BATON ROUGE, LOUISIANA (Steve Stewart, Energy Analytics Institute, 3.Feb.2025) — Ecopetrol Permian LLC and Occidental Petroleum Corp (Oxy) extended development of their Rodeo Midland Basin LLC, located in the Permian Basin (Texas, USA).
Ecopetrol and Oxy originally established the Rodeo joint venture (JV) in Jul. 2019.
The prolific Permian contains massive hydrocarbon reserves and is 1 of the most productive basins in the world, with robust infrastructure for the development of oil projects.
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The extended development plan entails drilling 34 wells between Apr. 2025 and Jun. 2026, in addition to those being executed under the current development plan for the first months of 2025, Ecopetrol announced 3 Feb. 2025 in an official statement.
The agreement between the 2 companies maintains the possibility of signing a new extension of the development plan in the future, subject to the macroeconomic environment, industry situation, and partners’ interests.
Ecopetrol and Houston-based Oxy will maintain an independent contract for the development of the Delaware sub-basin, which will remain in force until 2027.
Rodeo JV 5 years strong
Ecopetrol Permian and Oxy have achieved positive operational and financial results in the Permian Basin after 5 years of operations. These results have assisted to boost Ecopetrol’s production and earnings before interest, taxes, depreciation and amortization or EBITDA.
Ecopetrol Permian’s 2025 Plan for Midland and Delaware sub-basins includes drilling 91 development wells, with an estimated investment of $885mn and an average annual production of 90,000 barrels of oil equivalent per day or boe/d (net to Ecopetrol Permian).
This plan aligns with Ecopetrol’s business strategy around capital discipline and the diversification of its portfolio.
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By Steve Stewart reporting from Baton Rouge. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.