An ExxonMobil spokesperson has confirmed to Rigzone that the company has exercised its right to withdraw from its joint operation agreement with Patriot Energy for block VMM37 in Colombia.
“We notified the National Hydrocarbons Agency of our intention to withdraw from the VMM37 exploitation and production contract and discuss the necessary next steps for the assignment of EM’s interest and the operation of VMM37, which is subject to required government approvals,” the spokesperson added.
Earlier this week, Sintana Energy Inc. noted in a statement posted on its site that ExxonMobil sent Patriot Energy Oil and Gas Inc., a subsidiary of Sintana, a notice stating that, based on the terms of the joint operating agreement between ExxonMobil and Patriot, had decided to withdraw from the JOA as of May 31, 2023.
The notice also indicated that ExxonMobil will withdraw from the contract with the National Hydrocarbons Agency, effective after obtaining the required government approvals, Sintana said.
“We are disappointed that our VMM37 partner of more than a decade, ExxonMobil, has voluntarily chosen to withdraw from both the JOA and the contract,” Sintana CEO Doug Manner said in a company statement .
Sintana notes on its site that the VMM37 block provides the company with a strategic position in the Middle Magdalena play “with exposure to significant unconventional resource potential.”
The Magdalena Mitjana is Colombia’s oldest producing basin, dating back to the discovery in 1918 of the giant La Cira-Infantas field complex (900 million barrels), Sintana points out on the site, adding that approximately two billion barrels of oil in the basin during the last century.
Instead, ExxonMobil points out that it has had a continuous commercial presence in Colombia for more than 100 years.
“We have a variety of ongoing exploration activities through our Bogotá-based subsidiary ExxonMobil Exploration Colombia Ltd.,” the company says on its site.
“We participate in the fuel and lubricant markets with the Esso and Mobil brands and we have been importing and selling industrial chemicals for several years,” he adds.
In January this year, ExxonMobil announced that it had reached an agreement with Bangchak Corporation to sell its stake in Esso Thailand, which includes the Sriracha refinery, select distribution terminals and a network of Esso-branded retail stations.
In its 2022 earnings statement, Exxon noted that its sales and divestments of non-core assets generated $5.2 billion in cash for the year.
To contact the author, please send an email andreas.exarcheas@rigzone.com
