Ecopetrol and Oxy Extend Their Development Plan in the Permian Basin
Ecopetrol Permian LLC and Occidental Petroleum Corp (Oxy) extend their agreement on the development of the Permian Basin, planning to drill 34 additional wells between April 2025 and June 2026. This extension aligns with the investment and expansion strategy of both companies.
| Sectors | Oil, Gas, Gas Exploration & Production, Exploration & Production |
|---|---|
| Themes | Investments & Transactions, Corporate Investment |
| Countries | Colombia, United States |
The agreement between Ecopetrol Permian LLC, a subsidiary of Ecopetrol S.A., and Occidental Petroleum Corp (Oxy) includes the extension of the development plan for Rodeo Midland Basin LLC, located in the Permian Basin, Texas. This extension will enable the continuation of drilling operations with the addition of 34 new wells between April 2025 and June 2026.
A Strategic Project in the Midland Basin
This development falls within the framework of the partnership established in July 2019 between the two companies. The goal is to optimize production in this region, which is among the most productive hydrocarbon areas worldwide. The financial and operational performance achieved so far has encouraged the partners to continue their collaboration in this strategic zone.
Investments and Production Plans for 2025
Alongside the Midland Basin project, Ecopetrol Permian has outlined a broader investment plan for 2025, which includes drilling approximately 91 development wells in the Midland and Delaware sub-basins. The total estimated investment amounts to $885 million, with an average annual production target of approximately 90,000 barrels of oil equivalent per day (net to Ecopetrol Permian).
Long-Term Prospects and Flexibility
The agreement also provides the possibility of a further extension of the development plan, subject to macroeconomic conditions and the industry context. Additionally, the separate contract for the development of the Delaware sub-basin remains in effect until 2027, ensuring continued operations in this region.
