French Oil Company Sells Colombia Assets

Paris-based Maurel & Prom (M&P) is selling assets of its Colombia subsidiary Hocol Petroleum to Ecopetrol for $748m in cash. Proceeds will be used for exploration. M&P is keeping explorations assets including permits for the Muisca, Sabanero, SN-9 and Tangara blocks in Colombia, its 26.35% stake in Lagopetrol in Venezuela, and an exploration permit for block 116 in Peru and interests in Brazil. A company spokesman declines to state whether a bank was hired to assist in the sale. Ecopetrol recently announced it is also acquiring Glencore’s 51% stake in the Cartagena refinery for $549m. In January, Ecopetrol says it planned to spend $870m on acquisitions this year, a number it has already surpassed. The Colombian state oil company said last week it plans to sell up to $8.1bn in bonds through its first public debt placement for over 10 years. Issuance could happen in the international or domestic markets, and proceeds are earmarked for funding investments over the next 3 years.