Occidental Signs for Exploration Rights to Cosecha block
Occidental entered into an exploration and production contract with Ecopetrol for the Cosecha block in Colombia's Llanos basin. If a discovery is made on the block and Occidental chooses to develop the prospect, it will have production rights on the block for 22 years.
This is the standard period granted under the terms of Ecopetrol's liquid hydrocarbon association contracts. Occidental will have six years to exercise its exploration rights before moving on the production phase.
The exploration phase consists of an initial three-year phase during which the company must perform the exploration work program agreed with Ecopetrol. Additionally three more exploration years can be requested on a year-by-year basis by Occidental if it requires more time to analyze data.