OGX Petroleo e Gas Participacoes S.A., the Brazilian oil and gas company conducting the largest private exploratory campaign in Brazil, announced it signed concession agreements with the Colombian government for five oil exploration blocks.
OGX, controlled by Brazilian billionaire Eike Batista, signed the accords with Colombia’s National Hydrocarbons Agency, or ANH, after acquiring rights to these blocks in a bidding round last June in the Colombian city of Cartagena, OGX said in a statement late Monday.
OGX said it signed exploration and production agreements for the blocks VIM-5, in the Lower Magdalena Valley basin, and VMM-26 in the Middle Magdalena Valley basin. In addition, technical evaluation agreements were signed for blocks CR-2, CR-3 and CR-4, in the Cesar-Rancheria basin, it said. As a result, OGX will commence operations in three new areas of high exploratory potential.
“Signing these agreements represents our entry into another exploratory cycle in a new frontier,” said Paulo Mendonca, OGX General Officer.
OGX said it is in the process of contracting companies to provide seismic data and expects to begin initial exploratory activities in blocks VIM-5 and VMM-26.
(Diana Kinch / Dow Jones Newswires)
