has recently acquired four new blocks, has become a “crucial territory” for the company’s internationalization process, the release said.