Eni SpA (E), Italy's biggest energy company by market value, said Thursday it has signed two partnership deals with Colombian state-controlled Ecopetrol (ECOPETROL.BO) on exploration activity, as it aims to boost its assets in South America.
In a statement, Eni said the first deal will allow Ecopetrol to farm into Eni's current U.S. Gulf of Mexico exploration portfolio. Eni will give the Colombian company a 20%-25% working interest in at least five wells to be drilled in deep waters by the end of 2012.
Ecopetrol will invest and carry a portion of Eni's drilling costs for more than $220 million.
"Besides increasing our presence in one of the most encouraging regions for oil and gas production, the alliance allows Ecopetrol to diversify risks and to acquire knowledge and technology to develop projects in deep waters," Ecopetrol Chief Executive Javier Gutierrez said in a statement.
The second agreement is a memorandum of understanding aimed at boosting cooperation between the companies. A joint team will be set up to assess further farm opportunities for Ecopetrol from Eni's exploration portfolio. Ecopetrol will also offer Eni access to opportunities in Colombia and other Latin American countries.