(Alliance News) - Gran Tierra Energy Inc late Tuesday said it signed a contract agreement with Ecopetrol SA, Colombia's largest oil company, extending a contract by 20 years.
Gran Tierra, a Calgary, Canada-based oil and gas explorer & producer, said it renegotiated terms and duration of the contract for the Suroriente block in the Department of Putamayo in the southwest of Colombia.
The two companies agreed that the contract for Suroriente, which was due to run out in mid-2024, receives an extension of 20 years. Gran Tierra is committing to a USD123 million investment programme over a three-year period, starting from the effective date of the new agreement which is yet to be determined, as it continues to be the operator of Suroriente.
Gran Tierra has been the operator of the block since 2019.
Gary Guidry, Chief Executive Officer of Gran Tierra, said: "By securing the agreement, Gran Tierra can now commit to long-term capital projects and development programs with plans of optimizing the oil recovery and value for the Suroriente block. We believe the combination of Gran Tierra's robust operational expertise in the Putumayo Basin and Ecopetrol's technical knowledge will continue our joint success in the Suroriente Block."
Shares in Gran Tierra had closed up 3.2% at 80.00 pence each in London on Tuesday.
By Tom Budszus, Alliance News reporter
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Gran Tierra (GTE)