LatinNews Daily - 23 October 2019

* Colombia's state-owned oil company Ecopetrol has announced that its subsidiary Ecopetrol Óleo e Gás do Brasil Ltda has entered into an agreement with Shell Brasil Petróleo Ltda, a subsidiary of Anglo-Dutch oil major Shell, to acquire a 30% participation in the 'Gato do Mato' oil discovery located in Brazil’s 'pre-salt' offshore oil fields. This zone is considered one of the greatest in terms of hydrocarbon potential in the world. As part of the agreement Shell has reduced its participation from 80% to 50% while French oil company Total SA will maintain 20% participation. In an official press release, Ecopetrol’s president Felipe Bayón stated that the “acquisition allows us to balance our portfolio with a better quantity of light hydrocarbons”. The transaction is reflective of Ecopetrol’s strategy of sustainable growth in reserves, with the company estimating that by 2025 production could increase to 20,000 barrels of crude oil per day.

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