Colombia, Korea Firms Take Peru Oil Asset

Colombia’s Ecopetrol and Korea National Oil Corp (KNOC) have acquired Offshore International Group, a Houston-based company whose main asset is Petro-Tech Peruana, for $900m. Each buyer is acquiring a 50% stake. Ecopetrol, which had announced plans to invest $870m on acquisitions this year, paid cash, according to a company spokesman who adds it has no debt. It is not known how the Korean company paid for its half and company officials were not available for comment. Financial advisors for parties involved were not disclosed, but an analyst who covers Ecopetrol says it has worked with Citi in the past. Citi did not return calls to confirm. Ecopetrol and KNOC say they intend to double Petro-Tech’s production in three years. Petro-Tech produces 12,000 barrels of oil per day. Ecopetrol, with BHP Billiton, has also increased its stake in offshore blocks Fuerte Norte and Fuerte Sur. As part of the deal BHP will assign to Ecopetrol 25% of its stake in the blocks, resulting in each company having a 50% stake in the blocks. No financial terms were disclosed.