BRAZILIAN GOVERNMENT APPROVES ECOPETROL OLEO E GAS DO BRASIL LTDA'S PARTICIPATION IN BLOCK BM-S-73 I

With the issuance of resolution 1078/2010 on December 16, 2010, by the National Oil, Gas and Biofuel Agency-ANP, Ecopetrol S.A., through its affiliate Ecopetrol Oleo E Gas do Brasil LTDA, confirms its participation in the offshore concession for Block BM-S-73 in Brazil. The request for approval of the concession came as a result of the signing of the participation agreement with ONGC Campos Ltda. and Petroleo Brasileiro S.A. - Petrobras - which also included an exchange of a portion of interests in Block BM-S-74, with these two companies.
The offshore concession is located in Santos Basin, Block S-M-1413, and covers an area of 160.04 square kilometers. The concession is part of Brazil's Ninth Licensing Round and is currently in exploratory phase.
The agreement calls for Ecopetrol Oleo E Gas do Brasil LTDA to have a 13% stake in the block; Petroleo Brasileiro S.A. - Petrobras -, 43.5%; and ONGC Campos Ltda, which will be the operator, the remaining 43.5%.
The agreement represents a further step in Ecopetrol's international expansion, specifically in Brazil, and is part of its strategy to attain a production level of 1.0 million clean barrels of oil equivalent a day by 2015, and 1.3 million clean barrels per day in 2020.
Source: Press release