The partnership between Ecopetrol Permian LLC and Occidental Petroleum Corp has agreed to extend their development activities concerning Rodeo Midland Basin LLC.
According to a news release, the joint venture was established in July 2019 under the entity Ecopetrol S.A. The agreement outlines a drilling plan for 34 wells located in the Permian Basin, scheduled between April 2025 and June 2026. The current development plan for wells is ongoing this year.
The news release states that if market conditions are favorable, there is a possibility of extending the agreement in the future. The endeavor has reportedly achieved positive operational and financial results for both companies after five years of operation in the Permian Basin. An independent contract for developing the Delaware sub-basin by Ecopetrol and Occidental remains valid until 2027.
Ecopetrol Permian plans to invest approximately $885 million for drilling around 91 development wells as part of its 2025 Plan for Midland and Delaware sub-basins, according to the news release. These wells are expected to produce up to 90 thousand barrels of oil per day, aligning with Ecopetrol Group's strategy, capital discipline, and portfolio diversification.