Eric Watkins
Senior Correspondent
LOS ANGELES, Mar. 25 -- Spain's Compania Espanola de Petroleos SA (CEPSA) has purchased exploration and production rights for the Caracara block in Los Llanos, Colombia, from local firm Hupecol Caracara LLC for an undisclosed sum.
The block, which produces more than 20,000 b/d, holds 40 million bbl of oil in an area covering 47,200 hectares, Cepsa said.
It said the acquisition is in line with its strategic plan, which includes investing about $1.8 billion during 2008-12 to maintain or increase Caracara's reserves and production level.
After receiving government authorization, CEPSA will operate the Caracara block and hold a 70% stake. Colombia's state-owned Empresa Colombiana de Petroleos will hold the remaining stake.
Contact Eric Watkins at hippalus@yahoo.com.
