UPDATE 2-Colombia says Ecopetrol closes Hocol deal

Wed May 27, 2009 8:16pm EDT
 
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(Recasts with Holcol details)

BOGOTA, May 27 (Reuters) - Colombia's state oil company Ecopetrol ECO.CN(EC.N) on Wednesday closed a $742 million deal to purchase a local unit of France's Maurel and Prom (MAUP.PA) and neared closure on a refinery purchase as part of its expansion plans.

As part of the deal to buy the French company's Hocol affiliate, Ecopetrol paid $162 million in working capital. Hocol produced 15,000 barrels per day last year, but expects to reach 22,000 bpd this year.

Ecopetrol earlier said it had "practically closed" a deal to buy a majority stake in a Cartagena refinery project from Swiss-based Glencore for $549 million.

Mines and Energy Minister Hernan Martinez said the contract for the deal would be ready this week for Ecopetrol to acquire 51 percent of the refinery project.

The refinery is to be expanded from its current 75,000 barrels per day to 140,000 bpd as part of Colombia's plan to become self-sufficient in gasoline and expand its petrochemicals industry.

Martinez said the government could also sell part of the refinery project in shares on the stock market.

Ecopetrol, which is 89.9 percent owned by the Colombian state and listed on the New York and Bogota markets, plans to invest $6.2 billion in 2009 and is looking to spend up to $10 billion to purchase overseas assets in the next six years as it expands its international operations. (Reporting by Javier Mozzo in Bogota; Editing by Christian Wiessner, Gary Hill)

 

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