Talisman and Ecopetrol have reached an agreement to acquire all of the outstanding shares of BP Exploration Co. (Colombia) Ltd (BPXC), an indirect wholly owned subsidiary of BP plc, for total cash consideration of USD 1.9 billion, which includes a working capital adjustment, estimated at approximately USD 145 million.
Under the terms of the transaction, Talisman will acquire a 49% interest in BPXC for USD 858 million (excluding its share of working capital), while Ecopetrol will take the remaining 51% interest. The transaction is expected to close by the end of 2010, subject to Colombian and US regulatory approval and other customary conditions.
The transaction includes BPXC's interests in the Tauramena (31%), Rio Chitamena (31%), Recetor (50%) and Piedemonte (50%) association contracts. BPXC also holds a 40.56% interest in the RC4 and RC5 exploration blocks offshore Cartagena.
The transaction also includes BPXC's interests in the Cusiana gas processing facility and interests in four pipelines, totaling some 1600km of crude and 400km of gas pipelines, including a 24.8% interest in the OCENSA crude oil pipeline. Talisman will hold a 49% indirect interest.