BOGOTA, Sept 16 (Reuters) - Colombia’s state-run oil company Ecopetrol and U.S.-based Occidental Petroleum Co will invest up to $2 billion over 10 years to increase production at the La Cira-Infantas oil field, in a bid to reach output of 50,000 barrels per day, Ecopetrol said on Wednesday.
Ecopetrol and Occidental, also known as Oxy, have jointly operated the field, located in a central area of the Andean country, since 2005.
The new investment will increase output from La Cira by more than 200 million barrels over the next decade, Ecopetrol said in a statement. Production has already increased from 5,000 bpd to 40,000 bpd during the last 10 years.
“The development in our alliance with Oxy has increased production at La Cira-Infantas by almost ten times,” Ecopetrol CEO Juan Carlos Echeverry said in the statement.
“We are pleased to start this new era,” he added, “a key part of Ecopetrol’s strategy to increase reserves and production in the coming years.”
Colombia, Latin America’s fourth-largest oil producer, recorded an average output of 966,000 barrels of crude per day in August. Ecopetrol accounts for more than half of the country’s production. (Reporting by Julia Symmes Cobb and Luis Jaime Acosta; Editing by Diane Craft)