Noble buys into Shell’s Colombian Offshore Fields

Noble Energy has acquired a 40% stake in Shell’s offshore oil and gas blocks in Colombia, the South American country’s energy agency ANH announced late on March 26.

As part of the deal, the US company will take over exploration operations at the COL-3 and GUA OFF-3 blocks, which cover around 880,000 hectares. Earlier this month, as Shell signed off on exploration and production contracts on the two blocks, ANH had said Shell would lead the push. 

The energy agency’s president, Luis Miguel Morelli, sought to make the most of the swift about-face. “It is a serious bet of two large companies on the Colombian offshore potential,” he said in a statement, “which will surely bring progress and well-being for the Caribbean region as a whole.”

The ANH said it expects the two companies to spend over $100mn in exploration and development in this first phase. However, Morelli suggested investment could expand to $650mn in further phases.

“Noble Energy will operate these blocks with Shell as a member of the contract,” said the general manager of Noble Energy Colombia, Ian Gordon. “We hope to drill our first well after analysing in more detail the prospects and obtaining the corresponding approvals from the government," he said.

Shell's president in Columbia Ana Maria Duque said: “We have received all the relevant approvals on behalf of the government, and this is a very important step to continue exploring the Colombian Caribbean and building win-win relationships with communities and authorities.”