Ecopetrol sells 50% share in Offshore International Group

FILE PHOTO: A storage tank is seen at Ecopetrol's Castilla oil rig platform, in Castilla La Nueva, Colombia June 26, 2018. REUTERS/Luisa Gonzalez

BOGOTA (Reuters) - Colombia’s majority state-owned oil company Ecopetrol has sold its 50% stake in Offshore International Group (OIG) via a share purchase agreement with a subsidiary of De Jong Capital LLC, it said on Tuesday.

The divestment follows a successful bidding process carried out by Ecopetrol and its partner Korea National Oil Corporation with a number of offers being made, the company said in a statement.

Following the purchase, De Jong Capital LLC will hold 100% of OIG’s share capital, Ecopetrol said. OIG is the parent company of Savia (Peru), as well as a number of other companies in Peru and the United States.

The value of the deal was not disclosed.

The transaction forms part of Ecopetrol’s plan for divesting non-strategic assets and follows the company’s priorities of strict capital discipline, protection of cash, cost efficiency, and profitable growth, it said.

Reporting by Oliver Griffin; Editing by Shri Navaratnam