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Ecopetrol Óleo e Gás do Brasil Ltd., a subsidiary of Ecopetrol S.A., and Vanco Brasil Exploração e Produção de Petróleo e Gas Natural Ltd., a subsidiary of PanAtlantic Energy Group, have reached an agreement in which Ecopetrol will acquire a 30% interest in three exploration blocks -- BM-S-72 (formerly SM-1100), BM-S-63 (formerly SM-1036), and BM-S-71 (formerly SM-1035), in the Santos basin, offshore Brazil.
The transaction is subject to approval from the National Petroleum Agency.
Following this transaction, PanAtlantic will, through its Brazilian subsidiary, retain a 40% working interest in the concessions and continue as operator for the three-well drilling campaign, which commenced July 7 with the drilling of the Sabia-1X well in BM-S-72. Additional interests are held by Panoro Energy ASA, 15%, and Brasoil Round 9 Exploracáo Petrolifera Ltd., 15%.
Ecopetrol established the subsidiary Ecopetrol Óleo e Gás do Brasil Ltd. in 2006. The new Santos Basin blocks will add to the company’s Brazil portfolio, which includes participation in offshore exploration activities in eight blocks in the Para-Maranhao, Campos, and Santos basins.