Assam Company to enter oil exploration in Columbia
24 Feb 2011
Oil and gas exploration firm Assam Company India Limited will invest $8 million on exploring hydrocarbons in Columbia under farm-out agreement with Sismopetrol and R3.
Under the agreement, Assam Company will explore the oil block known as ANH EL Triunfo, located in Casanare, in Colombia. The block size is 10,200 hectares and contains one discovery well (La Cabana), the company said in a filing with the Bombay Stock Exchange (BSE).
As per the agreement, Sismopetrol and R3, which together own 100 per cent share in the ANH EL Triunfo oil block, will transfer 70 per cent of its working interest to Assam Company India Ltd (ACIL) and will retain the balance 30 per cent share in exchange for ACIL drilling one well.
Going forward, ACIL will carry out exploration and production of the oil field in Colombia on a 70 (ACIL):30 (Sismopetrol) basis.
Subject to ANH approval, ACIL will be the operator of the block.
Colombia's ambassador to India Juan Alfredo Pinto made the announcement. He said the investment would be made under a memorandum of understanding (MoU) signed between the company and the Colombian government.
"This is new proof of the confidence that our country has in India, where Colombia is known for its democratic stability, consistency in macroeconomic management and its positive environment for foreign direct investment," Pinto said.
