Colombia's Ecopetrol Set to Increase Presence in U.S. Gulf Coast

BOGOTA--Colombia state oil firm Ecopetrol SA (EC, ECOPETROL.BO) said Monday that it had placed the most competitive bids for six blocks auctioned in the U.S. Gulf Coast, part of the company's efforts to widen its exploration efforts beyond Colombia.

Ecopetrol said in a statement that U.S. authorities will announce the official awarding of the blocks in the coming months after the final bids are reviewed. Ecopetrol placed the bids by partnering with Murphy Exploration & Production and Repsol E&P USA Inc., an affiliate of Spanish oil firm Repsol YPF SA (REPYY, REP.MC).

The total bids were for about $40 million, with Ecopetrol's stake at approximately $12.75 million.

Ecopetrol has moved in recent years to broaden its exploratory efforts overseas, focusing partly in the U.S. Gulf Coast. The Colombian company said that with the new blocks it would be present in 122 blocks in that region through partnerships with other large oil firms.

The company's oil production reached a record 743,000 barrels a day in the first quarter of this year, up 8% versus the first quarter of 2011.

Ecopetrol's shares were down 3.5% in morning trading while the benchmark Colcap index declined 1.6%.

Write to Darcy Crowe at [e-mail]